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tv   Tech Check  CNBC  August 30, 2022 11:00am-12:00pm EDT

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is it in part because at this point the jobs market seems to be going against what powell was hoping >> a two-fer on bad nudes for the markets today, good news for the economy, more job openings than what we thought was happening in the u.s. economy and also consumer confidence coming in a little bit better than expected. good news has been treated as bad news because it means just a bigger green light for the fed to keep interest rates high and to keep going and then we had this news report out of taiwan we're watching. >> there's a clock, it says 11:00. >> go ahead. >> we say good-bye and hand it over to "techcheck." >> good tuesday morning, welcome to "techcheck," i'm carl quintanilla, with jon fortt, deirdre bosa and julia boorstin. stocks sinking again, bouncing off a decline of 400 what is driving down the names to target at the bottom. in the metaverse, what apple's entry into the market means for meta. then later, the ceo of vmware, talking earnings, and
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the outlook for cloud. we're going to kick of today's feed with a look at big tech, some cracks in the armor begin to show the nasdaq plunges the third day in a row now down more than a percent this morning dom chu. we've seen this reversal, big tech has held up a little better, especially apple but over the last week you've seen the cracks as i said in big tech show. >> not just that those cracks might get even bigger if the economic narrative holds true the way it's playing out right now. we are back in what seemingly is a good news is bad news situation. the economy is getting better. there's more job openings out there. could that mean higher wages, inflation, could that still be an issue all of those things are playing out in the market right now, and this is the reason why interest rates are heading higher, and tech valuations are getting hurt yet again. if you look at the nasdaq versus the dow, versus the s&p 500, i'd use the etfs to illustrate that
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on a one-year basis. if you look at the qqq trust over here on the right-hand side, it has been perhaps the bigger downside move given the rate concerns, the economic concerns around the fed raising rates. if you look at that particular move for the nasdaq overall, if you focus in on just the move lower that we've seen over the course of the last week for the nasdaq in and of itself that's when you start to see a little bit more of that weakness coming in let's take you through the next chart, which is kboipg to give you a better idea of what we're looking at overall, with the technology sector versus consumer discretionary and industrials. over the last week they are the three worstperforming sectors in the s&p 500, and of course tech and consumer discretionary house many of those megacap names that matter the most to the markets. if you take a look, though, outside of these, check out the one-week moves we've seen among those mega cap names, apple, microsoft, alphabet, the parent company of google. in the last week that's what's
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driving the downside action, 5% losses for the three biggest stocks in the nasdaq, and the s&p 500 overall but it's a handful of stocks in today's action, that might be a telltale sign, folks, about what's going to happen here with the broader tech trade and that is specifically the semiconductor stocks, among the worst performers in the s&p and the nasdaq 100 today are names like nvidia, microchip technology and applied materials. over the last week they have been among the worst performers, as we pointed out before many traders, guys, like to look at these particular stocks as the leading indicator, perhaps, for the broader tech sector, carl, jon, deirdre, you've got to watch those trades in big stocks like nvidia, amd, applied materials and others keep an eye on the semis, that's a big one. >> closely we're going to talk intel later too. overvalued or undervalued. i want to take another look at another subsector of tech, dom,
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the legacy tech trade. we have disappointing results from dell and this has been another relatively good space for investors to hide this year. is that coming undone now? yes, they have dividends but slowing growth is a concern. hp and hbq to report too. >> it's not just that. but it's all about the relativity versus expectations for many of these companies, because of the tough comparable comparisons we had during the pandemic there were already expectations that computing providers, companies like hpe, hpq, and of course dell have seen a boom to their business over the course of the last couple of years given the pandemic and everything else we kind of have an idea that things aren't going to be add good but how not good versus expectations are they? that's why you see dell, and hp, some of the ones here taking it on the chin. i'm not sure if that legacy trade can be boiled down strictly to the relativity over covid comparisons, but for right now, given the best buy results, by the way, with particular
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emphasis on home computing and home theater as being real areas of weakness for sales growth, that could maybe put a little bit more emphasis on whether or not these manufacturers, these oems, so to speak, are going to be the next chief shoot to fall here in the overall tech trade. >> dom, thanks so much dominic chu on what's turning into a fairly interesting market day. speaking of that, our next guest sees recession fears driving more choppiness ahead, recommending that investors de-risk quickly in the year ahead. joining us is bob dall in the past couple hours we had the jolts number, not going the way that certainly the fed wishes i don't know, is it turning out, is the labor market turning out to be more resilient, hence the fears there's more wood to chop. >> without question, yes, we've heard that from chair powell last friday. the economy is weakening in some places, but the labor market
