tv Tech Check CNBC September 7, 2022 11:00am-12:00pm EDT
streak turn things around. keeping an eye on that incredibly strong dollar of course, being a sara eisen for an hour kept me focused on that oil is still down as are many other commodities. expectations for inflation, we shall see. that's going to do it for us on "squawk on the street" right now. "techcheck" starts right now all right. >> good wednesday morning. i'm carl quintanilla along with jon fortt and deirdre bosa big lineup so far including google sin draw patch chai, mark cuban talking about the best and worst parts of tech. that's not all tim cook speaking tonight on the heels of that far-out product event this afternoon what it all could mean for the stock later this hour. as the tech volatility continues, more from the c suite exclusive from the ceos of vox
and snap jon, one of our favorite times of the year. >> looking forward to it the nasdaq trying to end its longest losing streak since 2016 aztec stocks across the board have taken a hit apple down more than 6% over the last month the biggest drag on the nasdaq yesterday. amazon and microsoft both down 10% or more. even bellwethers like salesforce have erased pandemic gains >> jon, as we said, big week for tech at the code conference. one of the biggish issues, cuts to corporate forecasts the head of alphabet on stage with kara swisher talked about the impact of higher costs, uncertainty and how he want to make the company 20% more productive >> there are a set of positive factors, a set of negative factors and inherent uncertainty in the economy that's the macroeconomic
outlook. t as a company we get impacted by all of that. everything we do, scale, you can be slower to make decisions. there are more people to uproot things you look at it end to end and figure out how to make the company 20% more productive. >> let's bring in the aforementioned kara swisher and what she's calling her final, at least, code as host. how do we characterize >> i'm doing something else. i've done it for 20 years. i just feel 20 years is a good time to try something fresh and different. >> you're definitely making a statement with the lineup this year >> yes, i am. >> what are you trying to say? the lineup is insane. >> it has been over the years. we had gates and jobs together elon musk has been here.
mark zuckerberg, not so good performances by him. we've tried to be of the moment. one of the things i'm trying for, i actually invited a lot of people i like. i'm known as being tough on tech i line sin dhar. i like evan spiegel and tim cook i want to talk about tough issues with him. it's mostly people that don't drive me crazy. >> the collective market value at this point of time is in the trillions of dollars that's interesting when you started with sundar and he talked about making it 20% more efficient. the stakes are so much higher this year. >> absolutely. the tech is coming out of this pandemic period where they soared i talked about that many years ago. now it's a reckoning moment. i don't mean a reckoning in that oh-no kind of thing. they're enormously powerful. i wanted to lean into the future rather than litigate a lot of things from the past we had senator amy klobuchar here talking about legislation i thought she did a tremendous
interview. andy jassy is here i interviewed him before last time i did he wasn't ceo. i've had a long relationship with him a lot of people i've had long, long relationships before they were trillion-dollar companies. >> tim cook, what a moment to get him. basically off the stage in cupertino, getting on an airplane and coming here >> yeah, i know. it's interesting one of the things i wanted to do there, i'm not going to ask a ton of questions about the products there will be another iphone next year. the very first speaker at code 20 years ago was steve jobs. his legacy is really interesting to me. whether you like him or not, up and down he's not a controversial figure, but now he seems enormously presh ghent ar everybody deserves regulatory scrutiny
i wanted to end talking -- it's a trio of people actually. it's tim, lorraine powell jobs and johnny ives. these are the people who new steve jobs the best, among the people it wanted them to talk about his legacy and where it's headed. >> cara, it's jon. good to see you, albeit from a distance you've often talked about what you do as live journalism. it's a legacy moment what do you think is the legacy of all things d and code as events >> we did it at a time when no one was doing it walt and i used to go to the conferences and be astonished how terrible they were they were such suck-ups on stage? can i say that i'm saying it. you could do incredibly live journalism really smart people, over and over again, are able to handle tough questions. i think a lot of the ceos
including steve jobs liked it. he got to tussle, and it was fair and it wasn't snarky. i don't think we were particularly snarky, but we were tough. there have been really tough moments on stage i think sundar answered a lot of tough questions. i think he handled himself great. it's a relief to be able to do that. >> they keep coming back, they're also fair. that's the balance. >> someone said it was stockholm syndrome i don't know why they keep coming back. >> we have the mega caps, jassy, cooks, sundar pichai there's another level of c renchtso, a little smaller company going through a difficult time, whether that be lay-offs, evaluation reset what lessons do you think they can learn, especially when you're hearing from the mega caps >> it's interesting because snapchat has been an innovative company.
