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tv   Tech Check  CNBC  November 30, 2022 11:00am-12:00pm EST

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from mr. fink, of course, largest money manager in the world. as for our markets, the nasdaq is in positive territory the s&p not so much. and we have a significant rally going on in many chinese-related names again. the broader market, as you saw, with alibaba up 10%. a reflection of the hopes that that zero-covid policy will be backed off that does it for us on "squawk on the street. "techcheck" starts now. >> good morning. i'm carl quintanilla with john ford cloud week continues on "techcheck." a lineup this morning, servicenow's bill mcdermott with us, plus the chief executives of hpe and intuit on the heels of their results. those are not the only movers. also the big swings in crowdstrike, workday and netapp as we await powell this afternoon. >> yeah, we got a start with the move in crowdstrike though and the ripple effects in the cybersecurity sector
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look at crowdstrike stock. it was down almost 20% earlier we will take a check in a moment the question is are these results signaling enterprise software is more vulnerable than many thought crowdstrike posted q3 results beating estimates, weaker than expected revenue growth has the stock down, yeah, 19% at the moment and those results also striking others in the cyber crowd setting a 1 and zscaler down big. you can see them there, zscaler down more than 6%, set palo alto networks down just a couple of percent. cloudflare up. bug, cibr, i hack lower. ceo george kurtz of crowdstrike blaming the results on increased macroeconomic headwinds, carl. i can't help note that the larger customers of crowdstrike actually seem to be doing
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better those deals still happening. but there is this trend that i'm hearing in different waves throughout enterprise software customers trying to kind of piece out the deals differently. pay for it in stages, not take that bite all at once, even if they know it's something they are going to need, something like cybersecurity. >> yeah, interesting setup today, john, because crowdstrike beat on eps, beat on free cash flow, they beat on operating margin, beat on revenue, but it was really that line about given increase scrutiny on budgets we are not expectingle the typicalq budget flush. >> it's that added annual revenue in the quarters ahead not coming on the way some would have hoped we will learn a lot today because we are going to hear straight from the folks who are in the trenches figuring this out and we will stick with software crowdstrike feeling the effects of the tough macro environment
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how is enterprise demand holding up in other parts of the market? here to discuss, servicenow's ceo bill mcdermott great to see you and no better time because some mixed signals about enterprise demand out there you continue to lean into growth, but how important is this q4 and the consumer spending to fuel the enterprise spending >> well, as i have been saying for a long time, john, the bottom line is this. the enterprise has shifted from on-premise to cloud. it has shifted from point solutions to platforms and companies that have a unique position in the market with a unique platform will do extremely well in this environment. as you know, servicenow is the end to end platform for single transformation so it's not just what you sell, but it's also who you sell to. you have to be global. you have to go to multiple
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industries you have to go to multiple buying centers and if you do all that with a platform that helps the customer generate automation, generate cost savings, generate roi, you are in a great position. >> well, how much work do you have to do with the customer now to get the sales cycle compressed enough to actually register that revenue? i was talking to adam at aws a couple of days ago he talked about deploying teams more and more to make sure the customers are running what they need on exactly the right versions of the software and the platform to operate efficiently. is that the name of the game now? >> john, the name of the game is customer value creation. and it has been for some time. we pivoted our company in the second quarter of this year to get 22,000 people moving in one direction to help the customer make money or help the customer save money
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and everything is about that customer centricity and ongoing innovation we built 2,000 net new applications on our platform this year, and, therefore, we're in a wonderful position despite the macro because the customers need automation, they need digital transformation and they need things to work and flow smoothly so they can win all of the challenges in the macro simply lead to more and more business for companies like servicenow because we were built for these weather conditions again, point solutions, on premise, it's not going to cut it >> bill, you know, looking at some of the other names that printed last night, some of the reaction among the sell side is that there was a lot of software that got bought in advance of essentially a pull forward the way we talk about work from home and pcs and other things, and hardware does that dynamic, is it being
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replicated in enterprise software, too? >> carl, again, like what i see in enterprise software, it's really all about the customers and the challenges they are facing the macro that they are steering into to john's question on the consumer, the customer has to serve their customer in new and so much more innovative ways than they used to have to serve the customer so the edge of the enterprise, where enterprise service management for the customer is front and center, is one big thing. the second big thing is the messy middle how ceos and managers of companies can automate the way workflows in the middle of these enterprises. some of the companies you saw report are focused on the employee experience. other companies might be focused on security. b what we try to do is modernize all erp functions of a company on a single platform finally, if you think about the
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foundation of digital transformation, you have to have the erp for i.t. because i.t. has actually driven the busy strategy now so you can automate the way the work is done so think about it in those three layers if you have a platform that addresses that, regardless of a customer's desire to pull forward or simply buy because the return on invested capital is there, companies like servicenow are really well positioned and that hasn't changed. >> bill, i want to go back to this trend i keep hearing about in customers trying to slow down the sales cycle and break the product into pieces to pay, you know, in waves over time versus the way they have in the past. are you running into that? >> that's the beauty of our model. you know, john, a lot of companies out there started out on premise, right? and they tried to transition their business model to the cloud. we were born in the cloud.
