tv Tech Check CNBC July 16, 2021 11:00am-12:01pm EDT
given the earnings from jpm, bank of america, citi, morgan stanley, and wells fargo leslie and mike, thanks to you both for joining us on this hour of "squawk on the street." "tech check" starts now. >> i saw it on tv. i saw it at the intro. but nothing strikes you until you see it in person >> good friday morning, and welcome to "tech check." i'm deirdre bosa with julia
bosun. we have joanna stern of the "wall street journal" joining us for the hour as well today, we're going to be talking more chip consolidation as intel is more aggressive in semi-conductor manufacturing >> then, is it time to get bullish on square? our next guest says buying the stock today is like buying jpmorgan in 1871, and later, is an apple turnover coming employees are upset about tim cook's remote work crackdown >> shares of google after a high-profile cloud departure, and tesla, as elon musk admits the cybertruck may be a dud. >> all those stocks lower this morning. deirdre. >> and we are coming off a big week of bank earnings. we start with fintech pushing further into crypto services jack dorsey tweeted that his payments company, square, plans to launch a new platform making
it easier to, quote, create noncustodial, permissionless decentralized platforms focusing on bitcoin the latest in square's moves into the technology. the company is also building a hardware crypto wallet and about $170 million worth of bitcoin in february but square isn't the only fintech trying to capitalize here paypal announcing today that users can purchase up to $100,000 worth of cryptocurrencies per week. that's up fivefold from their previous $20,000 limit the company is also scrapping its $50,000 annual purchase limit. joanna, good morning to you. i'm thrilled that you could join us >> good morning. >> julie and i are let's start with bitcoin i mean, we see these moves coming on a week when bitcoin is down 8.5%. more than that for the month but that's not what jack dorsey is looking at here he's never short-term. he had a lot of conviction when it comes to bitcoin and this certainly fits into his
long-term play >> first, thank you for having me on the show i'm going to try to do my best carl and john impressions throughout the show. let me know how i'm doing. i guess if i were john, i would play devil's advocate. i feel like he's always taking that role. i sort of feel the same way. what is going on here with square is jack dorsey being too bullish? i also love the name of this company. can we talk about the name of the company. tbd. at first, people thought this was just a place holder. it's actually called tbd, which is quite symbolic and nice no one really knows what's going to happen in this market appropriate name from my perspective. >> yeah, joanna, and it's amazing looking at sort of the cadence and pace of new product introductions not just for square but remember, jack dorsey also runs twitter, deirdre, and pretty notable that he's making all of these new moves as square expanding into these other areas at the same time as twitter is
really ramped up the pace on new product introductions, and even closing down some products that aren't working, as we saw with the death of fleets and the further investment in spaces, d. >> yeah, you know, he likes to experiment in the open, and joanna, you can do your carl and john impressions just don't do julia or i until we're out. let's get to our first guest he says that buying square today is like buying jpmorgan in 1871. dan joins us now dan, it's a big call and i will note that jamie dimon said a few years ago, he admitted to square envy, say they have abated where they have not, but square has just a fraction of the market in terms of active users. how do they get to the point to be bigger than jpm >> great being on the show look, it ties really well with everything that happened post-post yesterday with a tweet from jack. if you think about the way, if i
can put myself in their head, they want to be this new-age next gen ultimate neo bank the work we have done, which was before they announced the tbd announcement, shows you the path to getting there from today to then the two questions here are, what is the average revenue per user that they can get long term, and how many users they can get. today, they have like 36 million users. no woone would have thought tha. the reason we think it's like buying jpmorgan in 1871 is the average revenue per user is much bigger than people are thinking about and they did this step by step analysis of each product that they can come up with and the number of time it's used and we're getting $150 to $200 of that, and in terms of the users, there's about 400 to 500 million accounts in the u.s., so if they just get 15% or 20% of that,
we're talking about 2x to 3x in terms of the total users you multiply the two, you're getting numbers in the tens of billions of dollars of revenue for the cash app >> so dan, square and dorsa are taking this sort of silicon valley approach of move quickly and break things, which has worked in the past, and certainly seems to be doing that when it comes to crypto, which is still largely unregulated but there's a risk in that, too, right? we have seen regulators keep their eye on big tech, and square and financial services, is there a scenario that you think in which this could come under pressure and scrutiny and throw off that thesis? >> yeah, look, there's always a risk with everything there's risk on crypto, risk on bitcoin, risk on regulation. i don't dismiss any of these, but i think that the portfolio of services they offer is so diversified that if one of the areas would come under scrutiny,
