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tv   Tech Check  CNBC  December 29, 2022 11:00am-12:00pm EST

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means the street is preparing for a worst case scenario outcome. >> steve, thank you. something to watch as we head into this new calendar year. mike, stocks trading higher. nasdaq up 2.5% tesla leading the s&p right now up almost 9% >> laggards leading at least for a day. >> that's going to do it for us. "tech check" starts now. >> good thursday morning welcome to "tech check." i'm deerd yeah bosa with julia boorstin and frank holland we're discussing streamers shifting their focus among recession concerns we'll cover the stocks set to benefit. plus, tesla continues to be a battleground stock, down almost 40% for the month of december but it's rebounding strongly today. so is it time to buy the dip >> plus, we have exclusive data on the fintech sector pointing to more volatility in the new year we'll discuss how to play it and is there more cybersecurity opportunity ahead? we have the 2023 sector
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playbook julia, as the nasdaq is off to a very strong start to the session. >> that's right, dee we're going to start the feed with streaming 2022 has been a rough year for the median streaming giants and now there is growing concern about the impact of a recession. year to date, netflix shares are down about 55% disney and paramount both about 45%, while comcast shares are down over 30%. this despite a rebound that you see in those netflix shares over the last six months. actually in the last six months, netflix led the faang. now, going into 2023, there's a focus on average revenue per user among the streaming services and profitability that has replaced a chase for subscriber gains with ballooning content spend. some big fears on the horizon, morgan stanley warns that streaming growth is slowing, forecasting 2023 industry net additions will be at roughly half the 2021 pace projecting consolidation of
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companies and services and also cost rationalization needham warns that netflix's peak subscribers may be behind it because churn is rising for all streaming platforms. so media companies are hoping to stem that churn with lower costs, ad-supported options like those that netflix and disney plus recently launched, or with free ad-supported channels they're nicknamed fast channels such as pluto or tubi, which is owned by fox some of my sources are asking when big streamers might launch their own free ad-supported versions an original morning consult survey conducted for cnbc found about half of americans are interested in switching their streaming subscriptions to lower cost ad supported options with millennials the most interested in the discounted options. morning consoult also found in this poll the majority of consumers are expecting the spend the same amount on buying
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and renting movies at home as they spent this year we'll have to see how all of that might change as consumers' pocketbooks tighten up >> it is hard to go back, julia. once you got used to no ads, it's tough to move down, but you know, many americans may be faced with that choice next year, especially in an inflationary environment, a potential recession. i wonder, we have had this discussion a lot over the last few months as the streaming platforms look to profitability. there's this idea that maybe original programming, original content may ease, but it feels like sports rights are picking up the baton i was away when that reportedly $2 billion a year nfl ticket for youtube happened is that set to continue? >> sports rights are always going to be valuable the question is are they going to remain as valuable if we see overall viewership decline the nfl ratings have been pretty good this year you know, and we certainly see that the nfl is sort of the
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crown jewel of sports rights, the most highest rated content on television. the next big round of sports rights negotiations will be about the nba. i do think we're going to see increasing value in the sports right, mostly because there are more buyers in the market but we'll also see this question of how do you allocate investment in original content. frank, i know we have been talking a lot about the movie business offline and there's this question of whether or not there's going to be a longer window of how long you leave movies in the theaters to encourage people to leave the house and see movies rather than staying at home and watching netflix. >> exactly right deirdre took the words out of my mouth. i was going to ask about the nba deal in 2025 there's some reports out there that it could be a $50 to $75 billion deal total but a $1 billion just for streaming that amazon and apple are looking at. the nba has a younger demographic that the other sports leagues i know nfl is the crown jewel, but could that be more valuable, more games, younger demographic,
