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tv   Tech Check  CNBC  December 10, 2021 11:00am-12:01pm EST

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are putting pressure on the safe haven metals but wall street is focused on real rates david, i'll throw it back to you. >> i will thank you, kristina and say good-bye to everybody. that will do it for us on "squawk on the street. "techcheck" starts now good friday morning. welcome to "techcheck" i'm carl quintanilla. deidre is off today. never ever goes down larry ellison takes a shot at amazon as oracle takes a big leg higher and semis continue to outperform a downgrade to peloton the stock is coasting in the wrong direction. we'll talk to the analyst making that call and then google employees say they want inflation pay. why leadership is pushing back
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and what it reveals about labor in silicon valley right now, julia. >> and inflation data coming in hot this morning, but not as bad as feared. the tech sector is back in the green following yesterday's selloff but the underperformance of growth still the biggest theme. mike santoli is watching that. >> an uneven mark that way it's breaking down in terms of some of the big, more defensive names within growth and then the rest of the market. if you kind of look at how it has set up over the last several months a lot of talk on how the top handful of names in the nasdaq have been disproportionately responsible for the overall year to date gain in the broad composite. the separation opening up between the nasdaq 100 and the nasdaq composite, which normally would be a lot closer. you see just back earlier in the year it was actually much more in sync and then the cloud etf. that's really been kind of the epicenter of where a lot of the high growth, high expectation
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stocks falling apart iwo is just a general small cap growth category. kind of interesting of how cloud, small cap growth have basically gone in sync over the last several months and shows me it is mostly about the modulation of the risk appetites and the kinds of stocks whether we're betting on the future and high cash flow stocks. that has been the question very fair to say after last week's purge that positioning is a lot cleaner and a lot less heavy bets in either direction but conviction remains kind of low. not really because of inflation or rates, but simply because we're not quite sure if people are going to migrate back into those more aggressive growth areas as we do see a lot of these macro shadows out there with the fed and the growth picture for next year for the overall economy, guys. >> yeah, interesting that inflation never didn't end up being the game changer that it could have been today. tell us what you're seeing in terms of the biggest cap tech stocks i mean, microsoft in the green
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today up to almost 2.5%. apple up almost 1% how do you see the faang plus microsoft stocks shaking out >> yeah, apple is kind of got a sort of energy source of its own. it seems like there's a bit of a december trade that works in apple. that's now kind of the play thing of the more aggressive bullish money at the moment. i do think there is something interesting happening with regard to some ofthe other larger stocks in the nasdaq 100. tesla, nvidia and amd. they all kind of moved together. they kind of, they were sort of the more aggressive people really want to bet on the further upside and faltered a little bit so, you see tesla losing this morning. losing that $1,000 share price level. that had been defended for a while. so, as they say a lot of kind of flows washing back and forth between these names but i think it's net net a little more defensive right now. when apple is the leader, it tends to mean that people want that kind of balance sheet and
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the predictability as opposed to, you know, the huge leverage towards a big growth story down the road >> mike, you and i talking about catalysts in the near term for next week. what is left to surprise us before the end of the year i mean, given the reaction to cpi, has powell already softened the ground enough for next week? any surprises potentially in store? >> i think he really has set the scene relatively well in terms of what the fed is likely to do. you are going to get the projections from the fed staff, so that's the one piece of it where you can never really quite handicap in advance and some market overinterprets that but i would saythat on the 15th is the last identifiable catalyst i do wonder if we have another friday where there is a little bit of kind of slippery tone to the tape it could be because we simply don't know if we are quite kind of handicapping the covid surge if we get another wave correctly. so, a little bit net
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defensiveness on that score, which is not really a specific catalyst, but it's just something that sits there as a bit of an overhang >> all right, mike santoli, thank you, happy friday. turning now to oracle. up more than 13% shares are surging to all-time highs after results topped estimates for eps and revenue. cloud revenue was up 6% from last year and software cat continues to see overall growth in the range of 3% to 5% no surprise there was also chairman larry ellison taking shots at the competition >> let me close with a note that i'm going to paraphrase from a very large telecommunications company who uses our cloud and all the other three north american clouds. you know, google, amazon and microsoft. and the note basically said the one thing we've noticed about
