tv Tech Check CNBC August 19, 2022 11:00am-12:00pm EDT
all right, quick check on the markets there. we are ending the week on a sour note, at least if you're long stocks, s&p down 1.2%, and nasdaq almost at now a 2 #% loss that will do it for us on "squawk on the street. have a great weekend, everybody, it is time for "techcheck. good friday morning, everyone, welcome to "techcheck," i'm deirdre bosa. and with carl quintanilla. welcome back, carl, we missed you. jon is back next week. the nasdaq on pace to break a four-we can win streak is this the end of the bear market rally or are investors headed out early on a summer friday bitcoin crashing, more on that selloff. and brian cohen out of bed bath & beyond, the stock more than 60% off its 52 # week high diving into the mean trade. we're kicking off today's
feed with the markets of course, nasdaq may be up 18%, but it's still more than 20% off the record high. was this just another bear market rally that's now coming to an end? joining us this morning, the chief investment strategist, joins us what the weeks to come may bring. i wonder, we're going to get software names next week in terms of earnings. it sounds like that's one area where you think investors should stay focused. >> we like the software space. we think that plays into the megatrends ongoing, amid the macro risks that still remain, as we're seeing play out in the market today that is a space that does look more stable and it's held up better than some of the other tech spaces. >> yeah, software, cyber, cloud, basically your view is to stick with those areas, they've done better than most so far this year, but be wary of the consumer. >> you want to stick with w
outperformed the consumer is weak in terms of tech spending. there's so much spending during the pandemic we're seeing the corporate budget, really holding up pretty well corporations are using technology spending, more areas of strategic approach, rather than a cyclical approach, and that's playing into megatrends and helping to support them, propping up the cloud computing sector, cybersecurity, still looks really strong. >> to that point, even cisco yesterday on the hardware side held up better than many had expected chuck robbins talked about surprising strength even in places like europe, no weakening in demand. what has changed this week why is the nasdaq, why is this rally, never really very loved in the first place, come to a halt >> well, first, on the point of cisco, cisco does play into a lot of those megatrends as well. so let's keep that in mind, even though it is -- there's a hardware focus, also a software component to cisco
that is a very strong name that plays into many megatrends i think there are ongoing macro risks. big picture, it's still the case that interest rates are a concern. how tight the fed is going to get is still a concern and the market, overall, might have gotten a bit ahead of itself in terms of taking a dovish approach to the fed's messaging. i think we're saying that play out today with interest rates jumping a bit, some concerned about what's going to happen with the jackson hole meetings, and the messaging that might come out of that from the feds overall, a more balanced approach but still, something where a good amount of tech spending is holding up well. >> right, and jackson hole is maybe making the market jittery about the fed's trajectory, as you said maybe gotten ahead of itself what the growth names we have seen rebound over the last six to eight weeks what could propel them forward do you think that they are now sort of caught up this that macro picture, despite what cisco said, that the earnings season for them is going to be tougher?
>> i think in the near term we are caught up in the macro picture, i think the focus is going to shift now that the earnings season is starting to wind down, the focus is going to shift to the fed, to interest rates, to growth, and it's going to be dominate the headlines we're going to have to see how that plays out and then once we get further into the next quarter, and we start seeing how earnings are holding up, that's going to start to turn back to how spending -- where spending is going, how it's holding up right now the macro picture is looking to dominate for a while. >> as far as enterprise spending goes, i did notice this morning thomas -- of the richmond fed seeing precautionary signs of softness in business investment, and i wonder if you think that could snowball eventually into i.t., and software despite what you've said about the disinflationary aspects of wanting to buy more of those products. >> it could filter into those
areas. we think that's probably the last stand because we do have 3.5% unemployment, we have strong wage gains, corporations really are seeing technology spending is increasingly important. keep in mind that corporations have low leverage. so that although they might be cutting some capex budgets, looking at some bigger projects that they might put on hold or put off for a while, technology spending is still becoming much more strategic, and taking a long-term focus. there is some risk, but we think the risk is lower in the spaces that play into these megatrends. >> and to that point, people are looking back at the week, and saying, okay, what were the highlights in terms of earnings. cisco is definitely one of them. others pointed out that amat wasn't too bad, not just the beat on the bottom line, gross margin, operating margin, but also the quarter ahead guide above the street i wonder what you think that says about the semispace. >> well, they did report strong
