tv Tech Check CNBC November 28, 2022 11:00am-12:00pm EST
that's when they are going to be delivering their first tesla semi we expect elon musk will be there, guys. back to you. >> all right we'll be keeping an eye on that. as we know you will, phil lebeau thank you. tesla shares are trading higher this morning major advantages all in the red to start off the week, led by energy and tech stocks that'll do it for "squawk on the street." "tech check" starts now. good monday morning. welcome to "tech check." i'm carl quintanilla with dierdre bosa jon is off can the strength of cyber monday continue we'll discuss that. plus, the latest from beijing as the rare protests spread there over ongoing zero covid restrictions investors wonder what it may mean for the likes of apple. cyber monday not the only thing "tech check" is celebrating this morning day one of cloud week. more on the names you should be watching ahead of a bunch of earnings we'll look for growth beyond the
hyper-scalers, d. we have to start with china, where protests continue to grow in response to the country's zero covid approach. eunice yoon is live from beijing with more. we've been seeing you on our airwaves all morning, but i'm blessing your reporting is being blacked out on the ground where you are in china >> reporter: yeah, i would guess so that's been happening all this week whenever we talk about any type of protests or other frustration with the covid curbs. dierdre, one interesting development is shanghai residents are complaining online that police are checking their mobile phones at transportation hubs to look for foreign apps, such as instagram, twitter and telegram telegram is, of course, the encrypted messaging app, and it is often use bid by protesters s well as activists to communicate. otherwise, security is extra tight, not only in shanghai but also here in beijing
this is after the weekend protests which erupted in multiple cities. not only, of course, here in beijing, but also in wuhan where the pandemic started the protests on the whole were sparked by deaths at a building fire in the far western city, which many people believe were hampered and worsened because of covid controls much of the public anger is directed toward the zero covid policy however, there is some evidence to suggest that people are more upset about other issues for example, here in beijing, many people were holding up blank sheets of white paper to indicate their frustration with censorship also, in shanghai, there were some people calling for the resignation of president xi jinping. beijing has been signaling that it is going to stick by the zero covid approach, though
mitigating some of the more excessive curbs. state media has been running several editorials to suggest that, saying zero covid is science based and it is effective and local officials are the ones that need to scale back some of their practices on the ground. >> eunice, you said that security is clamping down on foreign social media, the likes of twitter, i'm assuming some of the meta companies, as well. have you seen that before, and what do you think the implications are for businesses there? of course, there's others like nike and starbucks and apple that have huge presences in chi nachl china. could this be the beginning of a more clampdown on the businesses >> it'd seem almost impossible to think there would be more of a clampdown on twitter or, for example, instagram they're essentially blocked here it is difficult to have unless you have a vpn or are able to get around china's internet controls however, people do get vpns, and it's been a cat and mouse game
to try to really be able to communicate and log into the free world that's one of the reasons why the -- you know, it's been interesting to see that police are actually checking people's phones in fact, the conversation that's going on right now is whether or not this is legal for police to look at people's phones and look at that. obviously, people's private information. one interesting, i think, pushback we've been seeing in big mega cities where there is a highly educated population, such as in shanghai or in beijing, is the use of the law in pushing back against local authorities we saw that in shanghai, especially at the height of the lockdown here in beijing, too, there have been several stories now of people trying to negotiate with their local authorities to avoid a lockdown or to use, to demand to receive official notices, to