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and also more social media abab ability. i think it's bigger than nfl twitter. >> i'll leave twitter to the side for now, frank, because that's such a complicated conversation i think it's not just about the right but how you slice and dice them will we see espn move some of its crown jewel streaming tv rights over to streaming, i think that's going to be all in play as viewership trends shift as well. so as streaming names prepare for recession headwinds, our next guest sees it as a buying opportunity, naming disney and netflix among his top picks for the coming year. morris mark, thanks so much for joining us today so many questions for you, but i want to start off with the question of why disney and netflix? how much of the fact they're your top picks is about the fact they have these new lower cost ad-supported versions? >> i think the real question is, both of these companies know what business they're in they're not in the streaming business they're in the entertainment
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business sorry. >> that's the star wars ring we know what you're watching >> yeah, i'm definitely watching, and apple is a great company. okay i think the last time reed hastings was interviewed, he said he was in the entertainment business he understands that. just a question of how you get people to spend their dollars on entertainment. they can do it directly by subscription they can do it indirectly by willing to watch advertising somebody selling them something and they're giving some time up for that i think both of these entities have got the diversity of product, a range of product, and they have the management now disney has the management now that i think understand that they're in the business of entertainment and understand they're in the business of
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developing an audience, and in a business of developing great relations with the producers of that entertainment i think you touched on it. >> i guess more big picture, if you're bulls on disney and netflix, what about some of the other players? we were looking at the short interest for paramount massive short interest from paramount as well as for roku. what's your take on some of the other players and will we see consolidation? >> i can't begin to guess. i think there should be consolidation. most of these other players don't have the two things that disney and netflix have, which is diversity of product and size of audience. disney's got the ability to sell and contain around the world they can do it directly by producing and it and indectly by entertaining people at their parks. i think that's fabulous. i think netflix has got a range of products and smart people
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running their company. and one of the problems with all of these other businesses is not the quality of the management but the size of their audience and their ability to monetize that audience. comcast is a great company, but their entertainment division isn't nearly as big or as diverse or has as much to offer as either disney or netflix, and it's one of the better ones. as you get to some of the other names, paramount has some great product, smart people, but cbs is producing in a manner where it's going to be losing audience people prefer streaming as their entertainment option that's an issue they have to address. will there be consolidation? there should be, but i can't speculate. >> when you talkabout business the business being entertainment, not necessarily streaming, it makes me think of things beyond the screen, like theme parks, merchandise, video
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games. these are all things that people at one point thought netflix would move into, and it has in some of the cases though very slowly and in small ways has it missed that opportunity can netflix still do that in a recessionary environment does it need to? >> i'm not counting on that. i'm not counting on that i say for people who are smart, i think take two is there. and if there's an nba contract coming up in 2025 and the product meaning the nba is going to be streamed around the world, they play the nba in china that's still open to them. what you can do with a game like nba2k then is a lot more than you can do with it now having the product, the ability to produce the entertainment product is a unique skill. i think that's why microsoft wants to buy activision. i think that's why it makes sense. >> morris, frank holland here.
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i wanted to touch back on the stocks, especially meta and alphabet you say both of them are cheap right now. both trading about 17 times forward earnings the nasdaq trading at about 21 times forward earnings have you factored in the ad-spending slowdown so many people are forecasting i look at insider intelligence, and they say ad spending increased 8% this year, only going to increase 4% this year that's not factoring in any real economic downturn. so if ad spending doesn't show the growth that 4% growth we're expecting, are these stocks still cheap when you look at especially alphabet, 80% of revenue from ads, meta almost all revenue from ads >> the short answer is yes there was a great graph today which shows what happens to meta's multiple. meta is a very profitable business it's got phenomenal audience size with things like instagram, and nobody ever said that mark zuckerberg wasn't brilliant, which he is. they make mistakes
