after meta raised the prices in july by $100 each, the question is whether qualcomm can help meta bring down the costs of these headsets and therefore drive more widespread adoption of vr. >> julia, thank you. kristina partsinevelos has qualcomm's angle on this >> meta and qualcomm, they're not strangers. they've been collaborating the last seven year, but the new long-term chip deal will include the snapdragon technology. the relationship is becoming even more intertwiced especially since meta hasn't successfully designed these chips on their own. i must reiterate this again. these chips will not be exclusive to meta hardware, which pays into qualcomm's pivot from end user equipment. they're trying to turn it into a broader provider of semiconductors, rather than just the go-to smart-phone chip maker. it's not it's first extended reality deal in july samsung partnered with qualcomm for the upcoming phone. microsoft and bytedance are working on platforms as zuckerberg said, they're still in the early stages of the metaverse, but vr headset demand is growing that means qualcomm can get a

now as the company works to pith to focus on the meta verse and making money in the meta you know verse it's facing an overall contraction in ad spending, plus foreign exchange head winds yousef squally lowering his top line on the stock and saying top line head winds are likely to persist through second of 2022 70% of analysts have a buyer overweight rating on the stock. >> julia, thank you. >>> ford p.e. is just under 14 julie beal, do you like this one? >> no, this one's not for me i think the regulatory risks are a little bit understated i think that's frankly going to be a larger and larger problem for them and then just in the core advertising business, cpns have been struggling. in the recession, do i want a ton of exposure to ad budgets especially when there is a much more innovatei player in tiktok, where it's completely overtaken facebook in terms of time spent, engagement it's much higher and stronger and i don't think facebook has what it takes to compete facebook moved from snapchat to tiktoking but i think i'm pretty concerned about this one. >> value trade or value trap,

that will be meta's argument, - their appeal. that will be meta's argument, that i their appeal. that will be i meta's argument, that they tried to resolve it but kids will be kids. just about the irish data commission, why then, and they have the power to push this through? certainly, gdp are and broadly the eu privacy regulations have a lot of teeth so they do have the power. meta has a large presence in ireland, all of these things become political at certain point you have to imagine, my guess is, they wanted to get the big find, they wanted to make a big announcement and make an example of meta and instagram, two years from now, by the time the appeals are exhausted, it wouldn't be surprising if that was lower and we've moved on, six controversy since then so that's the way things tend to unfold. although never underestimate the potential of an aggressive regulators saying no, we will hold the line and meta and instagram have the ability to pay this fine and we will hold their feet to the fire and that ultimately ends up fire and that ultimately ends up being litigated.— u

meta announced a hiring freeze. meta -- ed: kurt wagner broke the story. set the scene for us. what did we learn thursday? >> this was during a q&a that happens weekly between zuckerberg and all employees that meta. he said, i promise you i would come back with ideas about where the budget is headed for 2023. the big news, there is going to be a hiring freeze. it sounds like most teams within meta are going to see their budgets reduced next year. how exactly that is going to play out with each individual team is going to be different. in some cases when someone leaves, they're just not gonna fill the role. some people are going to be moving from team to team. in some cases, they will be kicking out low performers, which is a pretty drastic and we haven't seen at facebook ever. this feels like a moment, this company has been growing and expanding for 18 years, finally hitting an issue. ed: i want to show you some of what mark zuckerberg told employees thursday. these comments obtained by bloomberg news. there are a number of ways to reduce the size of a group, some teams will tr

meta's problem is not only are they losing engagement, the time spent on meta, instagram and facebook is declining. even though their daily active user growth is holding of, time spent is declining. the impressions growth is going down. add pricing is going down. that is a double whammy. that is what pivoting to videos is just the wrong time because they are behind tiktok and other platforms and it is going to take more time. they do not have the creative based tiktok has. they're going to have to bring in the creators. they're going to have to be a revolutionary model that is going to eat into their growth margins. a lot of problems in terms of making this pivot now. they should have done that before. ed: the battle for eyeballs continues. thank you to you both. coming up an apple executive ousted after a viral tiktok. this is bloomberg. ♪ ed: more bad news for apple. shares plunged by 6% thursday, wiping $120 billion from its market value. bloomberg has learned one of the company's senior executives is leaving after a tiktok emerged of him making an off-color joke. bloomberg's mar