numbers, but the challenge is you have two of the biggest customers cutting spending budgets. you have intel and micron cutting their capital expenditures a good amount and really, that's what points to some of that bifurcation in the tech space the consumer side remains weak, and there are some companies that are very heavily leveraged to that. so we really want to think of where those megatrends are, even though a company like amat is very stable, in the near term the weak consumer side is going to weigh on the market. >> what is the takeaway then, can we call this a bear market rally? what does that mean for investors the rest of the year >> i don't think we want to make a final determination, i think the market's going to be very data dependent here. it's going to depend on how inflation plays out, what the fed's messaging is, and how high interest rates go. i think we're in this kind of holding pattern to see how the
data plays out we've probably seen the lows but that doesn't mean the rally can continue nearly as strongly as it has into year end unless we continue to get good inflation numbers, a fed that has somewhat soft messaging going into the end of the year. so i think we're back in the data dependent mode now that we've seen this big rally off the lows. >> that's a good sign post for where we are at the moment, thanks so much, good to see you. nasdaq down 2% the plunge in crypto, bitcoin falling into its lowest level in more than three weeks, the pullback coming after a big run-up, ether up 50% during that time important to keep everything in perspective, year to date chart, bitcoin and ether, in lockstep, losses coming in at more than 50% for both of them carl, a lot of folks are searching for a reason
doesn't seem to be that there is an immediate one retail investors never backed the rally in the first place it's more whales and institution selling in this recent selloff, also that it's trading on the back of these macro concerns we were just talking about, and correlated to tech, however, it's been interesting over the last few months, the moves to the upside have been smaller than we've seen in tech stocks and the move to the downside much bigger. >> people taking note of the price action in search of a reason, the only thing that i saw last night, was some of the guidance -- or not guidance, but the metrics out of robinhood on equity trading down 33 on year, options down 29. but crypto down 59 severe year on year contractions in the volume of crypto, that's trading at least on robinhood. >> and it's bringing down other public crypto plays. apple, security flaw making headlines, raising concerns over
data privacy is this anything more than a routine patch. joining us now, joanna stern, good morning, it's great to have you with us, and happy friday, of course. >> good morning. thank you. >> so apple has always made security a key selling point whether it's a glitch or not, we've gotten an increasing number of updates. is that argument waning a little bit, the bigger the market gets for them >> i wouldn't say with this one, i don't think this one is one of those freak out moments. this does happen, as you said, from time to time. there is an "x" point. there is an a vulnerability in the operating system, apple lets people know or a security group lets people know and apple patches it that's similar to what we have now. though, as you've said, this has been growing and we are seeing impacts of that in the operating system nfrt, the next version of ios, ios 16 # has a lockdown mode a hacker mode, if you were to be hacked, this new setting lets you just lock down your phone.
so certainly continues to be a priority for apple, and they continue to have to be nimble with these hacks. >> back in the '90s and 2000s, it was microsoft, and there was constant hacks because there was such a big target. you have to download separate software can we leave all of this to apple? is this a different moment it has a bigger target on its back today, but do consumers need to look at additional security for their iphones and devices? >> yeah, i mean, i'm really hoping our iphones don't start to get pop-ups saying we need to update nor ton antivirus in 90 # days our or whole computer is not going to work. but people have to deal with the entrances of vulnerabilities some of these are coming in through phone -- through text messages, coming through malware. it's about how those -- how the entry points make it to the phone.
and how both app makers and apple can get better and more defensive about letting them in. or blocking them. >> as we're talking, joanna, nasdaq down a full 2 #%. the dow is down 300. we'll monitor the market activity on this friday, a big options expiration day i am curious about your views on the upcoming apple launch event. there's a spectrum of launch events in apple's history. some reveal big surprises, some are more incremental how do you think this one's going to rank? >> i think we're going to have a mix. there's a big difference, though, this year with the apple event. i will say it's very good news for stock -- for shareholders, bad news for tech press. they seem to be apple's expected to hold this event a week earlier than in years past, so it's looking at the -- we're thinking the september 7th date is this year's launch, or at least the announcement usually it's a week later, that's right after labor day, not great news for tech press that have to get out there, great news for shareholders, because it will mean more sales in this quarter.
