tv Tech Check CNBC August 2, 2022 11:00am-12:00pm EDT
place after that plane touched down, carrying house speaker nancy pelosi in taiwan also, taking a look at the ten-year yield, which is trading higher as well that will do it for "squawk on the street." "tech check" starts right now. >> good tuesday morning. welcome to "tech check." i'm carl quintanilla with jon fortt. deirdre bosa is off today. uber revving up guidance while turning cash flow positive for the first time shares enjoying their best day if a couple of years, even with the big loss much more on what its results mean ahead for investors lyft and airbnb later this week pinterest's stocks up double digits, despite growing concern over ad spend. is eliot's veinvestment a reaso for you to buy as well and we'll look at all of tech. and we're going to monitor the situation in taipei, after
speaker pelosi lands in taiwan a few moments ago. first some breaking economic to get to and for that, we'll turn to steve liesman. >> good morning, carl. the new york fed's household debt and credit survey showing that inflation is pushing up household debt this stands to reason, as prices rise, the thing that you want to borrow for, that goes up in price as well. so you have to stretch and increase the size of the debt. household debt rising by $312 billion, to $16.1 trillion the 8% increase is one of the bigger ones we've seen last quarter, was also in the 8% range. the biggest one we've seen since the 2007/2008 crisis driving this debt was credit card debt, increasing by 13% that is the most in 20 years seems like consumers are out there, increasing the balances on their credit cards. probably a bad idea if you want my personal advice they're considering the higher rates they're probably paying. now, delinquencies, this is what's watched to see what is the level of consumer credit stress out there
they remain low, but we are seeing an increase in this report for delinquencies at the lowest -- among the lowest income levels. those with the lowest credit scores we are seeing some increase. so, jon, something to watch. not necessarily anywhere near alarm or recession levels, but we are watching this we would expect, as the economy solvents, some normalization of what had been very low delinquency rates. and also some stretching by consumers for bigger loans to pay for things that cost more. jon? >> steve, thanks important data, making this economic picture a little bit clearer. steve liesman. let's get back to uber that stock is up, boy, about 15%, after reporting better than anticipated revenue for the second quarter the numbers driven primarily by a recovery in the mobility business that's ride sharing, which was up 57% year over year. and a big headline, uber says it's now cash flow positive, even if it is still reporting a
significant net loss cnn dara khosrowshahi joined "squawk on the street" earlier this morning on how the current macro environment is hitting their business take a listen. >> we're looking to see if inflation is having any kind of effect on the business are our food customers trading down, eating cheaper kind of food zero evidence of that. we're watching it very closely the most obvious effect on inflation seems to be to get more drivers on to the platform at that point for us >> guidance for q3, also coming in above estimates, carl some really interesting reaction to earnings. i mean, uber, of course, which we're talking about now, but also pinterest, you know, pinterest, miss, miss, guidance was a miss and it pops. some optimism. but here for uber, a pretty clear reason for that move >> yeah. i mean, you've got mobility up 50-plus percent, ex-currency
and as you talked about, a pretty good base of drivers and couriers an all-time high they're making it easier to onboard. and starting to talk about longer-term objectives like investment grade, like shareholder returns. signs that the turnaround we've talked about with uber for a couple of years now appears to be in place. >> yeah, i wonder if the kind of darkening financial economic picture is driving more people to get a little extra income and to go out and drive for uber, right? because the story a few months ago was, boy, drivershortage, without the incentives, how are we going to get drivers on the road you know, maybe this slowing economy is actually not so bad for uber getting additional drivers on the road. maybe that's a metric that we can watch, carl, as we continue to see how this slowing economy plays out. >> yeah. and then talking a bit about ways to negotiate perhaps some kind of business model, where you do pay drivers some semblance of benefits without having to run afoul of laws and