say bitcoin, they still have so many other revenue opportunities like mortgages, lending, buy now, pay later, et cetera, that would make it more of a diversified investment or diversified revenue source obviously there's risk, but it's a regulated space and i'm not dismissing that, but i think they have a chance to become that sort of next mega new bank which is going to get bigger than some of the existing banks today in the future. >> but dan, they are also diversified in every area they're competing and moving into, they're up against so many different giants both the established banks, the challenger banks, some of these bigger start-ups i'm wondering, you know, it seems in your very bold call that this is like buying jpmorgan 150 years ago, if you're concerned at all about the competition they face in each of these different lanes that they're now playing in. >> this is a very, very good question, and the reason i'm not particularly concerned about this is because what square has
is something that the others don't. they built an ecosystem around the cash app, which is now adding, for example, music, tidal, an engagement tool, and the cost of acquisition is down to like $5, which is unheard of in the industry, because they have the ptp angle, because people use it, people use it on average 15 times a month, which is a huge enagement by all means. and that ecosystem is hard to replicate. it's like apple on steroids, because people use it, they transfer money to one another, they use it to shop. they're going to use it in the future to listen to music. and there's a lot of other services out there that do one or two things. there's nobody that does the whole thing in a one-stop shop i think that's the big advantage of the cash app and the system, those point of sales those two things together make it very, very unique, and very
hard to replicate. >> look, i have to admit, i'm not 100% clear on what the tidal plan is here and how that music service ties into things and i hope to learn more on that later. i guess going back to the idea of the cash app, it seems like what you're supposing here is that people will do all of their financial transactions, all of their banking, all of their borrowing through square and we're in a world now where people do use multiple ones of these services how much of your bet is that people are going to consolidate all of their activity into square services? >> i don't think you need to consolidate all of your activity, but i think that the gaming wallet share, the market is so big, think about that. j pmorgan has like 63 million households, wells fargo, b of a, they have tens of millions of households we're not looking at 2030 and saying they're going to be -- they're not going to have any more room for growth i'm saying from today until like five to ten years from now,
there will be so much wallet share gain from traditional banks, from other apps, from other, you know, next gen banks or neo banks that are going to make december they're going to cause tremendous growth at square the work they have done shows you the path from $40 to $45 today, by the way, the monetized users are already paying about $100, $90 to $100. this is just for the overall 36 million users. to that $150 to $200, and then times 400 million to 500 million accounts in the u.s. they're already at a 10% share can they get to 20%? absolutely >> dan, i wanted to pick your brain on beyonce and jay-z, why you come on cnbc, to talk about them, but to julia's point, i'm not quite understood the tidal tie-in i understand it on a base level, but where does it go is that factoring into this growth is that part of the growth of
arpu here? where is the tie-in and where does tat go? >> for the very simple, if you think about subscription and music, there is on a very basic level, there's an arpu tie to that, $20, $30, and even if square takes a very small portion of it, it's still incremental. so you think about the spotifies of the world, if they charge and the opportunity with tidal i think beyond that, and i think this is something that that's where the jack dorsey genius is thinking about, this is an opportunity for them to kcater o their users and the musing preferences and also to support artists and to combine all of that with blockchain and nfts. i think that every time you deal with square, and that's the big difference, by the way, between square and some of the other guys is there's a genius at the helm. and these guys are thinking, particularly jack, they're thinking ten years out, 10, 15
years out. some of the things they're thinking about we don't even know yet in terms of why this is good i think there's an opportunity here to make it bigger than just another spotify. obviously, at a very basic level, we talked about 15 times per month, average users, it's a huge engagement mechanism. think about how much time people spend listening to music on certain apps if you do it through the cash app, you're basically here, and they can entice you with other things >> well, fascinating time for that company and great to hear your bold take on it dan, thanks so much for joining us >> my pleasure and speaking of bitcoin, robinhood and coinbase are squaring off over revenue from crypto our kate rooney has new data on where the trading money is going. kate >> hey, julia. these two are now competing for the same traders, as robinhood's crypto business grows, coinbase still has more total accounts, but according to some new data,
robinhood is growing faster than coinbase this year that growth has been really tied to viral events like elon musk on "snl" dogecoin rallies, and gamestop it could be at risk going forward. according to data from sensor tower, when the meme inspired cryptocurrency dogecoin spiked in april, robinhood saw about 1.6 million new app installs, more than 25% higher than coinbase at the time, and in a week that elon musk was on "snl" robinhood saw roughly 2 million installs that was better than coinbase by about 3% both got a boost from daily installs 8 to 10 times higher than their regular run rates one possible reason for robinhood's lead gamestop also gave them an edge in user engagement robinhood users were spending more than an hour per week on the app in january