be able to go out of their doors. so it's going to be an interesting way to see exactly how far the public is able to push this line >> eunice, your radar has been so good on that. you mentioned last week the government blurring out faces of the crowds on world cup matches, and that got picked up by some papers this morning here in the states we'll watch that effort by the shanghai police. that's our yeunice yoon. companies taking hits as the protests add to supply chain worries. apple in the hot seat this morning. steve kovac has the breakdown. steve. >> carl, here's the latest on china and apple. the foxconn factory protest last week and lockdown could mean fewer iphones on the shelves this holiday han apple warned about earlier this month what is moving shares down 2% right? bloomberg citing a single source apple was shipped 6 million fewer iphones this quarter than expected due to the protests we
saw interrupting production last week that is double the 3 million iphone shortfall expected a few weeks ago. meanwhile, jpmorgan analysts this morning tracking shipping times for the iphone 14 pro. they say there's a 33-day wait time in the u.s. now, which is a bit better than the 40-day wait time a week ago. this likely doesn't reflect the impact from the protests, and we won't be able to get an iphone 14 pro still in time for christmas, unless you get lucky, walking into a store and getting one. best buy warned they will be in low supply on phones throughout the holiday quarter. apple declined to comment on the latest reports coming out of china. the last we heard from them was thanksgiving evening, when apple said they had people on the ground in china at the foxconn factory, monitoring the situation. look, this explains why apple has been moving more production out of china, making more iphones in india than ever before now it's not going to be enough. the vast majority of iphones are still made in china. also, guys, i want to take a
second, we cannot forget the human toll this takes. the images coming out of foxconn the last few weeks remind us the labor conditions in china over a beck decade ago that made apple demand changes in practices from suppliers. some of the images of the protests of people getting beaten and bloodied, garbage piled up in the dorms and so forth, it highlights the human cost it takes to make an iphone and get these out the door, guys. >> good reminder, stieve. thank you. despite the squeeze on iphone supply, our next guest is buying the stock naming apple along with amazon and disney the best tech names to settle into joining us now is michael of yoshikami. before we get to the trades, does china r's supply color your overall view of the sector >> on the short term, it does. but the long term, i don't think it does.
it'll get resolved or china will move things out of china towards vietnam and other places so i think it is a short-term impact, as you can see by the chart on your screen you know, you are in a situation where tech is going to be affected by what's happening in china. certainly global tech. >> lead me to naming apple and amazon and disney as longer-term plays. walk through a few of those and explain why that works. >> sure. you know, i think what was just said, there is a 40-day wait, now 33-day wait for an iphone. you know, i just think that demand is going to be there. eventually, apple is going to catch up somehow, and the demand is going to be there amazon, i think, has great cloud services business, and i think it'll have an incredible ho holiday. disney, of course, everyone knows what's happening at disney right now. the reason i included it in terms of tech, because a big part of disney now is disney
plus the content that they're paying for is just pretty incredible. i think cost controls are going to come under bob iger i was talking to my analyst, ryan, and he thought that disney would be a stock that eventually is going to get through this sort of ceo situation they have and move toward getting t ting n business. >> back to the china investment story. k-web is up 30% this month i wonder, do you think that is because of or despite the unrest is there a case to be made that the investment story is actually stronger because of this pressure on xi jinping and his leadership they're not going to have a choice but to relax the zero covid policy >> well, it's hard to say. it's hard to say i'd be really surprised if they actually did, by the way, reduce the controls they put in place
i actually got -- it's funny i'm not sure how i got these, but i have lots of contacts in china and they're sending me these pictures out their apartment windows of all these protests everywhere. you know, i think you're going to see a continued shift out of china towards other countries. whether it's korea or thailand or vietnam, i think you're going to continue to see that shift. i think apple will adapt to what's happening on the ground >> right sort of the story is unrest, uncertainty, unpredictability of the leadership, yet, these chinese stocks are on a tear you've seen foreign investors buy over the last few weeks, as well help us understand this, or maybe we can't. >> i'll give a perfect example you've had a number of chinese technology stocks, some owned by famous investors, that have had issues alibaba would be an example of a chinese stock that's had issues.