they will have now iphones on store shelves earlier, and what's expected, all four models to be out early in september so not a staggered release like we've had in years past. >> right, we're looking at a chart of apple's run-up in the last couple of months here, it really has been a general in terms of overall equity activity, and it takes me back to the middle part of the summer, joanna, where we were severely worried about logistics, and china production. and apple's ability to weather that storm i wonder, looking back, the last quarter or two, how many of those fears do you think were really well founded? >> i mean, the fact that they are now holding an event earlier, right, so they've been able to get their act together to get what we think are four models of the iphone, 14 models two on the regular size and the big size and then we've got the pros, and a regular size, the pro size get that all out early in september, i think it's a pretty big feat for them. they're not going to be delayed, it seems we don't know enough about what
that inventory is going to look like, but an early september launch for all of these phones is very impressive in this market. >> yeah, well that supply chain genius that tim cook has, maybe it will make it possible getting to meta, morgan stanley cutting the price points from 225 to -- they keep their overweight rating. base case assumes meta to take a -- ad units deliver on new engagement formats that can take time joanna, these issues have been well telegraphed there's nothing really new i was looking at this note as well, this put it a little more brutally they asked with ad-driven stocks down sharply at current price levels we recommend investors use meta as a source of fun. even if you buy into the argument that meta is now a value stock, wall street is
saying sell it because there's even more attractive out there, even at these low valuations. >> yeah, and what was striking about that note, too, is just the mentions of the metaverse, and how investors are not sold on what mark zuckerberg is putting forth on that and especially after this week, with photo of zuckerberg. the internet is really joking about him, the graphics don't look good. this has been a billion -- plus billion dollar investment by meta, and investors are saying we can't wait until 2030 to see that payoff. look where they are right now. you have this collision, as you are saying, of reels and other types of ad target -- or ad-supported products, not hitting the mark right now, plus -- not pun intended and then the investment that they're making into these future things how is this company betting on it and clearly people are not sold. >> even "techcheck" had our own
meme i wonder if we can bring that up on the metaverse image a lot of folks are pointing to tiktok it's not just tiktok it's amazon and youtube taking share of from meta as well this universe of competition we talked about tiktok but it's a lot bigger than that. >> tfs time spent. it's where companies are spending ad dollars. it's where people are spending their time it's ultimately that and, again, going back to the reels thing, which is a direct competitor to tiktok, right, the -- they -- many of those talking about it as a product are pulled from tiktok but people are not spending as much time, and as this note notes, people are not -- the companies -- it's not worth as much in terms of the ad spend. so they would rather people be spending more time in the feed, which is a better buy for an ad -- for your ad dollars and for the ad payoff, but people aren't spending their time there either. >> yeah, that's interesting. you know, some of us are old enough to remember all of the
crucibles that meta -- then facebook had to go through they were criticized for not being mobile enough. they stepped on the gas. through the red light and proved people wrong i wonder if there's been in their history historical parallel as big a bet as they're making right now on the long-term metaverse. >> i would bring up that mobile thing. we think about back to 2000, around 2010, 2011, facebook didn't even have a very good working mobile app it was around that time cheryl samberg steps in, and ramps up the advertising business and that's what turned facebook or meta into what it is today whether we're going to see that play into some of these future places, it's a harder bet. tiktok, i think, is a much harder competitor than we had back then, with, you know, snapchat, or even instagram, which they ultimately ended up buying. >> speaking of snap, joanna, you
broke the story that that company is halting production of its $230 pixie flying camera drone, the product first announced back in april. first we had snaps glasses, now this the company has gone through great pains to let its consumers and investors know it's a camera company, but is that getting harder to argue? >> yeah, i think evan spiegel is realizing there's no time for toys this is a toy. i had a lot of fun testing it. i think it is a fun product, but ultimately snap being in a similar place right now. even worse, thinking about, we've got to get our core business together. we've got these issues on the ad side, we've seen the plummeting of that. do we have time to be investing into hardware? but as a whole, i was -- i hope that they can continue to improve in those areas, but as they think about where they are right now, this is not the time to play with toys.
