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tv   Tech Check  CNBC  August 1, 2022 11:00am-12:00pm EDT

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closing a loophole and senator kyrsten sinema publicly called it a common sense step didn't say that nine months and and not supporting it now. waiting for the senate parliamentarian to scrub the act before saying how she'll go. we'll see what happens this coming week. >> ylan, keep us posts, thank you. dow up about 82 points, that does it store "squawk on the street." "techcheck" starts now. good monday morning. welcome to "techcheck. i'm carl quintanilla with jon fortt. d deidre has the day off nasdaq bounced back in july. is now the time to double down kathie woods thinks so calling it new leadership and breaking down some of her calls within tech. then now heard from a lot of tech heavyweights. some warning of further deterioration in ad spend. others, need to reduce hiring. some areas of consumer weakness.
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what is the pull-through from earnings this week we'll get uber, lyft, doordash, airbnb and gaming, activision ea and fintech, paypal and block could get insight. jon, 150-plus s&p names. a third of the consumer. today is pivotal. >> yeah. kicks off a pivotal week after another pivotal one. temptation, a lot of big names mega gaps, thinking, this week, no big deal. it is a big deal got, you just mentioned paypal, block, trillio robinhood risk-on names benefiting, had been throughout july, questions about what's going to happen in august and can that momentum continue who knows? guidance here might have something to say about it. i'm particularly interested to see what amd does tomorrow
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lisa su on "squawk on the street" wednesday morning as well the overall pc industry, the state of decline, perhaps, but is she able to eeekke out a bet story than we heard from the likes of intel we'll see. >> yeah. talked about that with cramer this morning specifically gaming. what that's done to both nvidia and amd. you know, semis, number of cross-currents really confusing now. whether it's pcs and gaming and crypto being offset. maybe by autos, on semi, seisint quarter, smacked at the open, though remains a tough read what's happening now in semis. not to mention the chips act and china/u.s. relations part to deal with. >> a lot data-centered data-centered dependent seems. from logitech, we saw gaming accessories cooled down along with webcams consumer leaning stuff that
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continued to be strong keyboards, mice, used for productive work, kontcontinues b strong other stuff weakened what does that mean for those selling gaming cards and gaming chips, et cetera we'll see. well, let's figure out what the read-through is to this week we saw last week, different. joining us, senior analyst laura. what did you learn surprised you last week that has bearing on results we'll get this week? >> so i think the most important thing is from both snap and meta we heard that digital advertising was weak also roku, says in june, the last month in the second quarter, digital advertising sort of came to a stop that has read-through effects for a lot of digital advertising companies like tradedesk, magnight anything with disney or -- p
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paramount. i'm worried about advertising growth rates for the second quarter. worried about those companies making their second quarter guidance >> what do you make, though, of alphabet and how relatively strong it was, and then amazon's ad business was also strong. perhaps because, you know, there's less guesswork involved there? all first-party data advertising on amazon, pretty clear to see what the read-through is to actually a purchase taking place. what's the difference? >> i think that's a great point and amazon was asked about that on their call and specifically continuesed to see strength in advertising because they closed the loop because of advertiser and somebody can buy now which is, advertisers know exactly what the return ad spin on amazon was. amazon did a search that they are not seeing weakness in advertising. although they don't guide for the third quarter. what we're in now. i agree on search over alphabet. grew 14%
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quite robust but ryukyu only 5%. could be tiktok is eating their lunch the way tiktok is hurting meta and snap. could be a structural issue or cyclical issue slowing remember, youtube, disappointed in their growth last year up 14%. second quarter up 5% which is a meaningful deceleration from as did appointing number 90 days ago. >> laura, you mentioned meta this morning cramer and i talked about faang. instead he said aang does meta deserve to be included in the group you have underperform. general view, focus on metaverse sort of implies fears about the viability of their historical collection of business. i agree with that. trouble with meta, doesn't own its content and distribution it's getting hurt by privacy changes at ios, almost all