meta--- meta, a special shout out to you because it just not the five-day losing streak in which it should $61 billion in market cap. it has not had a good run, but in the green this monday. emily: let's talk about meta here because when you're looking at mark zuckerberg's own personal wealth at 71 billion-dollar wipeout, of course facebook shares have plunged as well. facebook's market cap is a fraction of apple and microsoft's but that is a lot of money. a big cost in the real world for his bet on the metaverse. ed: you look at the chart behind me, it is pretty ugly. you remember me being outside of what is now meta hq. the moment they whip off the tarp from the sign as a new logo. there was one thing you and i latched on that mark zuckerberg said which is it is going to take a long time for his metaverse idea to reap financial rewards. emily: ed ludlow. thanks. we're going to dig in a little more into meta. ed will be back later in the show. i want to bring in brent from jeffries. we were talking earlier about the personal cost when it comes to mark zuckerberg's wealth. when are you goi

meta makes it more than 20% of the xlc and a big reason it's down so much meta have lost 16% as they struggle with slowdown in ad spending the journal is reporting meta will look to reduce costs by 10% in the form of layoffs it's in line with comments mark zuckerberg made in july that declines will continue over time let's bring in raymond james aaron kessler. thanks for being with us today want to get your thoughts on this report where meta is concerned. also should note it looks like there should be similar belt tightening happening at alphabet. >> yes not a big surprise we've seen this in past recessions if you look at snap, they recently announced they're cutting 20% of their staff i think investors have been -- you've seen facebook or meta and google alphabet hiring pretty aggressively over the last few years. we do think they have cause in a slowing environment. for meta, investors have been more critical and investors expect them to lose $10 million plus we think investors would focus on that. core potential cost cuts, in the near term. >> so, just looking at your coverage uni

her portfolio of meta and chevron showing weakness there down about 22% meta down 30% since the draft. stephanie joins us now let's start by going -- listen, steph. you got lots of company here in the negative column. you're not alone at all. ls only one person who has positive returns, obviously it's a matter of timing let's talk about meta a little bit. this stock has been cut up with razor blades lately. >> yeah, it really has i have one winner and one loser. but i still like it, tyler it is down 58% year to date. it trades now at about 11.6 times earnings, 7 times ebitda and these guys have the size and the scale and the eyeballs that the digital advertisers are looking for in terms of rois, right? so i think they have to fix reels. but i think they will be able to do so and there was speculation last week that they were going to cut 10% in their cost structure which could save them about 6 billion or so. so they have some flexibility there. free cash flow of $20 billion, they have a lot of financial flexibility going forward. >> i was asking a previous guest about this if you hav

that is allowed already aced on metas -- based on metas policy. that is what i'm trying to figure out. you either allow illegal activity or not allow. >> the policy here as i understand it is specifically about human trafficking and cartel networks facilitating illegal trafficking of people. i would be happy to follow-up. >> there is not a person that crosses our southern border into the u.s. that does not pay the cartel. as our border patrol will tell you the border is secure, secure on the south side. when i was in texas, they said the cartel make $153 million a week trafficking people across the border. many meet up with people moving them across the border illegally through a facebook platform so that is a big issue to me. it seems meta is being inconsistent in their terms of service about illegal activity. my last comment on this and i really do appreciate the time on it, i have for years gone back to facebook and said i have all kinds of constituents at home that say to me i would comment to you on your page except when i comment i get just

through the inquest, we have seen just meta. through the inquest, we have seenjust a fraction meta. through the inquest, we have seen just a fraction of the instagram posts seen by my 14—year—old daughter, molly, in 2017. posts that were too disturbing for some to see in court, posts that are not allowed to be broadcast. posts that caused an expert psychiatrist weeks of poor sleep and posts that the senior coroner has now concluded contributed to molly's death. let's get more from frances read at the coroner's court now. just remind us of who this hearing heard from, because it is quite wide—ranging. heard from, because it is quite wide-ranging— heard from, because it is quite wide-ranuain. , , , wide-ranging. yes, definitely. molly russell, is wide-ranging. yes, definitely. molly russell. is a — wide-ranging. yes, definitely. molly russell, is a reminder _ wide-ranging. yes, definitely. molly russell, is a reminder was - wide-ranging. yes, definitely. molly russell, is a reminder was 14 - wide-ranging. yes, definitely. molly russell, is a reminder was 14 years | russell,