it certainly has been showing some sign of life in terms of the overall health of the market look at where that stock is compared to where it was we get excited when something goes up 5% we forget about when it went down 50% that's the dangers of headlines, right? if you focus just on the short term, you'll have the wrong impression of really what's happening. in our view, china is going to continue to have problems. china is going to continue to have challenges in their economy. not because just covid, but just because of the change in tone from the leadership. president xi is very focused on philosophy he's less focused on money that's just been obvious in terms of regulation they're putting in place you know, yes, china stocks have opportunity, but i'd be careful. china really has structural issues in its economy right now. >> finally, michael, just on
overall equities at the index level, it sounds like it wouldn't surprise you to, for example, watch some of these seasonality effects expire in the new year, have some weakness in q1, maybe q2, but you'd be using that, not as a selling into strength dynamic, but buying on weakness. >> yeah. of course, who doesn't say that that appears on the show, let's buy on weak bsness, right? but i think the real key for the markets, in terms of the timing i'm not really sure. you might be a better prognosticator than me in terms of timing. i think what you're going to see is markets are not going to start rallying until two things happen the first thing is you have to see earnings settle into more reasonable sort of expectations. i think that's already happening right now. it might be happening too much secondly, i think you have to watch really carefully what the fed is going to do if the fed starts to pause, not even cut but pause, then
earnings can start to stabilize. then you'll start to see earnings upgrade because the uncertainty of how great the interest rates are going to be starts to fall away. i certainly would be looking very carefully as some of these opportunities. you know, these are not by recommendations, randomly. people make their own judgments. but i think it is something to look at in terms of how you're investing your portfolio there's going to be opportunities in the next quarter. >> yeah. we're definitely going to pay attention to every nook and cranky of what powell says later in the week. great stuff, michael thank you. >> thanks, carl. as we mentioned at the top, it is not just cyber monday but day one of "tech check's" annual cloud week we'll talk to ceos and looking at trends across the sector. we have the hyperer -scalers, am selipsky of amazon tomorrow. some argue early innings are over growth rates decelerate for
azure, aws and google. we have the other layers, as well, this week. we'll talk to the ceo later this hour about how enterprise demand is holding up. throughout the week, we'll check in with hpe, service now and intuit bellwethers like cloudflare. we have you covered. given tech's looming demand fears heading into q4 and a big week for results in the space, this couldn't be a better time than to hear from the c-suite. all aspects. jon will be back tomorrow to help us through this as he says, there are so many different areas and layers of cloud that is important for the audience to know, and figure out where the growth is. >> you laid it out perfectly many concentric circles of business to get into at the very least, we have some of these retail numbers. we talked about spotify this morning. the price coming through with bigger black friday sales than the street expected.
>> yeah. that relates to the profit margins, right, of all the companies, which cloud helps with they help aud mattomate some ofe players. we'll talk about that later in the hour, as well. the companies behind the ecommerce drive and really how good the numbers are i know we'll that yalk about tht soon. >> all week long. still to come, black friday putting consumer fears in the rear view, at least for a while. will cyber monday do the same? we'll discuss that "tech check" is just getting started. let's have some fun. alright. [announcer] marc benioff [announcer] and bret taylor! you excited to be here? this is going to be huge.
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investors hoping for a big cyber monday today after a record black friday that saw consumers spend more than $9 billion online alone frank holland has the latest this morning hey, frank >> hey, good morning, carl just a short time ago, we got the list of the top searched stocks for shopping. home depot, walmart, target, amazon topping the list. we're at an amazon fulfillment center, serving the new york city area. you can see the bots picking up orders downstairs.
there are human workers packing it and getting it ready to be shipped off. we've seen a styrene of orderscg friday to sunday, we saw what could be signs of a strengthening consumer on black friday alone, the average spend per online order was $101 over the holiday weekend, we saw the number increase to $113. a lot of that money is being spent on discretionary items we're seeing big jumps when it comes to jewelry those sales more than 200% h higher than october of the previous year. sporting goods and toys. early this morning, we spoke to amazon's head of delivery operations consumers are seeking out deals for electronics. >> we're selling a lot of playstations and video games a lot of headphones, earbuds it feels a little more electronic focused i think we're still going to have a huge toy day, home and kitchen day. >> shoppers are also turning to
tech when trying to buy their online chat bots are up 45%. buy now pay later the last week jumped 75% however, the price of the items being bought declined. consumers using buy now, pay later to buy lower priced items than they did a year ago carl, back to you. >> fascinating, frank. thank you, frank holland let's dig in further for the trends in the holiday season adobe expecting cyber monday sales will come in between $11.2 billion and $11.6 billion. that'd make it the biggest online shopping day of the year and of all time. adobe's head of marketing and insights, thank you for the help today. there are interesting ing facet the data what stands out aside from the headline numbers >> thanks. we've seen a similar trend, where the strength on friday was up considerably. it surpassed $9 billion in total sales.