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oracle, oracle's cloud is that it never, ever goes down we can't say that about any of the other clouds >> yeah, not talking about any, calling anybody else's outage out specifically but just saying that said, i was noticing, guys, in one year performance this move today so far takes oracle past amazon, microsoft, google, alphabet but, of course, on two-year and five-year performance, all of those still beating oracle but that's why i say you have to be careful about all this dinosaur talk. for 20 years people telling me everybody hates oracle, everybody can't wait to get off oracle not everybody is getting off of oracle >> yeah, i thought it was really interesting that throughout the call last night -- >> sorry, jb >> throughout the call >> john and i've already seen
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headlines today comparing oracle to the next microsoft. but that's why this space and mega cap enterprise software continues to be so sudieductived interesting. >> yeah, i was just saying that throughout the call last night i listened to the whole thing. a lot of digs at the competition. some subtle, some not so subtle. but the ceo made the point that what really diffrenshiates oracle from its competitors is the combination of the actual infrastructure play and also the cloud applications as well in the combination of that software and hardware the fact that they do have that legacy business. something that was seen for so many years as something that was going to hold them back is turning out to be an advantage for them, carl >> meantime, guys, turning to broadcom from last night the chipmaker rising this morning after beating on the top and bottom line. also announcing they would raise their quarterly dividend and repurchase up to 10% and ups
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price target and the analyst behind that call joins us this morning. great to have you. we had a discussion last night about hair on the print and virtually nobody we talked to could find any did you find any overnight, i guess. >> not really. i think they had a pretty solid quarter. they're hitting on all cylinders and thank you for having me on i really appreciate it i think for broadcom the key is bigger, you know, comeback on the rebound of the enterprise side and up 30% year on year and strength in the iphone as you talked about iphone very strong for them. they're seeing that and another 8% sequentially. also hyperscale cloud produced a big tailwind here and that's all three are very, very good quarters and moving forward and not to mention the massive $10 billion buy back that they
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announced last night >> do you think, i know the story is broadcom, but do you think it clarifies any of the back and forth we've been hearing about iphone demand? >> i'm sorry >> can you still hear me, vijay? >> i can hear you now. >> i know we're talking about broadcom but i wonder if you think the iphone discussion sort of puts into discussion the demand debate about iphone right now. >> absolutely. there's been a lot of, you raised a very good point there's been a lot of cross currents on, you know, iphone being weak and iphone being strong this really puts that to bed our data points showing that if you look at china, you know, their iphone series 50 to 60% year on year a big event for iphone iphone topped the charts and china market sales center. overall very strong tailwind for apple and iphone and the suppliers. and you also mentioned qualcomm
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all very exposed to apple and iphone there >> vijay, i wonder how you feel broadcom is positioned and marvel which had strong results just about a week ago and i have questions on who might be taking share in some of the areas where they might compete >> definitely from the data center, hyperscale side as we talked about hyperscale producing very strong and enterprise seeing a massive recovery that is driving storage. both are benefiting, i think broadcom, as well as marvell it has 5g and that you're seeing the spend on that being a tailwind for them. we don't have a rating but that said from a hyperscale enterprise spend, you're seeing that benefit both broadcom and marvell and, obviously, near
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term the focus has to be on the iphone which seems to have a very nice ring to it and good tailwind as you look out into the january quarter, as well >> vijay, when you were looking at spending you note in your analyst note here that you sensed skepticism building shortages how do you see that coming into play does that mean this is a pull forward because of those concerns about shortages >> i think basically what we are trying to imply is if you look at hyperscale spend, that's been doing a lot from work from home and you're seeing six to eight quarters of very strong hyperscale spend and you're seeing the strength come to you and that, you know, might be sit there for some skepticism and building buffer capacity there and trying to build some capacity in the future component supply chain shortages. but that said, you know, enterprise side seems to be the real deal. and the enterprise is coming
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back and we're seeing the transition from the work to home to enterprise as people come back to work fully vaccinated, et cetera. that drives the enterprise spending which seems to have much more legs but the hyperscale side, given that it's almost eight to nine quarters into the very strong, it just feels like it's probably some buffer capacity being built along those lines. >> hey, finally, vijay, obviously, for a while we've been paying attention to demand, revenue, margins, but given an environment where inflation is a much larger story, do you think an aggregate in technology is going to be more about capital return given what broadcom said? >> i think part of the reason is becoming a little bit, even though so much to be, you need decent valuations, as well obviously, these names