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ten-year public company, never did any business that wasn't in the cloud. so we've always recognized our revenue. we have always had adorable busy model and we have always had the benefit of doing that at the highest gross margin of any company operating in the cloud in the world, which is why our business model is so durable and resilient in this current macro. that is the ultimate difference. >> what does this do to the velocity of your expansion plans? i know you have the longer-term five-year term plus vision as you pay attention to costs, based on the macro, anything changing >> we are continuing to invest and i have said this repeatedly, john we are building our own business on an organically innovative platform to fundamentally change the way companies run around the world.
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my biggest challenge is getting the world to know and all of the ceos to know they now have choice they don't have to do what they always did because if they do, they'll get what they always got the complete business transformation, we are building that on our own. we continue to hire engineers. we continue to hire customer-facing executives, all the customer facing go to market people because we want the world to rise up with servicenow john, we are going to create a million net new jobs between now and 2024 some of them work for servicenow some of them work for our partners some will work for our customers. rise up with servicenow is one of the biggest movements we are generating as a leadership team, and between now and 20,241 million net new fully trained jobs in the global economy we are going for growth, but not growth at all costs. that's why we are the most
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profitable cloud company in the saas industry and have been since the beginning. >> all right still bullish. a lot of people aren't even getting what they used to get doing what they have always done times are tough. bill mcdermott from servicenow thank you. >> thank you, john thank you, carl. >> glad to see you, bill let's take a look at the broader market ahead of this afternoon's speech on the economy from fed chair powell how tech investors are thinking about the fed's next move. >> how fast we are going to get there. interest rates have been a huge driver for the downside moves we have had in technology because interest rates at their higher levels have now pushed valuations down lower and that's played out a lot more over the course of the month and certainly the year with the dow jones industrial up for the month 3%, the outperformer the s&p up 2%, and the nasdaq composite, the tech heavier index flat on the month so far it's positive.
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but the dow jones industrial on that value trade doing some outperformance now, over the course of the year to date period there is no doubt that technology has been an underperform if you look at the nasdaq 100 and nasdaq composite which shed 30% of value with the dow jones industrial at 7% so the tech heavier side of things wearing things down key industry groups in sector within the technology trade also very much in focus here. technology is a sector 25% down year to date communication services that media social media telecom side down 36% and consumer discretionary, amazon and tesla, down about 30% there. within that trade, a huge focus on things like cloud computing and the really bucking of the trend for semiconductors it's been a shift to the upside for semis. meanwhile, cloud computing as you were just talking about and financial technology underperformers. you've got to pay attention to what what's happening with shares of apple. the biggest driver, even
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mathematically for the index moves we have seen, apple shares have been in a market down trend down about 20% since the highs that we saw just over the summer by the way, earlier this year this past year we were trading closer to 33 times forward expected earnings. it's 22 times right now, guys. so keep an eye on the apple shares of course, if you want to hear more about it, head over to we have an interesting write up about how technicians think apple's continued weakness could be a real headwind for other parts of the market as well. back over to you guys. >> i was going to ask about that, dom. i saw some forecasts from technicians last night saying no need for wore which at this particular moment. say 134, that would have huge implications for tech and the overall indexes. >> absolutely. the reason people are looking at 134, that's the bottom end range we have seen if this is able to hold, that's going to be key.