that's up about 2.3% then we saw the strength accelerate through the weekend through the weekend, we saw an equivalent amount of sales as black friday, about $9.5 billion through saturday and sunday, which was up about 4.4% year-over-year that acceleration from black friday, through the weekend, seems to be carrying through to cyber monday we're looking at $11.6 billion, like you called out, in spending, which is up about 5% year-over-year it's really been driven by discounting. like you were just reporting on, toys, we see discounts up to 30%. sporting goods, upwards of 20% consumers are really finding good deals and leveraging them >> right can you put the discounting and even the performance of various categories, electronics, smart yn home, toys, et cetera? what stands out from years past? covid threw a wrench in al kinds of trends, but what was a
surprise to you? >> some of the durable goods like furniture and computers computers and electronics are always really popular around cyber monday we hear about electronics, playstations, xboxes, those sorts of things. furniture is something consumers are more comfortable buying online discounting is driving increased demand for things like furniture. we see jewelry we see similar trend on jewelry. one of the interesting trends we've really been seeing is an increase in mobile shopping. people are not only more willing to buy larger items like furniture, they're also doing it on the mobile phone. we saw mobile phone purchasing over the weekend actually make up 50% of the sales. just the amount of things that people are willing to buy and the types on their phones increased dramatically. >> patrick, good morning, it is dierdre. certainly, discounting feels like the story of this holiday season people are looking for it. stores are doing it. it'll weigh on their margins i wonder, if you take out the impact of inflation, yes, sales are increasing, but even with
the discounting, are prices higher than they have been >> great question, dierdre one of the things we track is the adobe digital price index. it looks at just online prices so if you juxtapose that against the cpi, including gas and food, you have a clearer picture of what the online sales look like. going into the holidays, we actually were down a little bit from a digital price index perspective, down about a percent. consumers weren't seeing this elevated price they saw last year because of the supply chain issues prices were closer to what consumers may remember the discounting is on top of that i think as retailers are managing inventories, because supply chains are no longer an issue, and consumers are finding good deals >> yeah, it's been fascinating to watch the data sort of explain what we'd already heard from corporate commentary. it's really coming into sharp relief with some of your numbers, patrick we appreciate it very much great to see you. >> thanks, carl.
likewise china reporting record covid cases as protests continue to spread over zero covid restrictions there more on what it means for the country and businesses, and what to do with names like apple. don't go away. hi, my name is tony cooper, and i'm going to tell you about exciting medicare advantage plans that can provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare you are covered for hospital stays and doctor office visits but you have to meet a deductible for each, and then you're still responsible for 20% of the cost. next, let's look at a medicare supplement plan. as you can see, they cover the same things as original medicare, and they also cover your medicare deductibles and coinsurance. but they often have higher monthly premiums and no prescription drug coverage. now, let's take a look at humana's medicare advantage plans. with a humana medicare advantage plan,
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good monday morning. welcome to "tech check." i'm carl, here with dierdre and julie. we opened above 4k on the s&p, but dow is down 260. we'll watch that ahead of a very busy week. let's get a news update with seema mody hey, seema >> carl, let's start with travel it appears thanksgiving travel, that is the week, was a smooth one for the nation's airlines. according to flight tracking website flight aware, only 262 domestic flights were canceled from monday through saturday that's just 0.2% of all flights scheduled. calm weather throughout most of
the country helped keep flights on track the nation's biggest banks are working on a plan to compensate customers victimized by scams on the zelle payment network. jpmorgan chase, wells fargo and bank of america are among the banks involved in the talks. they're working out methods of refunding customers and each other for a legitimate transfer. the use of services like zelle skyrocketed during the pandemic. crude oil is just about flat for 2022 at one point today, crude dip td to the lowest level since december 27th of last year all this comes as we see a surge in covid-19 cases in china and the protest over the government's strict covid protocols that fueled concerns of slowing demand for crude in china, which is the world's biggest importer of oil. dierdre, back to you. >> seema, thank you. we'll focus in on the protests in china we are seeing.