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distribution is on someone else's platform. apple's platform and hurt when apple makes policy decisions similar -- its content is by creators 100% social network. what happens is those most lucrative creators are moving to tic tock and can't control or keep them. actually losing content also and now trying to get it back, but meanwhile having to really hurt its monetization we estimated monetizes at about 1/5's news feed and algorithms pushing people into reels, which tiktok knockoff. doesn't monetize there actually having to shoot itself in the foot from a revenue point of view to try to win against tiktok same time investing a fortune in the metaverse which it hopes make as return on investment in 2013 2030. >> does that explain why the color of zuckerberg's conference calls with employees and memos about cost discipline so
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ferocious? >> i do. i do i think that he really feels he needs to own the platform so that he's not a victim of someone else's platform, like now he is on ios and wants to create hardware backbone through oculus goggles replacing apple he thinks, whether glasses, trying to buy a glass, you know -- wearables company, and ftc will sue to block him. i think his idea's been the hardware backbone every consumer uses and can make changes and hurt others on his platform. >> to the point on labor costs not just a meta thing? right? alphabet coming outside saying the workforce isn't as productive as we'd like you to be we want to do a little, i don't know what they're calling it, but, you know, productivity workshop-type thing. sounds to me kind of like a warning shot, hey, when we do some layoffs or hiring freezes later and say you guys aren't productive enough. it's not like we didn't warn
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you. even the companies that seem to be performing relatively well still seem to have staffed up and seem to be going through a period of indigestion, whether talking about amazon, alphabet or meta? >> i think these companies have been growing so fast 30% and 40% a year they sort of have no idea what everyone's doing and what they're working on i actually think this is, not for employees. this isn't a great period for employees but a great period for hypergrowth companies to stop and assess what teams are working on and whether teams should be working on all that stuff and how they fit into the core mission. >> so, therefore, how much do you expect the guide from companies this week? i don't know if there are in particular that you're covering, but certainly the data out of them might have a read back into larger names you do cover. how much do you expect those guys to affect the overall tech market >> i expect all of the guides having to deal with digital
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advertising to be disappointing. roku took numbers down to three. i expect words to be hurtful because of uncertainty and ceos don't know what's happening. some suspend guide ins, like snap did stock down 38% roku didn't suspend guidance but took it only up 3% current quarter, stock hit 25% so i think the notion of uncertainty is going to create some conservatism, in ceos and, therefore, the market will think things might be worse than they're actually going to be i think it's completely unclear. with the uncertainty, completely unclear we'll have that coming in, a slowdown >> we'll see maybe optimism backlash. laura martin, thank you. a good july, but tech stocks having a tough you're you already know retail invest is feeling a bit confident ramping up inve investments. purse of basket popular tech
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names including faang hitting highest level since at least 2014 joining us this morning author of that piece. cnbc manager of the "journal." great insight this morning about that even the way in which investors are piling into leveraged etfs fascinating, too >> it's a really interesting moment for tech in particular, and what we're seeing is that individual investors, many are doubling down on the sector, despite the volatility seen. tech has been at the center of the market mayhem this year, and many individual investors i spoke with said, i'm holding on to these stocks, and as you pointed out, a lot are also turning to these leveraged funds, which are incredibly risky, to play these crazy swings in the sector it's really wild to think that funds like teachable q, sqqq, two leveraged etf tied to the nasdaq are third and fourth most popular etfs for individual investors to buy this year.
