tv Tech Check CNBC July 12, 2022 11:00am-12:00pm EDT
everyone is going to continue to eat. and i also built a large business, as you know, in what we call virtual brands >> robert, unfortunately, we're out of time. we always love to have you and we're going to bring you back soon. thank you. that's going to do it for us on "squawk on the street. thank you. thank you, sarah good tuesday morning welcome to "tech check." today inflation's impact on tech what to expect from cpi tomorrow last month the nasdaq falling more than 8% in the two days following that release this morning the nasdaq down slightly but cloud and enterprise tech getting hit much harder beneath the surface. plus, the effect on tesla from musk's twitter war we'll talk to morgue an stanley's adam jonas about tesla and apple. then move to exit. that is meta's message to
managers as they look to further cut costs, reduce head count we'll discuss what it signals for the rest of the industry >> we're going to start with a series of price target cuts for big tech targets for netflix and nvidia, microsoft and apple all this morning. nvidia, gaming revenue that has the street worried netflix, a slowdown in streaming spend driven by macro headwinds. apple cut the price target saying we should expect much worse than historical growth for hardware in the upcoming quarter. this gets in the thick of earnings season. john, carl, this is something we have talked about in the past. there is great hopes on the businesses of the three hyper scalers, john. but i wonder if this earnings season could be sort of a reality check. i just went through a list of the biggest players. is that going to weigh heavily on cost spend? >> more important and you look
at those stocks on the screen right now, notice that microsoft is down significantly more than the rest and i think that might be because microsoft is in the business of enterprise software. and, you know, bill mcdermott talked about jim about macro impacts on the business, something that i've been wondering about. we've been talking about here ever since mongo d.b.'s earnings where they said, yeah, with he see stuff happening in europe. we don't think it's going to really affect our business itself at that much. but it's a real macroimpact coming here's an echo of that service now down 113.5% this morning. mongo did d.b. down 6% go on down the line. lots of enterprise software names including salesforce down 4.5% being affected, carl. >> you're right, jon in software, a lot of discussion about macro mcdermott was all over that last night also "the journal" talking about
p.c. shipments down 12 in q-2. that will be the worst in many years. jeffries with a big notes about gluts in semis, jon. very hard to get that second derivative at least in terms of some of the research today >> yeah. and this is important because enterprise software had been one of those areas in part because of, you know, subscription business models out of cloud that seemed to be more insulated. some people thought immune to the macro issues as digital transformation takes place but mcdermott's claiming laying bare that maybe more insulated than immune. and looking ahead to inflation numbers tomorrow, how is that going to affect trading in high growth tech which includes enterprise software? here to break it down for us, mike santoli hey, mike. >> hey, jon. you know, to the extent that it has been macro and fed policy and yields driving tech valuations lower, not sure that tomorrow's cpi number is the
clinching argument either direction for peak inflation or no peak inflation although, we have had this, you know, habit we have been conditioned to expect higher than expected cpi numbers on the headline and, yet, market base expectations for inflation have been declining in fact, if you look at, for example, the nasdaq 100 started o outperforming the average stock in late may, mid to late may that's about when the market basin base inflation started to slack. i don't think this is the skeleton to this sector either but it is the reliability of earnings in the context of what you're going to pay valuation wise for those earnings. so that does inform the valua valuations one final tidbit is the s&p tech sector is 16 times forward earnings the overall sector is above 18 it shows you it's the really big stocks, especially in software that, are inflating the overall valuations the typical tech stock is much more going to be about whether
the earnings are am coming through, whether they are in fact predictable businesses than it is to me about the macro and, you know, every tick and yields. >> yeah, mike, when we look ahead to earnings, we're seeing the cuts coming whether that be to price targets could that essentially serve as the kind of clearing event could that pave the way for the second half to maybe, you know, better -- have better expectations or do you think there is more shoes that are going to drop down the road? >> i think it could be both. it certainly part of the process. do you want to reset people's sights lower essentially no longer believe that these are kind of effortless growth regimes. you just never know until you get the numbers and you see the reactions what is priced in. i probably would have told you that people were -- had low expectations for netflix going into last quarter's numbers. i didn't seem to matter once we actually got the reality that is dramatic example but it can work both ways.