my kids use it still that won't use facebook, they won't use instagram. >> do they pay for plus? >> they do what do you do when you have an amazing product facing headwinds. they were doing well the last couple quarters, now the macroeconomic situation is bad for a smaller company. so what do they do that dovetails with amy klobuchar. how do you create competitiveness where the big ones, even though they're doing amazing things, too, they're still huge and causing impact on everybody else i think evan will do a great interview going forward and andy jassy will, too. they're facing unionization issues, the stock is way down. inflation, et cetera, et cetera and work from home >> dooe mentioned cook speaking hours after the product event. you say there will be a new phone next year. there have been codes that have been about risks to tech and there have been codes that have been very aspirational about
opportunities in tech. what do you think it's going to be will cook be emblematic of either one. >> we understand the downsides to tech. one of the things we're doing the last day is climate tech i have john door here with ro khanna he's in jackson because of the crisis there what are we going to do about big problems like climate tech a lot of startups are trying to solve these problems that's what i want to lean into going for. what can tech do that's good what can they do that helps? we had the moderna chairman talk about where we're going with mrna technology, using digital means. i'm not going to be sunny -- not me i'm not sunny. there's a lot of things these people can do, the richest people in the world and most powerful i thought mark cuban talked about that yesterday he's doing cost-plus drugs which
is fantastic. >> the apples and amazons in the world are in a different position are you going to press tim cook on that advertising push that he is doing right now, embarking on while up ending the landscape? some are calling it opportunistic, critics are calling it critical. where do you stand >> i don't like that tim cook is our national regulator of privacy. they're 100% doing the right thing. the question is do we want a company to be monitoring the facebooks, our privacy, the googles of the world, or do we want the government to do it i think directionally correct, and i don't think he loves it. but that's very in keeping >> he doesn't love it but he's going into advertising. >> but maybe he can do advertising in a way that's not quite as rapacious as it's been. that's sort of another legacy of steve jobs he talked very clearly about in plain english -- they've got lots of problems, china, all
kinds of things around apple but privacy isn't one of them. >> what do you think is going to happen, cara, with the workforce in silicone valley which has had a lot of leverage over the past few years, probably will continue to have a lot of leverage but perhaps less? there's this return to work push, there's a perhaps weakening labor market it will certainly loosen if we head into recession. are there lessons here from the past that one draws from >> well, there's been ups and downs, john. you and i have covered this for two and a half decades it's not the leverage that i'm going to go somewhere else i do think there's going to be playoffs all over the place. it's happened before, 2008, 2001 what i do think is there's been a real rethinking of where you work from. the companies, all companies, are going to have to be flexible around remote work i'm not sure what the answer is because hybrid is difficult. it has to be intentional people have to be there at the
same time instead of just shows up at the office and you're the only person there. i did that the other day it's a realtime to rethink productivity and people's lives. again, that also goes in with child care and the ways we want to live, commuting, transportation we have people to talk about the money he's got to spend in transportation. >> when you think about code's legacy and when you were starting it out, have you surprised even yourself in terms of what it's become? >> no. carl, it's not over. world domination is next tech domination is complete and now world domination. >> you wore aviators on all this. >> it scares people. we're giving them away real ones, not cheap ones. by the way, i can't play ray ban is partnering with facebook and not ckara swisher but that's okay. >> kara swisher, thank you thank you. >> "techcheck" is just getting
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twitter. twitter shares popping a little more than 4% after a delaware court denied elon musk's request to delay the trial with twitter. so that's still on scheduled to start in mid october, on the 17th as sundar pichai said here at code, get the popcorn ready. that's the general view, the fireworks are coming >> certainly you give a little bit, get a little bit let's talk to major investor in growth tech. we're joined by very own julia boorstin as well as tpg's david