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remains strong and that has to crack before the fed is finished there's too many open jobs for people looking at them, and that's what's causing this concern that inflation is not going to disappear anytime soon. >> so when you say de-risk, what do you mean, get out of stocks >> have a lower weighting that you might otherwise have i'm an equity investor, so usually fully invested what do i do i have a lower beta than usual i have a higher dividend yield than usual, higher predictability of earnings, just a more conservative portfolio, even within tech. >> bob, we're seeing income inequality in a way in society play out in the markets, it seems to me, the better paid consumer is faring better in this environment than, you know, the working class, or even poor consumer how much does that reflect what investors should be investing in probably the prime luxury stock
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in tech is apple they build premium phones, premium computers and sort of have to rely on innovation to make it worth it that's their margin. if they can continue to do that, and if the luxury consumer holds up, they might continue to do well is that something investors should be betting on or against? >> i agree with the thesis, that is just take food and energy who spends the most percentage of their income on it? the poor, they're getting hit the hardest. i agree with your notion if you can lean toward companies that have potential for driving innovation and higher ticket items, you have a better shot. but even those areas that are struggling as well as the economy weakens. >> bob, i know we're focused on the jolts number this morning and certainly the jobs report later this week but what about inflation data, which is trending better, are you in the camp that the fed could overact here and perhaps push the economy into a recession,
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needlessly >> they could. i think it's too soon to argue that there's a huge gap between the fed funds rate and inflation inflation did peak in the second quarter. i think it will continue to fall irregularly for the rest of this year, taking us to a 4 to 5% inflation rate still unacceptable but better than where we are. that's when the going's going to get even tougher to figure out what to do to thread that needle engineer soft landing which we know is pretty difficult, not many chances we've had that happen. >> bob, ten-year 313, woirnd where you think that tops out and if it doesn't get, say, to 345 or 3.5 again, can people talk about a potential double top, at least on the benchmark >> yeah, the 3.49 we saw a few months ago, i don't think that's the end of raising rates we're in a period now where the economy slows, inflation's falling. so i think bonds are going to be
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trading vehicles, but i think before this cycle is over, meaning into next year, we're going to see higher yields across the whole spectrum of the curve as inflation stays stubborn. >> bob, what is your read on enterprise spending, business spending, i'm particularly interested in technology but we've got a few different notions floating around out there. intuit last week announced a really strong water on s&b there have been some businesses also in software, microsoft, for example, that's shown some strength in software spend but at the same time when it comes to equipment, you know dell, we've got hp, hpe coming, not as stable. >> so there's no question capital stock in the u.s. in general is old and that's why you've seen the capital spending cycle be a bit better. i think it won't fall as much as it typically does in a session
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technology in particular, software services, money will be spent there as labor is becoming more expensive i think there's some rays of sunshine in that little piece of tech if you will, maybe it's not so little. >> so rays of sunshine, that was kind of the takeaway after the last earnings season, better than expected, especially in the cloud and software names as john said but does fed chair powell's speech last friday change that when he talked about paying for consumers and businesses, do you think that there's companies out there, that are going to say, hey, i think we're going to need to pull back and that could show itself in the upcoming earnings season. >> yeah, i fully agree with that, my comment about ray of sunshine is maybe hurt relatively less. as the economy weakens, those areas might weaken a bit less. the notion of the fed lowering rates, the fed put, the fed pivot, whatever the words are, was the language people interpreted from the fed press conference a bunch of weeks ago.
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but the fundamentals in my view, given the inflation where it is, don't support that at all, and the fed made that clear on friday that's going to be the narrative for a while here, i'm afraid. >> well, we've got bostick out now saying if prices do cool, could allow them to back off of 75, and maybe that's why we can see the lows of the session about half an hour ago, bob, great to see you bob doll. >> all the best. turn now to twitter, like another dear john letter, elon musk sending another deal termination notice to the company. julia boorstin has those details. julia? >> well, jon, elon musk sent twitter his second notice to terminate, citing totally different reasons, based on the allegations of the whistle-blower petiter zatko musk saying twitter violated its 2011 ftc consent degree regarding user data privacy.