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illustrating at pretty high values and that tends to be a little bit of a headwind in terms of m&a we expect to see consolidation but along the way given how strong we're going to see big capital return, buy backs put in place and also one of the bigger issues is cross bar and there tends to be very strong in terms of this and that tends to be a headwind so, software is an easier one because mostly within the borders. and, also, mentioned really high market and you're seeing companies focus more on buybacks and cash >> right fascinating. vijay, appreciate it very much thanks for the help on it. the congressional budget office now just releasing their score for the build back better plan for more let's get to elon moy
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in washington. >> jon, the congressional budget office says if spending package would be made to be permanent would add $3 trillion to the deficit over the next decade that's because several components of this plan currently are temporary, most notably the increased enhanced child tax credit that only lasts for one year if that were carried out through the remaining nine years of the decade, that is the biggest driver to that increase in the deficit that we're seeing in this cbo projection. now, this score was requested by senate republicans notably senate republican lindsey graham head of the budget committee you can expect that they'll use this $3 trillion figure to attack democrats as just contributing to inflation with the social spending package. but, again, the cbo now finding that if all provisions of the build back better plan were to be made permanent, it would add $3 trillion to the deficit over the next decade.
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julia. >> elam, thanks so much. the tech sector is higher right now, but the dow and the nasdaq have turned lower the nasdaq still on pace to snap a two-week losing streak tracking for its best week since april despite the weakness we're seeing in the last two days. "techcheck" is just getting ard.wa dot ay. ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work.
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let's get a gut check on some recent ipos fintech, new bank made its debut yesterday. closing about 15% above ipo price of $9 a share. new bank ending with a market cap close to $50 billion and we talked to soft ware company hashicorp that stock closing 6.5% above its ipo price. one stock in a software cohort we highlighted this week devops includes pagerduty up 15% in the last 15 sessions and get lab down sharply one more recently public name buzzfeed running into a buzz saw. that stock down 40% since going public monday via spack and also saw investors pull money from the deal and only raised a fraction of what it tried to in that deal, julia well, speaking of ipos we've talked so much about investor appetite for growth stocks in the last few weeks
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our next guest just published a book on how growth tech companies grow joining us now is andrew chen. he just released the cold start problem. how to start and scale naetwork effects. andrew, thank you for joining us today. tell us about the thesis of your book and how it plays into your approach to investing in start ups. >> hey, julia, thank you for having me. we wrote "the cold start" problem to examine the secret at the heart of a lot of silicon valley companies when you look at companies like airbnb and uber and dropbox and slack and youtube and many of the great companies we use every day, these are products that get more useful the more users that join them. which is whythey just sort of become such incredible products in the space and so the cold start problem is for builders of these kinds of products, it's for people who are thinking about how is tech
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revolutionizing the industries that are where they operate or where they're adjacent and it really is meant to teach folks a comprehensive theory on how to start and scale network effects. >> so, how does this play into your approach to investing in this next generation of start ups, what we're calling web three. which are fundamentally based on network effect block chain and meta verse what is your outlook there and what types of companies are you interested in investing in >> julia, that is absolutely ths we are on the precipice of web three, which really has network effects at its core. if you look at a crypto currency like bitcoin, i find it valuable because you think it's valuable. these nfts and games like infiniti, these are all products where you need a community, you need a network of folks to be, to be excited about it and anyone building these
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products faces a cold start problem because they have to get the right discord communities and the right people excited about their projects from the start. otherwise they just won't work so, this has been a really interesting area of investment for us, in particular i'm very excited about the convergence of video games and web 3. it's a big area for me and something where i am spending a ton of time. >> andrew, can you have multiple cold starts. i'm thinking about clubhouse and snow blower and you're trying to prime the pump and sometimes it stalls it seems to have multiple starts in catch momentum and then not from behind the scenes, what do you do when you see something like that happen what kind of advice do you give to founders and operating teams to get momentum going again? >> yeah, well, i think first clubhouse is such an interesting example of the cold start problem because they really figured out how to solve it very quickly. they got launched in the tech
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community and they just went completely viral and in under a year of the app being out they have been able to go to zero to millions of daily active users but i think when you examine all of these products what you find is that network effects is not a silver bullet. it's not something you get it and everything automatically works. even facebook had various stops and starts, a half dozen on their way to being a huge product. and i think that my book really is meant to incompass all the tactics and strategies that you need to do to face this down as you're trying to grow your product. >> that's interesting. what does it say about the level of financing or capital that yo need to achieve escape velocity. if your user growth flattens out, your existence is not somehow, you know, threatened as a whole. >> yeah, well, i think the most powerful part about network effects as a concept is that you