i do think that is the kiss. people have been chased out of tech there is good work to say that outside of the very, very largest kind of favorites where there is a complaisant consensus around it, that you have had people, you know, essentially feel like this is not the area to be and it it's a lot less crowded than it was six or eight months ago. >> mike, a point you've been making consistently last few weeks. we'll talk soon. mike santoli let's take a look this morning at tesla elon musk's twitter deal pullout. stock is down this morning fell more than 5% since the decision to terminate the deal on friday. in fact, tesla lost more than a third of the value since musk disclosed the state back in april versus a 15% drop in the s&p 500. he kept investors on toes. now the company shutting down some factories in berlin and shanghai plus, our next guest thinks there could be more competition just around the corner noting that apple has spent, get this 14 times tesla's lifetime capex and r & d just in share buybacks
whap if apple were to put that some of that towards its own vehicle? joining us is morgan stanley's adam jonas i'm curious to know just generally your thoughts about the twitter friction and whether or not the removal of some of that friction will allow him to focus more on tesla. >> carl, i can't comment on that situation. but let's just say elon musk has a great opportunity with tesla right now. they're still in pole position and really the only major auto company outside of china at least that can guarantee supply and the infrastructure necessary to make sufficient quantities that people need right now when the rest of the industry is struggling with that >> you said it's all about who can guarantee the supply that said, what was up with that chart you out last week regarding apple's balance sheet. is that a pull they can dip into >> testify it inially. the message from eric woodring and our apple will team is
apple's going to do a car, okay, and it's going to be a game changer. there is really three things i think for the audience to focus on as to why the first is the ecosystem we spend collectively about $600 billion hours inside cars, globally apple doesn't touch. that the second is firepower again, 14, almost 15 times the amount of the buyback of april versus what tesla spent. can you imagine if they used even a portion of that into another vertical outside of rectangles and into something like health care or transportation we think it's going to happen. the team thinks it's going to happen finally, just the upside it it's a $10 trillion market that could add 30% or 40% to apple. the mess age is apple is going o do a car it's going to take a while finally tesla is going to get real competition from someone that can transfer the skills and
make a huge difference >> adam, i wonder though, is apple will going to do a car like they were going to do a tv? the longer this goes without apple coming out with anything, the more i think they're talking themselves out of it it's one thing if they got car play software. the they're like reinventing the dashboard, getting into other people's cars. it's another thing if they actually got to manufactur vehicles on multiple continents, deal with the labor and union implications of that, the safety and regulation implications. the if they do want to go straight to a autonomy, how complicated is that? that could be a decade or more away >> jon, we totally agree again, eric woodring and the team believe that it's straight to autonomy for apple. okay this is one of the hardest problems humanity ever tried to do in terms of the complexity of putting that kind of ai on public roads so apple from a technological perspective needs to cure yat and get eyes on the car, maybe a
10 or 12 or what knows what ever system working with other car companies that have their brand on the car not apple expanding car play to other parts of the car like they showed at their worldwide development conference to train a neuronetwork and then allowing that regulatory environment to cure yat, too. b curate, too it's a huge market opportunity for apple and channels to tesla. but the reality is we think the way apple is going to do it, it's going to take a long time no steering wheel on this car. of the steering wheel is beneath apple. you have to get it out of your mind. >> no brake pedal either, right? >> absolutely not. absolutely not you have to imagine the features we're going to have at the end of the decade are going to be so advanced we'll have steering wheels you think apple is going to get into this, they don't want to make a car they want to turn your car into a mobile app store that's theprize. >> that's what they want to do
as well, though. adam, when you talk about the amount of spend, apple versus tesla on development what is apple waiting for? if they are spend 14ging 14 tims more on the buyback program, what is going to make them shift the programs to the av program if they haven't already? >> so we think, again, if you're going to go straight to autonomy, you need to cover the corner cases, tens of billions of miles, you have to get things wrong. you may not want to get that negative down side skew, that risk exposure if and when something goes wrong perhaps a company like tesla and they're dealing with this kind of day to day when there are accidents that happen and the machines make a mistake. how do you deal with that liability? i would ask you and your audience to imagine if you -- if apple or some other big tech platform trying to play switzerland and in a position to get into the os of a car, it's going to take ten years anyway, what is the rush of having something half baked when can you have real liability and even loss of life and expose yourself
to that right now. let someone else handle. that curate that regulatory environment. skate to where the puck is going even if it's 2035. the opportunity is so big. it's something you can be it may seem slow to your audience but in the grand scheme of this tech development, might be the right approach a second move or advantage >> finally, adam, just on overall the auto business. you've been critical of dealers for charging babove msrp consumers have less excess catch. you've been watching subprime. your colleagues downgrade capital one on that. is the business in for trouble regarding unit growth? >> well, we would say that business on unit growth might actually be okay we're about closer to 20% below normal peaks we think pricing and margin and mix might be more vulnerable the dealers, i don't want to say we're not critical of them, its just that they are -- they are
doing within the law what they can do they have been benefitting from supply chain shortage and the gpus are a multiple of what they've been historically. if the fed is successful that that kind of activity might mean revert and as supply chain improves, as chinese workers go back to work making chips and the supply chain is not perfect but gets less tight, those two things, fed action and supply chain normalization will lead to a very significant mean reversion down for rental car company and auto dealer earnings w we prefer the suppliers in other coverage. >> if you're looking to buy a new car, wait? >> well, if -- depends how bad you need it or how much money you have you think a year from now, we might be talking about deflation at the car dealer, deflation, not inflation. so, yeah, maybe you wait a little bit if you can or buy out your lease and wait for the supply to cover. >> interesting pivot adam, as always, our thanks.