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alleging that -- to which it's vulnerable todisruption from data center failures or, quote, malicious actors and also that twitter agreed to demands by the indian government that the company hire its agents and be given access to twitter's user information. now zatko's allegations do not support musk's first argument for terminating the deal but musk's camps say they do believe the second termination notice is not legally necessary, but it is in addition to, and not in lieu of their original argument twitter responding saying, quote, as was the case with your july 8, 2022 purported note of term nation, the purported termination set forth in your august 29th letter is invalid and wrongful under the agreement. the question is, what kind of impact is this going to have on the trial that is set to start on october 17th, ultimately the zatko development and timing is a huge potential win for musk which could complicate the
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twitter case up until the zatko development the street was factoring in twitter to have a clear win in the delaware courts in october ive says and investors seem to agree that for now twitter stocks continue to trade on deal odds as the battle gibb begins to play out in court. >> julia, i know you're not a lawyer pretty sure you're not i'm going to ask this anyway maybe you've talked to people connected to lawyers in this case this lawsuit is based on elon musk's first letter and termination claim. so this other one is just sort of like a backup, he would have to file a separate lawsuit, it seems, based on this entirely different argument on why they're never, ever getting together. >> well, i appreciate the musical reference there, jon but i think that, yes, i'm not a lawyer but what i understand is they're saying if the first case does
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not work, we are saying that twitter did not hold up its end of the bargain the first argument was about revealing information about bots and spam accounts. this argument is really centered first and foremost on the idea that twitter violated its consent decree with the ftc, a lot more is coming out they've been in touch with the ftc, not the first time we've heard about twitter's relationship with the ftc, but there's this question about whether they are in such violation of this ftc consent decree when it comes to protecting user data, that that would be another argument for why musk should not have to buy the company. i think there's this question about whether or not this will change the timing of the case, whether or not musk's camp will get more time for discovery. zatko has been subpoenaed by both sides here. but the trial is as of now set for october 17th, and we'll see whether this has an impact in
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delaying that. it's certainly possible. >> julia, one thing that's picking up a little bit of steam this morning is the notion, actually the watch that is on watch now to see if, in fact, musk files suit in federal court alleging fraud, which would then be a huge escalation in this is that something that people are watching >> i mean, we never know what elon musk is going to do i'm also constantly watching his twitter account, certainly his lawyers would prefer if this all plays out in court and not on twitter. but he could weigh in on this at any moment and he certainly has commented sort of subtly on these different factors, certainly since the whistle-blower came out. what's interesting here is that, yes, he could file again i think right now the delaware case is what's in focus, and that's going to presumably move forward. but yeah, we never know what elon musk is going to do. >> you've got to have those twitter notifications on for elon musk's account, you never know what's going to come,
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julia, thank you. jon, which is the better argument, some say it's plan bb, the second one, versus the bots and mdaus, we'll see. >> when you can afford enough legal ammunition to keep having arguments over and over again they might not have to be that great, just as long as you keep having them. >> money, yes, you've got know what the courts are thinking, annoyed by all of this. >> maybe not annoyed. >> maybe entertained. >> are you not entertained >> i am, i will say that, i am. still to come on the show, is the future of the metaverse the headset more on meta, apple's big bet on hardwares, the competition there heats up that's next. "techcheck" is just getting started.