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can use your network so, imagine uber, for example, using its network to ask people to refer other riders and other drivers into the network you can use your network to reengage people. so, if you have a dormant user, if people are all of a sudden sending messages to them inside the platform, they'll come back. all of these reasons are why these network products actually if you look historically, have been able to reach hundreds of millions of users and billions of users without spending tons of money on marketing and advertising. as a result, all that venture capital funding, my job, of course, is to invest in these companies ends up being spent on product development and on the team and not on all that customer acquisition costs along the way. so, that's one of the really appealing parts of these kinds of companies >> andy, you mentioned facebook earlier. clubhouse one might argue is having a hard time competing with facebook and all the other
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tech giants that have offered rival services and substack which has arriv arrival in a prc facebook just launched and i wonder if you think these products are too big to try to compete with right now as we have this broader conversation about tech giant scale and antitrust. >> well, i think that one of the areas that i cover in the cold start problem is the idea that the tech giants actually are a lot more vulnerable. they find it a lot harder to start new products than you would think. and use case studies like google and google plus and the failed social network project that they had worked on. and there's a lot of new projects out there the reason why it's so hard is start ups have the advantage of being able to start small. they can go from starting on a college campus and once they get that working, they'll go to another college campus as tinder did and snapchat did they can go from one team to the
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other versus when you're at a big company you want to generate big numbers fast and it makes it hard to create strong network effects in that way. and so i think that these larger companies, they, obviously, are out competing, launching new products all the time. but it's been a long time since we've seen a successful start up actually completely outcompeted by one of the big guys >> well, it's fascinating to look at these trends as we look ahead to web 3 andrew chen, thanks so nmuch for joining us >> thank you for having me. the ceo of c3ai told us, quote, everything would be fine. was he ight? a lot what is behind in the move in the stock today that downgrade to peloton. we'll talk to the analyst behind the call stay with us
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i'm carl quintanilla downgraded peloton today stock has fallen 75% for the year have we still not seen a bottom? let's get a news update with rahel solomon. >> good morning. consumer inflation rising 6.8% over the last year the fastest pace since 1992 and only slightly above expectations driving the overincrease and core inflation which excludes food and energy is up nearly 5% since last november. that's the fastest pace since 1991 and despite inflation concerns, consumer sentiment is up this month. rise in wage expectations among lower income workers helping drive that gain. the justice department apparently investigating short selling by hedge funds it was contacted as part of a broad probe of short selling activity a justice department spokesman declined to comment. and goldman sachs is reportedly looking to fire fewer people this year "new york post" says goldman is
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scaling back its usual plans to fire 5% of its workforce amid a shortage of bankers industrywide hr departments expecting and getting ready for a potentially huge wave of resignations after employees receive their annual bonuses. you're up to date. john, i'll send it back to you >>ignations happening out there. peloton having a rough run this year. stock down 60% in the past three months and it's in the red again after getting a downgrade of credit suisse and take the stock to neutral and cut their price target by more than 50%. joining us now the analyst behind that call good to have you this is kind of awkward, though, because if i read this right, your price target is 50 bucks. you still believe in the potential of peloton longer term the optionality they have in the model and your price target is now 25% above where the stock is trading today. do i have that right
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>> you do have that right. and, yeah, i could see how optically it looks that way. we do believe in connected fitness over the long term in the short run we're coming into one of the periods where the pendulum is swinging the other way. the consumer has gone to purchasing things from their homes and purchasing tangible goods to spending more time on dining out and experiences and vacations and bookings and it doesn't bode well in the short run, even for a company with a good long-term outlook >> but doesn't that mean in a way you think this is a long-term buy. i mean, if you got this $50 price target on it and you believe in the, at least if not the durability but the options in the model over time at what point is it low enough that even in the short term it's a buy because it seems like if you're willing to hold on to it for a few years, maybe it is a buy here >> yeah, for a few years and a $50 value it makes sense but when you're looking at a name as volatile as peloton, you need more upside for us to feel like an outperform we're considering the risk within the context of the upside