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>> is it your sense that the sentiment is, i believe in the longer-term pace of innovation to ride out business cycles, and economic cycles, or simply a matter gettinging even with what they lost so far in tech >> i think there's a number of factors driving this several investors i spoke with said, look, i've had these stocks for a few years now maybe they won't grow at the pace they did in prior years, and we saw that with faang names last eek, but i still think great businesses to buy and i believe even facebook, microsoft, apple, amazon i think we saw that in the market last week right? many mega cap named reported slowing growth, but many investors plowed into the names and people seem confident in their ability to weather recession. also i saw other side individual
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investors saying, what's the next apple what's the next amazon even looking to riskier more speculative investments in the tech center. >> and are retail investors swallowing the soccer ball at this point like a bunch of first and second graders trying to play soccer? just chasing wherever the market goes seems like we had you on months ago. a lot of risky options, bets, retail investors put on. the market tanked people got conservative now maybe sticking, put out, a toe out on the risk again? >> so what i've learned, jon is that these investors, it's such a varied group and really is tough to paint them with a broad brush. i think too many people do that. right? a lot of individual investors i've spoeken with are stampedin into market in times of volatility others are playing options others are playing these leveraged etfs it's really, really tough because they're not an entirely
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homogenous group and many investors i spoke to have been holding on to tech for a while and holding on to stocks a while. but broadly speaking we're seeing options activity. the types of trades you pointed out. wean seve decline of that this year particularly among individual investors. >> okay's from a historical perspective, getting back into usual space or still quite a bit above it >> i think we're closer to that. you know, the last time i looked at this data a few weeks ago it looked well above pre-pandemic levels, but still lower than the peak we saw during the pandemic. there has been -- you know, kind of newic ekequaequilibrium ther. >> and influsing trade more aggressively in the next 100
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days, exactly, actually. is that a growing sense or growing topic of conversation? >> i feel like so far it's still been focused on inflation, inflation, inflation, which, of course, does get political but there have just been so many headwinds this year. so many challenges for markets, and inflation, talk of recession. right now i feel all eyes are focused on that. i'm sure as we get further on in the year people will pay more attention to the elections, which did cause quite a bit of volatility last cycle. >> yeah. certainly. well, today's, some of code today's ism numbers and prices paid proved that point great stuff good to see you of "the journal." still to come, cathie woods says he may have seen the market bottom no surprise. plus, security stock one analyst thinks 40% from here those stories are next "techcheck" is just getting started.
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alto network's yupgrading from $449 to $700 40% up side from here. stock is one investors can hide out in, and the company the delivering both growth and free cash flow. shares up about 2% today, carol. >> jon, are we ready for a recession? storks mostly shrugged off poor economic data. stocks coming off a big melt up in july and cathie wood said on our "techcheck" special we've already bottomed. >> that started in february of '21, and it looks like at least so far that we bottomed on an intraday basis, based on our flagship strategy on may 12th, and we actually bottomed before the nasdaq and the s&p did the s&p broke down to new lows after that so that was an early snag that we might be turning the corner
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here. >> our next guest was there for that interview and disagrees arguing we could have furtherer to fall. joining us this morning, dan, great to have you again on the heels of that on friday. your general take in reaction to that piece from cathie, the fed has a lot more work to do. is that fair >> that's fair a lot more work for the economy to do to absorb what the fed is doing today, because, don't forget you don't discount this stuff immediately. there's a lag. it takes about a year for some of this stuff to work its way through. on the down side just like a lag on the up side so there's a time element here, i think, also that people are forgetting, because the fed, you know, at 2.5%. they just started raising rates this year. if you look at their summary of economic projections, they're expecting to get to 3.25% to 3.5% end of this year. potentially another basis points and then the thought is, off the same projections, get to 4% at
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some point next year that's where the disconnect is right now, futures markets, people have the fed cutting in the march quarter of next year and rates going down i think what you're going to find -- that's really what drove a lot of the rally last week is, there was a 5% gain in the s&p in the last three trading days, and 3% of that was the day of the fed meeting, where they gave the decision i think what you're going to find out is the fed will stay more aggressive longer than people think to make sure they don't make the same mistake done in the 1970s by the way, they talked about, which twice started to cut before they had given a chance for the economy to slow down and inflation got worse and finally had to kill it off in 1981. >> right no definitely like killing off a villain in the horror movie, but those bulls you mentioned, dan, are going to feel gratified when they see prices paidon ism dow by most in 12 years. a ten-year below 26 today.
