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tv   Tech Check  CNBC  May 19, 2022 11:00am-12:00pm EDT

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days, if we close here, this would be, david, a 52 week low, obviously. but it's the earnings story that's the big thing they are behind the curve, david, way behind the curve and the markets kind of sussed that out already. >> i'm not obsessed with technicals, just to put that out there. bob, thank you that's going to do it for "squawk on the street. tech check starts next. >> welcome to tech check today stocks continuing lower this week with almost half of the nasdaq now sitting at 50% or more below their 52 week highs what's the outlook from here we will discuss. plus some new friends for facebook a breakdown of the bold case for meta as shared sit 50% off of their highs. and cisco putting pressure on the software space, but low valuations for some of the
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smaller names. a takeover perhaps we'll kickoff with a check on the nasdaq. it is moving slightly higher after yesterday's brutal 4% retreat. a number of software names down following cisco, but first let's break down where we stand halfway through the day. mike >> we're hesitating, i guess you might call it in that nasdaq around the 30% level, down 30% from the highs just slightly above where we did bottom out last thursday here we have going back five years. the nasdaq composite along with a 100 day moving average this is the price over two years, slow moving supply and demand indicator i wanted to point out how far below it we're here. a greater percentage below it than the plunge in 2020 as well
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as the deep selloff back in late 2018 however, we were also farther above it here than we were at those peaks. so everything, whether you lack at valuation or technicals, yes, this has been a deep cut, a badly broken trend but also just giving back a lot of the overshoot to the upside. that's basically what i would argue. the three-year trailing return of the nasdaq 100 right now is still over 17% annualized. when you have the previous lows you got down to 9 or 1% annualized the point being you built up a lot of profits apple -- i was going to show apple, basically is just threatening that same 100 week moving average, around the 136 area this has held up better. the idea is when you sell the favorites is when a selloff is culminating. to some degree that's happening with apple, carl. >> mike, appreciate that
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giving us a starting point to talk about volatility and how much longer the markets are bracing for turbulence our next guest has been following those trends and said even though 71% followed qps, a number are slashing, bob peck, good to see you. >> thanks for having me. i'm looking for the day i can be back on the set. >> it'll happen soon we had chuck robins here today so the invitation is always there. talk to me about where you think guidance is headed whether or not earnings estimates are behind the curve and after we've done a lot of wood choppingping on valuation >> you had the nasdaq down 30% from the highs and s&p as well when you look at the s&p, the faang the top stocks, they're
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down 30% that's weighing on the indices and therefore the remaining stocks are down 12, 14%. what's driving that right now? far and away, number one it's been multiple seen valuations come back down here. in tech, for example, you had eb ebitda to multiple revenues double digits, you saw that pull down mid single digits or so and software being higher than that, close to 20 times revenues, coming down to double digits and fintech higher. you're seeing some contractions in the multiples to your point, the question of estimates, yes, you saw three quarters of reports come in and revenues and earnings beat but the problem was there was a two to one taking down of guidance, particularly on the eps side of things as companies struggled with supply chains, inflation, war impacts. i think that's right now leaving the question what is the true e
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going forward? you see the s&p 18 times pe and investors are wondering how solid is that e going forward? and could the p be a little bit higher >> right you list out there a number of concerns about inflation, volatility, china, russia. it seems like there's a long runway between where we are right now and the period in which clients come to you with cash and are interested in bolt on m&a, for example, in the internet space does that feel like it's a ways off? >> yeah, m&a is tremendous coming off a record year of all time, 6 trillion of m&a done last year. this year, year-to-date, suggests through april, down about 20% from last year but last year was all-time records if you look at us year to date versus the prior 10, 15 years we're on track to number three, number four for top year so m&a looks like it should be