>> they're fun toys. i will give them that. whenever we talked to evan spiegel, he seems to not want to embrace the idea of the metaverse, which is reasonable, but this is a company that is quite strong and has been pioneering interesting features in a.r. and v.r., is it time for snap to embrace the metaverse, or whatever they want to call it, would that be a positive brand refresh for them >> snap is a leader right now in a.r., when you look at their app and what some of the most popular features are, they are augmented reality features, filters you can put on your face or your feet with shoes. they're very cool and evan spiegel has talked about how they are moving this that direction, how that's actually an dwrar area of growth, partnering with companies, but whether it needs to look like a metaverse type of thing, i don't think so it comes back to that hardware play where are we going to end up in this augmented reality world
they are building glasses at snap as well do people want to buy hardware through snap is snap going to continue to be a platform that runs on bigger virtual reality or metaverse type hardware platforms. >> joanna, given the results the last couple of quarters, they've been fairly disastrous relative to other tech earnings if it's been discouraging for advertisers having to sort of reevaluate the quality of their overall ad model. >> well, specifically on snap, you mean, carl >> yeah, exactly. >> i mean, yes, though -- and snap has said, and you can look through their reports, where they have this tapped up user base they use the app over and over and over again multiple times a time. this is a captive audience, it's appealing as they can use their snaps tools, which are different in many places than what metaprovides, whether it's augmented reality, the mapping
types of features they have, to reach those audiences, that's where snap is more innovative, than meta, or really some of these other companies. >> joanna, great to get your insights talk to you again soon, joanna stern, "the wall street journal." coming up after the break, bed bad & beyond is plunging is this the bottom for paypal? tech "techcheck" is just getting started.
(vo) what can a nationwide 5g network from t-mobile for business do for your business? unlock new insights and efficiency-right now. allow monitoring of productivity at remote job sites, with next-generation bandwidth. enable ai cameras that spot factory issues in real time, using next-generation speed. and deliver ultra-capacity 5g coverage that's years ahead of the competition. t-mobile for business has 5g that's ready right now. and it's easier than ever to get your projects done right. with angi, you can connect with and see ratings and reviews. and when you book and pay throug you're covered by our happiness check out angi.com today. angi... and done.
with xfinity internet, you get advanced security that helps protect you and wat home and on the go.hroug you're covered by our happiness you feel so safe, it's as if... i don't know... evander holyfield has your back. i wouldn't click on that. hey, thanks! we got a muffin for ed! all right! you don't need those calories. can we at least split it? nope. advanced security that helps protect your devices in and out of the home. i mean, can i have a bite? only from xfinity. nah. unbeatable internet. made to do anything so you can do anything.
earlier on "squawk box." >> anytime you have situations like this in a regulated industry you're going to have the people who are -- the cops on the beat as we say, look into this i'm sure they'll look into it. how they look into it, that's up to them. but i'm sure they will look at this both around the trading and around whether there was market activity with material nonpublic information. >> cohen bought more than 7 million shares in calls of bed bath earlier in the year and the company added board members of cohen's choosing, pushed out the ceo after the stake. price action, and regulatory conversation, and then there's the fundamental conversation about what the company's going to do about addressing its debt load here on out. >> which, you know, a certain group of retail investors have never carried about the fundamental argument even this morning on wall street bets the form on reddit, people
are saying hold on, we've been through this before, we can do it again, others quite pissed off on what ryan cohen has done. it's been a wild week for the mean stocks, carl, and what i'm left with, now shares you know almost at $10. did the company miss its chance to pull a playbook a la adam aaron, on the back of this momentum, and get a better position for fundamentals. it would be hard to raise enough money to address the decay that's happening in the company. >> as we've talked about a lot this morning, structurally from here on out, maybe we're in a situation where the overall market can sort of withstand ongoing meme activity in various demographic parts of stock trading, and because it's clear they're not going away anytime soon. >> still to come this morning, wells downgrading hp and, the analyst behind that call is going to be with us when
"techcheck" returns in a moment. 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
welcome back to "techcheck," i'm carl quintanilla with deirdre bosa calling the bottom on paypal, one investor is doubling down on that name. but first let's get a news update with courtney reagan. >> here's what's happening at this hour. general motors will pay a quarterly dividend first time in two and a half years when the covid pandemic was taking hold. gm will pay 19 cents a share share buyback program. the british parent of u.s. movie chain regal cinema is preparing to file for bankruptcy according to people familiar with the matter who spoke to the "wall
street journal." senate world group is evaluating options to improve liquidity, and it said movie attendance has been lagging due to limited slates of popular films. it bought the regal chain in 2018 for $3.6 # billion. doordash is reportedly ending a more than four-year partnership with walmart a source tells insider doordash no longer considered the partnership mutually beneficial. walmart has been expanding its own delivery network, known as spark. back to you, deirdre. >> we'll be talking about that later, courtney, and we have confirmed as well from a source that doordash did indeed end that partnership >> paypal, our guest was a beyer amid a brutal first half of the stock, it is his portfolio's best performer for the past month. joining us now, david rolf the growth complex as a whole you say it's time to buy this. are you too late, i wonder was it a bear market rally and