a concern we are shareholders of meta and that has been a concern. i just want to quickly put that into perspective they grew head count by 23% last year they grew revenue at 22% it's rare you grow head count faster than revenue. if you're curious, that's just over 50 hires per working day last year. you can't hire at that speed with quality in the previous year, they grew at 30% google's was 14% and 16% respectfully over the past couple of years, but their growth rate was much higher. so really this conversation is about meta and the core question that we have is ultimately how deep are these cuts going to go? i think 10% is a starting point. i suspect if you fast forward two years from now and look at their peak, just over 71,000, i think we'll probably be 15% plus below that and i think that's a good thing i think as much i believe in the meta verse, i think some of that needs to come from their reality labs and i think that's going to be good for profitability. >> hey, gene, so you're very focused on consumer internet names and we're seeing cuts

meta's dependence on qualcomm and the fact that meta has not been able to make its own custom chips despite the attempts of its in-house silicon unit, improving chances to have competing with apple. this comes ahead of apple's event next week where we could get a peek at its first vr headset, expected to compete with quest pro, anticipated to launch in october. this upcoming quest headset is expected to be a higher end option, this after meta raised the prices of its most accessible quest 2 headsets in july one question here is whether qualcomm can help meta bring down the cost of its hardware and drive adoption of vr dan ives tells us meta needs all the help it can get on this virtual reality strategy with apple set to release its new apple glass in 2023. qualcomm is a good step forward and solidified its stance on the market but this is clearly a defensive play versus apple. ives also saying that it's, quote, very concerning that these chips are not exclusive. he says qualcomm is hedging their bets and making sure meta is not their sole partner device >> got to have volume. one wa

it is with specificity and one of the other things i know meta is bound to say and instagram, with meta being the parent company, is that this problem was caused in part by instagram's desire to improve things. so recall a year or two back, instagram experimented with and rolling out the idea of hiding the like count, they didn't want instagram to be this competitive "i've got to get a certain amount of likes to feel good about myself" situation, so particularly for younger people, they've experimented with trying to hide those counts and trying to not make it such a competition. young people being the clever folks they are noticed that business accounts didn't have that same restriction so they took their personal profiles, turned them into a business account, as though they were a business, a doughnut shop or something like that and the privacy settings on a business account, if you own a business page on instagram, you want your phone number and email to be out there because you are trying to sell things. the teenagers didn't think that through and it was a good intention, bad result

even when stocks are looking less expensive right now and one that doesn't fit in that mode is meta look at a two year of meta, yesterday in the selloff, sort of threatened to break the lower end of this mini sideways range. in fact, it did break below what had previously been low. this is a picture of a stock migrating from growth investors to value investors sometimes that means it's a value trap but not a lot of strong sponsorship of the stock given all the reinvestment they're having to do in the new venture. an interesting one to watch and one that doesn't fit the pattern of the other faang names, guys. >> below 150 is something to watch on meta. lows for the year. stick with us mike we'll join in on the conversation, cnbc contributor gunja banner who joins us on set. great to have you. >> great to be here. >> they say to be clear, the flows are far from bullish but a lot of it is driven by positioning, performance, the same ctas buying above the 50 and 100 day are selling it back below now. do you agree with that >> funds brought around $31 billion worth of stocks last week but zoo

why meta shutdown accounts in russia and china? some of which paid the company to promote phony news articles. later, sam on his m&a spree to the traditional financial system. this is bloomberg. ♪ ed: this is bloomberg technology. i am ed ludlow in new york. meta has blocked thousands of inauthentic accounts, pages and groups from facebook and instagram, that originated in russia and china. meta says the russia counts spread propaganda about the war in ukraine. a china-based accounts were targeting u.s. users in regards to midterm elections. sarah frier leads our big tech coverage here at bloomberg news. what do we know about the accounts that were frozen by meta? sarah: the thing that is interesting to me about this report is that meta made a rare disclosure of the amount of advertising these accounts, around hundred $5,000 from russia to spread propaganda about the war in ukraine. that is significant because this company has come under criticism for receiving advertising dollars from russia around the u.s. election back in 2016