that fell to an average of about 30 minutes in the second quarter. it's still more than double the time coinbase users are spending on the crypto trading app. that number is falling for robinhood. time was down about 25% quarter over quarter finally, robinhood might be getting a boost from reddit as well reddit users tend to go on the robinhood app 10 to 15 times more than the average robinhood trader that could weigh on robinhood's growth as this meme stock fades recently the price of amc and gamestop have been cut in half since their peaks earlier this year. julia, back to you >> thanks so much, kate. and the latest on a potential $30 billion deal in chips. that's next. "tech check" is just getting started.
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execs at global foundry say they're not aware of those talks, but of course, the theme we have been talking about, pat gelsinger has promised to become more aggressive and manufacture chips for other companies as taiwan semi warns that the global semi shortage may not let up anytime soon. for more on this, let's bring in bernstein's stacey, who is warning that the teal would be too pricey for intel, and it's further evident to remain negative on the stock. stacey, good morning is your call about global foundries being the wrong asset, or is this broader, pat gelsinger's strategy to push deeper into manufacturing? >> a little of both, i guess look, i get pat's push into manufacturing. it's sort of funny, the bull call on the stock four or five month ago was intel was going to go light and get out of manufacturing. pat kind of put the kibosh on that they have been building up or attempting to build up their own leading edge foundry business. part of the problem, though, is
intel has not been a foundry they don't know how to be a foundry necessarily. if you're thinking about the way they could add to it, it would bring them a foundry customer base it's not leading, it's lagging it would bring them a customer base and potentially give them expertise in how to run a foundry, which historically, they have been bad if they don't know how to do it. at the same time, you know, if you think about the foundry, tsmc is really the only one, the 800-pound gorilla. they make a ton of money the other ones are kind of marginal and of the other players, umc, smick, global foundries is probably the worst. they have been lousy you know, they have been trying to dress it up, trying to do an ipo, but the economics are still lousy. the margins are dilutive you look at what they have been paying for it. you sort of think about it, if they spend $30 billion for that and $20 billion for arizona, that's $50 billion total that would be coming out of
intel, the entirety of the subsidies that the u.s. government is talking about for the entire industry is $52 billion. it kind of gives you an idea of the scale that pat is thinking about in terms of investing. >> so stacey, what price tag for global foundries do you think would make sense, if not $30 billion? and what are the other assets you think intel should buy instead? >> i don't know. look, so i'm not going to set price targets on glofo if the $30 billion is correct, that's five or six times on sales. tsmc right now sells for about ten times sales. smick is in china, they're about seven times sales. for some context, umc's net margin is about 15% and it's probably pretty peakish. global foundry is losing money and they would be spending twice as much. as far as what else they should buy, i don't know. if the goal is to get into foundry, is that is the strategy, there's not a whole
lot else out there glofo makes sense, and they're headquartered here in the u.s., versus the other ones which are taiwanese and chinese and coreen if that's the goal to try to build a business and get some of the expertise, glofo is kind of it, but maybe that's why they have to pay up if they're serious about buying it. >> i'm looking at this and wondering what is pat gelsinger sitting in his office most worried about and why is he looking at eyeing this company if you're him, sitting in the office, why? >> i don't think it's -- glofo is a piece of a broader strategy the question is why is he looking to get whole hearted into the foundry industry. there d could be a few reasons their own core business is under attack if they think there are assets they could leverage against a player, i guess that's a way to go obviously, there's this huge concern about the u.s. in general being too dependent on taiwan for manufacturing, so
this is potentially a mechanism to unlock some of those subsidies if pat can go to congress and say we will be the national champion. we're the only u.s. company capable of quote/unquote manufacturing, and we need to build a third-party foundry industry here. obviously, that's a driver the other is, if you think about some of the threats from the core business, you have amd taking share you have other architectures that are starting to eat in. if that happens, if they have a manufacturing business, a third-party manufacturing business, they could in theory still make parts for other players and still capture some of that opportunity even if, like, their own business is moving away. it would give them a foothold into some ort the other stuff as their own business comes under attack these are there things i'm sure pat is thinking about. >> and your question, stacey, is well heard, too. how do they learn to be effective at this business is a big one. thank you.