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strong this year, partially driven by the valuations coming down and partially driven by the amount of cash if you look at the sponsors, the private equity players, they have 800 billion in cash waiting to be put to use and the spacs have $600 billion of capital trying to be put to use. you're talking $1.5 trillion of cash on the sidelines looking to take advantage of the falling prices and multiples on the market. >> bob, it's jon good to see you. maybe put it in the landscape of the news we've seen this week out of the likes of walmart and target who was big technology customers. the promise of the digital investments they've been making, these logistic investments, they're going to expand the customer base and drive loyalty, which seems why they're eating some of the costs now and not raising prices we're about to find out, aren't we, in the
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inflationary and possibly recessionary environment, which technology is worth it to pursue the aims this would be the first recession of the smart phone and cloud era, right >> absolutely. aps a really good point, a really great question. when you think of the offline names versus the online names you're having the meeting of the middle i think i take it back to what jeff bezos used to say, price, selection, and convenience for that customer. how easy can you make the experience, whether it be purchasing an item, returning an item, and having a good price on a vast selection what you see is hybrid or omni channel is ultimately the wave of the future. whoever can handle the customer, be most customer obsessed is set for a good win. >> are there metrics you're watching across the whole industry, i'm not going to ask about particular companies, that are going to indicate who's
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delivering from a software perspective, particularly from an internet service perspective on that promise but on the sort of cost side in making these customers more efficient and then on the targeting side, helping them more efficiently acquire customers in a tough environment? >> we look at things as far as size of baskets, repeat purchases, number of purchases where you can see the consumer up taking the service even more so and on the tech enablement side of things, the empowering, the ease and reach of consumer, being able to find the consumer with strong economics, the great value to customer acquisition costs being able to do that in a strong roa, roi for the ecommerce provider is really important. we look at all of that what you're seeing this new wave of optionality, whether it's the shopifys or awss of the world,
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is seeing these con summers take up and reach them in a more efficient way. >> walmart and target were the stories yesterday. and today it's cisco they had the full quarter of china covid lockdowns. he anticipates congestion when they do open again is that baked into earnings for other companies again? >> i saw the comments on your show when we talk to our client, the ceos, they're wondering how do we think about supply chain going forward, both on being able to get the product you want, as well as any inflationary pressure on getting the product being in front of the queue, or line there therefore, for investors they're looking at stories where the long term shipping products aren't the issue, right. it's more locally sourced or digital products that won't be
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as impacted but it's a question on investors' minds and one that investors are thinking can last throughout the year. >> bob, as we look at the m&a outlook, there's different kinds of companies emerging right now and investors are placing higher value on ones with a decent cash pile do you think some of the big ones, i'm thinking like an alphabet, can serve or preserve that cash or do you think they go out and try to do more deals? >> it's an interesting question. you have different targets in the marketplace right new. especially as private companies have started to adjust their view of what the valuation, maybe m a.m is their way out or their next step as we start thinking about what valuation can be you think about the mix, is it cash the entrepreneurs want or stock with a larger company they can parlay that? the other question is the large tech players, the googles, amazons, microsofts of the world is, with the regulatory
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environment how much will they be able to move nimbly maybe in the middle of the market youcan see companies have more flexibility. there's a lot of quote/unquote fallen angels right now that you can see larger companies take advantage of. >> we'll be looking to you, bob, for the next move in some of these chapters always good to start the hour with you, thanks so much, bob peck. >> thanks for having me. adding block to the list of fresh picks arguing it's the long term winner ahead, joining us now baird analyst david coning, who's out with an interesting note on recession resistance stocks. let's cover block first. you say it's the fintech trifecta, grows fast, is profitable, has net cash is this the only player with those kinds of metrics and why is this the one to bet on? >> yeah, it's a big cap stock. it's down significantly.