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you mentioned the technical chart side of things fundamentally speaking, you are talking about the average analyst price closer to 176 bucks a share, which implies from a fundamental analyst standpoint from the sell side of things still a 24 to 25% implied upside trying to reconcile that apple trade is huge. right now no doubt thnear term o the downside. >> a lot to come in fact, still to come this afternoon, the ceos of hpe and intuit and later this week the head of microsoft as you're and the ceos of vmware and pagerduty as cloud week continues so much else going on as well. "techcheck" continues after this
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it's hello, team earth. [clap] now, let's get down to business.
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11%. julia has that good morning
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>> good morning, john. the human resources maker surging by double digits after reporting strong enthan expected sub skrings revenue after the bell yesterday up about 11% the company also bullish on the year ahead raising fiscal 2023 revenue and operate pging margin guidance authorizing half a billion dollars in share buybacks in the next 18 months t it's at the top of the nasdaq 100 this morning. another cloud name today is hpe. the spin off of the computing giant beating on revenue expectations for the fiscal fourth quarter, second highest quarter on record in fact, and a massive year on year jump in free cash flow joining us this morning is hpe ceos antonio neri. great to have you back given some of the pressures others have seen in the space, you talk
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about a cost structure right-sized, good order back is macro less of a concern for you right now? >> well, carl, good morning. thank you for having me. you know, hp had an outstanding quarter. we delivered record-breaking performance across the key metrics. this was the most profitable quarter in the history of our country. we delivered record-breaking free cash flow as well as eps. also we had the second highest ever revenue quarter and i am really pleased with the momentum we have in the market the demand for our products and solutions, particularly on the platform, now call hp green lake is enduring and steady this is a kul this is a culmination of several actions over a number of quarters number one, right sizing the company where we want to spend our time and energy. high growth areas with high gross margin number two is our strategy our strategy has taken flight, has resonated with customers
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that's why we have this impressive demand particularly on the hp green side we have edge and compute and storage. and then ultimately as we look forward, we believe we are well positioned to capitalize on those customer needs so we have that amazing quarter. we executed exceptionally well >> it does raise the question though, if the macro backdrop darkens significantly, does that work you have done allow you to play defense for longer, or go on the offense and start trying to take some share >> well, we are gang share in fact, yo our performance in 4 gained share in compute and in storage and the data space so we are going on the offense because we believe our portfolio is uniquely in position from edge to cloud in a platform
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centric model that drivers revenue and profitable growth for our shoulders. and this is an opportunity for us we have worked really hard over the last two years post-pandemic to pivot the company and to deliver value for our shareholders you see the numbers in q4. we are confident about the guidance for 2023 and that's why our q1 guidance probably surprised many people because we have that momentum. >> antonio, as the supply picture has shifted, right, and the consumer market has weakened, you guys have gotten better access to components that you need how are you managing that and making sure that you don't, you know, as now demand in the overall global economy slows down, don't get stuck with inventory that's hard to move? >> well, we took inventory action starting in the back half of 2021. we start seeing the challenge
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with some components, particularly the old technology type of components now in q4 we reached the peak of the inventory and actually we reduced some of the inventory by about $400 million and because of our significant order book, which, by the way, is larger than at the end of 2022, we are going to see that improving working capital, capital with earning power and also the fact that we have done all of the strategic actions that, obviously, include some expense, we are going to see that tremendous momentum of free cash flow. that's why we guided the street for the $1.9 billion to $2.1 billion we are extremely well positioned to take advantage of the demand and reduce inventory and drive the operating leverage from cash flow through operations. >> how are you expecting the turbulence in the european economies in particular to affect your planning there how steady is the demand out of
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europe what are you able to provide that europe is willing to consistently and predictably buy? >> yeah, i got this question yesterday. we actually had even performance across all the -- we are organized from a go to market perspective on ten years and across all segments from large enterprise to global accounts to medium and small type of customers. and i will say one of the things we have that's unique is our hp green lake platform. you can get access to all the requirements related to technology, whether it's connectivity, cloud in a hybrid approach, whether it's data and data analytics, whether it's to protect that data in a secure approach through our hp green lake platform and you can actually pay only for what you consume. one of the key reasons we see the momentum in europe also because drive sustainability