>> thank you >> now, let's turn to netflix. reporting its second-quarter results on tuesday afternoon the key number to watch, 1 million new subscribers. that was netflix's guidance for the second quarter and that is a dramatic decline from the 10 million subscribers added in the year earlier quarter. the question is how much netflix will see user growth accelerating in the second half of this year analysts forecasting that the company's guidance will be around 5.5 million subscriber additions for the third quarter. disappointings youer growth and guidance last quarter did send the stock plummeting now, netflix shares are pretty much flat year to date, but more than three quarters of analysts have a buying overweight rating. morgan stanley out this morning reiterating its overweight rating, saying more content is on the way, and that should support more subscribers the
back half of the year. howsuch saturated is this marke? we hope to hear more about the company's plans for video ames >> i'm sort of sick of hearing every time there's earnings, subscriber growth. yes, they have had huge gains in the last couple years. especially in the last year with the pandemic but, and you guys have been talking about this on the show this week, what else can netflix offer? right? i'm also sick of them jacking up prices every couple of quarters or year, so that also improves their bottom line. so what else are they going to offer? i don't think we're obviously going to hear anything on the earnings call about the gaming strategy over whatever their nez strategy is, but that's what i'm eager for this to move towards >> it's all about the next revenue streams. i'm with you on this i wonder if subs is the most important thing here we know there was some demand pull forward yesterday the estimates aren't those
blockbuster estimates we have seen over the last year. so julia, could investors, at least in the short term, look for other things like operating profit margin, which has boomed over the last decade or so >> yeah, and there's also this question, of course, will netflix ever have other revenue streams. netflix has been a one revenue stream company and it's been the average revenue per user in these different markets. but look, netflix said it doesn't want to do advertising they are moving into merchandise. we have heard more and more about maybe sponsored content or brands getting into the product placement space. i suspect we'll see more branded content, perhaps, though i do think we're a long ways away from netflix launching old fashioned ads, deirdre >> i know john has talked about it on the show before, but when i look at what they already offer and the tiers they have, those aren't very compelling tier step-ups, like you pay a little more for more devices, for better connectivity. it just seems like there's a lot
they can do in there to offer with their existing content, and yes, of course, you're always wondering, what is -- netflix isn't going to open a theme park, i don't think, but what else can they do >> right maybe not yet. and perhaps something as simple as an ad-based model which some analysts are calling for, could be a big boost in terms of that share price. we'll be looking for clues, certainly, next week when they report meanwhile, the next china tech crackdown victim could be tencent music. morgan stanley expects no revenue growth in the industry thanks to those tighter regulations and didi continues its downward trend today off another 5.3% our next guest argues that u.s. tech companies will be next to be targeted by beijing stay with us
check. i'm deirdre bosa with julia boorstin and joanna. we're going to get to apple's remote work policy, but first, time for a news update with seema modi >> retail sales posting a surprise 0.6% gain in june the growth rate doubled. at the same time, consumer sentiment fell in july, driven in part by rising inflation concerns bond yields initially rose after the retail sales report, but have since fallen. questions about the strength of the economic recovery. higher inflation is unlikely to last >> i think we will have several more months of rapid inflation, so i'm not saying that this is a one-month phenomenon, but i think over the medium term, we'll see inflation decline back
toward normal levels but of course, we have to keep a careful eye on it. >> and let's turn now to china the crackdown continues for stocks like didi, and new today, officials from seven chinese government departments visited didi's offices to conduct its probe of the company the biden administration warning that u.s. companies operating in hong kong could also be at risk. our next guest says that's already happening, and apple is in trouble joining us now, the always outspoken machek, the founder of pinboard lay out your thesis here >> thank you so much for having me it's really important not to be distracted by talk of data privacy or anti-monopoly measures which make us think of things in an american context. what's going on is china now has a true believer at the helm who actually is devoted to the tenants of marxism, leninism, and has a vision of national