make it either black or white in states like california that's a longer-term story but fascinating results. best day since 2020. let's turn to pinterest. this stock is surging despite poor financial results eliot revealing it's now the top shareholder. for more on the quarter and eliot's investment, let's bring in our julia boorstin. hi, julia. >> hi, carl. twitter missing on the top and bottom line, but after the grim outlooks of meta, snap, pinterest wasn't as bad as they had feared skpel yoth is now one of the company's largest shareholder, to tap into ecommerce demand and use information about what people are searching for to target ads and measure those ads' impact, not as constrained by apple's operating system changes as pinterest peers eliot saying, quote, pinterest occupancy a unique position in the advertising and shopping ecosystems and ceo bill ready is the right leader to oversee
pinterest's next phase of growth baird writing that pinterest q2 results and q3 guidance support the idea that pinterest occupancy a unique position between search and social, facing revenue headwinds not quite as severe as meta/snap/twitter, but perhaps not quite as resilient as google search and susquehanna updating pins, saying, while the fundamentals are still a bit choppy and there remains a lot of work ahead, we believe new ceo and activist oversight combined with doable bogeys and an undemanding valuation have skewed the risk/reward to the upside. so, of course, there's also this speculation that new ceo bill ready's ties to paypal could potentially line those two companies up for a deal, but i think what's most important here is this is a company that's pivoting to focus on ecommerce >> julia, that's -- well, what i wonder about the reaction to this quarter is, is this about
the fundamentals and the prospect that twitter -- sorry, that pinterest could grow into something significant beyond what it is right now or is it about the fact that, b boy, the business looks fundamentally pretty healthy and it looks positioned in a way that some kind of transaction could happen somebody could buy, the chances of that look higher now than it did a couple of days ago zp >> i would say, it's less that the fundamentals look healthy. there's this great growth opportunity. pinterest laid out some stats in its earnings last night about how their shopping ads the ads that are specifically trying to convert consumers to make purchases, those are performing really well and a lot of analysts that are watching this stock have thought, gee, why didn't pinterest do this sooner why didn't pinterest rush into ecommerce, hey, two years ago? two years ago, its user base was growing dramatically, but it didn't sort of complete that transition into the ecommerce space. so i think that the success with
ecus commerce that pinterest could have makes it a more valuable company as a stand-alone, but also would make it a more valuable acquisition target. >> julia, thanks despite the boost for uber and pinterest, stocks are broadly lower today. dow is down 204, although the s&p went green briefly, on pace for a second negative day to kick off the week. nasdaq is still in the green joining us to discuss, bob peck. great to have you. welcome back to post nine. >> thanks again for having me. i know we talk every quarter, but this is our first time back since pre-the pandemic and last time we spoke live was a few weeks before they shut everything down. >> i know you can't talk about individual companies per se, but we're discussing one name right there, and sort of sping out theories about deal activity is the field ripe right now for deals? >> so a couple of things there one, just level setting. obviously, the s&p is down 13%, give or take and the heavy-weighted tech
emphasis on the s&p, which is about 25% of it, is weighing down the s&p, with their stocks only down about 10%. interestingly, since before covid, we're actually up 25% or so interesting data point there as we think about where we are now, let's take a look at what we've learned from earnings so far. with earnings so far, over half have reported, right of that, 70% have beaten revenues that's great 75% have beaten earnings that's great, as well. interestingly, for those that give guidance, this is the interestingly sort of subtly, for those that give guidance looking for, about 60% of that has been negative, right taking things down a little cautionary tale, as there's more risk, uncertainty, inflation, interest rates war, pelosi, all the things that you can talk about, right, weighing on some of that uncertainty there. i think that's a big part of where we are right now and the investor mind-set as we look at the rest of 2022, looking into '23 >> well, of the s&p sectors, the one sector where q3 numbers have been cut the most is in com