trujillo david, it's great to have you here obviously markets have taken a leg lower, especially tech over the last few weeks since jackson hole you guys have nearly $40 billion in dry powder. how are you seeing the market opportunity and have valuations come down enough >> i think we've seen in the public markets this reset in terms of valuations. i think the big pivot, and you're starting to hear it in the conference, is the move from growth at all costs to need to focus on profitability we're definitely seeing that play through in the private markets as well. i'd say one theme we're seeing is a lot of founders and management teams built their businesses over the past decade in this up environment are having to pivot and focus on profitability and looking for help in investors like us. >> we had evan spiegel on. i'm curious if you're looking at growth opportunities which sectors or areas do you think have the most potential
upside >> we invest in a lot of consumer oriented tech companies during the pandemic. that's a lot of big tailwind think of calm and direct to consumer, mindful meditation app, we have a lot of investments in entertainment think of caa, directv, entertainment partners that really benefited from people staying at home and streaming. i think post pandemic, you're seeing a reset in terms of growth rates because a lot of that demand got pulled forward but these are still really healthy end markets and sectors that we believe in long term i think another deal type we're seeing in this environment is trying to be not correlated to the market what i mean by that is doing problem solving deals. one of the big deals we did last year was a carveout in partnership with directv and at&t, super complicated. i think we had over 200 transition services agreements that's just not something any investor can take on
so looking for those non-correlated deal types. >> i want to get your thoughts on more of the tech market right now. you just mentioned the media space. obviously there's been so much going on right now concerns of the streaming market with the netflix numbers down. what is the outlook you have in terms of the opportunity do you think we'll see everyone shift over to the ad-supported services >> you'll see part of the population shifting over to lower streaming alternatives that said, content spend is really high while the second derivative, while the growth rate may be slowing relative to any historical benchmark, people are spending a ton of content production we're seeing that flow through our own portfolio. >> it's like the end of reservoir dogs where nobody wants to put the gun down. do you expect somebody to put the gun down >> we're not seeing it yet
while the growth rates may slow, we're still in this content war that we're seeing play through in terms of spend. >> how are you looking at your own investments? you got $40 million in dry powder are you looking the put that to work is there more to go? >> unfortunately i don't have a crystal ball for the public markets. in the private markets, you see a six to nine-month lag. some of the detiles we're seeing now are companies coming to us because they know the ipo market is shut. they still need secondary financing. other companies with too high of a burn rate. they need to raise capital i think the other interesting thing is public markets can reset in a daily, by-the-minute basis. in the private markets there's still a need for liquidity so we're seeing a lot of secondary sales at big private tech companies at meaningful discounts until the last private rounds. >> do you think that's going to
continue there is still this inflation of the private market versus the publishing market, and the ipo window hasn't opened up yet. >> there's the lag, usually six to nine months, frankly for companies raised in 2021 that said, when you think of over 1,000 private unicorns just in that huge denominator, there's a lot of opportunities for us and others. >> do you think there's a shakeout, especially over the last few years, we saw so many enterprise software companies go public was it too many? do you think that's consolidation? is it the consumer tech space, or is there opportunity in the enterprise space >> definitely opportunity in the enterprise space t you have public companies realizing it's not so great always be public and not liking where they're trading. there's a lot of rumored
activity around public to privates >> so much of your business is about these consumer-facing companies. you were an investor in spotify, now on the board of uber as well there's this question about how well the consumer and consumer spending is going to hold up in light of concerns of a recession and all these inflationary issues what's your outlook? >> the data we're seeing come through the portfolio, i would say on the direct to consumer, we're seeing signtion of weakening where it's early signs of churn rates and subscription businesses you're starting to see that. interestingly on the enterprise side things continue to be strong with consumers being two-thirds of of the u.s. economy, one would expect to see a little more headwinds. >> we're already starting to see them we've talked to a number of ceos talking about the lengthening sales cycle. david, thank you for being with us at code david trujillo, tpg partner.