i lost my trust with the companies of what they were doing and what meta-was doing -- meta was doing. should help our researchers understand the platforms better. sen. portman: you disagree of the need for more transparency? mr. cain: i would hundred. mr. roetter: i think this committee is poised, given its powers to enforce transparency. sen. portman: additional questions later. i want to respect the time but i appreciate your testimony. sen. peters: thank you. senator johnson you are recognized for your questions. sen. johnson: think we all agree this is a big problem there is no easy solution. i would meet with facebook and i appreciate what they're trying to do to pull down islamic terror content i think we agree, we don't want to be encouraging violent and behavior on these platforms we need to check free speech as well. it's a balancing act. i think, mr. boland, you talked about the term extremism and harmful content. i guess that is in the eye of the beholder. it's difficult to define it. what i want to focus on is, where do we draw the line in terms of taking down content that

even before the economic downturn meta was facing marriage challenges. difficulty in targeting and measuring ads, declining user and ad growth rates in the face of growing competition from tiktok plus anti-trust and regulatory risks. and now as the company works to pivot to a focus on the metaverse, it's also facing an overall contraction in ad spending plus forb exchange head winds. saying the company is in the midst of a significant investment cycle with increased spend on new growth pillars, mainly reels, its short form video, and the metaverse saying we believe this provides a cap to ebitda. >> wig story this week next week's going to get busy. a couple of isms and obviously payrolls let's get to the judge and the half >>> all right, carl, thanks very much and welcome, everybody, to the half time report this friday edition, front and center this hour after another quarter to forget for stocks is any relief in sight for your money in the months ahead? we'll debate that with the investment committee we have a super sized group because it's all an hands

. >> meta is cutting headcount for the first time. >> u.s. futures muted at the open of the asian session after a lot of volatility in the new york session. we are talking 90% both the dow and s&p 500 members moving around. the nasdaq fell almost 4% after we heard from jim bullard talking about how investors in the market are finally realizing that we will see more rate hikes to come in the next few months. we have the 10 year yield rising again resuming the gains after the boe intervention. we have the risk off sentiment also toward oil markets. right now slightly higher about 81 .63 level. it is all about the volatility, the swings and that is affecting the treasury market as well. it we are seeing some signs that the u.s. stock market is flashing warning signs on liquidity. if you turn to this chart, you can see that the dollar swap spread has now rebounded after falling to -75 basis points. this is a record move in either direction. huge swings we are seeing showing that perhaps we will see more liquidity stress with no clarity when it co

both meta and _ what has been said? yes absolutely. both meta and pinterest _ what has been said? yes absolutely. both meta and pinterest have - what has been said? yes absolutely. both meta and pinterest have said . both meta and pinterest have said that they will be looking very carefully at the report that the corner will make. and send to them as well. and that will be part of it. ithink as well. and that will be part of it. i think there as we already heard a big push for the law to change as well. that only companies bill is going through the comments at the moment. and it is what will happen with that. they want to see pressure to get things change. molly's family very much hoping that this is a watershed moment to see some change. this is a watershed moment to see some change-— this is a watershed moment to see some change. thank you very much indeed francis. _ and you can see more about this story on the bbc news channel this weekend in our documentary "�*molly russell: a father'sjourney�* in which molly's father ian reflects on his path to getjustice for his daught