services so it sounds like you're cautious >> well, energy and utilities have been up, so it's a great counterbalance there you asked the question on m&a, i think this is really interesting. last year, we were looking at an all-time high. $6 trillion in global deals for m&a. this year, year-to-date, we're off about 20%. if you straight line that through the end of the year, you would still be in the second best year for global m&a of history. i think what's really interesting, when you think about that for a second, we had the peak in november of all the neck names, right? and what happened in q1 and into q2 was a lot of the money that was on the sidelines, private equity has $900 billion, s&p 500 is over $3.7 trillion. and i think what you saw were some of the disconnects in valuations and multiples and what we've been hearing through our sponsors and private equity contacts, is now these companies are starting to come to the table and realizing that maybe that water mark in november isn't the real multiple you should be at maybe it's
something lower. you're seeing multiples today for the large-tech names, somewhere around 5.5 times revenues that's down from a year ago. more on line over the five-year average. so multiples are coming down and people are starting to talk more about opportunities. >> bob, what are we learnings this earnings season in internet about whose model is working better than others it seems like auction-based ad models, not performing as well things that are more closely tied to transactions, stable, loyal membership, as far as subscribers go, doing a bit better >> yeah, it's a great question on the advertising side. and it always comes down to this particularly when there's questions about the future it all comes down to the advertiser's roas, the return on their advertising spend. and the more tangible, the more immediate they can see that, more of the shift their spend will go to that, versus something like brand advertising, which is less tangible in the near-term. i think you're seeing a lot more
focus by advertisers, just on the near-term here particularly as we look about the question marks and uncertainty heading into the back half of the year. which you hit on an important part there the more we see these recurring revenue, subscription-type revenues, sass-type revenues, the more you can see that, there's less risk, more dependability, and those tend to get higher multiples given the questions we have, you'll see a premium for those recurring-type revenues. >> and are we seeing a separation, bob, maybe even a bifurcation in -- based on who the audience is for internet companies. whether it's the middle class and higher, or middle class and lower. that group that's getting squeezed so much by inflation. you've got to buy food, pay rent, got to buy gas how much do you have leftover for discretionary purpose after that if you're dealing with a higher income demographic, maybe not as
much of a squeeze. >> it's a really good point. right before we went on, we saw credit card data ticking up. a great question about that bottom 20 to 30% how tapped out are they. what are they doing to augment their revenue. the things like zbgasoline pric being high, it's a true tax. before we jumped on, someone was talking about having more uber driving happening. i think you raise a really great point. one of the things is to focus on that bottom 20 to 30% >> finally, bob, i'll throw out the question we give to a lot of people that is, are you sensing better momentum in tech enterprise or tech consumer. or are the two worlds thought about differently right now? >> they are thought about differently. on the enterprise side, strable contracts, good bookings can give investors a lot of solace on the consumer side of things, investors are looking at different trends they can play,
a resurgence in travel, catering towards that higher-income consumer so the investors we're talking to are looking for the opportunities in front of them, both particularly in the short-term, but ultimately for the longer term. are there some good longer-term buys here to establish positions and now while multiples have contracted >> exactly >> good insight, as always nice to have you in person >> great to be here. thanks for having me >> still to come this hour, the ceos of om semi. "tech check" just getting started. to adapt in the changing world, you could hire a professor of theoretical mathematics. we all know this equation, right?