we have gordon chang, author. the chinese adrs, some of the biggest gainers on the nasdaq 10 100 despite the unrest in china. is that reflecting a sentiment that this ultimately leads to an easing of covid policies, or maybe this is another monghong you the status quo remained with beijing getting more control >> this is perplexing. in a editorial over the weekend, it actually affirmed this strict zero covid protocol. so we shouldn't expect that there's going to be much relaxation that's true for a number of reasons. xi jinping, the chinese ruler, is thought to be the awe futhorf zero covid he is not allowing criticism of it if you relax zero covid, china will have an upsurge in cases.
we've already seen spikes. also, the communist party has weaponized covid, saying that it is controlling the disease, showing it is superior to american democracy it's a test of legitimacy of the communist party. you won't see much relaxation of the zero covid rules. >> yes, stocks are up today, but if you look at it on a one-year basis, they've been doing terribly what does this mean for businesses in china? we know apple has been diversifying what do you think it means for other businesses operating there? do they take a look and figure these problems are only going to get worse? do they scale back, maybe expansion plans or operations that are already there >> i think it is important for every business to have some redundancy however, i disagree with gordon. the chinese government, the central government, actually had already put out a bulletin to all their provinces and cities,
saying that, you know, they should relax zero covid. many of the local government officials didn't follow that because they were worried about getting punished if covid cases got out of hand. so now, the government basically said that you can only put lockdowns under certain circumstances. you're not allowed to do that if there are indirect cases such that if someone had covid and they interacted with someone, and that person lived in a certain building, they can't lock down the entire building because of indirect cases. now, the central government actually has a way out, saying that, you know, it's not their fault and blame it on the local government officials so i think that this is going to actually walk back zero covid. but aside from that, other companies can do whatever they want in terms of diversifying. but the fact remains that china
has the most advanced infrastructure in the world. a worker population that has one of the highest work ethics and one of the most educated populations. and so it is very difficult for companies that have optimized their supply chains over 20 years to china to suddenly, you know, remove their operations and move it to another country it is very costly. it would be very time consuming to try to hire the right human resources to staff up in another location so, you know, it's not without a lot of serious consequences if they do this >> gordon, forgive me if i'm wrong, we heard a lot of coverage over the weekend saying the biggest protests on xi's watch in a decade. calls for his resignation or removal, followed by the line that's highly unlikely sounds like you maybe don't think it is impossible >> no, it isn't, carl.
the reason is, as a great chinese historian put it, in 1949, the communists took over in china against the superior resources of the nationalists. because the nationalists lost the hearts of the chinese people that's exactly what we saw over the weekend. that fire on thursday, because the fire trucks couldn't get to the building because of the zero covid rules, that had just sparked spontaneous anger. no organization, no coordination we just saw these protests across china i think it is because the chinese people have decided, yeah, they may not protest because they're worried and intimidated, but they do not want the communist party there this is going to be an unstable china going forward. that means there's all sorts of imp kaglications for supply cha, including apple's. we saw the supply challenges at
the plant that will be duplicated across the country. >> what gordon is arguing, what many are arguing these days, is beijing is putting ideology ahead of economy why would any american business want to remain in a country that does that? diversification is hard. it'll take a lot of time, but is it increasingly necessary against this backdrop? >> i'm not arguing against diversification. i'mbasically saying it could b highly inprofitable for a lot of companies to relocate to other places a lot of companies already experienced this when, under trump, and he put all these tariffs in place and made it much more costly for them to have operations in china they tried to move to vietnam, to india, to many other places, and discovered that -- >> i don't really understand what -- >> -- it was not realistic they had to move back to china >> right
>> gordon and ann, great to have your insights. thank you for being with us. >> thank you. >> thank you. speaking of china, check out the top gainers in the nasdaq this morning china equities, china tech, had a pretty good month. additional buying. pinduoduo up 13% tesla with exposure today in the green. stay witush the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 1-800-376-4376. we'll send you our exclusive bond guide free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years
the importance of streaming for media businesses in focus today as box office numbers roll in from the holiday weekend. they are not pretty. julia has more on that. >> well, carl, the releases at the box office this thanksgiving weekend fell flat. yielding one of the weakest thanksgiving weekend in years. that does not bode well for the key holiday season for movie theaters shares of amc, cinemark holdings and and imax are lower disney's animated feature "strange world" generated less than $19 million in ticket sales between wednesday and sunday that's one of disney's worst openings in decades, sending disney shares down over 2.5% right now. on the flip side, disney also had the biggest film of the holiday weekend, "back plack panther: wakanda forever," bringing in $65 billion over the holiday weekend. that's in the third weekend in theaters
meanwhile, netflix shares were higher earlier now, they're slightly lower after "glass onion" reportedly yielding the highest purse screen box office average of any film over the weekend. that was on a limited release of about 700 screens. netflix is not reporting official ticket sales, but results could encourage netflix and other streamers to release films from their established franchises in theaters for a more traditional wide release before available for streaming netflix co-ceo said his priority is driving subscriber growth, not box office sales, but this could help change his mind >> julia, thank you. meanwhile, the ftx claiming another victim, blockfi. "tech check" is back in two. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading.