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and, obviously, down quite a bit today. we do think over the long run some upside but in the short run meaning the next kind of three to six months as we get through holiday period and such there is more volatility. >> availability in product and input costs and freight costs have been hanging over them along with much of the economy if supply chain, if we get real repair in supply chain, would that be material to the year >> it should help them, but they actually resolved many of their supply issues. for us in the short run, it's more about the demand. we think the supply issues are resolved and one reason it was so difficult to forecast off of last year's base is because we knew major supply chain issues and they weren't able to fulfill the demand, at least not at the speech they would preferred to and now supply chain is better and we've now gone through a couple of quarters where the demand has come off a little bit. so, while supply is better and supply is, obviously, impacting
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a series of other industries while supply is better at peloton we don't think there is enough incremental on the off side to offset some of the ness that we've seen. >> you've talk about the ex external issues that peloton does not have control over, wanting to spend more on travel and experiences but what about peloton itself is doing. they have a new product coming out next year. this weight product. they have new services like the boxing classes that just launched i'm wondering if there is anything that you think peloton could do or should be doing that could reaccelerate growth despite all the external factors. >> yeah, they're doing a lot of things and everything they can they're stepping up advertising and launching new products that's the optionality that we were talking about at the beginning and a lot of these as we get into the back half of calendar next year would be more of a driver. we think, though, however,
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what's also important is that there is big macro factors and seeing it across a series of different companies. we heard from mirror cutting revenue guidance or lululemon cutting its revenue guidance by mirror down by almost 50%. we heard from beachbody recently and also hearing from many of the gym operators that are showing a bigger comeback then many of us expected. the macro factors are powerful and something so powerful on the macro side, it impacts the largest company to a greater degree >> this reminds me of zoom, though because during the pandemic, they saw the surge in individual customers that are volatile but, still, they were trying to pivot back to enterprise although their 5-9 acquisition didn't end up going through but in a way, isn't that what peloton might have to do selling in gyms and engaging with some of those individuals through there and getting sign ups from the individuals and placing equipment in the gyms
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and why would that be such a bad thing if they can keep relatively updated peloton equipment in those corporate settings and grow and satisfy the user base that way >> i ink tthink it's part of the process. more of the in-house fitness locations that are already in a few of the precore acquisition that they made not too long ago. it helps them particularly not just with manufacturing but those relationships getting into gyms and also the service. that's what people sometimes forget it is hard to have equipment in gyms. you have to service them more frequently than a piece of equipment you have in your house because it's used a lot more we think that will be part of the story as well corporate wellness and united health there are a lot of balls in the air that they're trying to manage as they move forward. and it costs a lot of money. so, we'll see what happens kind of over a longer period of time but at least in the short run we think some notably high spending off of last year's base, which is probably a lot of pull
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forward of demand of maybe folks that thought three years from now or one year from now they were going to buy peloton all squeeze under to a 20-month period and we have to work through that in the short run. >> kind of what he said prepandemic about his aspirations for the company long term he wanted to replace the gym membership at large which looks pretty aspirational. a comment on the fitness names in general >> i think what's happening with not just peloton or through connected fitness or gyms, one thing the pandemic has done and credit suisse recently launched on the wellness space more holistically more people care and focused on working out and nutrition and focused on mental health and a mix of different things the market is bigger than it otherwise would have been. back prepandemic we might have replaced gym memberships and we don't know the number and a lot of folks who will never own pelotons the market itself is larger and
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probably still growing in that the accessibility is also increasing the new product that you mentioned sells for between $400 and $500 becoming more accessible and getting into the connected fitness market or getting into a gym membership or being more involved in the sort of digital health world is just a lot easier than it used to be a couple years ago >> all right thank you. >> thank you now, if you looked in the premarket, shares of software company c3ai were up more than 23%. they have since come back to earth in early trading up now 2.5% on news that it won half billion contract with the department of defense. the agreement divgives dod likee use at air force and space command. tom siebel joined us last week when he assured us, quote, everything would be all right.