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meanwhile, meta's president of global affairs has been speaking out in defense of meta, and also attacking apple for its limits to the ability to target ads and impact. he said at an event for semaphore this morning, apple, over the survey of privacy, is trying to kneecap its competitors. apples responding quote, we are giving the users a choice of whether they want apps to track them across apps and websites owned by other countries. rules apply to all developers including apple, and we have received strong support from regulators and privacy advocates for the new feature. another big headline this morning, former president trump could be allowed back on facebook once the suspension of his account expires in january. guys? >> a little bit more on that last point, julie. obviously got a lot of attention on social today. is that a decision the management will work through? or will this be handed to some third-party board? >> i think something that mark zuckerberg is going to be focused on. especially looking at the comments today, this is something that he is going to want to take ownership

this comes at a time when meta is building the metaverse. we don't know how it will play out. i'm extremely concerned because the paradigms in the past, content and content distribution is very different in the metaverse. that's an area if i were this committee would spend a lot of time really trying to understand the risks of the meta verse. it feels very risky to me. it feels like the next space -- helping to guide, not having that, that's concerning. senator portman: same question to mr. roetter. how to evaluate these trust and safety issues and the responsible innovation team and the impact it's having, do you think it will be helpful to have the platform accountability and transparency act? mr. roetter: i think so. if we get from that more information to illuminate what the incentive structures are is helpful. they are operating in a vacuum. we see a lot of conversation about this people will cherry pick and use it as evidence of whatever their theory is of these companies that of these companies that they're doing. of course, it must be true because this is one example.

as a public company traded at that low of a valuation, that radar goes off that's what's happened to meta platforms, aka facebook. it's just gotten destroyed this year, but you like it? >> i do. i think of it as a brand that goes through a tough time, back in the days of buying mcdonald's when this was mad cows and nobody was going to go to mcdonald's account i would start to worry if you had users falling, but they're well known, right? tiktok is eating some of their lunch in terms of eye 2k7 balls spending more time there also some of the privacy changes, but in the long run, it is a social network company, but really it's just an advertising company. if it had the eyeballs, i truly believe the earnings will follow like i said, the lowest valuation, again, you're probably going to have to suffer for a while. i have no idea when the turn comes, but i think you will get rewarded >> we'll see don't drink and go on virtual reality, i guess, but we're going to combine the two here, because it's safe. anheuser busch, bud, you kind of view this as a safe investment >> i do. they're an amazing

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dismissed a last-minute change of motion who said they worried about juror bias but meta says of the 150 potential jurors 40% said they had not watched the january 6th committee hearing, and 40% hadn't even heard of the oath keepers. oath keepers leader stewart rhodes and four other members of the group are charged with seditious conspiracy in connection with the january 6th capitol insurrection the others are kelly meggs, kenneth harelson, jessica watkins and thomas caldwell. the government says they intended to, quote, oppose by force the lawful transfer of presidential power under the most serious charge, they could face a maximum of 20 years in prison if they're convicted. now simply, today another january 6th rioter, an hvac worker from iowa named kyle young was sentenced to more than seven years in prison. he pleaded guilty back in may to a felony count of assaulting, resisting, or impeding officers. young used a strobe light to disorient police, helped throw a large speaker at police, and grabbed the wrist of a d.c. police officer, mike fanone, when the officer was taken by th

alice: meta will reduce its employee headcount for the first time. they will trim expenses and reevaluate priorities. he says meta will likely be smaller in 2023 than it was this year. it is the company's first major budget cut since its founding. canada's national housing agency is set to revise its forecast, now for 15% by 2023. -- group is starting to lay off employees after losing its union fund. bloomberg says it is said to cut the vision fund. most of the losses are coming from valuations for a portfolio company. and amazon is to close all but one of its u.s. call centers to promote work in an effort to save on real estate. the e-commerce giant as been seeking to reduce expenses as sales growth slows amid rising inflation and economic uncertainty. that is your bloomberg business flash. francine: thank you. coming up, eu energy minsters -- ministers will meet francine: welcome back to the open. 12 minutes into european trading day. it is a friday and a lot of the focus will be on the u.k. and the method from the fed is that even if we are in a r

you remember me being outside of what is now meta hq. there was one thing you and i latched on that mark zuckerberg said which is it is going to take a long time for his metaverse idea to reap financial rewards. emily: ed ludlow. we are going to dig in a little more. ed will be back later in the show. i went to bring in rent from jeffries. we were talking earlier about the personal cost when it comes to mark zuckerberg's wealth. when are you going -- when are you going to decide if this pivot was worth? >> it is still years out. they said the road to the metaverse is going to take multiple years. it is not just facebook. it is the whole tech system that will drive us forward to remember, you have the economy pulling back. when the macroeconomy gets tougher, they tough their ad dollars. all of social media, you go across the board, they were all feeling the pain as the global macro dimms. you will see less add dollars flow. combined with a headwind of the macro and i think for many in tech, it is a tough road ahead. obviously a lot of the