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a lot of the companies grow fast, net cash but this is profitable yesterday they focused on how the margins are strong and they're going to focus more and more on profitability over time. >> you used to here that about pa paypal, is this a call against paypal do you think that block is sort of eating its lunch or can both of those be good bets? >> they do different things but what's good about block right now is they do a lot of in person s&bs. as consumers go back to shopping in person, block does well and ecommerce there's a shift away right now with the mix. >> i think you're saying that block is the only rapid growth fintech with a reasonable pe at 38 times 2024 consensus eps. why is 38 times reasonable >> well, given how fast it grows and kind of the what if scenario
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they throw out there, there's so many ways they can grow over a long period of time. we've seen other companies trade high multiples too, master card and visa for years have held high multiples square and block can probably go faster since they're so early still. >> how dependent do investors need to think of block as being on the top line growth how much wiggle room do they have to be reasonable still if 38 times turns to 40, 45 times >> sure. probably the biggest disappointment that some people had yesterday was they didn't give firm long term revenue growth guidance. in our term they need to do 20, 25% for several years to fundamentally grow into the multiple but, you know, we think there's so much room for growth left >> david, thanks so much for your insights. we'll talk to you again soon. >> thank you coming up we're breaking down the outlook for tech
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valuations, rob crypto and moreh tim draper, that's next. "tech check" is just getting started. (mom allen) verizon just gave us all a brand new iphone 13. (dad allen) we've been customers for years. (dad brown) we got iphone 13s, too. switched two minutes ago, literally right before this. (vo) iphone 13 on us. on any unlimited plan. for every customer. with plans starting at just $35. all on the network more people rely on. - in the last two years, we quadrupled our team and the pace we're growing, i couldn't keep up without ziprecruiter. they do the legwork and they get my job posting in front of the right candidates. i love invite to apply. i instantly see great candidates and i can invite them to apply. we have hired across all departments, engineering,
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time now for gut check we'll look at cisco we talked about it earlier, more than 13% down on the heels of the big miss, but revenue came in under the consensus, it was the guidance that hit the company hard the company is placing blame on china's covid lock down and the war in ukraine the street is not liking what it is seeing. all cutting price targets, shares are down double digits this morning down about 33% year to date, jon. leading the way through volatility, our next guest has weathered tech stock storms where he remains a bull despite losing more than a quarter million dollars reportedly worth of bitcoin in the last few months
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joining us now tim draper. tim, good to see you again what do you think? are we headed into a recession >> first, thanks for having me on this show again, john and i think what's happening, it seems very similar to the dot com -- whatever, dot bomb, the bubble bursting. where for about six months the stock market fell about -- one day it would be 5% down then up 2%, 5% down, up 2% and it just slid for a long time and it happened because similar situation but it wasn't inflation. this time, it's inflation, it's a little more like '73, '74, where inflation was so high that the fed had to raise interest
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rates to get to a certain point. and where they could control the inflation. and i'm still a bull on bitcoin, because it's a great hedge against inflation and as the speculators leave, eventually it will diverge from the tech stocks >> how can you say it's a great -- >> i do believe tech stocks will continue down as long as the interest rates have to keep going up. >> tim, how can you say it's a great hedge against inflation, when it's down from the 60s to 29,000 in this inflationary environment, almost anything else, except growth stocks seems a better hedge against inflation so far >> it's a long-term hedge against inflation. bitcoin is a hedge against bad governance, too much regulation. it -- basically what it is is it represents -- to me it
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represents freedom and trust in that i am free to move bitcoin around the world and i am -- and i have the trust of hundreds of thousands of miners out there all watching over the block chain. >> tim -- >> where governments are printing more money and there will be a moment there where i can buy my food, my clothing and my shelter in bitcoin and then there will be no need for currency no desire for currency that's controlled by a government or banks. so it's going to be an interesting time. >> that's the promise. what you're laying out is the promise of cryptocurrency and bitcoin in particular. but it's been 13 years, even the experiment in el salvador hasn't work out the way the bulls thought it would. >> i just met with those guys in el salvador. i just met with high ranking
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officials in el- salvador. described the things going on in el salvador, it was extraordinary, i was jealous i was an american and i was jealous of another country el salvador is getting all this innovation, all these people are trying out new ways of using bitcoin, cryptocurrency. >> where do you see that the numbers i'm looking at, the usage has plunged even though the government made this full court effort to promote it >> that's not true. >> what numbers are you looking at >> their government numbers, i don't know i've been looking at numbers there. usage is exploding the innovators are all going there because our government is overregulating and so we're losing innovation because we have too much regulation
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and in this system -- you know, we're in a country here where two major stadiums are being promoted by cryptocurrency companies. and neither of them can operate in the u.s so we lost two major, huge opportunities there by being -- by overregulating. i think we've got a real problem in our country. >> why do you think we are here? some would maybe look at the stadiums and the enthusiasms behind cryptocurrencies as a warning, a red flag, why do you think we're in this moment that bitcoin has dropped below 30,000 and the promises are being re-examined and even investors who don't believe in the technological promise are treating it as an asset class that needs to be traded. it's lost its core principles.