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>> this year at 35 to 36% annual growth rate. that means we'll double in size every two years. the growth rate is in the top deck of rapidly growing software companies. i think the stories that we have a billion dollars cash in the bank we're the world's leading provider of applications and i think everything is going to be fine >> maybe a bit like peloton in the sense that somebody is not excited about it but their target on it, well, there's an argument out there that some of these moves, julia, are overdone we'll see. >> yeah, it's all about the long term plan, right, john. after the break, we'll dive into the recent move in roku a 14% gain this week trying to claw its way back from what has been a tough year. that's next. you need to hire.
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roku shares are more than 2% lower this morning after needham lowered its price target on the stock going from 550 to $340 citing a decline in valuation multiples. now, it is worth noting they still have a buy rating on the stock, but the stock is either doing great or terribly depending on how you look at it. so, shares are up about 11% over the past week. after skyrocketing on news that roku reached a multi-year
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agreement with google to keep youtube and youtube tv on roku's streaming platform but the stock is still up over 500% over the past three years and it is down, though, over 25% since it reported its earnings back on november 3rd so, the company has diverse revenue streams but they each face some challenges the first division is the platform business. now, that's the cut roku takes from ads and subscriptions such as from youtube or hbo max and the second business is the ad revenue generates from free ad supported channel. and then, third, it has device sales which comprise about a third of total revenues. so, what has been weighing on the stock since that earnings report well, supply chain issues are impacting two of the three businesses the company warned that the slow down in active account growth was in large part due to global supply chain disruptions, which also weighed on broader advertising growth and also weighed on its outlook going
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forward. but on the heels of that google deal, three-quarters of analysts who cover roku are now bullish deutsche bank saying this agreement is a positive development for roku active user account growth which they see as the most important short-term metric and more important than revenue growth so, guys, it's really important as you look at roku as a company that benefitted so much from the pandemic and from sort of a pull forward of activity. john, you have to wonder how much it could really suffer if some of these supply chain issues persist >> yeah, i don't know. i try to look at these things over the longer term i know we have to look at three months and six months and year to date and a year but, carl, i mean, we've been talking on "techcheck" and "squawk alley" about that about these trends in companies for a long time. and we've also been talking about how trading too often can be pretty darn dangerous if you're playing at home so, some of these stocks, they shouldn't be new revelations to
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people they shouldn't necessarily have bought all of it at the peak if they had a little three years ago, maybe like tom siebel says, it's going to be okay. >> it's true i'm looking at a chart of roku versus netflix over the past two years and they have traded places back and forth, julia, as we tried to figure out exactly where is the best space in all those televisions not yet connected. >> well, you know, roku really benefits from the overall rise in streaming, but that's one reason that analysts are concerned about next year. you won't have new streaming services launching people with ilhave less reason to sign up for new services and all of that activity benefits roku which is why in a lot of ways it has been the play if you're generally bullish on streaming growth and don't want to pick just one player. >> yeah, for sure. coming up later this hour, insider selling. still at record highs. why executives continue to part way with stocks in general when "techcheck" is back after this
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("jingle bells") ♪ (doors knocking and bells ringing to the music) ♪ - [announcer] this holiday season, give the gift of grubhub. let's get a gut check on a name we don't talk about every day. everbridge a competitor to pagerduty. shares plunging now down 45% after the company yesterday announced the resignation of david meredith a host of downgrades and price target cuts setting in this morning. bank of america downgrading from neutral to underperform
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concerned about revenue growth in 2022. go from a buy to hold and slashes its price target from 100, to 100 from $185. this is once thought of a work from home play and now down 58%, julia, year to date. >> yeah. 45% today just amazing now, as we head to break, check out some of the biggest winners on the nasdaq 100 this week. better than 17% higher broadcom up almost 13% apple 9% and at another all-time high we're back in two minutes.
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("jingle bells") ♪ (doors knocking and bells ringing to the music) ♪ - [announcer] this holiday season, give the gift of grubhub.