thanks for kicking off the hour. adam jones. >> take care. >> we're going to turn to meta seeming to move forward with plans for layoffs at facebook and new memo reported by the information. the platform's head of engineering asking managers to report underperforming team members to hr saying, "if a direct report is coasting or low performer, they're not who we need they're failing this company you cannot allow someone to be net neutral or negative for meta." zuckerberg told employees he is cutting hiring this year he had a similar tone and bracing for a deeper down turn by weeding out staff unable to meet aggressive goals. interestingly, guys, cnbc confirmed that microsoft did a round of layoffs yesterday that was relatively small. less than 1% of its workforce. it does plan more hiring so net more hiring this year but still notable. we're seeing this happen we had a few guests in recent days, jon, maybe throw some cold water on even alphabet's plans, right? they're so connected to that
bi digital advertising world. is it going to be like microsoft where they're still net adding >> i don't know if we can call these layoffs. this is what normal business used to be like. you know there are some workers who you feel like aren't working out and you let them go. and you're still hiring other people you try to level up. i mean, carl, this feels like returning to the normal rules of the labor economy. where hey, if you're not showing up to work, if you're not doing your job, unlike in the covid era where, yes, this is not -- i'm not trying to make a blanket statement. but there was some kind of egregious employee bowehaviors that got overlooked. employers were very accommodative. now they're saying, boy, there is some talented people getting laid off from start up that can't get funding, et cetera, et cetera we need to make room for those folks. let's cut back on the lower performers because we want to hire some new people who are more excited about this company.
>> yeah. we got plenty of examples of actual layoffs where companies are trimming, you know, 30%, 40%, especially in the mortgage business the but, jon, you're right you're talking more about employee turn which is something we'll see more if the labor cycle continues to turn. after the break, we'll talk with the sooes of ceo of etsy "tech check" is just getting started. this is crafting the moment that changes everything. this is all your teams working as one. this is the system you built, creating a lasting impression. this is how. airtable.
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let's get a gut check on goldman sachs's picks for the upcoming earnings season crowd strike, that is nearly 11% on the year. relatively not that bad for tech goldman sachs is calling them well positioned to outperform from accelerating demand another name on that list, recently upgraded. this he see value as more
companies transition from server to cloud overall, goldman sachs is bullish over the next 12 months with average price targets for s&p 500 companies in their list implying about 20% upside. carl >> let's turn now to a new letter signed by some of the biggest names in tech. leaders from 500 companies including apple, microsoft, meta, amazon, calling on governors across the u.s. asking them to expand access to computer science classes in schools nationwide we have more on that story this morning. good morning >> hey, carl that's right i'm joined by the ceo of code.org and josh silverman, ceo of etsy. both are signatures on this letter thank you both for joining us this morning >> thank you for having us >> i want to start off with you. 500 leaders from tech companies to traditional companies such as
nike, all of them signing on and really urging governors and educators to adopt more k-12 k coding curriculum. why you are launching this now and why is it so important >> teaching computer science is important because we're living in a digital world everything is run by technology. you know, we saw on the pandemic how much the importance in our world. and our schools don't teach students how computers and how technology works, how to create software and it's only a small percentage of our next generation is prepared with the skills for the jobs of the future or even to just participate as citizens in a digital world. and what is important about today's news is not only that largest technology companies are behind this change, it's supported by a third of the four fortune 100 and it's time for curriculum to reflect that computer science that every student should learn as a
foundational education >> so, josh, give us perspective on why it's important to sign this not only because it's a good thing for students, about it what impact could this have on your business and your ability to hire down the lean? >> this is an issue of national competitiveness for the u.s. economy. we have over 700,000 open job openings right now for people that can code. and we as a country produce about 80,000 college graduates and computer science degrees that is a massive gap. as a result, our solution is immigration. about two-thirds of the high skilled visas that we process for immigrants are people who can code let me say that differently. other countries are doing a great job of making computer science part of their core curriculum and we're falling behind speaking personally about as a parent, don't each of us want our children to have the kinds of economic opportunities in the future and as we look forward to the future, you're either going to telecomputer work to do or be told what to do by a computer.