greatness that doesn't have room for american companies having a big role inside china. this crackdown is part of a longer term plan to move china away from its dependence on foreign capital markets, on foreign companies. and apple is really the company that's most at risk because they have one foot on the pier, one foot on the boat, and the boat is about to leave. they have doubled down on their chinese supply chains. they're also heavily dependent on the china market for being able to grow further and they really have no plan b if things -- if relations between the u.s. and china, or if the taiwan crisis get any worse. >> so what do you see apple doing here or what do you think the best path of action would be, especially considering we expect this comment from president biden warning companies about operating in china? >> the rational thing for apple to do is try as quickly as it can to get its manufacturing at least out of china it's a harder thing to do than
to say you can't just build cities with hundreds of thousands of workers like you have in southern china anywhere else right now. but there's really no other choice longer term because the deft way tim cook has managed the u.s./china relationship is not going to work when that relationship gets substantially worse. they're going to have to make a choice >> i have to push back why would china punish apple now? i mean, over the last year or so, and especially under the trump administration, placing huawei, one of china's most successful international companies, placing that company on the export blacklist has really hurt that company there was thinking at the time that beijing might punish apple, an american champion for that, but they haven't what has changed, what's different now that makes you think that china is actually going to show some action at this point in time >> i think we have seen proof from xi that he is willing to take a lot of hits economically
for -- to pursue idealogical goals. we have seen that in the crackdown in hong kong that's very dangerous for china's access to foreign capital, yet it goes on and very resolutely because the chinese communist party has higher goals it wants to achieve. i think that is a warning sign we should take very seriously. >> but why apple specifically then why now? >> apple is the big target because that is the one enormous american tech company that is entirely dependent on china for its manufacturing and heavily dependent on it to be able to grow further in the future so apple is -- it might not be in the cross hairs now, but that's what is coming down the pike, and people at apple must be aware of it, but there seems to be some denial about it >> you have to wonder if tim cook is sort of sitting in his office wondering if he has to sell his soul to do business in china, to have the iphone in china, and i think of it troma
product perspective. apple has come up with a lot on the software side, for protections around privacy, security how are they -- how do you see that going forward in china with what you're saying, which is basically, they can't go forward, but they're going to try. so do we end up with sort of like a china iphone? or china ios what are your thoughts on that >> i think a big problem for apple is actually on the u.s. side you have a product that's manufactured in a regime that is pursuing a genocidal policy. the stories coming out of xinjiang are getting worse and worse, and apple at home markets itself on things like privacy, human rights, the environment. it can't do that and simultaneously maintain its presence in china with increasing pressure on it to never criticize the ccp, to -- the way that xi has exerted pressure on other foreign companies, that's the kind of place where i think apple is going to crack one thing it says domestically, one thing it says in china, and
xi has shown he's no longer willing to accept companies speaking out of two sides of their mouth on this. >> looking beyond apple, i would love to get your thoughts on what the long-term implications are for the private equity and hedge funds that have invested so much, the u.s.-based private equity and hedge funds that have invested so much in chinese companies and also international banks that have generated billions of dollars in fees from some of the chinese ipos that have happened here state-side? >> absolutely. if you look at some of the chinese ipos, that have been kind of duct taped together in terms of their legal status and how the company ownership and what is getting listed and there's been a long-term agreement that all of the idealogical stuff that china believes in is kind of for domestic use and in its international domestic relationships it's going to behive like any other country. that's the part that's changing and is scary i think the very first step of course is moving all of these filings and interaction
basically with international capital to hong kong, and eventually to shanghai, that's where they would mostlike to have their financial center. and as time goes on, i think you're going to see very few listings in the american markets, and those that happen are going to have to happen with a long process of approval and vetting by the chinese authorities who see this as a national security issue, not just an economic power issue >> certainly a topic we're going to continue to be talking about. thank you so much for joining us today. >> thank you for having me meanwhile, tesla's got california love. new data shows model y registrations in california surge more than qualify% in the second quarter tesla itself posted record deliveries earlier this month. will it see a boost when it reports earnings a lot more "tech check" straight ahead.