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>> i think the speculators are looking at it that way i think the believers are going to hang on that's where the divergence is going to happen. where the big, high-tech companies that have grown at all costs, and a lot of costs, those big companies are going to get a lot of air taken out of them the markets for technology are going to fall. the speculators that came in to bitcoin are leaving now, and have left. and now, now it's really the believers and the believers are the whole -- they are just going to hang on and add to their positions. i think there will be a divergence and i think that's going to be a really good thing for bitcoin. >> certainly that's what certainly michael sailer wrote earlier in the week. i wonder the percentage of trade
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that's been retail has fallen over the last number of years and the argument goes the institutions that now make up more of the trade are more beholden to rates, more beholden to capital availability and why the correlation to equities and the nasdaq has gotten so high. do you agree >> institutions haven't really embraced bitcoin in fact, the banks have been pushing it off forever they're concerned because they feel threatened by it. and so they've not embraced bitcoin and other cryptocurrencies but if they want to survive, they will >> tim, we could talk -- >> no. i think institutions are looking and saying, oh, they're raising the interest rates so we have to get out of these higher priced stocks and we have to look for more earnings. >> we could talk bitcoin all day, but let's not let's move beyond that and maybe
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the thing that your next most excited about, outside of bitcoin, outside of crypto, what are you doubling down on in this environment? >> well, i have -- i've made a lot of recent investments in the decentralization of everything there's a company called unstoppable that allows you -- you could have a jon.crypto account and it can be free speech it can't be controlled by twitter, facebook, whatever, they can't take you off. and that's very exciting i believe that decentralization is going to take all of these industries are going to be transformed by the decentralization of efrlg everything i think that's a big deal. i think elon has broken the log jam of innovation, where all of
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a sudden there's all these innovators in rocketry and space, all these innovators in transportation and i also think in health care it's all going digital your diagnosis will generally be data driven, and your therapeutics will be using computational biochemistry i think this is going to be a really interesting transformation of our world. i think we, as humans, are going to go through an anthropological leap i think we have a lot of turmoil ahead for the next four or five years as we move from the old guard to the new guard the representatives are mostly old guard. >> we'll see how we get there with these financial markets for sure but we appreciate you giving us that peak into the future. tim draper, thank you. >> thanks for having me on the
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show. time for a news update >> good morning. sales of previously owned homes are slowing and prices are rising the national association of realtors reports this morning that sales fell 2.4% in april compared to march, hitting the lowest levels seen since june of 2020 the median house of a home sold is $391,000. prices are being supported by a continuing shortage of houses available to buy 32 years after mcdonald's attracted big crowds in moscow's first fast food restaurant, the burger chain found a buyer as it ends operations in that country, an existing franchisee is purchasing them and operating without the golden arches.