we'll go to box, off the august highs but outperforming its peers and the broader software sector. joining us now box co-founder and ceo aaron levie. how about that outperforming. >> by staying flat. >> the hype cycle missed you, but so has the majority of this crater tell us about this demand. usually when i see software sides in new york, we're doing deals. >> we certainly have a lot of customers out here there's also investor conference, so a lot of stuff going on great to be in new york. certainly things feel back to normal overall, i think the software market is certainly a dynamic environment right now. there are various pressures happening around the industry. what our focus has been at box, helping people secure their data that still has some really strong tail winds associated
with it. we're really kind of working through this environment >> break down for me box's suite's strategy and larger deals. this is very different from how you started out, kind of the premium, pick off the enterprise customers one at a time and sneak into the enterprise. now you're like kicking the doors open >> we're certainly a very different company than the early days our whole strategy is we help companies manage -- this could be financial data, contracts, their marketing assets, new product designs. we want to help ensure customers can protect the data we want e signatures on contracts. our platform is built for that we're a multiproduct platform, building out a complete content cloud. we have a multiproduct selling strategy in the form of suites that let our customers get access to that technology all at once. >> how much of that is industry and vertical driven versus going out and saying we've got this
who sochb tall basket of things to consume. >> what we get good at is building a core platform and we help tailor that platform in the way we implement it, bring it to market, in some cases with key partners in banking and financial service, we help our customers -- in media entertainment, we help with media content. in federal government, help with citizen engagement and collaborate on mission-critical projects that deal witha lot o documents. on an industry basis, we get more tailored. >> all that gray hair came over the past five years or so. i want to talk about how the pressure you were under a year-plus ago, similar to a lot of pressure other software names are under. you've dealt with an activist, changed some things in your strategy now that you've had some distance from it, hopefully spent some time on the beach as
well as working. what are the lessons most relevant to the environment? >> activists are certainly a great way to get gray hair for us it was an experience where we were already driving toward growth and profitability. the activists showed up as a part of that process and we decided to double down even further. the past two to three years, we have worked aggressively to ensure our business is really built for the long run, balancing both growth and profitability. >> there are a lot of people having to say that now, either they're private and not going to get new capital any time soon or they're public and they're like, okay, the deals are smaller, the closing of the deal is getting pushed out, we've got to conserve practically speaking, was it a head count thing mostly? what did you do? >> there are entire books written on just this topic first of all, you have to start to look at where are you driving your business most efficiently, what markets are you in that are
working? what parts of your product should you double down in. what parts of your marketing, go-to-market programs are working most effectively we had to look exhaustively across the business to ensure we were doubling down in the areas most profitable, growing fastest that we could drive most efficiently and we put our resources we hind those initiatives. we worked on infrastructure spend, how do we ensure we're improving gross margins, driving the most operational excellence across the business. ultimately that's led to 20-plus percent operating margins. >> how are you approaching m&a right now? >> we're super selective we have a multiyear public roadmap to manage content in the cloud. occasionally, if we can accelerate our roadmap through acquisitions down in a judicious way, we'll tuck in that technology and accelerate our product strategy. >> what you're looking for, is
it product fit primarily are you looking for customer base and international access when you look at prospects >> highly focused on the technology and the talent. so we are religiously focused. it means we have to be selective of the external technology we bring in and incorporate in that platform we're all about the tech and the talent we're bringing on that allows us to be even more selective and surgical in the kind of acquisitions we presume. >> great to see you in person here at the nasdaq aaron levie, co-founder and ceo of box guys, back to you. all right, jon still a lot more from code andy jassy, tim cook, bob iger among the names speaking snap's evan spiegel with join us en tech ch"techcheck" is back in a moment
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we're here at code, and snap ceo evan spiegel is next in an exclusive you don't want to miss lay-offs, business changes and a volati mkeleart. lots more ahead. stay with us why not both? visibly diminish wrinkled skin in just two days. new crepe corrector lotion only from gold bond. champion your skin. this is evolving from gym to global media company. this is connecting your people and content in one place. this is the system you built to transform your business. this is how. airtable.
co-founder and ceo evan siegal joins us now thank you for being here today. >> thank you so much for having me. >> so much ground to cover i want to start off asking you about a different app that everyone here at code is talking about and that is tiktok my question is, the restructuring you did, all the changes you're making, how much of that is due to competition? >> it's hard to disentangle it from the platform policy changes, from the challenging macroeconomic environment where the cost of capital has exploded people are focused on earnings digital advertising is easy to turn off quickly while i think it will play a key role in the recovery, i don't know when that will begin. we need to refocus our business and prepare for an uncertain macroeconomic environment. we believe the companies that will be most successful are ones that can demonstrate and grow profitability. >> you're really focused on profitability. i know you're a close watcher of different economic signals as
you try to anticipate what's going to happen in the ad market what are the signals you're watching right now and what's your outlook for the rest of the year >> advertising is an entering business it represents a cross section of the global economy we're paying attention to the fed's run rate relative to c pinchts. . we're negative 7% or so on that indicator. that means that overall monetary policy is still very accommodating. when you hear chair powell saying looking forward they think they need to raise rates to get inflation under control and expect pain looking forward, we're listening and making the necessary changes to be able to emerge in a much stronger position. >> that's fascinating. we'll hear from him again tomorrow powell's comments are actually ringing in the hallways of c suites that doesn't happen all the time >> when you have inflation running this hot, people know the paths forward are dir.