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let's get a gut check on activision today lower to flat. this is a stock that trades now in the context of microsoft's pending acquisition. that was more $95 a share. atvi today currently a shade below 80 some investors still skeptical, john, the deal gets done at all, given some of the lingering regulatory worries that are circling all around the world. >> it's a big deal with one of the big companies, but if anybody is going to get
greenlighted, some argue it's microsoft of the megacaps. another name that just reported earnings, chip supplier on semi, posting a beat across the board with revenue and earnings coming in above the consensus for more on the quarter, let's bring in ceo hasan el currie interesting market reaction to maybe they're just looking at the gross margins, but i guess the underlying question for me is, how clear is the demand picture for you given the slowing economy? >> look, overall, we split demand into core and not core. let me focus on the core business that's where most of the clarity is in the long-term, which is automobile and industrial. the strength in that business, the demand we're seeing, and our ability to supply remain constrained. that demand is not slowing down. we're making progress and catching up, but the outlook looks very favorable
and you tie on top of that our long-term agreements that we disclosed in yesterday's call, as far as silicon carbide, which is going to fuel the ev revolution for the next decade or two on the non-core, of course, we're seeing the same, what a lot of our peers that are more exposed to the consumer and compute environment. we see the same, but those are non-core for us, and we've been kind of stepping back from that business for the last two years since we started our transformation and we're taking our manufacturing, a very cautious approach when we come to the market, but we're still doubling down on the auto and industrial segments >> so given that, what are you doing with costs like head count and what's your approach to your debt >> look, we're very comfortable where our debt is. we're under one from a debt-to-ebitda where we stand, so we're comfortable with where the debt is. but from an onex, we're running below our model. we're trying to catch up to the model. we never hear a lot of ceos saying we would like to get up
to the model and you heard me on the call yesterday actually throw it out there saying, we're hiring we're still hiring we're very cautious where we are. we have a lot of strategic positions that we're hiring in and we're not going to slow that down and we're not slowing our investments in capex that are yielding that capacity that we need in auto and industrial for the next decade when it comes to silicon carbide specifically >> i think that's interesting, because we're awash in headlines and leaked memos about companies that are being disciplined, but no one ever talks about the fact that other companies are disciplined in maintaining their hiring or their retention or their capex plans. >> yeah, look, if you look at the transformation we've done and the restructuring we've done throughout '21, when things are good, that's when companies need to establish themselves for what is yet to come, which is potentially the not-so-good times. we have a very strong baseline we have a solid strategy that we've been executing that strategy has shown the results and the outlook of that
strategy is stronger than where we are today so i have no reason to pull back on our investments and no reason to pull back on the hiring because we've done that. we've set ourselves up for this moment so wherever we come out of whatever you want to call it, this slowdown or this uncertainty, we're going to come out stronger than what we walked in, and that's always been part of our core strategy >> your core air, automotive and industrial, i find so sb interesting, because i'm hearing about it also from qualcomm and marvel, as an area of some pretty rapid transformation, including the layering in of 5g, increase in efficiency in terms of years, how long do you see that transition taking place, and how long do you see having key ip that gives you an advantage there? >> look, i think when we talk about our ip, there's a lot of investments that we are doing, and our road map today is what we are winning on. you know, i've always talked
about competitive advantage when it comes to ip specifically and for us on the power side, the ip is not just on the semiconductor itself or on the device, the ip is also on the packaging, but also the end-to-end manufacturing that we at onsemi are able to provide to our customers from an insurance perspective. that's all part of our competitive advantage mode that we are providing and that's come out and paid dividends this year, through a lot of the constraints where we've been able to push the boundary of manufacturing and extend the supply that we need for our consumers who have seen us grow consistently throughout the last few years. we've just reported our record quarter where we crossed the $1 billion mark per quarter that is exactly what we call ip and our know-how and it just starts with the technology, but extends beyond it to everything we do. >> in industrial, particularly, what's driving investment in your technology?
is it efficiency or is it new revenue potential for your customers? >> so it's both. so, we have, obviously, we have the efficiency, which is the cornerstone of our technology when you talk about power, but you also have the expansion of the customer base tlael was fueled by coming out of the covid shutdown a lot of manufacturing could not run 100%, were all shifts. so automation and the investments in our customer to push the automation or accelerate their automation has provided an upside opportunity for us for our new products that are enabling those customers to achieve the automation and the efficiency look, when you have a camera that we provide to manufacturing for the optical inspection, that increases throughput without increasing the head count that needs to be at the factory during shutdown, that is a win/win. we provide that, the customer needs that, and that's the increase that we're seeing in
some of our sensing and the same applies to power >> definitely a win in this labor-constrained environment, at least on paper. hassane el-khori, ceo of onsemi. meanwhile, google surging, we'll discuss with the ceo when he joins us next don't go away. ♪♪ age before beauty? why not both? visibly diminish wrinkled skin in just two days. new crepe corrector lotion only from gold bond. champion your skin.