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har lee davidson is suspending production of bikes for two weeks due to a problem with a part supplied by another company. back to you. thank you. meta shares have plunged since january but the street is getting more bullish we'll talk about that story later this hour. a different social name feeling love, bumble up more than 17% in the last week. and in the green since late february while the nasdaq is down 15% don't go anywhere. another crazy day? of course it is—you're a cio in 2022. so what's on the agenda? morning security briefing—make that two. share that link. send that contract. see what's trending. check the traffic on your network, in real time, with the next generation in global secure networking from comcast business. lunch? -sure. you've got time. onboard 37 new people,
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one area of the market that is holding up this week would be video game stocks. steve joins us with the latest the word here is relative. >> yeah. relative we have gaming stocks i've been watching the past week and they're all holding up pretty well as the rest of tech t tum
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tumbles. row blocks up nearly 2%. and ea was slightly green. you have take two, that was effectively flat, call that a win given how the rest of the market looked. and all three are on pace to be positive this month of may interesting themes emerging since they reported earnings the last two weeks they all missed estimates but investors are optimistic growth has levelled off and comps are looking better roblox is better after they spoke about advertising plans. this week we had gap launch a virtual store in roblox roblox and then there's mobile gaming you have ea launching the mobile version of apex legends. and take two got the acquisition of zinga approved a few minutes ago. a report today, zinga is pi piloting to put mobile games in that app so that's a plus from them
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i read a note yesterday that said gaming can with stand any recession as people are driven back at home and spend more on games, which is an entertainment value, best thing for your buck. >> i apologize in advance you said metaverse so i'm triggered. roblox is down 75%, you say people are flooding in -- >> brands are flooding in. >> what does flooding mean given where it is? >> it's way off from the highs last fall, you're right about that but what's making people optimistic about roblox, they have a huge audience over 50 million people playing this game. it reminds me of the early days of facebook when they had so many users and didn't know how to monetize them so you have the ceo talking about puts ads in there and every week an announcement of a
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new brand going into the roblox metaverse, reaching people where they are sure stock is down, but a lot of people use this game every day and a lot of advertising brands are going to follow. >> did you have daus and bookings come in line for roblox which was a nice surprise. >> for sure. apple coming off the worst day since 2020, looking for the eighth straight decline. the average price target on the street, 189. so a lot of the sell side still counting on upside ahead dow is down 250. don't go anywhere. 6! aw... this'll take forev—or not. do i just focus on when things don't work, and not appreciate when they do? i love it when work actually works! i just booked this parking spot... this desk... and this conference room! i am filing status reports on an app that i made!
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welcome back almost half of all nasdaq stocks are down 50% from the 52 week highs. and while investors in the public markets might be feeling the pain, private equity firms licking their chops they have cash burning hole in their pockets. frank holland has the breakdown for us. >> private equity firms have more than 772 billion in power, funds not allocated for particular investment. and many analysts think we could see a growing wave of cloud, enterprise and cyber acquisitions by firms even after the last year or so, with bravo seeing the most activity bane says tech buyouts are about
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31% of the buyout markets. they say many companies are nearing a moment of capitulation where they have to accept the value of their company is lower than it was a few months ago zendesk is likely largely because they turned down a $16 billion offer from firms this year. they estimate about $20 billion could make it happen this time around only down 7% year to date. web bush says varonis is a hot stock, it focuses on data security shares up are the past week but still off the high and trading off 200 times earnings but the acquisition of mandion has increased the interest in cyber security and alteryx has long term growth challenges making a sale now potentially attractive
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back to you, carl. good set up, thank you we'll look at who else might be an m&a target. our next guest has highlighted candidates you did a piece a few weeks ago, some of these are strategic takeouts, some might be private equity can you talk about the rational and if you can, which names seem the most likely? >> yeah. absolutely thank you so much for having me. i think the rational is exactly as the introkicked off, a lot of names are off super high from the peaks. headed into a period with high inflation, interest rates and worried about recession. i think more and more the board of directors have to take the offers seriously from private equity at the same time i think some of the larger platform players, sales forces and microsofts and