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what do you say to them? >> yeah. i mean, you always get these bear market rallies. it's pretty common you had four rallies in the s&p this year that have averaged 9%. should be up 36% right? actually down 13%. thing is, you get these all the time, and, yes inflation will come off 9.1% absolutely but here's the thing you have to look at. the u.s. economy is 75% based on service. you've got almost twice as many job openings than you have people unemployed. so you're going to have continued wage pressure for a very long period of time, and that affects three quarters of the economy. the other part is rents. and even though home prices are coming down now, they're still up 20% or so year over year and that feeds into rental about a year and a half flat so even if prices coming down today, still you have to absorb how much prices went up, and
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that's 30% to 40% of all inflation measures so you look at used car prices yeah 3% so who cares relative to the big stuff, like wages and rents, and multiples, if you look at that are way too high in the sense that the trailing key for the s&p is 20 time when cpi is above 3% in the past, the trailing pe is about 15.. you can't make a good valuation for the market in general either. >> okay. dan, so you say -- it's jon -- say made money in june, down but also made money in july with s&p up 9%. how are you positioned in august given that you seem to be leaning into the turns here, and you don't think that the market was making the right kind of debt off of what the fed said last week? >> yeah. so what jon's -- what you're referring to obviously the
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writeup we did it's on our website. and -- basically what we've done is cut back a lot of our longs on entirely. talked about it on friday. had a 15% long position on amazon we got rid of that we're happy with that. this is actually one of the stocks we probably will buy back, start shorts but our long positions now, biggest one is below 3%. our shorts, however, they're pretty low we have one that's about 10%, because you're still not done getting earnings coming down, and this is the first quarter that you had earnings estimates with the s&p move down in about two years. in terms of forward numbers. look at mega tech cap stocks as good example apple and amazon, beat u.p.s. numbers came down then obviously the rest of them, like facebook, et cetera
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they missed. those numbers come down too. in general all big cap tech companies, september quarter numbers come down, even if they had a good june quarter. so you're still in early stages of that process after two years of estimates going up for the s&p. i think you're going to have a 20% revision lower on the calendar '23 numbers going throughs course of next year aza absorbing rates. >> and maybe you see three quarters empty the way you see it, if up to this point there hasn't been that catalyst? what's it going to be? earnings, language from the fed? what changes their minds >> remember, it's a time equation right? if you go back to the tech bubble, the global financial crisis, you had five rallies in the s&p up 18% to 21%.
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this is 13%. it's a time equation, and people are now, of course, making the argument, well, estimates will be set and they're lower, and heedable you go through the quarter and go through august, and september, numbers have to come down again, and the fed comes out says, yeah inflation's come down but it's now at 7%. not 9% we need to get it back to 2% to 3% and keep pushing. that's what's going to drive this lower it's a combination of earnings, m multiples and time components. you can say now good numbers are down buy these. stocks going up, let me buy them you're in a place. don't fight the fed and fundamentals working great on the way up but it also works on the way down. >> so true, dan. look forward to expanding on it a little more next time. good stuff appreciate it very much, as
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always >> my pleasure coming up, the worst quarter is ever seen by one analyst that's calling out intel's performance next right here on "techcheck."
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welcome back to "techcheck." i'm carl quintanilla with jon fortt and joe julia boorstin. first get a news update with contessa brewer. >> hey there, carl price games in the u.s. housing market strong but weakening on mortgage data company reports. up annual rate 7.3% in june. down 2%. biggest drop since the company began tracking prices in the early 1970s. as rising mortgage rates, of
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course, pulled demand. a union representing some workers at starbucks stores accusing the company of cynically raising wages today just for non-unionized workers management says it can't make the changes without going through bargaining at unionized locations but the union had said had will waive requirements for the new benefits according to a letter obtained by cnbc. the national labor relations board ultimately could be called in tore make a decision. justice department challenging multibillion dollar plan to buy a nashville-based health insure ir kicks off a trial today. seen as major test of the biden administration tougher antitrust stance and something, jon, has got to come sbookcome into playa a big merger or acquisition. >> indeed. and new signals from big tech, painting an ugly picture perhaps of rest of 2022.