you much rather be in the first bucket >> yeah, i mean that's such a massive gap between the 700,000 open computing jobs and 80,000 computer science graduates tell us exactly why you're advocating for and what impact it could have on closing that gap. >> what we're advocating for is the computer science in schools should be part of the base curriculum we all learn algebra or biology as part of high school or middle school nobody asks are you learning it because you want to become a mathematician or a biologist it's just part of basic education. and in the 21st century computer science should become part of the basics of what you expect to learn as part of education and the impact of doing that is not only the ability to fill the computing occupations, but recognizing that every single occupation just being a digital citizen in the future world is going to require this as part of basic preparedness we're asking the governors and
education leaders of the country to take major steps to make computer science a foundational part of the core curriculum. >> i see challenge there's, sevenly given what we saw during the pandemic where too many kids fell behind on basic skills, english, math, et cetera tlae and there are prerequisites to do the advance coding. to what degree does summer learning need to be a part of this because you could end up with a very bifurcated opportunity within education where certain kids that are already doing pretty well also get computer science education. others don't and there's no bridge between the two of them. >> it's a great point. in fact, lots of people from lots of different places can be really good at coding. i'm the chairman of something called code nation.org we go into underresourced schools during the school day and immediately after school to teach computer science actually, we bring people to code for a living in to the
classroom and for the underresourced students, i think it's particularly important that we're doing this during the school day in the public school. it's so critical that it really deserves to have that space and time if we leave it for summer programs or after school programs, i'm afraid we leave out a lot of people who most need it. and just to put some data around that, the average income for family of four in the schools we serve at code nation is $46,000 a year for students who complete the second year of our program, two-thirds of them are either majoring in stem or working in stem where the average starting salar salary are $85,000 which means they doubled their family's income just by entering a stem field. that's accessible to lots of people when we think about powering our economy forward and when we think about economic opportunity and income disparities and creating more equity, racial
equity, this is a very clear thing we can do. there are so many problems in the world right now that feel really hard to solve this one is not that complicated. give computer science education at every public school student and we can make tons of progress >> josh, what you're talking about right now is a very big picture solution though to a problem that you say it is not hard to solve, still a very big issue. give us a more narrow window into what is going on at etsy right now. we taukt ablked about the job m and is hiring a challenge because of the issues you just laid out >> so we've been disciplined about our hiring you know, all along. and etsy has seen tremendous growth through the pran temper pandemic go through cycles. i don't want to spend too much on my company in particular. but across the sector, you're talking about the job market in tech obviously, it slowed down broadly for now. but as we look forward over the
next three and five years, it's hard to imagine that tech isn't going to be a whole lot bigger than it is today and we're talking about talent pipeline that takes years to develop, right so it's important that we be focusing on our school system now so that our students and our economy is ready for the future. >> i had a question for you. when we get into specifics, right, even in this current moment we're seeing some companies that are very specialized do better than others, part of platforms. so what would you tell students? where should they focus within tech is that machine learning or artificial intelligence or something else >> well, the high school level, i would just say broadly computer science and that is foundational for every student and it covers all aspects whether it is computer programming, data science, machine learning if i was talking to a student who's in college trying to choose a specialization, cybersecurity and machine learning are among the most sought after issues right now. so if you have to pick a