the 1970s, '80s, they were really challenging periods of time in our country. in the '80, volker focused on rates being the out put. they went to 18% or something like that. looking at, of course, inflation today, the energy shock, food prices, this is a really challenging time we're fortunate in the united states to have our own energy supply we're concerned about the environment looking forward. >> a good economics background hearing ceos talk about the macro. i want to get more micro last night at code alphabet ceo talked about it coming from anywhere i want to ask you about the app be real. first, are you on it >> i'm not. >> it's line the anti instagram, asking users to take an authentic picture at a random time every day
is that an indication that people are getting tired of the curated, instagram, tiktok posts? >> people were exhausted by that 11 years ago when we started working on snapchat. there's 350 million people using our service every day. i do think this has been an enormous trend over the past decade or so i think it's set to be real. >> do you not worry about be real as competition? >> we look at snapchat is that other apps don't have to fail for us to be successful. visual communication between friends and family, that's really the value we provide to people's lives of course, we continue to innovate and add things like our map or ar platform where 250 million people are engaging every day. we started with this core of visual communication and evolved our service over time to diversify engagement and ensure we remain competitive.
>> evan, it's jon back in new york i'm curious about this magic 20% number sundar at alphabet wants 20% more profitability you're cutting 20% i'm taking you back to last year's levels. shopify, peloton, both seem to have been caught up in the pandemic head fake what's the nature of this economic head fake that has caused so many companies to have to recalibrate what did you think was happening versus what you've now realized was happening? >> well, if you look at the beginning of the year prior to the invasion of ukraine, our revenue was growing approximately 44% year over year following the invasion, we saw energy prices skyrocket. we've seen a lot of pressure on food prices. people now believe that inflation is going to be higher for longer as a result the fed is responding they're raising interest rates that means the cost of capitol has increased. there's a lot of focus on earnings and cash flow
businesses are responding by obviously changing their cost structure. for us, we wanted to make sure, because we're so focused on building our business over the long term and serving our community, we wanted to make sure we could generate cash, even in an environment where our revenue didn't grow or even grew at a negative rate so i think for us, obviously these changes are very difficult. they're painful but all about ensuring our long-term success in a volatile and constantly changing economic environment. >> i want to hear more about that revenue growth. you've seen starting with what happened at the beginning of the year, strong revenue growth and started to decline with the invasion of ukraine. you've been giving frequent updates on that. growth slowed to a total halt in july you gave that update during your earnings, but since then growth has clearly picked up again based on the last numbers you gained do you expect that growth to continue to accelerate going into the fall? >> it's so hard to tell given
how volatile the environment has been we came out early in may and let people know we were r were going to come in out of guidance in earnings we said we don't know what the quarter is going to look like we shared revenue quarter to date has been growing about 8% on an absolute basis it's a big difference from the 44%. last quarter we grew faster than met tax pinterest, twitter, youtube. our company continues to be competitive. it's a very challenging environment and we need to make sure we're successful no matter what happens. >> to tie that back into the question of the lay-offs you've been n innovator, experimental with all these different things whether it's the hardware of the spectacles, the pixie, the flying throne camera, you've tried all these different things, many of which you've now shut down.