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>> gut check on baidu, down more than 6% came in lower quarter over quarter. that said, some pointing to positive momentum in certain segments the company seeing a 31% bump in ai cloud revenues year over
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year, and a recovery in sales, not helping the stock this morning, though, dee. >> it was a turnaround, it was up initially on that as we said, sometimes you don't know immediately for the chinese stocks. >> tradeable, but investable >> that line will always work. let's head to gaming stocks, huge changes within the industry as you're probably aware, there's been a ton of m&a, microsoft has bought a number of game makers, blizzard has yet to go to. take two, ea spiked last week on rumors this was in play for a buyout all the consolidation happening as the sector undergoes a huge generational change. microsoft investing in two big trends, cloud gaming to start steve kovach is with us taking a look at the hardware coming this fall. >> i'm calling this metaverse palooza, after a year of hype, it's time for these big companies to show their work starting this fall we're going to get the first in a wave of
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these virtual and augmented reality headsets mark zuckerberg says meta's new headset, code name cambria, launching first in october and early next year sony announcing it will have its playstation vr2 headset, which means a playstation 5 to actually run that's coming early next year and also early next year we're expecting to see the apple headset as well. there are lots at stake for these companies but more so with metawith all the names i just said it's the only one betting its entire company on the metaverse, and it would be a big blemish for metaif this device is a dud or doesn't sell well meanwhile, the market is really small for these headsets and not expected to grow significantly over the next couple years idc predicting only 50 million will be shipped in 2026, four years from now, with over a third to the enterprise, not regular consumers like you and me, to put that in perspective apple alone ships more than 200 million smart phones a year, this is going to be a niche
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market for some time, guys, and headsets are not going to replace your phone anytime soon. meanwhile, the price will be tough to swallow for many, early reports saying meta's headset is going to cost at least $1,000. apple's isn't going to be cheap either, they never make anything cheap, and sony's will need a playstation 5 console just to run. not cheap to play in the metaverse, and even then, there might not be anyone there. >> i know one person that won't be there, he's sitting right next to me. >> specifically for jon. >> this is not the metaverse we were promised 6789 metaverse implies a whole environment where everything around you, these are like little devices and gadgets, where it's an application. that's not a -- >> i got it. >> we can take this up with matt ball. >> he's going to help us dig deeper on the outlook. co-founder of the round tale ball metaverse etf, thanks for being with us this morning let me ask you, what do you think is behind this
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consolidation, is this about the franchises and the ip, and tech giants trying to get ahead so they can sort of consolidate it with everything else they have, like cloud >> i think that's the right frame. at least the most immediate opportunity, and where most of the tactics are being deployed right now is the acquisition of additional players, additional developers and additional intellectual property to build out your ecosystem we saw this in music, we've seen this with talent agencies, it's in video and it's coming to gaming now there's an undercurrent that realtime rendering capabilities have been underestimated more than a decade. it's been an afterthought. that's why most of big tech has focused on video or audio, and now they're rushing to correct them. >> is unity the best play on that >> the answer to that question is really a reflection of the specific needs, but also the regulatory environment i would guess that most of the big tech companies would take a pass at the company if they believed there was any opportunity to actually get it
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through. >> matthew, yesterday the journal did a piece about, basically, how disparate the metaverse is, it's an easy term to throw around but there's lots of different elements to it, they talk about some of the retailers that are investing one of the things they cite is mark cuban saying the idea of metaverse real estate in his words was dumb i wonder if you're going to parse out things that, although you're a fan of the metaverse, you wouldn't touch >> virtual real estate is an area i totally agree with mr. cuban. the idea of having highly squares space that presumes some sort of adjacentsy value doesn't make sense to me we don't access the internet through a front door you don't go to a google dock by going to the internet home page, then the doc, you go to the specific article, the specific url. the only thing that has value in that regard, in a real estate analog, is name space. it's your domain but that's used to get you
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there, that's a concept that makes sense if you start from the real world, but i think when you examine it more deeply, it doesn't. >> yeah, is it really a metaverse if the real estate isn't worth anything i mean, i think all along the metaverse has been a narrative in search of relevant detail and all along i've been saying it's not that i don't believe in components of this, it's just the whole big bag of stuff that investors are being sold isn't necessarily going to work. so what are the pieces of this, where there's ip that's most important, not just a dream that some billionaire wants you to believe in because he wants to vertically integrate is it the cloud piece and the ecosystem piece, the platforms piece, and then the stuff that unity and others are working on? >> it's all of those individual pieces, i'll point to a june 2021 tweet from tim sweeney, the founder and ceo of epic.
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he poinds to code from their 1997 release on real tournament, the name sake for the unreal engine of the core of the business, pointing they had the functions to vild the metaversed to but that that style of play didn't last long he observes in 2021 a critical has of working pieces, hardware, computing, network infrastructure, generational change has started to come together to make this long considered fantastical opportunity a practical business opportunity. but tim is nevertheless clear that this is goingto unfold over decades, not today, not tomorrow but i will highlight that during the 15 minutes i'm connected to the cnbc portal for this interview, more people will have logged on to roblox alone than second life at its peak in an entire month you're exponentially bigger today than we once were, much like every subelement of this phase. >> that's a good point, just such a higher usage, i'd add minecraft to that as well. something my son is on
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matthew, i'm trying to figure out, over the last few months, investors as well, used to be thought that gaming and entertainment was recession proof, and it feels ooilt bit less so. what -- do you agree with that notion and does that have to do with the rise of free to play and more mobile games where it makes it easier for users to scale back on or not play all together >> there's no evidence that free to play or mobile titles have contracted or adversely affected spend in the cat doir. the reverse tends to be true but we're seeing a classic covid pullback and it's easy to talk about that in abstraction, but the specifics are clear, in the two quarters since pre-pandemic, to q2 of 2020, we saw that gaming as a share of leisure time grew from 12 to 19 # hours per week in the united states, among gamers, and the share of wallet grew from about 7% to 20% in terms of consumer discretionary spending there was no way that was going to be sustainable. 60 to 100% increase in the span of two quarters.