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enroll you over the phone in a humana medicare advantage dual-eligible special needs plan. so, call now. better care begins with listening. humana. a more human way to healthcare. well, another one bites the dust, at least when it comes to crypto kate rooney joins with with more on blockfi, the latest to file for bankruptcy the writing was on the wall for these guys bailed out by ftx, they're in this position. >> it's been the saga since june they'd be bailed out by ftx. it is latest collateral damage from ftx, filing for bankruptcy chapter 11 in new jersey blockfi was one of a handful of crypto firms that was supposed to be bailed out by ftx, which now, of course, is going through
its own high-profile bankruptcy. it started with a $250 million revolving credit facility. that was back in june. it increased to a $400 million credit line from sam bankman-fried's company in july. ftx also has the option to buy blockfi. the company said it had drawn out $275 million of that loan. the troubles really started in the early summer, after the implosion of three arrows capital. november, it halted withdrawals and customer deposits and admitted it had significant exposure to ftx and its sister fund, alameda. bl blockfi has 100,000 creditors. liabilities and assets range from $1 billion to $10 billion among its biggest creditors, a company called ankura trust, $729 million west realm shires, the parent company of ftx, also sort of a subsidiary, sits under the ftx
umbrella i also mentioned the $275 million loan then the securities and exchange commission, hane kim, $30 million line there now, guys, we've got no central bank coming to the rescue. as far as the outcome here, crypto companies had been turning to their peers and sam bankman-fried for help finance may be the one to step in as we were talking about, a $2 billion emergency fund. >> raises a lot of questions on its own. >> not in cash partially in crypto. >> which is kind of how we got here. >> right. >> kate rooney, you'll continue to cover the story. it is "tech check's" cloud week more on the names powering cyber monday you may not have heard about. the ceo of appian after the break. don't go away.
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as cloud week kicks off, we have focus on the cyber monday frank holland joins us with under the radar names this morning. hi again, frank. >> reporter: hey, good morning to you again, carl you've hit on this earlier today. early this morning, adobe raising its forecast for cyber monday spending. this follows a record black friday, which both should be a positive sign for the cloud stocks that power ecommerce, according to analysts. this comes off what's been a relatively mixed q4 for many of the stocks we're talking about names like
adobe, akamai, salesforce, others we've been talking about all morning. akamai and adobe outperforming in q4, after adobe had guidance below. akamai, 15% decline in the delivery segment last quarter. saying, quote, something concerning to investors, it received acceleration in traffic growth from the company's biggest customers. i spoke to the chief operating officer of wix he believe it is stabilizing even if there is a recession or economic slowdown, expect to see continued strong demand in things like websites and payment solutions. >> we are supporting so many different kind of businesses that commerce functioning is different. because they also need -- we're also supporting services that also may require online quorums. people want to schedule an appointment, they want to sell
classes, they want to sell their own time, teaching you something. >> reporter: all right the shift in online spending also a tailwind for the stocks in the long term for example, this holiday season over black friday weekend, we saw mobile sales become 52% of all shopping that's a new record. also, 22% increase in the conversion of social to mobile actual buys. two trends to watch. they're definitely tailwinds for the companies according to analysts back to you. >> frank holland, good look at what powers the ecommerce boom here to help us kick off cloud week on "tech check," a name that specializes in enterprise automation, shares have been cut in half amid the volatility this year, appian ceo matt calkins joins us now. thanks for joining us. let's start really broad what are we learning about cloud and enterprise spending in the current environment? are companies willing to spend on infrastructure and platform and services against a weakening