especially as we hit the end of earnings season, the focus seems much more on the macro, and the fed's trajectory. >> big fixture there in general, higher quality growth companies like an environment where inflation's coming down, it's a slower growth environment, but when it comes to paypal, it's very interesting. everybody's talking about, is the fed going to pivot next year and start to ease? paypal itself during its conference call on its recent earnings release had an incredible pivot and they've had a really tough go over the previous two quarters, revenue is fine, profitability was awful. but the ceo pivoted, and said a couple magic phrases like profitable growth and focus and cost discipline and capital return and the shares haven't looked back. >> right, and to me that pivot was that focus on average revenue per user, right, where
as sort of the old method was growth at any cost, get as many users. has that message gone through that their competitors, however, with this slowdown, and then, i know paypal so far ahead in terms of its users, especially venmo, they're in a position to capitalize the market, didn't really like that at first. is that really what's behind the recent rally >> well, the stock got hit so hard i mean, we've been in this stock, bought it a few months after it spun out of ebay in 2015 we looked smart for a while. now we look like bums. we've trimmed some but wrote a far too position down, 75%. and then we slowly added to it in february, we added in march late april, early may. we rebuilt the position. i mean, this is a fabulous business they have a huge head start, a huge brand name in the digital wallet yeah, competitors are going to
take note. but this idea now that they're going to focus more on paypal, venmo, digital wallet, you know, online checkout, and, again, great asset brain tree, which is their platform for merchants, let the competitors try to catch up but i do agree with you, they had some open field running with this whole super app, giga app, and they were all over the place. if they could focus on user profitability, that's a tail wind that we really like and those have long legs. >> david, i don't hear you mentioning much about m&a or elliott or pinterest, i wonder if you think that parlor game has been talked out, too obvious, or was that ever part of your thesis back then >> carl, it wasn't part of the thesis at all. i think at a minimum, with elliott's position, i think the folks at elliott will hold suleman's feet to the fire as he goes through this pivot and doesn't have anymore grand ideas other than let's focus on what's the best of paypal right now and
get those margins back up, get return on capital, cash flow return, on capital back above that 20 handle, that historically, that's where it's been and so yeah, elliott's position is small, they're influential, and they certainly have the ceo's ear. >> are their marriages where you think they would make a good partner? >> i've looked back and forth on pinterest. marriages are tough. again, if you can buy something -- yeah, i don't know if my wife's listening to this but i mean if you can buy something cheap with a very expensive stock, great if you can buy something cheap with cash, and it's accretive, great, but those are two really big ifs. if they've got a fat pitch, great. but i really like this new pivot and focus they're talking about. i hope they execute well on it the stock should be a good performer from here if they do. >> execution is key, david, but
that brings up a fundamental problem in paypal, they've had so many users with venmo, but they have not really been able to monetize it, what are they waiting for it, when you look at a competitor, like square cash, much better able to do so. does that raise questions about execution and whether, you know, suleman can execute another pivot? >> great question. venmo's volume growth has been great, user growth has been great and now it's time to bring money down to the bottom line and that's going to be a significant challenge. again, the idea that they are focused on that, time will tell, i'll give suleman the benefit of the doubt because net/net, he has managed this business that arguably was just a fancy online ach check swapping, cash swapping business into all these remarkable partnerships. i'll give suleman the benefit of the doubt and i also think he's earned chops for admitting that maybe they were getting far
flung and they needed to focus again. the jury's out on venmo profitability, but let's see what develops next year or two. >> i mean, it has been a wile. they've been talking about trying to monetize it, but kaifd i want to get your take on your top pick we just showed what it was, it's meta we talked earlier on in the show wall street, getting increasingly skeptical of this pivot, that it's trying to achieve what makes you so positive >> well, i wish they'd take a playbook out of tim cook at apple, and maybe just call all this money that they're spending r&d, and wait to roll out some products that's going to capture some folk's imagination. i wouldn't bet against zuckerberg as that -- as that social media platform gets more and more involved with artificial intelligence in terms of trying to screen and make -- and make ads more relevant, more user specific, if they can -- if they can have success with reels, and
if they can perhaps put tiktok on the back burner, i think they're going to be very successful the stock is trading at a level that is assuming that they're not going to be successful what i found interesting is, if you go back two quarters ago, it was all about tiktok we got this incredible competitor and we've got to double down on our efrforts. if you listen to the most recent quarter, the conference call, i don't think they mentioned tiktok i don't know if the earlier quarter had to do with all the ftc lawyers probably crawling around their campus right now or were earlier in the year, but i like the setup on meta, in that the stock is so cheap, it's not nothing like what happened to paypal there's so much bad news embedded that this great franchise just needs a whiff of good news, and back to the races we go. >> that's what i wonder, i didn't mention tiktok as much.