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forges ahead with its three day a week hybrid work policy. about ten employees saying in an internal channel they they were resigning or others had to be forced to quit due to a lack of accommodation. this comes on the heels of an internal survey in june where 37% of respondents expressed worry they would have to leave apple over the lack of flexibility. a touchy subject here on cnbc, joanna you have to figure, these employees, they're not working on wall street where we're hearing a big banks saying we're sick of zoom it's notable a lot of big tech, i'm thinking google and amazon, have similar policies, a hybrid work schedule that is requiring employees to live close to headquarters or offices. >> yeah. you know, i don't really get this all there's part of that verge report which i do understand, people who have medical disabilities, who are not being granted the work-from-home policy they had before
certainly, that seems like a one-off thing, but ten people quitting out of how many thousands and thousands of jobs at apple i can't really feel so badly also, this is three days in the office two days at home seems like a pretty good set-up to me. >> yeah, i mean, it seems like the medical disability issue is a separate thing, the way apple has handled that is maybe an error, an error you would expect them to fix. but i wonder going forward if there are two different ways companies are going deal with this, the wall street way where employees are expected to be in the office every day, and in silicon valley, the tech companies are going be in a spectrum of a hybrid work orce some will be entirely at home or have that option, and the fact of apple with three days a week mandating, they're not even mandating more than that it's really going to be sort of a dialogue here between employees and these tech employers because they think people have gotten used to
working from home, but it's going to be sort of count as one of those key perks that employees will be looking for and negotiating for. >> right, and as you say, spectrum among tech companies, start-ups, and giants. this is all about the talent war. i was talking to the ceo and co founder of brex today, he said they're doing a remote first policy he only had one person leave you have ten people leave google and one person leave because they want an in-person experience, it just tells you that this is sort of an individual choice. it's probably going to take a lot longer for us to figure out who holds the power, is itthe companies or if we see employees move with their feet, does that get walked back? we have seen already in some ways >> yeah. >> go for it, julia. >> go ahead, joanna. >> it will take a while to figure out, especially as the delta variant comes into play. >> now, coming up, a crippling
ransomware hack, and now, a class action lawsuit the latest for the colonial pipeline that's next. there's an america we build and one we explore. one that's been paved and one that's forever wild. but freedom means you don't have to choose just one adventure. you get both. introducing the wildly civilized all-new 3-row jeep grand cherokee l introducing the wildly civilized cynthia suarez needed to buy new laptops for her growing team. so she used her american express business card, which lets her earn extra membership rewards points on purchases for her business. now she's the office mvp. get the card built for business. by american express.
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by eddy, told his supplier when his gas pump ran dry after the colonial pipeline ransomware attack he runs an ez mart where he sells gas and runs a convenience store. >> when the gas sign is off, they didn't even pull in >> ez mart is the main plaintiff in a suit filed last month they say their sales dip $8,000 in may, the same month ransomware group dark side attacked the company >> it's one of negligence. that is this company was using legacy system, allowing remote access without multifactor authentication >> this is one of the attorneys representing the plaintiff in the complaint, which alleges colonial failed to properly secure thepline, resulting in fuel shortages for more than 11,000 gas stations. in a statement, colonial tells cnbc it can't comment on pending
litigation but said the company worked around the clock to safely restart the pipeline. but its colonial's planning prior to the cyberattack that is central to the allegation of negligence, an issue that came up in a congressional hearing. >> did you have a plan for cybersecurity response that included guidance about ransomware >> senator specifically no no discussion about ransom and action to ransom >> the colonial case, unlike most cyber breaches which deal with stolen data, involves physical damage, and that presents new legal questions >> the question that's raised with this is, what liabilities what responsibilities does colonial have? colonial pipeline is the primary target, but other people are impacted by it >> and guys. that's a question virtually every industry is grappling with right now. this proposed class action was filed on june 21st and colonial has until late august to file a responsive pleading.