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obviously, in europe with the challenge related to energy, the fact that we can provide that as a pay-as-you-go and contain that kind of footprint is one of the reasons why they are attracted to our platform. so we believe we have a unique position across all markets with our platform centric approach and in the model to weather whatever comes next. i have to to tell you everybody talks about macro. i would like to talk about micro because we had a unique ecosystem. and while there is, obviously, uncertainty on the macro side, on the micro side i will say we are very, very strong and i'm really pleased with the momentum we have. >> finally, cost management, head count are those things top of mind right now? again, is this idea that you have right-sized already mean a lot of that work is in the rearview mirror? >> you know, obviously, tarek and i, my cfo and i are very, very determined to continue to
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drive efficiency across the company. we have embarked on a five-year plan in 2018 where i drove the transformation of the back end office through automation, simplification, modernization, using our own technology, obviously. and if you remember, at the beginning of 2020 when the pandemic started we enacted a relocation of resources it the high-growth areas and the simplification of our business we believe we are right-sized and we continue to hire specific skills in certain areas where we can offer the right strategy that is taking hold in the market we will continue to be displintd, obviously i think one of the key advantages is our culture has been now transformed our employee engage. scores have 20 points up from a couple of years ago. that has allowed us to attract unique unique talent and brightest minds to help us continue what
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we are doing. >> quite a story, antonio. the stock at the highest level since may today. appreciate the time. antonio neri, thank you. >> thank you. after the break, intuit's ceo sasan goodarzi is with us in another earnings post-earnings interview. that stock up more than 3% $110 billion market cap. plus, programming note here. big week of pro talks continues. this afternoon our brian sullivan sits down with lee cooperman, picking some of the biggest names in the market. good go to yeah, pro talks. that's at 3:00 p.m. today. we'll be right back.
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i'm carl quintanilla with jon fortt and julia. julia is going to break down disney's latest purchase,
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spending nearly $1 billion to further invest in streaming technology interesting story. first, a news update with christina. >> here's what's happening americans spent an average of 32 # $5 an holiday purchases during the thanksgiving day weekend, but according national retail federation that's up 8% from a year ago a record 197 million americans visited stores or shopped online during the holiday. the labor department says there were 10.3 million job openings as of the end of october, less than expected but still near historical highs. the labor market continues to be resilient even in the face of ongoing interest rate hikes by the fed. higher rates spending home sales fell 4.6% in october according to new figures from the national association of realtors the measure of home contracts signed but not closed fell for a fifth consecutive month and was down more than 37% from a year
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ago. shares of hormel trading lower, spam, skippy peanut butter and jenny-0 turkey a weaker than expected sales outlook and says it expects elevated expenses to continue into 2023. time now for our final ceo of the hour. take a look at shares of intuit. this move coming after they delivered a beat across the board in fiscal q1, up 3% guidance for the quarter ahead under the consensus though joining us intuit's ceo sasan goodarzi good morning good to see you. i want to get to credit karma eventually let's start with what was good, what was strong. you are seeing small businesses move towards digitization even in the choppy economy growth above 20%. what are they more cleleaning io now? >> good morning, john. great to see you very pleased with our
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performance in the quarter and just a little bit of context about 50% of the company is small business about 35% is tax, whabout 14% is credit karma with small businesses, we are continuing to see a flight to digitization and there is two things that are important for small businesses one, they want to figure out how to grow their business and get customers, keep the ones they have, and two, managing cash flow when you look at the combination for small businesses with mail chimp and quick books, we are able to help them manage their existing customers, provide more services to existing customers, find ways to get new customers cost effectively while then across the quick books platform manage money in and money out and not just transactionally, but insights around their cash flow projections and what it could mean in terms of inventory choices they have, whether or not they should hire more
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employees, need access to capital and helping them make those decisions. that's really what continues to be the strength we experienced in the quarter, the part of the guidance that we provided for the rest of the year we expect small business to grow between 19 to 20%, well over a $7 billion scale so we're pleased with the digitization efforts of the company and more pleased that we are able to serve small businesses. >> let's get into credit karma it potentially has implications for the broader economy. much of it is about matching people who want credit with companies that are offering it, and it seems like the shortfall here is you guys described it, is credit card issuers getting more cautious about who they are willing to give credit to, particularly when it comes to the riskier end of things. what does that mean for the year that we're entering into into 2023 after this holiday season and the amount of, i guess,