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internationally the category remains well up, domestically, down 10, 11% year over year but one or two percentage points ahead of 2019, early 2020. >> pandemic phenomenon, post-pandemic. matthew ball, as always, thank you. >> thank you. jon, i caught that second life reference only because it's had a revival. otherwise i wouldn't have known what he was talking about. >> i would just like to point out that he just said an individual game, roblox, that's what it is, is bigger than the entire immersive world they tried to sell us a generation ago, as the metaverse. if you think roblox is the next metaverse that it's going to seamlessly integrate with mine craft and fortnite, that it's all running on one platform as one individual world, then i've got a bridge, and i don't know in cnbc headquarters to sell you. that's not even an actual bridge. >> your argument is that sthair not going to be interoperable. >> it's not a metaverse, it's a game, a great game.
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>> but the fact that roblox on its own is bigger than years ago, doesn't that tell you it's here >> super mario is bigger in second life too, doesn't mean it's an immersive world everyone's living in. >> i do love mario cart, i play it with some of our producers. >> you're not living there >> sometimes. >> right. >> carl? >> yeah, second life might have been a low bar to cite, but we'll watch it coming up, checking in on the cloud with the ceo of vmrewa in an exclusive you don't want to miss. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit and get started today.
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quintanilla, with jon fortt and deirdre bosa we took a spill lower, below 4k, as rates spike again nasdaq touching lowest levels since july we'll talk with the ceo of vmware in a moment, but first
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contessa brewer. >> taiwan fired warning shots at a chinese drone, the buzz small island that taiwan controls. taiwan's president visited a military base and said today the country will show restraint despite what she calls chinese provocations she says they can take strong countermeasures. donald trump's truth social service isn't available on google play store, because google thinks it doesn't do enough to moderate user generated content, according to a report from axios. that means android devices can't download the app google did not immediately respond to cnbc's request for comment. donald trump hired a former solicitor general for the state of florida to represent him in court cases resulting from the fbi's search of mar-a-lago nbc news reports the lawyer chris kice has a reputation as a skilled political knife fighter. all right, jon, back to you.
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>> contessa, thank you. vmware kicking off its flagship conference in san francisco today on the heels of its quarterly report out just last week. the company in the midst of completing its $61 billion deal to be acquired by broadcom the ceo joins us now i'd like to start with some elements of the quarter, billings particularly strong here what are you seeing from enterprise demand, are sales cycles lengthening, certain fundamental things customers are still demanding just as strongly. >> thank you, it's great to be here so what we are seeing generally in our business, we are tied to -- customers think about the their digital transformation journey. we've seen the trends continue
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in the second quarter as normal. and because this is once in a generation transformation we expect it to continue well into the second half as well. having said that we are not immune to any sort of macroeconomic considerations but in the world of individual tall transformation and cloud we saw a good command for products in q2 and continue to see in q3. >> you're no longer calling it vm world, you're calling it vmware explore tell me about vmware aria, and the multicloud, the latest multicloud management push you're making. how is this going to be additional what's new in it that customers can't get elsewhere? >> yeah, absolutely. great question so just the first part of what you said, when we started this conference, it was a conference for data set of professionals.
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last few years especially our strategy is broadened to encompass helping customers on their cloud journey. whatever cloud they want to be on that's why it's become a multicloud event what we're attracting now are the multicloud professionals and aria is exactly a product for the multicloud community aria solves the problem of managing all of your applications across amazon, aws and azure and google and you're on from data centers, et cetera. so that's the problem it solves. as you well know customers find themselves quickly putting in a lot of applications everywhere, as they build out their digital infrastructure and as a result spending sometimes goes out of control, security goes out of control, management goes out of control aria solves all of those problems.