is it going to be hard to innovate and iterate when you're trying to get rid of the things that were secondary to your core business >> when you're innovating and experimenting, you should expect failure. some of the projects we've invested in and some projects we're excited about either don't contribute with growing community, growing revenue and augmented reality. or they're low margin like pixie that won't contribute to earnings we've poured our hearts into these products and experiments innovation is about taking risks. sometimes that means consolidating on the things we see working like augmented reality, as i mentioned, 250 million people engage with every single day. >> that's clearly a priority are you concerned about maintaining a culture of innovation at a time you're doing lay-offs and everyone is focusing on what's most essential to revenue >> we've seen those constraints support innovation sometimes when things are growing very quickly, we're hiring lots of people, people tend to almost solve problems by
hiring rather than innovating. what we've seen historically in the past through ups and downs is those constraints push us to innovate faster and really serve our community of nearly 350 million people. >> what's the best way to communicate that, the things you have to give up to be profitable, to convince your workforce that you're looking through a cycle? how do they absorb that, do you think? to julia's point, how do you fight the notion they're not spending and, hence, maybe i'll look somewhere else? >> i don't think it's ever easy to shut down projects, especially because when we innovate, we put so much creativity and love and care into these production because we're trying to delight and surprise our community there's never an easy way to shut projects down i still feel the pain of shutting down future freshman which was the company bobby and i worked on before snapchat. what's important is that our team understands clearly the path forward to reaccelerating
our revenue growth and continued growth in our community. we grew our community 18% year over year last quarter as we continue to see that growth, that expands our long-term opportunity which is something that's very important to us. >> speaking of that revenue growth, traditionally you've been ad-based. you guys had a million users paying for that within the first six weeks. can you update that for us is there any fresh number you have that's 1% of your user base. what do you think that gets up to >> so early to say really exciting to see the momentum around that product, over 1 million paying subscribers. what's so exciting about the snapchat plus subscription service, our community pays a little bit more for some new features, $3.99 a month. we'll see where it goes. we've been dropping new products and features for snapchat plus we think that's going to be an
important part of continuing to grow our subscriber base. >> another thing you're focused on is augmented reality vis-a-vis shopping we just got headlines yesterday that instagram is going to be dropping some of its shopping initiatives. is that surprising to you? are you planning anything similar? what does this mean for competition with instagram and meta >> it's not surprising to me people have really struggled to differentiate e-commerce that's why we're so excited to use augmented reality to help people try on new products and shop in a differentiated way what's so exciting about our ar enterprise offering, we take the features, buntedal them up and offer them to merchants to integrate with their website and their application. puma just integrated a camera kit to allow people to try on their products we see that people increase conversion when you can see yourself wearing something, it makes you more excited to buy. we reduce returns which is better for the merchant because they save costs which is so important in this environment.
it's also better for the planet because we're not shipping stuff around as much we just hired an amazing new leader to lead our ar enterprise initiative >> a lot of big changes. we do appreciate the frequent updates on revenue growth. please kiept up. evan spiegel, thanks so much for joining us on the heels of the restructuring and lafs we appreciate it. >> thanks for having me. meanwhile, it's hard to be lean and mean. that's according to mark cuban more on what he's calling the amazon opportunity next. don't go away. we'll be right back. this is redefining storytelling, at the speed of now. this is tracking and publishing your content in real time. this is the system you built, captivating a global audience. this is how. airtable. salute to veterans patriot day
terry bradshaw: hi, i'm terry bradshaw rocky bleier: and i'm rocky bleier. col. greg gadson: and i'm col. greg gadson. terry bradshaw: on this patriot day, our heartfelt thanks, to all of our military veterans for their service. col. greg gadson: we honor our veterans, and those who are no longer with us. rocky bleier: to all of our military serving around the world, thank you for defending the many freedoms we enjoy. terry bradshaw: tune in to salute to veterans for discussions about the issues our military veterans face daily. salute to veterans presented by sap, navy federal credit union, verizon, visit us online at www.salutetoveterans.org (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.
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with a cap on their prescription costs. that could have changed everything for us. i'm just grateful that no one will have to face the terrible choices that we did i look at amazon and say their margin is my opportunity. >> meaning explain it. >> they're a big company in health care, particularly with medications, it's hard to be lean and mean >> that's mark cuban at code last night the cost-plus drugs co-founder weighing in on the far ma space discussing amazon's plans to acquire one medical, jon he did sound enthusiastic to crip poe about the ability to use amazon's margins as leverage, saying he was inspired by martin shkreli, if he's able to manipulate pricing that way, he thinks he has a shot as well.