switch to xfinity mobile today. >>> just in this morning, facebook's parent company meta announced that it has shut down two separate networks of fake accounts run from china and russia. the accounts were engaged in covert influence operations and even posed as americans on both sides of the political spectrum, that's according to the company. with me now, cnn correspondent donie o'sullivan who covers this so closely, explain what was just announced, donie. >> quite a bit to unpack here, john. first to the chinese accounts. we should point out that in both cases of china and russia, facebook meta is saying -- they're not saying it is from the gooftsgovernments of those countries, they're not saying what specific entity. when it comes to the chinese accounts, there was a tiny number of accounts with very little impact at all, but they were posing as americans on both sides of the political divide. and the reason meta is saying that is important is because they say they have not seen that sort of behavior coming out of china before. they have seen it, of course, with russia and infamously

an opportunity to defend meta-'s pitched augmented reality. as you just heard, zuckerberg's vision is making a tough reality. there there's a lot here. overall, what do you make of how mark zuckerberg portrayed his vision and how joe rogan reacted? >> the thing that was striking to me as somebody who has followed this for a long time is how little mark zuckerberg's metaverse, how little that vision has changed. over the last six months, we have been talking about it as if it is this brand-new saying. they are spending millions of dollars, forgetting that facebook purchased oculus, the company that seated virtual reality, in 2013. even before spending $10 billion, it had spent millions of dollars on several devices. they had a super bowl ad in february. it really has not gotten a lot of attraction, all things considered. part of the reason is what we just heard, this pitch, which is that you are going to want to put facebook inside a virtual reality and strapped it to your face, it's just not that compelling. they really still haven't figured o

not only is meta facing an overall ad slowdown right now. over the past year or so they've been struggling with apple's operating system changes which make it harder for them to target ads and measure their impact which was of course, the name of the game and that's what i was mentioning with netflix and it would be great for meta to have more revenue streams and figure out if there are super users if they're willing to pay extra for additional features and this is something that twitter is experimenting with and it will be interesting to see what types of products are worth paying for, but if you can find out more ways to make money, other than advertising and that's certainly a win and i think they're not the only ones and look for all of these different companies and especially falling on what twitter has been doing with some of these paid services to try and figure out how to tap into the value of their super users as they're called and figure out any potential way beyond reliance >> making money is what it's all about. >> julia, thank y

for meta's br products but this does show meta's dependence on qualcomm and its inability to develop its own chips. meta shares down over 3% qualcomm was up earlier, now those shares down about %. meta is not the only social stock selling off. we see that snap shares are down nearly 3.5%, giving up some gains over the past two days pinterest down nearly 3% twitter down less than half a percent. looking over the media space, comcast shares underperforming the broader market those shares up nearly 3%. also underperforming, paramount global down 2% warner brothers discovery pretty much flat and disney down about 1% now, switching gears and looking over at the streaming space, we see that endeavor is in the green. the streamers are mixed. roku shares are down about 4%. netflix is down the least of the group, down about 1.5% tyler. >> all right, julia, a lot of business and a lot of action in that sector today. have a great weekend as we head to the closing bell, let's run you through where the markets are right now as we head into what could be a very busy final hour the dow is off 282 p

can we look at meta because meta has been struggling all session long. meta platforms in particular getting slammed. right now down about 8.65%. that is near session lows. meta right now at $154.34 per share. the low of the year would be -- that's it. $154.25 and annual high was 381 and change. you can see and that's followed by microsoft, apple, google, they are all seeing 4 or more percent losses. and this as we look at the reason for the selloff, high inflation just as president joe biden right now is holding an inflation reduction act celebration at the white house the president and members of congress gathered on the south lawn for a victory lap on healthcare, energy, and climate bill that inked into law last month. let's go live to edward lawrence on the white house and kiel keep it up on -- we'll keep it up on your ticker on the screen here. how did he make this point when we know inflation is very much right in front of us. >> yeah, and the president is basically saying be patient. you have to be more patient with paying the higher prices and saw