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>> i wonder, are you considering or have you considered a consumption based model. i know there was concerns in an economic downturn, it hadn't been tested or proven. if you like what frank slootman and snowflake are doing, could it be more successful in a downturn when companies are looking to scale back costs? >> these are all related models that i would say are along the spectrum, and it really depends on the category of the product and the business that you're in. for developer centric businesses, we certainly think consumption models would rook well and if you look at our portfolio, there are aspects of it that are available from a consumption model. core infrastructure offerings, customers like to know what they're spending in terms of infrastructure this year, the next year, a subscription model supports that, we support both. >> are you able, ragu, to do any
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m&a during this period where there's this broadcom overhang, there's a lot of activity in private companies, private equity or some consolidation and some might think there's risk if you're missing out. >> yeah, so we continue to operate as a standalone company, operating with our continued multicloud strategy and executing against it, both organically and inorganically. and there are certain rules of the road during the this time but we can execute inorganic rules, should we choose to. >> well, we'll continue to track your progress because this multi-cloud trend certainly has legs laghu, thank you, ceo of vmware. >> thank you so much. could apple's next growth driver be podcast. that's after the break, back in just two
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since june of 2021 apple podcasts have seen paid subscribers skyrocket more than 300% that's according to a company spokesperson interviewed by digital media company -- as a reminder apple launched paid subscriptions for podcasts back in april of 2021 that allows users to unlock benefits like ad-free listening, additional or exclusive content. similar to how apple manages the app store. the company takes a 15% to 30%
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cut of revenue from past podcasts subearnings dee, is podcast a business for apple? i would argue that apple hasn't treated it like a business it's treated it as a platform enhancer, and apple has the benefit of having a platform in, you know, apps on iphones mostly that's very high margin. if people are using these things more and have a good experience on iphones, they're more likely to buy more iphones, other companies don't have the same model. >> that's the beauty it hasn't had to monetize. it's open a place where they set where users go because it's on their iphones, what surprises me more, and carl, i'm not sure, are you a big podcast user i am. >> yeah. >> do you listen to a lot on spotify. i'm surprised the am of money that spotify has spent on the likes of joe row gan, the ringe,
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caller daddy i'm still not going there. apple has good discovery and it's right on your phone. >> the bigger danger of course is we end up overstored in podcasts spotify has doubled down a couple of times now apple, jon i'm sure you saw the other day twitter was talked about turning spaces into a more podcast friendly environment how many spaces do you need to have a couple people talking on the radio? >> yeah, apparently twitter is talking about doing a lot of things this is a sharp left you see that, was it casey newton, the only fans competitor twitter was looking at doing what is this company, oh, my goodness. >> you first, you first, jon fort knox, only fans. >> well, you know, elon would be into that perhaps as well. lots of different ways to make money in the space podcasts, themselves, perhaps not one of them. can't see apple doing that it will not be an only fans
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competitor from apple. >> i don't think so, i don't think so, if i had to put my money on it. i don't think twitter will be either. >> apparently not. but they tried apple, i'm betting, didn't even try. speaking of apple, morgan stanley crunching the numbers, with a new call this morning saying big tech stocks like microsoft and apple are underowned of course, that would be a good thing. you can read the full call on more market acti aerhionft ts.
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let's get another gut check on earnings coming up, crowdstrike, hp ink, and hpe, the consumer side and the enterprise side of hp, two different companies, all on deck to report this afternoon in the cyberspace we just sawal palo alto networkspath a strong quarter. seeing if crowdstrike will follow suit. another trend we are watching pc demand slowing down overall. we'll see how hp inc. is holding up there then finally hp enterprise, those results to give us a better sense of the health of enterprise spending in tech will also speak to the ceo right here on "techcheck" to break it all down that's antonio neri, the ceo of hpe tomorrow, dee. >> yeah, we talked about this a
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little earlier, and these legacy stocks as a whole have been a good bet, relative good bet this year, holding up a little better crowdstrike, though, i'm looking at it right now. 31 out of 31 analysts rated a buy. they like it, similar story as palo alto. >> in a way. carl, it's a very interesting company in that it has this platform for security, where it should be easy to turn on different features it is pretty easy to turn on different features and it can let customers in the enterprise try before they buy. it looks like you need this type of security. we'll turn it on for you here are the problems we solved for you. would you like to start paying now or would you like to turn it off? >> we've long talked about cyberas a safe haven in fintech. it was nice to see best buy with inventories down year on year, not a lot of retailers have done that if you think about what