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wiggle room that consumers perhaps on the riskier end of the spectrum are likely to have? >> i love the question you actually sort of nailed the foundational discussion that we had at earnings yesterday. first, to reiterate what you said, the credit karma platform, we have 129 million members on the platform, and really our focus is to help members with personalized experiences, meaning that whatever their needs are, whether managing money, accessing credit, credit cards, insurance, loans, our focus is to match their needs with what's right for them in essence, what we started experiencing towards the latter part of october and into november was a tightening by partners now, typically, partners focus on two things. one is unemployment rate the other is delinquency rates both are at historical lows. however, partners financial institutions i think being
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really looking at foresight, looking into the future and assuming things are going to get worse, so they have begun to sort of tighten credit that's really what impacted our performance in the first quarter. more importantly, we decided to be very prudent and very conservative with the remainder of the year when it came to guidance for credit karma. that's why we reset segment guidance because we are just -- we are assuming that unemployment will get worse, delinquency rates will get worse, and therefore the performance get worse while we lean into our innovation to specifically answer your question, what does that mean for consumers, i'll give you a couple of data points we are seeing on our platform across 120 plus million members one is cash reserves are actually higher than pre-pandemic but what we've seen is credit card balances have increased by about to 14% your credit score on the platform generally has decreased by about eight points, which
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means there is some financial hardship and particularly the credit between 600 to 660, i would put in the bucket of the middle class, have the highest balances of $8,000 per member on average. and that's higher than it's been in the past. so those things indicate that there is just some strain with consumers, although their cash reserves are higher than it has been pre-pandemic. >> right and there has a lot of work done lately looking at what excess savings do remain, highly concentrated in the upper parts of the income strata historically, when you see continues like this tighten, and is it your sense that in prior cycles it was overdone, too much caution, or kind of fit the scenario that eventually played out? >> it's easy to play monday morning quarterback like looking backwards. sometimes looking backwards we have been too late to act and then sometimes we go overboard and that's always, it's a tough
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balance. i think we need to be very thoughtful and cautious in terms of how we try to address inclags, how we try to address demand in a way where we can be soft in terms of how we land the economy because just even the jobs report this morning, there is strength in the economy there is resilience in the economy. the cash reserves for consumers and small businesses are higher than they have been, but everybody is in a pump being able to manage that thoughtfully so we don't have a hard landing is important to bounce out of this current environment in a thoughtful way around the globe. >> what are you leaning into as intuit particularly on the small business side to keep customers from churning off the platform and to try to, i guess, increase share of wallet, to increase value, to be ac he cecelerate tv to digitization? are you spending more r&d to drive that or being more
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flexible with payments for businesses under pressure? what do you do >> great question. in fact, i'm about to, after this, go talk to our entire company about not only how we are performing, but the biggest focus areas. the two things that remain steadfast for us, for small businesses, is, one, to help them keep their customers and to help them sell more services to their existing customers, and very sort of prudently acquire new. that's all of it through the mail chimp platform. the other is cash flow shifting them to digitize all of their cash flow, money in and money out. the example i would use, we have over $2 trillion of invoices that get managed on our platform, and almost 70% of that is still checks. and when there is a check sent, it takes 75 days plus to actually get paid as a small business and when you are an in a cash crush, 75 days matters a lot so by using all of our payments
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capabilities in some ways you can actually get paid instantly or paid upfront the moment the invoice goes out so our focus is twofold. help you keep and grow your customers and help you manage your cash flow with all of our payments, payroll and quick books capital capabilities, and to provide you accurate sort of forecasts of your own cash flow based on everything that we see on the platform to then give you insight of what to do. and i'll end with this small businesses, whether they have four, five employees or 50 employees, they don't have all the capabilities of enterprise companies. and so the job our platform needs to do and is doing is to actually be your right hand, to provide you insights of actions you should take, and that's really what we are focused on to help small businesses thrive into this environment. >> well, you completed that mail chimp acquisition a year ago this month timely addition to the portfolio. so sasan goodarzi, ceos of intuit, thanks for joining us. >> thank you.