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china's embassy in the u.s. calling it a serious violation of the one china principle in a statement today, the foreign ministers of the g-7 industrialized nations say they are looking at ways to prevent russia from profiting from its invasion of ukraine. one option, it may move to block the global transportation of russian oil, unless it is bought at a price at or below a designated price and tiger woods turning down al of money to play in the saudi-backed liv golf league in an appearance on fox news, liv ceo greg norman indicated woods we have received something in the neighborhood of $1 billion. woods has criticized liv's guaranteed payments to players, saying they remove any incentive to, in his words, earn it in the dirt john, back to you? >> earn it in the dirt i like that. seema mody, thank you. let's turn to software zoom info surging on the heels of q2 earnings, raising their guidance for the year, after beating for the top on bottom,
appearing to earn it in the dirt joining us now for an exclusive interview, henry shock i'm trying to understand how the difference between sales and marketing plays out in your numbers. we're seeing some ad budgets cut, which people might think, okay, maybe less investment in b2b data you still need to make sales and efficiency, and how is that playing out and in you you see your customers behaving? >> you sure do i think what the difference here is, when we look across our customer base, we see companies that are going to reprioritize our spend, we might g&a, but wn to touch our go-to-market motion, and that's the place that we operate. i think that's why we beat top and bottom line this quarter
we're doing that profitably, growing the topline 54% and dealing with operating margins of 40%, because in an economy like this, the thing that our customers want to do is get the most out of the resources that they have on the ground, and they can do that by investing in da, in software, and in insights, like the data and software and insights that we provide at zoom info >> so in that context, talk about what you call advanced functionality, within your product suite, and sort of what that means for the stickiness of your product, customer utilization of your product, and maybe net revenue retention. >> yeah, absolutely. so advanced functionality is essentially more advanced and sophisticated ways to use our software platform and use our data and insights. so, for example, i may want to automate the tasks that a sales representative does. every day, a salesperson comes in, they try to find the companies who are in market for their products and services. they want to call the key buyers or email the key buyers or do
sort of demand generation functions in front of those buyers instead of doing those in a one-off way, we allow a rep to build their ideal customer profile and get in front of them in an automated way every single day. that's advanced functionality that takes one salesperson and makes them feel like three or four salespeople so that increases the efficiency of their sales team, and it's the area that we're investing in and driving for our customers, as they use that advanced functionality, obviously, they renew more we see customers who use this advanced functionality, renewing and adding more and more seats, more functionality they're our best net retention customers. >> speaking of retention and renewing, henry, some of the street did note that you guys have seen you've seen extra layers of approval on certain large deal, but you said the same thing in q1, and things didn't meaningfully erode. what do you think that's about
>> i think what's happening today is companies are reprioritizing their spend what we're seeing seeing, especially in larger deals and international deals, companies are saying, look, before we approve the spend and continue this investment, we want it to go through an extra layer of scrutiny we want a chief financial officer to sign off on it, we have a more extensive procu procurement office we want to go through. those things are still closing, but taking a longer time to close. beau on the new business and the retention side and so we're still seeing those deals get to fruition. they're just elongating, because there are multiple layers of additional approval that they have to go through but especially for us, what we feel really insulated by is the fact that this is go-to-market software it drives the efficiency of your marketing resources. and when companies are looking at places to cut spending, this is just not one that they're excited about cutting back on.