there is so much other negative stuff to get through david, you're right, in terms of its valuation, it has come down a lot. could represent value to some investors. david, thank you so much, great to hear your insights. >> thank you so much for having me on. >> happy weekend. >> you too, thanks still to come this morning, uber and lyft, up more than 20% in the last month, can you still ride those names, though, after the downside reversal so far this wk?ee we'll discuss. your record label is taking off. but so is your sound engineer. you need to hire.
i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire to adapt in a fast changing world, matchin you could hire aption. 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 make better decisions faster. on the other hand, we had a great fourth quarter. for a accelerate your decision-making world. workday. for a changing world.
tech and small caps are underperforming the broader markets today, nasdaq down 2%. biggest losers on the nasdaq 100, it's high growth names that have led the rally over the past six weeks or so that are giving up gains today, okta, lucid, z scaler ricado libra. >> i had big earnings next week out of software. in gaming, cowen is lowering expectations for console video game software, reflecting tough comps in q2, bracing for delays in gaming releases through the second half of the year, after deutsche downgrades, cuts target, predicting the pipeline will not start contributing until next year. interesting cross krcurrents. >> a lot of softness
confirming its ending its relationship with walmart. competition in the delivery space has been spencefying, changing the balance of power for retailers. doordash's decision to end this partnership, could be a focus on profitability. doordash has been sitting out the opening -- uber, lyft, grab, have surged over 35% since mid-july, people are heading out and traveling again. this week they have been under pressure losing gains, uber, grab falling over 11%, lyft dropping 14% when it comes to this partnership between doordash and walmart, carl, the competition has just been so much more intense, especially since uber pushed into this space does raise some questions for instacart, and its ipo when it finally does go. when these contracts were coming up years ago, there wasn't quite as much competition. they were probably more worth it for the delivererers, walmart,
meantime, building its own network capacity. >> yeah, and now we've got tony shoe going to be on the new season of shark tank he'll expand a little bit on what strategy is over at dash. that's interesting. >> i did not know that that's one to watch. >> yeah, season 14 tony and gwyneth paltrow that's one to work the e-commerce furniture company is cutting 900 jobs, shares down about 17%. at the open this morning it had been cut more than half so far this year read more about that on cnbc.com dow is down 263. stay with us nurse mariyam sabo s a moment this pure demands a lotion this pure. gold bond pure moisture lotion 24-hour hydration no parabens, dyes, or fragrances gold bond champion your skin
shares of hp, in the red this morning, wells takes the stock to under weight. they predict shares to underperform through the rest of the year, and into 2023, thanks to deteriorating pc demand, and macro sensitivity. joining us, the analyst behind the call you point it out pc demand, you talk about share repurchases, you talk about dell as perhaps a more nimble competitor on supply chain, is there one overarching reason for the call? >> i think it's predominant. thanks for having me i think it's predominantly a pc call we've seen weakness in pcs, preliminary numbers are out for hp that show north of 25% year over year declines in shipments. and you're still got a situation
where, you know, we're trying to figure out what post covid normalization of pcs look like it's that and coupled with the fact that there has historically been macro slowing on the print side in past recessions we've seen anywhere from 15 to 20% declines in print revenue. so it's a combination of those but really probably more weighted to the weakness we continue to see in pcs. >> that is interesting because the landscape of pc demand has been telegraphed for a while now. but you're arguing there are signs that it is, it does continue to at least accelerate or extend? >> yeah. i think that's right when you look at some of the semiconductor data points we've seen come out of earnings you've seen from 25 to 30% declines on volume shipments from intel and amd combined you've seen shipments of data out of taiwan in the supply chain that continue to decelerate in july and even into
august and so we've seen the data points continue to add up. i think also specific to hp there are mixed benefits, might start to slow down as we move forward. that has been clearly a positive driver for their overall pricing in pcs as well >> chuck robins was very optimistic on the quarter and the rest of the year when he spoke to us yesterday. do you think that enterprise fears over demand slowing substantially, they were over blown. is there any breakthrough for the consumer portion >> i think consumer is definitely still much weaker i would say chuck's commentary is probably more as we outlined in our detailed note of a derivative call for someone like a dell on the server storage side, some of the hardware names in storage like netapp and pure storage, etcetera. i think what we're really looking at at hp is while they've increased their