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oracles and saps of the world are looking at the multiples coming down so much and saying this is a great time to start to consolidate some i.t. spend and take advantage of the major pullback we're seeing here when we think about what makes sense as acquisition candidates i think there's a slew across the board when it comes to strategic and private equity but really the common theme we're seeing is either companies that have had major pullbacks and those that would be just stronger as part of a larger platform dropbox is a name that we threw -- drew has taken the company far, but if dropbox were owned by adobe or owned by salesforce we think there's more they can do with the asset we think new relick, just at the new relic conference now, a private equity could look at, coupa another one. and zoom and docusign they were
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benefits of the pandemic but pulled back, that we think they're attractive to some big acquirers, namely salesforce. >> you mentioned some of the potential buyers, some have deals that are yet to close, does that preclude further bids and that has that picture gotten easier or harder from a regulatory standpoint? >> i don't think those deals made it harder microsoft made a deal with nuance and made the offer to buy acquisition which is the largest tech m&a deal ever i know salesforce has their hands full with slack, but these multiples coming where they are, salesforce is an inquisitive company. in terms of the regulatory environment, you know, it probably has gotten slightly more difficult, but i think the thing that we've seen is the
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regulatory bodies don't seem to care as much about enterprise software as they do about consumer technology. while the regulators come down on facebook, google or amazon trying to buy someone, that doesn't seem to be the case with anything related to enterprise software and especially if it's someone like salesforce or sap or oracle buying a mid cap name, i don't think regulatory is going to be a hurdle to make it happen. >> why do you think zoom and docusign are attractive? what are they buying in the technology or the users? it feels like the bigger tech companies are developing it themselves and can sell to their existing base of customers >> look, i think you are buying a combination of the technology and the penetration that they have within large organizations, as well as the nature of the tools. docusign a lot of other
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comp companies tried, namely adobe, their product is smaller than docusign and growing slower. there's clearly an edge there and i think it's valuable for salesforce to embed within the crm system, especially in a hybrid selling world zoom, microsoft is getting aggressive with teams but i think zoom that has the best video conferencing technology out there. if it gets owned by a larger company that has the ability to bundle in video with other collaborations, that increases zoom's competitiveness against microsoft. it's a good customer base and the ability to cross what is best in class technology alongside other solutions. >> major indices are at session highs dow off a quarter of a percent. s&p turned positive. and the nasdaq up 1% if you're a zoom, a dropbox
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founder led, why would you want to embrace p.e. in this environment? and if you wouldn't, should public market investors think of nonfounder led companies as more likely p.e. targets? >> yes, i think that's absolutely a fair case you're making i think founder like companies especially where there is a dual class share structure are unlikely p.e. candidates in the interim. it would be a company where it has been taken over by someone else is in charge and they're going to be more open to a sale and there isn't a dual class share structure. i do think, however, a coupa or a dropbox or zoom would be open to a strategic we've seen some great companies like slack being open to being taken out strategically at the right place. stuart has a very big role at salesforce as the head of slack, and i think that sort of promise
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makes strategic more likely but to your point that's why we look at a company like new relic or fastly because they're no longer founder led. >> that interview is exactly what we try to do here, very specific, rational and actionable appreciate it so much. >> thank you so much. speaking of software, keep an eye on synopsys today, it's the highest. shares popping double digits on the news as for the broader markets they are also popping the nasdaq is now up nearly 1.2% the s&p has turned positive crawling out of bear market territory. the dow slightly lower by about 120 points we are back in two, don't go away
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i.p.o., in that decade, the stock is up 400% compared to the nasdaq's run of 311% but the company faces a range of head winds from concerns of ad recession, all contributing to slowing revenue growth also they're losing millions of dollars as they invest in the metaverse projects but that's not stopping wall street from being bullish on meta shares. 73% of analysts have a buy rating on the stock. barclays today issuing a note we think facebook sets up as the best long idea right now in the group simply because estimates are likely to head upwards in coming prints compared to others in the group bank of america noting despite the risk of recession, it thinks meta is a good long term play. we think meta and alphabet have the most potential investment spending that could enable the