they may make those changes elsewhere, and i think that's why we're seeing these deals still come to fruition >> let's talk about m&a. are you shopping there are al of start-ups with technology in, whether it's sales automation or, you know, trying to get that process more efficient. are they in a more affordable place than they were in the past is there anything there that you think would accelerate your growth >> so we've done 15 acquisitions since we founded the company m&a is a key part of our strategic tool kit we think we're pretty good at acquiring a company, bringing it into the zoom info fold, and increasing its velocity. in our announcements, we talked about a company called course that we acquired last year it's now almost three times the size of when we acquired it less than a year ago. we acquired a company called ring lead, which is data orchestration software, which has doubled revenue in the last nine months. so we're always looking for opportunities from an m&a
perspective. we think valuation got a little bit out of hand, if you kind of rewind the clock nine months ago. and it's starting to come back to a more normalized state we know what we want to build in the platform, we're looking to build an end-to-end, go-to-market platform for sales and marketing teams. so we're still looking at opportunities from an m&a perspective. i think you'll continue to see us look at those and be opportunistic where there's real value. >> all right zoominfo, zooming a bit higher, more than 9.5% after earnings. henry, thank you ceo. >> thank you, john still to come, a conversation with san francisco fed president, mary daly "tech check" returns in a moment
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welcome back about an hour ago, i spoke with san francisco fed president mary daly in a ft. knox one on one interview. stocks popped last week after the fed raised interest rates 75 basis points and daly says the federal reserve is completely united in bringing down inflation. the numbers are far too high the work is nowhere near almost done i asked her, because some in the market seem to feel that the commentary after this meant that the fed was almost done. here's her reaction. >> nowhere near almost done. we have made a good start. and i feel really pleased with where we've gotten to by this point. but let's just reminder, the last numbers on inflation, 9.1%, those are far too high but most importantly, just go to
any grocery store. you know, i went to do a lot of chopping for different things over the weekend and people are still struggling with the high prices they're paying and the rising prices you know, the number of people who can't afford this week, what they paid for with ease six months ago just means our work is far from done we are still resolute and completely united on achieving price stability, which doesn't mean 9.1% inflation, it means something closer to 2% inflation. >> i was kind of surprised to see, you know, the bond market, some folks betting that you guys are actually going to be cutting next year. >> that's a puzzle to me i don't know where they find that in the data i mean, for me, that would not be my modal outlook. my modal outlook or the outlook i think is most likely is really that we raise interest rates and hold them there for a while, at whatever level we think is appropriate for accomplishing this dual mandate, as you said,
the full employment price stability. that is where my outlook is. you know, if we had an unforeseen negative shock on the economy that we needed to lower interest rates for we could do it, but not as optimal policy. we would ratchet intercstates u really fast and cut them that's terribly hard on the economy. imagine you're trying to figure out, am i buying a car or buying a house or getting a loan for a remodel and you don't know what interest rates are doing, because you think the fed will raise them quickly and lower them that is why we don't typically do that. we typically smooth out the path, but it's also really important to continue to fight back on this inflation that we've seen, and doing that requires raising and leaving the interest rate for a while. >> let's bring in our senior economics reporter, steve liesman. steve, president daly pretty clear how she feels about the idea of cutting next year.
>> yeah, this is interesting, important, and i think somewhat expected, john i think you really nailed the tail on the tape here. the fed came out with a statement, it was just last week, it feels like it was a month ago now, so much has gone down since that meeting. and the market took it as some kind of pivot, as some kind of confirmation that this idea of rate cuts in the second half were baked in the cake and there you have daly importantly mpushing against that she's one of a number of speakers that have been out that be making the market think, maybe this idea of the sharp rate cuts next year are a mistake. it would be interesting to watch, with john, the market react to this. they may feel they're right and the fed itself is wrong. a they get to a point where they raise rates and cause a recession, and the backside of that requires the fed to reduce rates. there are a lot of people in the market that have that confirmation, but the fed doesn't want that now, because the fed wants to tighten financial conditions now