specialization by middle of university, cybersecurity or machine learning, the country is nowhere near the level of preparedness to compete on the national -- on the global scale on no two topics >> by the way, the other thing i want to say -- >> demand -- yeah? >> i was going to say, there was a question about student do this because of the digital divide and learning gap and learning math the reality is students should learn computer science before they learn advanced math studies show that students who learn coding and computer science outperform in their math classes because learning computer science helps build the same analytical skills but it is more creative and more fun and feels more like what kids want to do because they're digital citizens them self and they enjoy it more >> well, certainly great to hear these solutions to what is a massive problem. and a massive opportunity gap
what if i told you... you'll leave here different? are you ready?! - hell no. - no. welcome back to "tech check. we continue to watch the market today. nasdaq making a mid morning come back back in the green. but beneath the surface, some names like z scale or data dog, service now are down sharply and the wcld cloud etf is down 3% we'll have more on what amazon's prime day may mean for the stock. first, a news update
>> hau, ey, carl, good morning u to the new covid variant is spreading around the u.s. but is not associated with more severe symptoms compared to the most recent subvariant. that according to dr. anthony fauci speaking at a white house covid briefing this morning. but at the same time, the seven day average of covid hospital admissions has doubled elon musk says he doesn't hate donald trump but the former president is too old to run in 2024 and he should "hang up his hat and sail into the sunset." musk also called on democrats to in his words call off the attack so that trump doesn't see getting back to the white house as his only way to survive and in scotland, for the british open, tiger woods criticizing the big money saudi sponsored liv tour which features guaranteed money for players
>> what is the incentive to earn in the dirt? you know, just getting paid a lot of money up front and playing a few events they're trying to, you know, playing blaring music and have all these atmospheres that are different. i just don't see -- >> tiger likes it the old fashioned way. he likes to earn it. >> berth yashgs thank you. amazon's prime day shopping event under way. this year though, a more muted kickoff. no splashy concerts or stars live streaming the latest makeup line that can be a bonus for investors. maybe a sign of a more financially disciplined amazon the company has, of course, been dealing with overcapacity. built up during the pandemic it is now in cost control mode this prime day will boost third
quarter sales as it usually does, at the same time, there are concerns about the draw of prime day and prime membership growth the holiday has been losing momentum over the years. the market may be reaching saturation it got more expensive by the way. we saw a price hike in prime member sheps earlier this year i was looking early, there are still deals. most are found for amazon private market but if you're in the market for a vacuum, discovery is not great but if you're looking to get something, that's where it excels >> discovery isn't great what you are looking for it's like they already know me based on my buying patterns. but i do think, carl, that here this is another signal perhaps in this economy where it is more about reducing churn than necessarily trying to buy new members. they did just announce they're going to add grubhub to the mix
of benefits here it should help hold on to some people i'm sure they'll provide echo devices and other amazon hardware on discount but playing it safe when it comes to inventory >> yeah. >> meanwhile, b of a took a look at how the shares act leading up to prime days, seven times going back to 2015 five days, three days, seven days ahead of prime day. the stock is up every single time but going out after the day five days, seven days, ten days, actually down more than it's up. so fascinating people definitely like to anticipate but it is a bit dsl on the news thing. so you're saying buyer's remorse is a thing not just for the stuff you buy on amazon. >> yes speaking of, think of the rushes that is another side of this so maybe by not going big, they can save money on the back end there. >> meantime, speaking at e- commerce, check out shares of canoe surging after agreeing to
a deal to supply walmart with 4500 evs they can purchase up to 10,000 units. stock is almost doubling this morning. still down 60% since last november to put that in context. november to put that in context. we're back in a moment what drives you? what do you want to leave behind? what do you want to give back? what do you want to be remembered for? that's your why. it's your purpose, and we will work with you every step of the way to achieve it. at pnc private bank, we'll help you take care of the how. so tell us - what's your why? ♪♪ (heartbeats) so tell us - what's your why? introducing icy hot pro. ice works fast... to freeze your pain and your doubt. heat makes it last. so you'll never sit this one out. new icy hot pro with 2 max-strength pain relievers.