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they lost share of audience to tiktok, and that's just a fact, but they have tons of audience and i think what's going to happen this year is, and i'm trying -- not trying to avoid answering your question, frank, is utilization of artificial intelligence on a much more widespread manner to run businesses better, more effectively, and serve customers better i think that maybe there will be a slowdown if there's a recession, i would rather own these businesses through a recession than most businesses and now they're cheap. >> going to juice the ad business >> not going to juice the ad business if things slow down, they slow down but you still make a lot of money selling ads, and when things pick up, you make a lot more money and in between, they got the balance sheets that carry them in between they have low multiples. i'm getting value, gaining value and growth at a huge discount. >> morris, we're going to
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continue the conversation about meta and apple, so stay with us. but let's get over to the topic of the metaverse and whether the hype is over or there's more opportunity to come in the new year steve kovac joins us with more >> let's break down how the year went for the metaverse, and you have to start with meta, because that's the poster child for this whole concept. just a year ago, mark zuckerberg bet the entire company on the metaverse. today, well, shares are down about 65% on the year. in part because investors are unhappy with the 10s of billions of dollars lost so far trying to build an experiment that may not pay off for a decade, if it ever pays off at all. this summer, the internet had a good chuckle over how bad meta's vision for the future looks. remember the avatar selfie that's how video games looked 20 years ago. by the way, there are signs consumer interest is falling too. mpd group says spending on vr headsets fell 2% this year to a little over a billion dollars. to put that in perspective,
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apple sells about $200 billion worth of iphones every year. so a very tiny market. this despite meta launching a new $1500 headset calls the meda quest pro. that debuted to poor reviews that will have to wait until earnings to get an idea of how it sold. in february, sony will start selling its new vr rig for the playstation 5. that will be focused entirely on gaming it's really apple everyone is looking at it's finally expected to enter the space with the augmented reality headset at the end of the year apple's challenge will be showing a compelling case for the strategy, but if that doesn't happen, it may end before it takes off. >> thanks so much. morris, meta is one of your top picks for 2023, but i want to ask you about those numbers that steve kovac just brought us. this idea that the overall market for vr headsets actually
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st shrank this year how concerned are you about meta's investment in the metaverse and how does it play into your bull case? >> right now, i'm paying a low multiple for an advertising driven business with a huge audience that everybody i know still uses if it works, i get it for nothing. if it doesn't work, i still get an awful lot of value and a great business i think most of the money they're spending on the metaverse, but on the development of artificial intelligence technology to help them serve their audience a lot better, both in terms of getting people to use their products more and then i think helping them sell things to those people in a more targeted fashion i think that's really smart. i think they're trying to do that right now with whatsapp whatsapp has generated very little revenue for the company so far and has more than a billion users around the world so let's see what happens there.
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>> so morris, it sounds like you like meta despite the metaverse. are you bullish or bearish on the whole concept? do you think there is a company that could bring it to the mainstream like potentially apple? >> absolutely. the leading companies over time take this concept and turn it into useful technology and useful products. i mean, nvidia talked about the omniverse and business using that technology to develop products more efficiently, more quickly, and with more value you know, designing a product in the omniverse could give you absolute performance measurements well before you put that product together and actually build it, whether it's a plane or a machine or robot. so i think this whole idea, you're talking about a three dimensional artificially intelligence driven internet i'm an old star trek fan
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they were in the metaverse they had all these visualized computer images that looked like people, acted like people, and performed like people. it's going to take a long time, buit's going to happen in between, i think you want to own some great businesses that are going to make more money when the economy gets better >> morris, i feel like that star trek version i feel like was more of holograms, but more than anyone wearing the vr headsets, but i'm very curious to see how it plays out and i'm going to be at ces exploring some of the new vr technology next week. >> really interested in learning what you learn thank you. >> it's not either/or for morris he likes star wars and star trek, something we learned today. >> coming up, tesla's tough year a check on fintech and the cybersecurity playbook, nasdaq is up 2.3% "tech check" is just getting started.