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nvidia said with the gaming market a chance to correct maybe that's beginning to happen. >> could be an opportunity. meanwhile, all eyes on ether for the latest addition of crypto world, the currency associated with the -- more ahead of next month's anticipated merge, in essence the merge will change the block chain from a proof of work platform rather than using computers and a lot of energy to solve complicated problems, the system has investors deposit coins into a shared lottery pool. one participant is chosen at random to verify the exchange and rate the rewards the move away from mining is expected to cut down energy usage, this is key, by more than 99%. cy hope this drives currencies back to previous highs we have yet to see a turnaround with bitcoin, back below 20k, jon, i think the most important thing, the energy consumption, but also transaction
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it's supposed to lay the froundwork to bring fees and transaction fees lower that is still unclear. that is another step that has to happen after the merge, and i heard it described as actually pulling this off, the whole merge that everyone's so excited about, flying the jet and changing the engine in the the y that's why this has taken so many years, so many promises, and we've get to get -- it's not certain we'll get it in september. >> i'm looking forward to the proof of market relevance. i don't care granted, i'm not a crypto owner or investor, any of that i don't care let's see if all of this fancy mechanics they have -- sometimes when it comes to, you know, these stablecoins, the fancy mechanics are too fancy. let's see if it's market relevant at all. i'm not convinced. >> i'm not surprised still to come, a roundtrip
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for intel. shares 32.40 today, lowest since 2016 is now finally the time to start buying in? we'll talk about it. stay with us ♪ ♪ i was having relationship issues with my old bank. next to no interest, the fees... it was just take, take, take. so i broke up with bad banking and moved to sofi checking and savings. now i get higher interest, pay no account fees, and get my paycheck two days early. break up with bad banking. get 2.00% interest, pay no account fees, and get your paycheck up to two days early. download the sofi app and earn up to $300 when you set up direct deposit. sofi. get your money right.
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overvalued/undervalued, we're looking at semis intel hitting lows that we have not seen in six years, even after investing heavily in new structure. given the price drop, is it the time to buy? citi says there could be further to fall. the bank says they expect the ishares semietf already down 30% to fall another 25% and hit all-time lows. their thesis based on pc, handset slowdown, correction in the auto and industrial markets as well. we'll see. they did say analog devices is their top pick but there's a lot of back and forth. today city is on the down side >> certainly on an evaluation basis. intel looks good they have a third of the price to earnings ratio, about half as amd. the question, john, has there been a changing of guard is intel no longer in the space to innovate? we know they've been behind on the latest chips pat gelsinger made a big bet,
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can he pull it off that's the thing, you won't know for years. >> i don't know that you won't know for years this is the most fascinating potential turnaround in tech right now because semiconductors are like the most complicated thing that humans build. so it's really hard -- intel would argue that they're going to be able to regain product leadership before they regain process leadership and before this whole foundry strategy pans out. that's what they're arguing right now. have they been perfect in execution? far from it. but if they're right about that, that's certainly different from what's being priced into the stock and the market investors saying this will take years. i think your over or under has to be based on whether the technical minds at intel can pull off great products -- >> and now they have a great
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technical mind leading it in gelsinger. if you missed part of the show, listen to the latest podcast tech check is back in just a moment erent kind of wireless company... ...running on a big impressive wireless network. how are we different? we exist only on your phone. so you get unlimited data for just $30/mo, taxes and fees included. plus we have a new plan with 5g ultra wideband. switch today at visible dot com.
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gopuff is looking to go public they are looking to borrow $300 million. the instant delivery company is working with bankers on a revolver loan which would allow gopuff to borrow money when needed this is the latest sign of weakness forgo for gopuff. maybe not necessarily this is something sometimes do ahead of going public, but i would say if you think uber, lyft, doordash are tough businesses, we have to wait and see gopuff. they are asset heavy they own fulfillment centers, another word for warehouses, they employ some of their workers but they have been cutting costs rapidly. >> they've been laying off people a 3% layoff, 10% layoff. shutting dozens of fulfillment centers.
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there's the risk that goes poof. it has to grow in the right places >> $1.5 billion of cash. uber has easily burned through a billion dollars of cash in a quarter. you wonder where that leaves them >> we were down 400, oil down 5 bucks. let's get to "the half." thank you very much. welcome to "the halftime report." stocks at critical levels. the one name that matters more than any other as your money faces a key test today we discuss and debate the road ahead. let's check the markets. carl was telling you the price action in the session. right now, down 264, s&p down 1% nasdaq down worse than that. the data came in for yields. consumer c


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