and this belief later on of rate cuts kind of works against what the fed is trying to do right now. >> steve, i also asked san francisco president daly about what she thinks, is it possible to bring down the number of job openings out there, without significantly raising the unemployment rate. she says it is possible, but kind of, yes and no, she thinks the unemployment rate will come up a bit there's a bit of a debate out there, about whether that's possible, right? >> yeah, it's a real -- i don't know would call it, a nerd takedown going on right now. you've got larry summers, the former treasury secretary with olivia bon chard, kind of going up against fed chair jay powell and fed governor waller about this idea. can you reduce job openings without dramatically increasing the employment rate? powell and waller think yes,
which is kind of their belief as to why we don't have a recession or a very painful recession. because, obviously, as one economist put it, if you have a recession without big job losses, it isn't a recession at all. they point to the fact that as of this morning, we have 10.6 million job openings, and i don't know what it is, normally run rate is 5 million job openings, so it's double what it normally could be. the idea of powell andco is that you can bring down the openings and not impact the rate. the retort john is, yeah, well, guess what, we've now been in any kind of situation like a pandemic before, where we have a lot of people to put back to work and a lot of people stmissn from the workforce >> it comes down to this question of matching f ing effiy can it get easier for people who need work to find just the right job for them and on the higher end of the income spectrum, it seems like
things like remote work might make that easier because now you don't have to move to the city where that company is headquartered necessarily, to get that job, but daly was arguing even on the lower end of the wage spectrum, because it's not so hard to switch between a warehouse job, of which there are plenty, because of ecommerce players like amazon, and a retail job that maybe matching efficiency can go up there, too it's a technology wrinkle, perhaps, in this question. >> john, you'll have to be careful. if you start using terms like matching efficiency, you'll be adopted pretty quickly as a junior economics reporter, whether you like it or not but you are absolutely right this -- i don't know what you would call it, maybe another term is friction take, for example, all of the truckers and drivers that were hired to deliver packages that were ordered during the pandemic as that declines, and there is some story out there, on our dotcom about this opening of retail stores, believe it or
not, talk about back to have the future, there's some surge in the opening of retail stores, which would mean some kind of a decline in that. so those drivers would go from, say, an unemployed period of time, and hopefully back into the workforce, in places where, for example, in the service industry, you have flights that aren't taking place and hotels that aren't open and restaurants that do not have enough workers. so there's transition period, where we get to this matching efficiency you are hired, sir >> i'm not an economics reporter, but i did stay at a holiday inn express last night, stl steve liesman, thank you >> way to go >> guys, let's get another check on uber before we go to break. stocks having its best day since november of 2020 up almost 16% this morning plus, coming up, one wall street firm says it's time to get out of snowflake, as the s&p has gone green once again. 4120 don't go away. this... is the planning effect.
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let's get a check on snowflake today. bitg cuts to neutral from buy, although they say they're still bullish in the long-term analysts expect growth to slow in a weakening macro environment and are worried about increased volatility over the next year. in the short-term, bitg says they see potential for product revenue growth to slow in the coming quarters. and you see shares up marginally here up to 151, john >> yeah, it dipped at first, i guess, pre-market, but popped
right back up. as we head to break, check out shares of global payments. oppenheimer calls the stock a top pick this morning. ceo jeff sloan joins us next don't go away. when traders tell us how to make thinkorswim® even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim® web. because platforms this innovative aren't just made for traders -they're made by them. thinkorswim® by td ameritrade to adapt in a fast changing world, aren't just made for traders -th you could hire am. professional pit crew. go, go, go. sorry. nope. okay. fresh donuts - hot coffee! they deliver real time data and business forecasts when you need it. i think it was fine how it was. (air tool sound) to help you stay ahead of the curve... or you could use workday. the finance, hr and planning system that helps cfos
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position in integrated payments worldwide. global payments had better than expected results for q2. joining us is the ceo, jeff sloan. jeff, congratulations on the deal it's great to have you. >> thanks, carl. it's great to be back with you. >> talk to me in general about the scale this provides you in the wake of this >> well, carl, it really brings two things the first thing is brings to global payments is more technology we've been looking for a b2b for the last six to nine months and we believe evo brings best in class. most bills paid by businesses to other businesses are either in the form of paper checks or ach with very little software. these guys have a very substantial presence in accounts receivable software. the second is new geographies. this brings us directly into poland and ire lland, much bigg