that's why i like meta. stuart: on the show you were on not too long ago looking at netflix and you had a price target of $300 a share. netflix right now is 235. again, you're looking for a significant gain by the end of the year. that's a very bullish outlook for netflix. >> yes, it is. it's 12 months outlook. this is the most identifiable catalyst. i can see across tech so this is , by the way the valuation, for the first time ever, you can buy netflix at like a market pe multiple, gaap pe multiple of around 18 times bringing in a new revenue stream. they are going to finally they should have done this a few years ago but that's the past, they are finally rolling out an ad-supported service. this will solve one of their biggest problems. i think netflix over the years with all the price increases has painted itself into a premium price corner. this is the exit from that, so again, they should have done this before, but the catalyst is coming up and i think that can really unlock a lot of value on a stock t

charles: what do you like about google and meta? >> the fed will eventually stop raising rates and what happens after that? we looked at rate cycles, what sectors do well after the fed is gone with the rate hikes and tech tends to do pretty well. with that i look for where can i find good valuations and which companies i think will bounce back pretty well? i think meta has been thrown out with the bath water. charles: you think meta moved too slow to make the transition to the metaverse? >> i don't know because we don't know if the metaverse will all be set out to be. charles: they are betting the ranch on it, aren't they? they are. this is strong social media business with a few different lines of business within social media. charles: you mentioned the federal reserve. the 10-year yield is up 4.26%. it is taking off. the dollar is strong. these exogenous things are pressing the overall stock market. the fed will be stopping eventually but there is a lot of pain right now. how do you endure that? >> you have to be patient and look

shannon, i want to come to you you sold meta, talk to me. you've had ample opportunity to sell it before why sell it as it hits the 52-week low? >> you're right, we have had ample opportunity to sell it already. this is really as a result of needing to make a decision add to the positions or let it go. it was at a size not impactful to our overall portfolio, and the rebrand really hasn't helped those although i've been really thinking about the potential for the metaverse to be able to drive additional some gaugement and have this additional channel in the future. meta is just not going to be able to benefit for that, looking at the cost trade and being able to purchase another purchase also significantly down year to date made a lot of sense to me than continuing to hold onto it when i wasn't able to make it full position from a conviction perspective >> so, jenny, you own meta what are you thinking about hearing shannon talk about selling it >> so shannon managed the 12 to 18-month time frame. my tram for is a lot longer. remember when we

meta held to account. and a grieving family coming face—to—face with a company they believe helped kill their daughter. angus crawford, bbc news. and if you have been affected by any of the issues raised by this story, you can find help and support from organisations listed at bbc.co.uk/actionline. the time is 18:15. our top story this evening. the government tries to calm nervousness about the uk economy as the pound plunges to an all time low against the dollar and the cost of government borrowing rises. and still to come — russians protest against being called up to fight in ukraine, an officer is shot in a recruitment centre and the kremlin admits it's made mistakes. and coming up on sportsday on bbc news channel. damage control for england. they face germany in the nations league tonight looking to avoid an historic sixth defeat in a row. heavy fighting is continuing in ukraine's eastern donbas region, which russian forces have been trying to take for months but where ukrainian troops have been

up next, we'll debate whether meta is getting too cheap to pass up right now. we'll be right back. >>> look at meta slightly outperforming but still close out the week in the red. slew of headlines. reports of a hiring freeze trying to catch up with tiktok with reels after apple had privacy changes and top executive sheryl sandberg is officially leaving today the stock has lost half of its value since the start of the year is now a good time to buy? joining us is a member of mkm partners who says yes and a member of cfra says no why do you think it's a good time to buy? >> as you said, the stock is cheap, the valuation is very compelling it is almost modeling that this company is yahoo 2.0 which i believe it is not. the company has a lot of irons in the fire. they are going to be controlling costs here there are a lot of new areas of growth and liquid stock to monetize next year there's a leap of faith i believe but given the valuation, given the track record of innovation and given that they have a level to go back on meta verse fame, going forward with the mo