macro backdrop >> yeah. remember the cloud has had a profound effect on the cost of creating new applications. just like we have as a low code firm, both of us reduced the time it takes to build an application and the money it takes to build an application. these time-reducing, money-reducing it takes to rebua application. these time-reducing and money-reducing innovations tend to do well in economic downturns. >> right, but there have been so many companies offering things, specializing, and maybe call them the best of breed, and make it's microsoft or salesforce or a tech company that can offer at a lower cost some of the services >> yeah, if you have an established relationship with an innovator that has superior technology, that can thrive. automation is technology that
helps you get work done by your software, and software is helping you to do the work automation is a great technology to rely on, and you have to go to efficiency, and i expect automation to do well in the next year. >> i think there were questions about these earlier in the year, companies like snowflake and others have proven the model holds up and still uses technology you have a subscription-based model. how is that fairing -- any plans on your side to maybe incorporate a consumption-based one? >> we use prescriptions instead of consumption because it's predictable. we have a 99% gross renewal rate if we did consumption, it would be less predictable and i would be pleased to switch to it i think we may innovate in that
direction in the next year or two. >> what are you seeing then, let's say, for next year we heard from other cloud ceos that sales cycles are lengthening. what are you seeing from your end and your customers >> we come into this time at an interesting position, and our last four quarters have been the best since we went public five years ago. i believe it will leave us in a strong position on the other side >> matt, thanks for joining us to start off cloud week. just about five minutes away from bob iger's first town hall disney. we will tell you what to expect when "techcheck" is back in a moment er real time data
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the dollar index that did go below the dollar a day has gone positive, and oil was negative this morning, red for the year, has gone positive, and opec plus will seriously consider a new cut at next week's meeting and that affected the energy markets today. >> that's something to watch closely. just a week after shocking wall street with his return as contrary iger will be having a town hall. >> that town hall starts at the top of the hour. iger will be talking about his vision for disney upon his return, and he will be answering questions and we're hearing this event is going to be happening in person on the disney lot here in burbank, and also will be broadcast virtually. of course this all comes on the heels of the flop of the disney
animation that came out over the weekend. and iger's plans for restructuring and layoffs, especially after his predecessor announced plans for layoffs and streamlining and chapek over saw multiple price hikes, and then immediately after taking the top job at disney, iger announced he would restructure the media decision that chapek divided into contribution arms iger fired the distribution chief and said he would put four executives in charge of figuring out the restructuring, and disney general entertainment
chairman, dana wallman just a few minutes ago iger tweeted out a photo of the disney lot writing, quote, filled with gratitude and excitement to be pack at walt disney co. we will watch for updates coming out of the meeting, and that starts in a couple minutes on this first meeting, this first public view, do you expect him to give some of the wronger-range decision-types of thinking what happens to espn what happens to layoffs? or is this more about morale and mending some of the relationships that got broken? >> i think it's more of the latter the restructuring, he announced, would happen but said it would be several months, and his goal is to get the restructuring figured out in a couple months here's he's speaking directly to employees and not investors, and top of mind would be whether and
how many of them could be losing their jobs cutting back on spending and the likes on that, and it will be interesting to see his thoughts on succession, and they are going to prioritize the creative output of disney, and i think also this question of how quickly he might act to set up a successor. >> the flop of "strange world," and this is the second one, and "light-year" did not do as expected either. >> i think they are going to be re-evaluating how long films should be in theaters and how long they should be in theaters before being sent to streaming
we will see how big the box office comes back. >> what a story, julia it will be fascinating to see what we get in the next few minutes. in the meantime, our star-studded cloud week continues tomorrow with the head of amazon's cloud arm, amazon web services, and tune in for 11:00 a.m. for more on that. the dow is now down 250, and half-time is up now. it is 12 noon in the east and we're down across the board. nasdaq is under pressure, too. the yield on the ten-year.