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home internet shouldn't be a luxury. everyone should have it and now a lot more people can. so let's go. the digital age is waiting. strong session for the nasdaq, which is currently up nearly 2.5%. here are the leaders on the nasdaq 100
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tesla clawing back some ground heavy losses over the last year. also some ev makers making the list like rivian and lucid, and netflix up nearly 5.5% frank. >> time now for a gut check on tesla. shares up more than 8% this morning, continuing e stock's wr on record, what will it take to right this ship in 2023? let's bring in former ford ceo mark field, senior adviser at tpg. happy holidays >> heyic frank >> let's start with news elon musk sending a letter to employees saying don't worry about the stock market craziness. asking for help to deliver cars before year end. the last one really caught my ear. demonstrate continued excellence going forward. so my question for you is, is it the quality of those tesla vehicles, especially in the consumer side, pushing the stock higher >> well, i think overall, there's a large, as you know, a large retail component of
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tesla's stock. you have seen literally over the last month or so a lot of retail buyers buying into the stock i think at the end of the day, when you look at tesla's performance, and the reasons that the stock has been down, yes, you have that bucket of, is elon distracted with his focus on twitter but then there's the other bucket that says, you know, they're starting to experience potentially for the first time in their young company's life demand problem because you have established automakers that are bringing in new models you have the economy slowing right now, you can literally get on a website and order a tesla and have one in a few days they have actually doubled the incentives offering to consumers to take a vehicle by the end of the year so when you look at that, this company has been valued by investors as a battery, software, and technology company. that plus their growth has really given them a very high
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multiple i think now, investors are waking up and saying, hey, they are also a car company and have to compete in a slowing economy. >> so you're a former big three ceo. you have a great take on this whole landscape. you mentioned incentives coming up next year starting in january, the tesla model y and 3 will be eligible for tax credits. they're half of the consumer ev market is this a cure for all of tesla's problems, the ev credits and higher gas prices which we're all expecting next year? >> i don't think it's a cure-all for a couple reasons if you look at tesla and other automakers selling evs, they have taken significant price increases over the past nine months because you're seeing some of the input costs spike up and literally, if you look at some of tesla's price increases, it's negated the incentive they're eligible for next year that being said, they are eligible for it versus some
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others but overall, they're going to have to continue to come out with great product but continue to drive efficiencies because ultimately they have to drive continued demand for their products, and you're seeing that slow a bit, so it's going to raise the question, are they going to have to do some marketing at some point, which they have had literally zero costs on that, but they have to continue to drive the quality of their vehicles which have had some issues and recalls. they're the number two volume manufacturing of recalls this year so they have some issues to do as they continue to grow at scale. >> i want to ask you a little bit about tesla management and elon musk. there was an article out from the verge this morning, the headline was the vibes are off at tesla talking about layoffs, losses, delays, twitter chaos, and saying the stock is in freefall though it's up pretty dramatically this morning. how concerned would you be about elon musk being distracted with
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that litany of issues. >> it's a 24/7 endeavor, and when you look at elon and the other balls he has in the air, including twitter, you have to ask yourself, when he's competing against other automaker who their ceos are 100% focused on the business, are they getting the best out of that within the organization, for their people, listen, many of them come to work at tesla because of elon, so that will still be there as he's in charge of the business. but he's facing some mundane problems that all the other automakers face, surrounding the right sizing of the business when the top line gets tough during an economic slowdown. and he's going to have to look at retaining his best workers because if you look at the stock performance, a lot of the execs, their compensation is in equity. and with the performance this year, a lot of those execs are probably looking at their equity compensation and saying, hmm
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>> mark, good morning. it's deirdre i don't doubt that leading a car company or any company for that matter is a 24/7 job, maybe for not a few select people like elon musk, but if 2023 is really the year the real competition comes online, could one argue that tesla's really coming from a position of strength and has something that other players both legacy and new don't have, that is vertical integration elon musk is able to do things like manufacture their own batteries, sell directly to the consumer, do things like we saw during the pandemic, change the chip makeup so that they don't need necessarily the highest end ones >> yeah, i mean, i think you're exactly right. they do have a lot of advantages everybody is focusing on the stock performance right now, whispers of demand issues. but as i mentioned earlier, at the heart, they're a battery, software, and technology company. they have done a terrific job of vertically integrating they get pretty good prices on the elements that go into the
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batteries. they know how to scale and that's a big advantage they have scaled over the last couple years some oddo makers like gm will be introducing a lot of product this year. they have to ramp up their plans to, a, get their product out, and b, work the cost efficiencies and scale efficiencies over time, which tesla has done a good job at and they have very good battery technology because they have been focusing on this for quite some time. >> mark fields, former ford ceo, thank you for being here julia. >> and those tesla shares are up 8% today though still down 65% year to date "tech check" is back after this quick break. hi, i'm eileen. i live in vancouver, washington and i write mystery novels. dogs have been such an important part of my life.