commercial business there's still a lot of consumer exposure which we continue to see signs of further deterioration >> as far as where, if we're in this downward cycle, what's the point at which we've reached enough time between the last peak where you would begin to see some new efforts at refreshing equipment at least on the consumer side? >> yeah. so i think that, you know, a lot of the forecasts out there continue to show possible declines on unit volumes and pcs into 2023. so i think the compares start to look a little bit easier as we move into the back part of calendar '23 at this point we're really looking at late 2023 into 2024 where we think we could mabel see some stabilization on pcs i do believe post covid pc volumes will be higher than pre-covid levels but just not at the same pace we saw obviously throughout 2021
and the latter part of 2020. >> yeah. well, that tied -- everybody understands what happened with demand in that period. how crazy that was aaron, fascinating call. we'll watch it in the months to come thank you. aaron rakers over at wells today. >> thank you. >> if you missed part of the show do not forget to follow and subscribe to our podcast listen anytime, anywhere over the weekend maybe wherever you down load podcasts. "tech check" is back in a moment
tech is under performing the broader markets to end the week the nasdaq on pace for losses this week of about 2.5%. that would break that four-week winning streak, that pretty big rally we've seen in a lot of the growth names, too, over the last six to eight weeks. >> yeah, being unwound a little bit today. meantime, what happens when you take two former bankers and channel their experiences into a television series? enter hbo's finance hit "industry" set in london and centered around the perspective of young professionals navigating the high stakes world of finance for this episode of "binge" we
chatted with the industry cocreators and best friends as the show enters its sophomore season we talked about their transition from banking to hollywood and the future of streaming and content budgets. >> i'm curious to know, your overall view of the streaming environment and the content environment. what ambitions do you have going forward? where do you see sort of the landscape being the richest right now given that we're in this period of uncertainty on content budgets and all the rest >> hbo is the best place we could have made the show they allowed us to make a fairly esoteric bachlking -- banking
show with two bankers who have never done it before. >> you look at netflix and how it is inevitably slowing down. there won't be as many blank checks written in the tv industry the messy packages two years ago bought without people blinking and increasingly getting passed on i don't know if that signals a contraction of business. i have no idea i do feel we entered just at the right time. >> watch the entire interview on cnbc.com/binge starting right now. for the full uncut conversation join us on twitter or youtube after the show for a special live stream happening at 12:45 eastern time today i don't know if you watch the show, but they nail both the tone and the jargon that is used on trading desks you don't need to understand the language but it's a lot better if you do >> i love the show there's not a lot of series i can get behind these days but "industry" is one i really look forward to the current season which i have to catch up on it is also so refreshing to get
a series that isn't "lord of the rings" or "game of thrones" remakes or prequels whatever it is that are such big budgets, kind of easy wins, like an industry, it's just so valuable and i wonder do they always want to go with hbo max did you ask them if they pitched this to netflix and they passed? i can't really imagine still netflix making this kind of show. >> it really wasn't a project they needed to go out and sell they were already working for a production company one of the leaders said, hey, i heard you guys worked on wall street once. you ever thought about doing a show about that? it really just spun out from there so an incredible success story for mickey and konrad. would be curious to get your reaction to their background one last thing that is meta an executive leaving to go work on metaverse, steve park long-time director of public policy for south korea and japan and facebook leaving to join roblox as they look to expand in asia he was at meta eight years
worked on oculusd. a little bit of stealing going on as the landscape remains rich for the future. >> that's where they are spending, on labor getting rid of some but metaverse is going to attract top dollar right now >> big names reporting next week salesforce, zoom, nvidia, workday, very busy have a great weekend let's get to frank holland and "the half. >> welcome to "the halftime report." nasdaq and tech a sell-off this hour as fears resurface. the main cap names have been the real driver of the rally this summer does this group have enough to keep fueling this market two key sectors in this market making a quiet but major comeback we'll tell you all about it. now our investment committee on this friday. happy committee to all of you. first, we'll begin with what is ex