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companies to grow earnings in a moderate recession scenario. the stock is relatively cheap, too, if you're looking at the priced to earnings ratio, under 15 compared to the entire nasdaq which has a ratio of about 27. coming up later today, holding first ever whatsapp business event, where it will go over messaging on whatsapp and mark zuckerberg will speak at the keynote. we hope to learn whether that platform can be a real revenue driver for meta. >> we had the ten-year anniversary of the ipo, talking about the day you and i were in the parking lot as that stock went public, but i'm looking at the chart, and it really hasn't gone very far price-wise for two months you could argue that it got a lot of the selling done before the pain came to the broader nasdaq. >> yeah, i think there is this question of sort of how is facebook/meta going to manage
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its various challenges, right. we know they made progress when it comes to those apple operating system changes that limited their ability to do targeting. we know that they seem more opportunity when it comes to making money from reels. there is still so much uncertainty right now and i think this next earnings call for meta is going to be particularly important, it seemed like there was a shift in the language we heard from mark zuckerberg in the last earnings, which he was talking more about wanting to be actionable, to manage expenses and also figure out ways to drive revenue growth now while he acknowledged he has this 2030 plan of the metaverse. seems like he's more sensitive now to the business demands of this challenging potentially recessionary environment >> all right julia, thank you and now if you're hungry for more "techcheck" content, don't miss a "techcheck" live stream at 2:30 eastern today on ideas for bridging the wage gap in tech with soccer player megan
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let's get a gut check on grab the stock is surging today, now up some 40, 42%.
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before you get too excited, that's a dollar, which shows you how far that stock has come down company reporting a jump in revenue as the business rebounds from the pandemic slowdown and grab reported narrowing losses, a step closer toward achieving better profitability, though as i mentioned, it has not been an easy road for the stock. it is still down 70% since going public at the end of 2021. back in a moment stay with us your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit
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welcome back the nasdaq has clawed its way back into the green. s&p about flat nasdaq up a little less than a percent. top gainers, data dog, lucid synopsis, okta, docusign, zoom some doing thebest they can today, and the best overall after yesterday's sharp sell-off >> some news from ftx, the company known for crypto trading. it will be getting into stock trading, they say they want to bring crypto and equities under one roof, saying they were inspired by robinhood. the ceo just bought a large personal stake in robinhood. the timing is interesting. the other interesting angle, they will not rely on payment for order flow for revenue
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remember, that was very controversial with hood. they say that stock trading will not be a revenue generator for now. it looks like they're going to subsidize by relying on profits from crypto. i wonder how that works out had crypto fees are getting lower. >> interesting no payment, slightly different strategy one more thing before we go, tesla. booted from the s&p 500 esg index as part of the annual update that index saying the electric carmaker's quote, lack of a low carbon strategy and codes of business conduct affected its ranking. elon musk did turn to twitter and called the index a scam, and that it has been, quote, weaponized by phony social justice warriors according to data exclusively provided to cnbc by partners at just capital, tesla ranks 608 out of the russell 1,000 companies they cover their environmental ranking, which factors in sustainability, climate change and more is 385 and in terms of the climate commitment, tesla doesn't actually have one. among the names still on the
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list are apple, microsoft, amazon and even oil and gas giant exxonmobil by the way, tesla today, the low 694, roughly the same price where tess rala shares were whet wasadded in december of 2020 so we'll get amat and vf let's get to "the half." >> thank you welcome to "the halftime report." are we getting closer or is more pain for your money ahead? we discuss and debate that with the investment committee joining me, brenda, josh, steve, and jim. i'll take you to the wall, 12:00 noon in the east, nasdaq nice bounce by a little more than 100 points, getting some help today from a bounce in names like amd and nvidia, tesla having a nice move right now, up about 2.5%. dow still down by 178 as you can see there. but the s&p has just gone pos.
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