you were on the board of then facebook, now meta, for many years. what's your take on zuckerberg transitioning this company to be all about the metaverse? >> the core business at meta is strong although it has head winds as google and others do in the advertising space. i would love to see mark lay out far more specifically what his metaverse strategy is. at the high level i understand where he's going, knowing mark extremely well gaming is a very important part of the metaverse they are building plat forms that allow really interesting gaming applications on oculus and next year will be the big year with apple, sony and others introducing glassing but it's not a chooherent straty yet. that gives me pause. mark will get there. the other thing i would say about facebook that is not appreciated enough, instagram and whatsapp are two of the most important applications worldwide and recently we've seen interaction on whatsapp in india with shopping and partnerships whatsapp and instagram and where they're going are two of the truly worldwide horizontal

our next guest is cutting estimates on amazon, google, meta, partially because of currency headwinds managing director at truist. talk to me about -- you just heard tyler going back and forth there with jerry about whether this bad news is already baked in do you think the spectre of a strong dollar is so new that it's not affecting these companies and their stocks quite yet? >> yeah, so -- contessa, thank you for having me on again to directly answer your question, no i think we're still in the process of digesting the move of the dollar, the potential recession, the high likelihood of that. if you look at contessa's expectations for the three names you mentioned, alphabet, amazon and meta, we believe whether you're talking the second half of this year or 2023 are way too high a couple days ago we came in lowering our expectation for these three. now we're sitting 10% below consensus for meta and 5% below consensus for amazon, and for google and alphabet. the reason is two-fold one is fx. in the last two months since these companies guided, fx has already 200-basis point headwind to

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when you look at the returns of paypal, meta, the others that we like in the tech sector, we're been adding to taiwan semi, paypal is down 29% meta is down 50%, even alphabet is down 30 but in the context of where we're at just right now, carl, in our 20-stock portfolio, we've been built a portfolio where our forward p/e is the same as the s&p 500. however, we're getting about 50% more profitability in terms of return on equity and almost 60% more earnings growth versus the s&p 500. so when this thing turns, you know, we hopefully have some sprinters as well as some marathoners in the portfolio and that's been our long history i mean, we have to grin and bar it right now, no pun intended. >> do you think that return to a growth mentality, are you going to be people joining your club in '23 or are you patient enough to wait even beyond next year? >> i hope it's '23 and the growth trade has been pretty darn crowded. it's been down a lot i was looking at some -- i was looking at some market stats, in the last two weeks, almost every -- in the past ten trading days, we kept on seeing mor

first there is meta. it happened during market hours, it fell after its first ever major budget cut. that includes a hiring freeze and reorganization. after the market closed we had mike rounds announcement, -- micron's announcement, cutting production, sing demand plunging. that follows the bloomberg scoop about apple cutting back on their new iphone production because of demand. it is not just tech that is under pressure. it is also consumer goods. nike shares falling more than 9% after hours yesterday, then -- for them it was inventory that was too high. they had been stocking up and to clear it they had to push through some pretty steep markdowns. you added to that the strong dollar, higher freight costs and what you get are margins that are severely under pressure. i told you i was worried about market fragility, stability. a lot going on on this chart, but basically what you need to know is dollar swaps spreads in silver have swung wildly. they have seen some of the biggest daily changes on record.

is up nearly 7 cents higher but look at apple down to 141 let's have a look at meta there putting a freeze on hiring not so much the impact on the stock price i want to know what that tells you about the economy and meta. >> they're slowing down, advertisers that are responsible for the bulk of the revenue are slowing down so i guess this is a recession warning it is a first for meta that they are cutting their budget they are freezing hiring and using smaller teams mark zuckerberg said this in a q&a with staff he did not give exact numbers but the wall street journal did they said were looking at 10% cost cutting by meta. it's the first and potential pain to come. stuart: nike before the market opened it was down sharply it is opened it is down very sharply 12%, they have a ton of inventory which they have to discount. >> inventory balloon by 44% in the past quarter that's going to kill the gross margins, it's good for customers if you want to put jordan or com commerce ur the christmas tree you get a discount as is assigned inflation is coming down because we heard from nike and t