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as we go to break, a look at doordash the company cutting more than 1,200 jobs ceo tony shoe saying, quote, we were not as rigorous as we should have been in managing our team growth. with that, though, shares getting a pop here at 4.5% in what's overall a relatively muted tape s&p basically flat we'll be right back.
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disney expanding the streaming portfolio buying the rest of major league baseball's stake in streaming firm ban tech julia has more on what that means for their streaming strategy. >> in the ak annual reportfying disney announcing it's acquiring the remaining 15% that it didn't already own. bam tech is the technology that powers disney's streaming platform disney is paying $900 million executing the right to complete t purchase of bam tech now, this did happen earlier in november so that means it was under former ceo bob chapek. the filing also revealing that in the coming months iger will initiate organizational and operational changes and restructuring and change in business strategy that the
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company says could result in impairment charges iger's return spells more change than nearly undoing his predecessor's reorganization of the company saying management could explore strategic alternatives for the linear segment saying the company will refine its direct to consumer strategy to focus or more on profitability. and for parks, they do expect more incremental change with more of a focus on attendance in the consumer experience and less on price as pressure on consumer wallets intensifies. now, atlanta i can equities is more cautious with a neutral rating, noted disney shares gave up some gains on iger's appointment saying it's because there is no easy fix for the company's challenges quote, strong management cannot offset the headwinds from cord-cutting in the paid tv industry and direct to consumer streaming losses saying that earnings per share peaked in 2015 and that was a level that
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won't be seen again until 2025, saying that disney is a company with a decade of no growth john, we will have to see how this plays out. >> thank you. up next, apartment rentals come to airbnb stay with us how will your business adapt to change? you could hire an office full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world. workday. for a changing world.
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airbnb is partnering with
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several landlords to allow tenants to list their apartments diana olick is with us, has more details. >> well, john, historically the overwhelming majority of rental buildings prohibit short-term subletting so this gives tenants the ability to host their apartments just like homeowners do. airbnb is partnering with two major apartment reits, equity residential and udr, as well as gray star, the largest apartment management company in the u.s. it's starts be with 175 apartment buildings in roughly 25 major markets those include l.a., san francisco, atlanta and dallas, denver, seattle and phoenix. some cities like new york city and washington, d.c., are not available due to local restrictions on short-term rentals. the portal went live today >> there is a cal cue later that helps you predict what the earning potential is again, if you are doing this on a part-time basis, enter in
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different assumptions. we think this will help during this time in particular where inflation is high and people are struggling with the cost of living >> the calculator factors in the building's rent range, amenities, number of bedrooms and the number of nights each building allows. buildings will cap the nights between around 80 and 120 per year and the building can take a cut of the host's airbnb payment and that can be up to 20%. >> right upfront, that that host is permitted in these buildings. giving the landlords visibility to who the build something hosting, how often are he hosting and making sure the rules are followed >> the primary tenant must make the apartment their primary residence, so this not for investors looking to sublet the apartments all year long just for those apartment tenants. carl >> diana, i wonder how much visibility does this tool give the landlord into the airbnb
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i mean, the overall number of nights, sure but i guess who is the customer of airbnb here is is it the landlord or the tenant >> it's actually both. the landlord is getting a cut of this so it's able to attract more and get more income and be open on this airbnb platform which might bring in more people to the apartment in general but also, of course, it's for the tenant who especially the higher end buildings definitely don't allow this type of short-term subletting. we know rents are sky high and a lot of people are using this to offset their monthly payments. they go to a friend's house over the the weekend and make a couple hundred bucks for that weekend and that helps a lot it helps on both sides. >> certainly the argument from airbnb for sure. fascinating. thank you. one more time, tune into a big week of pro talks this week. it's lee cooperman at 3:00 p.m scan the qr code on your screen now to join that conversation