into mexico and gives us more scale in our existing markets like the united states and canada. >> is it a play on any type of particular customer size >> it's very similar to the way we're constructedtoday at global payments. small to midsize businesses has always been true on the merchant sides, which is two-thirds and soon to be three-quarters of the company. evo was constructed similarly. in poland and mexico there are enterprise customers too but our bread and butter is the small and midsize customer. >> jeff, interesting to me that silver lake partners is investing $1.5 billion here in the form of a convertible note as part of this deal why have them in this? >> we couldn't be more excited to partner, jon, with silver lake partners, the global leader in technology. think about airbnb, alipay, twitter, et cetera we think it brings a few things to the table that we didn't have
before the first thing, jon, is it brings fantastic relationships with financial institutions around the world those are a core customer base of ours. the ability to open doors to fis, software businesses is something that silver lake is the world expert in and i think that's very additive to what we do the second thing is it brings a lot of financial firepower to where we are so while the business itself and the deal is a mix of bank debt, about three-quarters and the convert, with silver lake there are plenty of other deals we'll look at in the future of varying sizes and we feel that silver lake brings very smart, highly attractive capital to what we're trying to accomplish. >> given your cash levels, does it also help you to continue doing m & a? i wonder, because i think we spent a lot of time talking about fintech that's consumer facing but probably not enough talking about b2b fintech. are we in consolidation mode and
does this help you there >> i think the answer is absolutely, jon, which is to say our thesis all along is that b2b is the next area and is ripe for disruption and that's what we intending to do. silver lake has extensiv experience in those markets. i don't think there's anyone who has a longer term vision of where technology is heading than slp, very consistent with our point of view. to have a partner like that unique with us, to look at those additional markets and focus on new tech rather than legacy tech is a critical part of our thesis. >> jeff, the deal of course is the story of the day maybe next time we can talk a little more currency and macro a lot of lingering questions there throughout the course of the rest of the year, but it's good to have you thank you. >> thanks, carl. it's great to see you. >> if you missed part of the show, don't fret you can follow and subscribe to our podcast. listen any time anheywre tech check is back in a moment
social circle with new subpoenas. it's seeking information from a few names that are familiar to our audience david sacks, mark, jason and joel lonsdale asking how musk put together the deal and the financing to buy twitter jon, there's a lot about what's happened in the last couple of weeks that we don't have a lot of visibility on, but we can tell there's a lot of stuff under the surface that is going on in court and we're going to have to wait to get some visibility on it. >> yeah. also asking about what happened with bob swan, the former intel ceo who was at one point working on this deal for elon musk and suddenly elon said bob swan not working on this anymore, someone else is and twitter couldn't get in touch with someone else this is shaping up to be quite a star-studded list of people involved in this and we already knew we were going to be paying close
attention, but i'm sure that a couple of them will love getting those subpoenas. >> i imagine we'll hear from them shortly as for earnings season, you know it continues tonight ea, airbnb, paypal all after the close. intel stock plunged on disappointing results. the consensus view is that amd is eating their lunch and we'll see if tonight's results ratify that. >> lyunch clearly now let's see if we're getting into the appear appetizers for dinner data center is where intel has been relatively weak let's see how that's shaping up for amd. they have been gaining some share in consumer but gaming seems to be weakening a bit so how will amd perform there paypal, we were just talking about fintech. that's a big name there so we'll
see how they perform. >> starbucks of course big exposure to china, which of course is a major story today as the speaker landed in taiwan which by the way, i would point out, her landing marked the top of the session s&p did go green and has recently regained -- or cut those losses we're currently about flat at 4117 let's get to the judge and "the half." carl, thanks very much welcome, everybody, to "the halftime report. front and center, risk and reward why some say it is more attractive now than at any time during this bear market breakdown. is it really time to add stocks here we'll debate that. joining me stephanie link, michael farr, shannon sacoccia and joe terranova. we still have the dow and the s&p negative s&p basically flat there you go, it goes positive nasdaq good for about