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we explain >> jon, yeah big tech slashing warning signs about the environment this earnings season. heard from apple, amazon, meta and all of these companies touched different surfaces of the economy and painted a dire picture for months ahead and alphabet ceo told employees to double down on productivity and echoes what we've heard from mark zuckerberg telling meta employees a few weeks ago. meanwhile, microsoft slowing hiring in areas and i spoke with tim cook last week telling me apple is "deliberate in hiring due to rising inflation and all of those related costs." microsoft had its own dire warning saying small and medium businesses are spending let on i.t. and warning of a "deteriorating pc market starting in june." apple told and opposite story. cook saying the company couldn't even make enough macs to accurately test pc demand. the other hand, demand strong for high-end consumer with apple
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expecting iphone sales to remain strong and contribute to revenue growth in this tough quarter ahead. meanwhile, all companies with the exception of amazon warning about a softening advertising market microsoft said advertising took $100 million hit last quarter and we know how bad things are for meta struggling to monetize that tiktok competitor reels andforeign exchange the real one to look out for. it isn't expected to ease up until next year. bad news for countries dollar is strongest like ush and japan hurting growth for things like apple services business and microsoft's cloud growth don't be surprised if we see price increases. jon, back to you. >> thanks, steve. we'll steek peak jen elias a moment. and spoke to ceo pat gelsinger friday.
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>> we have our best pc product line in at least five years, alderlake, ramping meet your light customers soon, eraptor lake next year meteor lake, very strong product line and also see ourselves as a share gainer even as we go through some turbulence in the marketplace. overall comfort and as we said on the call yesterday, this is the bottom we're rebuilding from here. >> hmm so is this really the bot jum our next guest calling intel's q2 worst he's seen in his career and expects things t ss ss to ge before they improve. joining us, an underperform rating on the stock, stacy, i mean, whoa that was bad right? from -- >> bad, yeah. >> from around $18 billion to more in thes $15 billion range but drawing down inventories ahead of q4, product road map looks better why do you not buy it? do you think demand is
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deteriorating faster than pat is counting on? >> i mean, demand is clearly deteriorating. that's without question. inventory question is another good one we've been making this point for a year almost. they were over-shipping, especially notebook space, over-shipping by something like 30%. so this is actually now, reported q2, first one we've actually seen that significant inventory confection for the overship we saw bulk of last year a sizable hockey stick into q4 assuming inventory correction is done by then open for debate given channel inventory out there as well as the state of just overall demand if demand continues to deteriorate it's harder to normalize. i don't know what it's going to look like into q4 and next year. also think longer term they've given long-term forecasts after analyst day that
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in some sense were president cased on pcs growing and growing off the high base set in 2021. all of those forecasts to me were completely out the window outlandish to begin with but look out the window now. i don't know what this is going forward. i will say we are early. they're in the middle of a transition, pat talked about this we're at the barest beginning of that transition. it's only just begun interesting to see how it plays out in the next two years. >> isn't the important question at this point, how much optimism is still priced into this stock? right? the street, does the street even believe that stuff about the pc growth at 37 buck as share these days or, you know, will some kind of, you know, meaningful success of product in q4 actually surprise people to the upside >> i think q4, who knows if you're long in the stock you're not owning it for q3 or q4 or q1 you only it because you believe over the next five years they
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can right the ship and turn it around right? that why your owning it. i don't think we'll hear anything about q4. everything about the current product map is a disaster. right? they're not getting better they're getting worse. the biggest push is sapphire rap its, next generation server part supposed to ship last year now saying ramp into volume second half. go back and listen to the conference call, effectively saying real volume is first half of next year it's massively delayed every product they've had up to now delayed. i don't know what we hear in q4 that changes that narrative. >> stacy, i wonder optically a company tip of the spear, getting legislation to restore our ability to be self-sufficient on leading edge chips. then this quarter and capex and everything you said. how much doesn't work for longer-term goal trying to be self-sufficient? >> first of ale, chips about the
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won't make us self-sufficient in lieding in chips saying it's a rounding error a start. you have to start somewhere, but 52 billion dollars over five years for the entire u.s. conductor energy is not going to change percentage of capacity installed in the u.s it's just the starting point if they really want to change that they have to invest a lot more and frankly so is intel most of the money still talking about investing is coming off their balance sheet. subsidies help get to the other point do they actually need these factories? i don't know certainly i don't think they need to build two new fabs in arizona and in ohio to support the core business. presumably going to support the foundry business and by the way that's the biggest risk. the chips made in taiwan none of that capacity's coming online for years and years and years anyway right? even once it does, it is a drop in the bucket compared with what gsmc and others invaluestalesta