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with sully "techcheck" is back in a moment. let's have some fun. alright. [announcer] marc benioff [announcer] and bret taylor! you excited to be here? this is going to be huge. [michael] i want my daughter to have a livable world. [marquita] i just try to keep a [marquita] growth mindset. and the sky's the limit. [manish] you are capable [manish] of anything. [manish] the only limitation is [manish] in your mind. ooh, i hope you all are getting this. at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. go. go scientist. go software. go cure. go production. go faster and safer. emerson automation software helps breakthrough medicines get to market at warp speed.
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the crypto headlines do not stop coming. blockfy looks to distance itself from ftx >> let's start with bit front. this is a u.s. exchange saying
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this week it'll cease operations with exchange. it is the latest crypto company to folder to the broader market pressure we've seen lately and then you've got blockfi. lawyers there said it was blind-sided by ftx's downfall and really a victim here if you remember this summer ftx was supposed to swoop in and buy out blockfi and also suing sam bankman-fried. this morning hitting its highest price since the week ftx had filed for bankruptcy it's still on pace for its worst since june we also saw either rallying a
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bit overnight still down about 19% for the month and some analysts are seeing this as a short-term rally and they say that today's bounce here is due to some short covering vul of the jitters we talked about there's been a flood of investors moving to cold storage. and then we had goldman sachs this morning saying markets right now are still quite sensitive to unusual fund flows and they are looking to identify pockets of risk and preempt any exposure they do see some bright spots as crypto looks for a bottom. its realized volatility has dropped from about a plus 150 to about 170. all this crypto news certainly driving the narrative of investors also watching jay
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powell's speech today for any clues about interest rates today. >> all this as the crypto exchange crackin' laying off about 30,000 employees we also are keeping an eye on china and how protests there are impacting stocks >> pretty incredible moves today, john. the country may be facing its toughest challenge yet with protests however any indication of loosening restrictions is seen as a buying opportunity. morgan stanley latest note not even mentioning the civil disobedience we're seeing on the ground strategists there laser focused on the country's reopening shares are now about 43% in november, trading at its highest level in a year.
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so these gains really go beyond the large caps like alibaba and shared the lockdowns have been severe taking a toll on his staff, the u.s. embassy in beijing saying, quote, it's very difficult to go into government ministries in fact, and expect to be having the virtual meetings this week with the government of china because of these covid restrictions he also added consular officers are unable to check on american prisoners in china over the last three years, how it's been difficult doing so because of those restrictions clearly a sharp contrast when you look at what's happening on the ground >> seema, thank you. if you miss part of the show don't forget to follow or subscribe to podcast tech check is back in a moment
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immediately saying recent rate hikes are, quote, massively amplifying the probability of a severe recession john, kind of keeping in the same line of what bezos and even say david solomon might have suggested. >> perhaps there's no suggest, carl, elon musk does not feel qualified to lay on >> that's right and we'll talk about it after that. obviously big night tonight. let's get to the half. carl, thank you very much. and welcome, everybody, to the half time report remarks likely to move markets today. we'll discuss and debate how to respond no matter what jay powell says. joining me for the hour today, everybody's here at the desk and good to see all of you let's check the markets. we've been really in a wait an


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