genesys technology is changing the way customer service teams anticipate what customers need. because happy customers are music to our ears. genesys, we're behind every customer smile. no one is going to outrun the currency right now and probably when you think about energy and the dislocation caused by the war in europe and
this reprioritization i'm talking about, you are going to see longer cycles in europe. we saw that. but this doesn't fundamentally change the narrative that tech is the only way to cut through the cross winds and ultimately get to the other side. >> that was service desk bill mcdermott last night warning of foreign change cross winds that stock trading lower by 12% this morning let's keep this conversation going. bring in another ceo in the enterprise space joining us now, net app ceo george currian good to see you. what does bill mcdermott saying there ring true about the impact of what is happening in europe he also talked about more tactical engagement from customers. maybe they're not engaged in the longer term digital transformation projects as much as they're focused on things that will will help their business right now >> i think there is always a
balance, john. good to see you. between, you know, things that need to be taken care of, the urgent and the important and we see customers continue to balance across the two we're certainly engaged in helping our customers build flexibility in their business models to deal with these disruptions. >> now net app is one of the companies that's been around for a while. they have a well known hardware business they've been focusing a lot more on software as well. but hardware business is a bit under the supply constraint for the past several quarters. but now we're beginning to hear more about demand headwinds because of the macro environment. which are you more focused on now? >> we certainly continue to be focused on meeting all of the demand that we see we're in the business of helping customers manage their data and use it to drive their business forward. and as you know, john, the amount of data and the war
continues to be explosively large and growing at very large scale. so we're really focused on helping our clients meet their obligations by delivering as much supply as we can get. i think the second area that we're seeing good momentum in our business is the ability for our clients to also build cloud and hybrid environments and our tools for making the cloud environments more secure, more cost effective, certainly seeing a lot of interest given the risk from ransomware attacks or the need for cloud cost management in these times. >> okay. to put a final point on it though, are you seeing more shift, more volatility in the supply situation or in the demand situation supply has been difficult for a while. is that getting more difficult, getting less difficult or is demand shifting more quickly
>> it's still the big -- supply is still the bigger challenge in our business it is getting stable and incrementally better but there is always a unique, you know, component that we're working to litigate the impact to our business. so we're hopeful our teams are working extraordinarily hard and we're hopeful that the supply situation gets better over the next few quarters >> to be clear though, george, then how does the demand picture look right now compared to that? and how it has been over the last few months? >> certainly, you know, it varies by segment and by country. the we certainly seen some impact from the russia situation in some parts of our european business as we said in our earnings calls, its not material to our business. i think the impact will work through the rest of the world over the next few quarters we continue to acquire new
customers and expand our customer footprint through the use of our cloud portfolio and within the enterprise segme segment itself, we've seen steady demand. i think we continue to monitor the changing economic environment and work closely with our customers >> george, you have been pretty inquiztive on the company side as well. what is your appetite for m & a. how are valuations looking to you in public and private companies? >> we have a great portfolio of assets that we have acquired to accelerate the development of our cloud ops portfolio. and as we said in our last earnings call, we're going to take a pause for a few months to integrate all the acquisitions and then we'll, you know, continue to evaluate opportunities soon thereafter. we think that we've got a really good portfolio that has expanded our market and brought us a whole slew of new customers and we're excited about the
opportunities ahead. i think we continue to see that the market, especially the private market valuations, have further room to go in the correction territory >> all right george, you know, it's beesuggee that capex in general, usually it's not a great place to be if you're in this point of the cycle, might actually be different this time because companies are going to be so hungry to reinvent and automate and change their work flow to hybrid and so forth. is that consensus -- is that a consensus view now in your industry >> i think there's no question that you got to build technologically enabled business models whether it is to allow people to work in, you know, flexible locations to deal with rising energy costs or, you know, the disruptions that we see or deliver products to customers digitally to get around some of the
transportation and logistics technology, has bill mcdermott said, is one of the few ways that we see clients being able to breakthrough this, you know, complex environment. and we continue to work on these long term trends with our clients. >> george, what is your approach, finally, to the labor force at netapp? you are scaling back are you freezing are you trying to find new high level employees perhaps that are newly available in the workforce after being let go from other organizations? >> listen, we always been a disciplined manager of our business i think in the last quarter we delivered record profits and so we've always been a disciplined operator where we, you know, prioritize our investments to the growth of the market we continue to monitor the business at the moment we're