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elsewhere. given the current trajectory doesn't look promising. >> got to be significantly better, sounds like you're saying. >> yeah. >> and look into amd coming this week is it about data center for them mainly to see how much better they perform than intel thus, how much share they might be gaining there you know, is that the story we should look for, or something else >> it's a huge piece of the story. first people want to look at, held, reiterated guidance a month or month and a half ago. people want to see that. pc's getting weaker, maybe, bought baking in that. to be honest, going to murder intel on server market share when they report tuesday because i know what intel did and i kind of know what the
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general market is, has been doing this quarter with other players in that space reported intel looks far and away much worse than anything anybody would have expected based on what we hear from most other companies. i think that bodes well for amd. >> we'll be watching okay stacy, thank you. >> you bet. let's get a news alert on a new investors in twitter leslie picker's got it >> hi. carl, green light, david ihorn in a new letter to investors saying that they purchased a position in twitter with an average 37.24 per share. unclear of the size of this position green light not a known merger arbitrage trader not one to dabble too much in the goings-on of delaware chancery report but it appears that they have a stake in twitter and say that the price is about $17 per share of upside, if twitter prevails in court there in its case with
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elon musk and believe about 17% down side if that deal breaks and giving it a 50/50 odds that something like this should happen, say 95% plus at the time, according to this letter interestingly, and, you know, worth noting for background, of course, that green light has been a long time short on twitter. haven't written about tesla since 2019 and don't inted to break that streak now, but elon musk is, of course a different story. also interesting insights here in the letter about just overall macro environment. gr greenlight not a trader well known for investing style. a struggle in recent years so much the case this year they returned 8.4% second quarter of 2022. 13% second half and value investing back answer is a resounding, no a lot of interest here, guys.
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>> wow the needle moving again. watch that closely leslie picker with that news on twitter today. just talking chips take a look at on semi sharing lower. talk with the ceo tomorrow meantime, try to hold the green here dow's up 52. "techcheck" is back after this. bubbles so many bubbles! as an expedia member you earn points on your travels, and that's on top of your airline miles. so you can go and see... or taste or do absolutely nothing with all those bubbles. without ever wondering if you're getting the most out of your trip. because you are.
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welcome back
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a couple names in the gaming space reporting this week. activision and ea. pouring money into the metaverse not all bets paying off. julia boorstin looks who is seeing returns and who may be pulling back on spend. hi, julia. >> carl, recessionary pressures may have made metaverse plans less of a near-term priority tech giants make long-term investments in hardware and software bringing consumers and companies into immersive 3d world. since meta's name change last year the company has readied a web version of its horizon world, and a high-end vr headset quelled the quest pro it plans to launch later in the year and plus opened a retail store focused on vr. meta suffered setbacks reportedly delays release of ar glasses beyond 2024, and the ftc is looking to block its acquisition of a vr start-up plus, burning billions of
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dollars on its reality division every quarter. but not just meta. in the next year we expect a battle to brew to sell new hardware now, in addition to meta's coming quest pro along with its core quest 2 headset, lower cost apple is expected to release its mixed reality product soon as this spring and already reportedly working with content creators like john fangrow with content for the new format and plus google working on its own headset set for 2024 along with a new version of google glass, and microsoft is continuing to work to expand its enterprise-focused hollow lens ai headset to manufacturing and the like and microsoft says it's working on a consumer version on this headset as well venture investors see a growing opportunity in the metaverse that they poured $1.9 billion into companies in this space so far this year.
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that's more than the amount invested in these companies in all of last year but one question we're watching, specifically in the near term is really, how much a recession could dampen consumer interest in the buying some of these more expensive devices. j jon >> yuou'll julia, thank you. and as we head to break, more on crypto balance when "techcheck" returns.
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gut check on alibaba as the china tech roller coaster takes another turn the company saying its working to maintain trading on both u.s. and hong kong exchanges after the s.e.c. added it to their delisting risk list. today alibaba announces it will comply with laws to keep listings on both exchanges meanwhile, chinese tech companies worst performers over the last month the biggest losers, carl >> yeah. definitely not participating in what was a pretty good july, jon. coming up after the break, going's ceo. his message to employees as the company braces for more economic uncertainty. stock's closed session highs
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google calling on its employees to hit the ground running. the ceo calling for a so-called simplicity sprint during an all hands meeting last week in an effort to get, quote, better results faster as the company faces the possibility of a weaker macro environment joining us this morning, the reporter behind that story, cnbc reporter jennifer elias.