>> fun he used that old bezos line against amazon, at least in that case. dee, i don't get the feeling that any of these players is ready to scale yet in tech-driven health care necessarily. they've got good ideas it feels like they're learning versus getting ready to ramp things up. i wonder when that moment will come >> there could be a lot of learning we talked about this before, jon. health care is a very, very difficult space. there's been others that have tried and failed not everything amazon touches is gold remember grocery we don't talk about it quite as much it's still trying to make its dent in that space we'll see how health care goes they had the joint venture with jpm and berkshire hathaway cuban's point they have 1.5 million employees they can test this on, that is interesting still a lot more today apple's highly anticipated product event kicking off this afternoon. we'll break down what it means for the stock after the break.
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we are less than two hours away from apple's far-out product event. here's more. steve? >> this is apple's first in-person iphone launch event since the pandemic began the press is milling about there in the steve jobs theater. it's going to take place in just about an hour or so. we're expecting four new
iphones, two, quote, regular iphones and two of the more expensive pro models new apple watches, air pods. but what investors need to look for is any price increases there have been rumblings that there's going to be a price increase across the iphone lineup and also this event is happening a week earlier than it normally does. this current quarter that we're in is going to get a little bit more iphone sales than it normally does and then finally what investors should watch the iphone -- rumored iphone hardware subscription program. you pay a monthly or annual fee and you get a new iphone every year guys, send it back to you. >> yeah, and then we're going to get cook down here again it will be a busy day. thanks kara said she's going to talk about the macro issues. let's talk trading apple makes up a big portion of the market in the three months leading up to this event, apple
outperforms, but now we're entering a period where it has lulls. we're not expecting fireworks today. >> i know, john, the seasonal patterns around apple events are device. >> yeah, got to ignore the seasonal patterns. bottom line, for the past decade, more years than not, people have said, the iphone this year is going to be evolutionary, not revolutionary. obviously it's been revolutionary. look at apple stock. it's a huge failure of analysis that people have thought that the iphone is no big deal. watch the loyalty. watch the replacement rate watch the deals that apple has in place don't expect anything that tim cook says to impact the stock. people send to sell the news and look dumb a little bit later. >> you might have jinxed it, john >> nasdaq up now more than a%. "tech check" is back in a moment
the belt including reining in its cloud costs with aws, cutting down on copies of data and content. interesting in what snap and alphabet have said about cost cuts, less swag, fewer perks, even shutting offices in salt lake. >> i'm focused on that cloud piece of it. this was sort of the fear for the market was that cloud spending would cut back. you would see a deceleration in those units that amazon, microsoft and google and that would get markets more nervous it's not just netflix saying this, but remember when they spoke to brian armstrong a few weeks ago, in there, she asked them what they could pull back on and he mentioned cloud costs as well. i wonder if there's a growing number of ceos out there thinking how they can cut costs. maybe cloud is the place to do it and what effect that's going to have on the market. >> then when you have a popular
show and people can't stream it and then they shut off netflix, suddenly you wish you had paid for your infrastructure. so it's going to be quite a rope to walk. they want to make sure that they have copies in places where people want to see it, carl. >> yeah, pretty fascinating. and, you know, all of this is being done in an effort to keep the emphasis on content spend, right? >> you asked that question and, kara said, yeah, that's going to stay intact. how did you put it, reservoir dog. i wonder what some -- content in terms of sports rights we've seen that pulled back a little bit but it seems like this arms race, john, where no one wants to be the one to scale back on the big blockbuster series as we have lord of the rings and house of the dragon. i'm not watching that one. >> somebody who is not scaling back, apple, this is the biggest product launch in tech that we're going to get today don't forget, it was a few years
ago people were saying, a thousand dollars phone, who is going to pay for that? well, you know, the price is probably going up. at least in some countries interesting how they'll handle this strong dollar, carl >> yeah. and, of course, we'll continue to give you in on headlines from the amazing lineup here at code today. andy jassy of amazon, tim cook, and we'll wrap up coverage on day two of our coverage of code here tomorrow on "tech check." the half begins now. >> thanks so much. welcome, everyone. what today's apple event really means for that stock and the entire market for that matter. we'll discuss and debate with the investment committee that event beginning less than one hour today let's go to the wall we'll check the markets today, show you what we're doing at 12:00 noon we have a pretty good day for stocks the dow is up 225. s&p an
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