still focused on bringing on the talent that we need. i'm hopeful that the tech employee landscape gets a little bit easier to be able to bring on new talent. and then retain our talent by giving them exciting projects, develop them and their careers in, you know, new ways i think that's really the focus of what we do with our workforce. >> all right sounds like labor market still tight where you are working, george thank you. >> thank you as we head to break, let's get a quick check on the markets. nasdaq falling back into negative territory it's been a choppy session the dow up about 80 points chips though, they're seeing nice gains today micron up 3% don't go away. we're back aerhiquk eak.ft ts ic
let's get a gut check on the pc market. new numbers for the second quarter. a 12.6% drop from 2021 hpq sees a big drop, slipping by 27.5% year on year, the only major manufacturer to see gains was apple, up about 9% from 2021, thanks to the popular m 1 chip in a lot of its computers, remarkable numbers, directionally, not a terrible
surprise. >> it's not sell through in shipments. inventories are in the middle. we'll see whether inventories built up and that's causing them to ship less into the channel. after the break, peloton with some changes to its business model. the details next we're back in two. only at vanguard, you're more than just an investor you're an owner. that means that your goals are ours too. and vanguard retirement tools and advice can help you get there. that's the value of ownership. finding the perfect developer isn't easy. but, at upwork, we found her. she's in prague, between the perfect cup of coffee and her museum of personal computers. and you can find her, and millions of other talented pros, right now on upwork.com
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can we at least split it? nope. advanced security that helps protect your devices in and out of the home. i mean, can i have a bite? only from xfinity. nah. unbeatable internet. made to do anything so you can do anything. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. peloton stock higher after monday's drop, revealing that it plans to outsource all of its manufacturing moving forward
it will expand its relationship with its taiwanese partner industrial to build its bike saying in a statement this move will help reduce the company's cash burden. the company reported $196 million ebita loss last quarter. guys, i had forgotten how inquisitive the company was during the boom times. precore tonic raises questions, carl, what happens with those companies? >> remember we were talking just how vertical peloton was, guys, from john from the manufacturing, to the servicing, to the delivery, they wanted to do it all. >> yeah, i still suspect that getting the hardware right is going to be a key part of this company's future hopefully this move with rexon allows them to have an apple, foxcon relationship where they have the level of insight and control. more consistent processes and lower cost of manufacturing, we'll see. >> john, do they even need the
hardware a lot of folks just use the app, and you can use any old treadmill. maybe that's what barry mccarthy wants to do, a software only company, margin is better that way. >> i think that kills their differentiation, and apple and amazon will run them over. we'll see. >> cody rixby. if you missed part of the show, if you're traveling, if you're on the beach with no screen, don't forget to follow and subscribe to the tech check podcast, anytime, anywhere, wherever you download podcasts tech check will be back in a ment your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire
new icy hot pro with 2 max-strength pain relievers. one more thing, and that's a no deal in buy now paper later sezzle and zip, turning off their planned merger zip citing current macroeconomic conditions zip will pay sezzel $11 million. both crushed the year, more than 90% off the highs, as it just takes us back to some of the risks that were being
telegraphed regarding buy now, pay later last summer. >> they kind of misedsed the pek when some of the other bigger companies like block were looking for players. down 90%, that's brutal. >> you mentioned it. after pay, square now block paid $29 billion for that wow. that was a peak. >> yeah, that was a high price tag. meanwhile, guys, i just got ahold of a letter that delivery start up go pop sent its investors, telling them they're going to be focusing on profitability. the company is going to be cutting 10% of its staff and shutting dozens of warehouses, guys, again, we're seeing this focus on profitability the letter reads the decision to accelerate profitability comes from our desire to act in the best interests of customers and shareholders in this changing macro environment, so carl, i don't think this is the last we're going to hear of this. this has been one of those hot start ups that has raised quite a bit of money and built quickly. >> yeah, they're starting to pile up.
at least anecdotally, these reports and announcements of layoffs at companies of all different sizes, we're talking microsoft a little bit earlier today. as for the next 24 hours, guys, we'll get cpi tomorrow delta as we slowly work our way toward the bank earnings on thursday and friday. got a couple of upgrades this week of the likes of b of a and jpm this morning let's get to the judge in the half. >> carl, thank you very much i'm scott wapner, front and center, the big question is the environment improving for stocks or deteriorating we have arguments on both sides of that great debate which we take to the investment committee this hour. joining me today, stephanie link, amy raskin on set, we have jim leaventhal, and josh brown dow is good for about 87 1/3, we're in green across the board including the ten-year note yield. 291 is where we are today. josh, you have some josh moves
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