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we're hearing about proactive prescriptions of what to do about the problem. >> reporter: this is a little bit of a reaction to the missed, that it just reported last week with its second quarter, so, you know, they have this all hands meeting that they attend regularly, and this one they had late last week was a little bit more of an urgent tone as ceo sundar pachai told employees brace for impact basically he doesn't see the headwinds going away any time in the near future, and, you know, he also came with an idea for a program that they launched which is to crowd source from its employee base through august 15s and it's called simplicity sprint, and it's an attempt to kind of keep the areas of focus as employees see it, and it's also, i think, a twofold impact in which employees can feel like they have a say in what the company does, but this was definitely a
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more urgent tone in which sundar pachai told employees we're not at the productivity that we should be, even with the head count that we, have and while we don't have current plays for layoffs, that they can't predict the economy. >> jennifer, at a practical level, what does this mean i mean, if in essence he's saying we hired a bunch of people and now revenue isn't going up at the rate that they want, is that really something that people can sort of workshop a solution to, or does it -- to me it sounds like kind of the warning shot that, hey, if we don't figure something out, there's going to be some freezes and some layoffs, but how does it real work what are people supposed to practically do with this >> yeah. well, google sent with the simplicity sprint survey with a few questions, and, you know, really telling employees please give us feedback and response on where you think we should focus and we should, quote, eliminate
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waste, so the hope is that they will get enough ideas within two weeks. they will be able to kind of pin down and maybe see some ideas that they didn't have before seeing as google employees are among some of the best and brightest of the industry, but it also, you know, could be a way of just making employees feel like they are being heard and like they have a voice which is something that they have been complaining about the last several years as it's rapidly expanding. >> yeah. that's fascinating, too. it's going to be i would imagine fun to report. really getting a window into how corporate managers are leveraging their human talent. jennifer, thank you. jennifer elias on alphabet today. if you missed part of the show, don't forget to follow and subscribe to our podcast can you listen anytime anywhere wherever you download your podcasts "tech check" is back in a moment my finances were all over the place. [door bell rings] and my banking relationship was getting well, complicated. hahaha! easy money. so, i broke up with messy accounts and moved my money to sofi. now i earn higher interest on my checking and savings, and bank,
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the move in cryptocurrency ether over the last month rising more than 60% kate rooney is taking a look kate >> reporter: hey, jon, yeah, the world's second largest cryptocurrency had an each bigger month than bitcoin up almost 80% for july versus a 30% gain for bitcoin both are still down for the year
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and well off of the november highs. the optimism around ether is really specific to that cryptocurrency ether is the coin tied to the ethereum network it's in the process of what you can think of as a software upgrade, the way it's run or validated, as some people call it, will change the new cryptos come crypto's carbon footprint has been one of its biggest criticisms the date for what people are calling the merge are on track for september 19th that date has opinion pushed back still a little bit of skepticism around that. either way crypto investors are pouring into this trade ahead of that date. the number of addresses and spot volume jumped in july. can you also see some of that bullishness playing out in derivatives market this chart year from glasnost shows a parabolic increase in the open interest there for ethereum it's getting close to that hype that we saw back in november the majority of those are call options or the option to buy the september and december expiration dates are especially
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popular with crypto investors hoping for a sustained rebound in ethereum after a pretty tough year for that cryptocurrency back to you. >> good stuff on that, kate. we'll watch that closely. meantime, 4140 we basically took out friday's high, jop, so you've got the s&p, the highest level since early june ten-year below 2.6 for the first time since april let's get to judge and "the half." >> carl, thanks so much. welcome to "the halftime report." bear bounce or have we truly turned the corner? that is the debate as we enter a new month for your money the investment committee here to take that on with me today joining me for the hour, shannon, brenda vanjelo, joe tariff know and jim lavinthal the dow is good for a quarter of 1%, 3290 and joe


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