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workers continue to push back against employers in all sectors fighting for better condition, pay and benefits. now google employees are asking if their pay will be scaled up to match inflation the short answer is no during an all-hands meeting on tuesday in video obtained by cnbc, google's vp of comp says google doesn't want to give smaller increments to anybody, but instead, quote, we want to adjust it and pay it by performance we saw starbucks yesterday and a number of high-profile disagreements giving the workers the feeling they have leverage in this economy. john, i was thinking back to a time when google held an all-hands meeting worried about retention and immediately paid
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out hikes of 10% no matter where you started and thousand dollar stacks of cash. >> it's interesting. it sounds like they do want to keep people, but they want to keep people who they judge to be their best people so they're allocating that extra money based on performance, they say, not trying to spread it out to everyone which, julia, i think raises some questions, issues or makes some points about how companies are thinking about, i don't like talking about pay equality i don't think anybody wants equality of pay, but the best people should make more money. now how that judgment of best gets made is a different question, and that's a bit of what we're seeing play out, i think. >> absolutely. and it also shows that google doesn't want to look like it's folding to employee demands and you have to wonder how much this kind of thing, whether it's a walkout of buzz feed employees because they're upset that they haven't been able to secure their union deal and their wage
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increases while they see their ceo make a lot of money about the transparency could drive other people, other companies, other workers, say other potential starbucks workers and make this kind of thing spread, carl >> that's yet starbucks vote, john, is so interesting because although it's small and was it uniform in terms of location and it does sort of fly in the face of the things we saw happen at volkswagen and boeing and amazon in one case and that's why people are paying attention at least in the service industry. >> we talk a lot about trading stocks you can also trade jobs and that's why you call it a job market, i guess, more on that story on google and pay at and sticking with the compensation theme tesla's elon musk sharing shares according to new filings last night on top of $10 billion worth of tesla's stock sold in
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november tesla shares down more than 1% this morning our robert frank did a big piece on this last week and musk is not alone. there has been a historic wave of stock sales from insiders this year. the wall street journal reporting that 48 executives have made more than $200 million each from stock sales in 2021. tech leading all sectors with 41 billion in stock sales so far this year, the walton, mark zuckerberg, sergei grin and larry paige. among them, julia, inflation, christmas gifts are more expensive. that money's got to come from somewhere. >> concern about rising taxes, but i also have to wonder how much these two stories are intricately connected and if you have employees who see how much money their ceos and their founders and companies are making and they see that growing discrepancy, carl, that's one factor that's driving that disquiet among the employees >> robert frank's done a great job in putting into perspective
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how much of the selling is being done by very wealthy executives, but it's hard to turn your back, julia on not just what elon musk has done in the way of sales and satya nadella in the last couple of weeks >> yeah, it's been remarkably widespread as we head into the end of the year. and missed part of the show? don't forget to follow and subscribe to our podcast listen anywhere any time wherever you download your podcast. "tech check" is back in a moment
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one more thing and that's a snap announcing a partnership with kim kardashian west and kris jenner for spotlight on its content channel back to february of 2018 when snap dropped 10% after kylie tweeted she didn't like the redesign. how quickly things changed shares are up 10%. julia, i had completely forgotten about that >> but you have to remember, carl, that while we've been talking about meta, facebook, whatever we'll remember to call it that snap has been quietly building a huge amount of building content that's safe for advertisers and they've really
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been investing ahead in this augmented reality, in the vr world and not getting as much attention for it as facebook has. facebook shiares up 20% year to date and snap shares up 20% year to date. >> i'm impressed with the reach of the embassy of this kardashian empire. kim kardashian is in her 40s and snap is supposed to be for young people i hope i could be nearly that cool coming up on monday on "tech check," shauntanu nashgs arayen the adobe with the experience cloud and the marketing product and a lot to learn from him. >> that will be big in addition to the rest of the week including lennar and jbill upgraded today over at goldman sachs, i believe, lilly, amex, baba, delta and of course, ppi and the fed meeting which is going to tell us a lot more
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about how the fed not only views the pace of the taper which is slowly being built into expect eggs and also the pace for any future rate hikes in 2022 and that will be big what a week, with cpi under our belt and let's get to sully filling in for the judge and the half thank you, carl, julia and john "the halftime report" starts right now. i am brian in for scott today, the word of the day, the word of the week, the word of the year is inflation absolutely flying now at its fastest rate of price gains since all of the way back in 1982 "return of the jedi" territory stocks, they don't seem to care, but should they? we'll dive into what this means for the fed's tapered timeline, your money and the high-flying valuation stocks you have loved for so long and whether or not we will get a santa claus rally this year or maybe we already had one. we'll debate all of that over the next hour with our excellent investment committ


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