a judge will still need to determine if it meets the criteria for a class action. if the case moves forward as a class, it could be a years-long fight. back to you. >> we know you'll be watching. thank you. >> shares of uber and lyft are riding into the reopening. lyft announcing it will resume pooled rides come monday, and uber named a top global recovery pick over at mkm partners. uber up and lyft down today. both those names underperforming the broader market on the year for more, go to cnbc.com stay with us
an executive dmims at google cloud after a bizarre 10,000 word mvrto posted to linkedin. cnbc tech reporter jennifer elliott joins with us the details. essentially, jen, exposing more cracks in the google culture walk us through your reporting on this one. >> yeah, thanks, dee, so we had heard this week there was a contentious all-hands meeting with google employees, specifically in the developer relations group of the organization for google cloud. and that's the group that works externally and internally with engineers and developers who are working both within google and working with google products
so this was to be problematic. what happened was the vp of google cloud developer relations had posted this lengthy manifesto, sort of attempting to denounce anti-semitism but sharing a lot of personal anecdotes and kind of doing so by czarly, sharing dna results and he posted this on linkedin a month ago. and employees have been concerned about why he was allowed to post this you know, they have very strict rules about what they're allowed to post and get repair manned for it, they tell me they brought this up to the all-hands meeting they had this week and it turn out pretty contentious, they told me. there were sort of months of concern around his leadership and leadership attrition around him. and then this manifesto, which he, you know, pushed on linkedin under his google title and then also pushed on twitter, and youtube, really made them very
uncomfortable and felt their concerns weren't being heard h.r. had to step in a couple of times during the meeting this week and that was the day before google had let him go. >> bizarre situation here. it seems like a good rule of thumb for people not to post 10,000-word manifestos under the corporate umbrella i have to wonder if there is a sense that there is a cultural issue about the way google handled this, or if this is just a weird one-off situation. >> yeah, well, so it's a strange story for google but google itself has a history of, you know, employees kind of going rogue and circulating the long manifestos. and there is a -- i think a cultural tie to the fact that there seems to be a broadening separation between the rank and file and the executive
leadership in how they are treated maybe a bit different. whereas in the found espers era, several years ago. people felt they could have equal power, speak freely. and in the last couple years they've been reining back what employees and executives are allowed to say on internal channels, let alone externally i think there is questions around the fact that why they took action a month after this is posted, some of the people i talked to said it's affecting their jobs and what they can do externally you have to wonder about the delay. had. and he is not the first to post questionable comments about anti-semitism and -- and, you know, they just had a diversity leader, they had a switchover a month ago who left the team because of past comments he said so, yeah, a lot of question around how they handled this and
who they have, you know, leading their diversity efforts. >> yeah, well, thank you so much for joining us with this fascinating report, really appreciate it. >> thank you and missed part of the show? don't forget to subscribe and follow the "techcheck" podcast listen any time anywhere, it's available wherever you download podcasts we're back in a moment do you have a life insurance policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. if you have one hundred thousand dollars or more of life insurance you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth.
visit conventrydirect.com to find out if you policy qualifies. or call the number on your screen. coventry direct, redefining insurance. jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do. they do. they really do. mmhmm. workday. finance, hr, planning and spend management for a changing world.
one more thing, guys elon musk isn't so sure about the cybertruck, admitting in a tweep tweet is might flop but adding doesn't care. he says the design looks as if made by aliens from the future does elon musk know his audience they don't come to tesla for the norm they come for kind of futuristic difference, different vehicles >> yeah, i don't think this is going to be a flop in the sense that no one is going to get this thing. i think it's probably not going to sell as much as their other model ss or xs or rides. but this is a unique looking car. and i kind of want a car made by
aliens from the future plus i have a new kid and i can fit the whole family in that thing, so, yeah. >> i'm into it too, joanna i like it. meanwhile, guy haves a great weekend. markets are softer heading into the "halftime report." and it's a busy earnings season next week. get some rest. "halftime report"" starts right now. dee, thanks so much. welcome to the "halftime report" p front and center this hour signs of a weakening rally a warning for money? or will the flood of earnings next weekend knows low interest rates, send stocks higher? woo we'll debate that and state of play with the investment committee. joining me this hour jenning harrington steve weiss. john najarian good to see everybody. stocks trying to post the fourth week of gains. they have a little bit of work to do today. negative across the board. yields at 1.31 on the 10-year. hot retail number. jon najarian, shall we ask what the state of play is right now, and whether it's a sign the rally is
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