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welcome back to "tech check. i'm contessa brewer. here's your cnbc news update southwest shares on the rise this morning, even as the airline canceled about 60% of its flights today. southwest says it could have its full schedule restored tomorrow, just in time for the flood of new year's travelers the stock is up 3% today, still down 8% this week. >> jobless claims ticked up the last weekly report of the year claims rose to 225,000, that's a level that still indicates a tight labor market because it's slightly above claim figures going into the pandemic. crude oil is down more than a percent with traders concerned about china's covid surge affecting energy demand. the losses have eased as the dollar has weakened. i'll send it back to you >> thank you >> one article getting a lot of traction on this morning is from our own titled the fintech reckoning is upon
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us pretty amazing stats such as 20% of all vc dollars last year went into fintech it felt like any company with an idea, whether it was really a platform or a product got funded what does it mean going forward if this reckoning is upon us, does the target change does the model change? instead of being a one-stop shop that every fintech wanted to be, are they more open to things like acquisitions? >> great to be with you. i would say after the party comes the hangover of all the vcs, founders and investment bankers i spoke to, they believe that this reckoning, that this series of mass consolidation of companies needing to shut down or to sell themselves is going to happen within six, nine, perhaps 12 months and so i think it has a lot of ramifications. you're seeing all these companies going to their back end and saying how can we extend the runway, how can we actually become more profitable the problem with them dirk the
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party days is that they had poor unit economics it was let's growth hack our way to a business. let's use marketing and purchase users, not unlike ride share companies a few years ago, and get to scale and then figure out how to make money from them. and so now that the cost of money is no longer zero, you're seeing that they basically don't have a lot of, you know, pathways to profitability and you're seeing them basically look at a future of having to shut done. >> speaking of cost of money being zero, how much of this no longer being zero, how much of this reckoning is really about interest rates and the fact that these companies' business models were built on low interest rates? >> yeah, some of the vcs i spoke to were flabbergasted that when they had the time to do due diligence with their possible investment cases, that the people who founded these
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companies, they lived and grew up basically during the summertime of free money and had no conception of what it would be like to have a true cost of capital. and so when you see the ramifications in fintech, which obviously has the first part of that is finance, it's pretty dramatic first of all, what happens to your cost of capital if you lend money to marginal borrowers, what happens to your loss rate when for the first time they start to have deleinquencies an default on their loans that's down 80%, 90%, and that's not as bad as some of the other companies that are spacs this year so it is everything. >> and that's just the public markets. the private markets, you have seen companies like stripe reduce their value internally.
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>> we're going to continue this discuss and talk about how to play fintech in 2023 let's bring in d.a two of his top picks in the space, good morning, chris thanks for being with us why do you like them going into next year? what's going to separate the winners from the losers in terms of public fintech companies? >> thanks for having me and thanks for the question. it's certainly a sea change in investor appetite for these names on the private side and public side. profitability is key we're not funding ideas anymore. we're funding real businesses. so both the companies, the stocks i'm recommending for next year, solidly profitable square a little more of a high growth story with sort of scaling still ahead of it. where shift is a traditional payment company. the idea is to focus on companies getting a share that has motes surrounding their business and are already profitability. >> there was a time not too long ago that some of the fintechs like paypal and square or block
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now were worth more than some of the big legacy banks do we ever get to those kinds of valuations again does it turn out that maybe consumer habits are really sticky you have savings accounts from the likes of chase and others offering 0.01% apys and you're not seeing this huge move to higher yield banks >> yeah, i think separate the signal from the noise, there's a lot of excitement over finn tech and now the pendulum has shifted the other way. but the underlying trend is still there. these companies, they are the newer tech platforms that offer value propositions, superior experiences for consumers. they're still gaining share. it's just the market's appetite has shifted drematically i think a company like square, paypal, have the potential to be worth more, but valuations have changed dramatically, so it's going to be about ebitda,
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growing profitability and keeping your eye on more rational decisions rather than growth at any cost we could get there eventually, but this environment is going to put multiples at a lower level >> frank holland here. i want to touch on shift four, not a household name, bought big upgrade today from piper this is a company as you mentioned, more of a traditional payments player but its business is levered to the restaurant and hotel space. recently it raised its guidance but we have seen people spending a lot more money in restaurants and hotels if we truly see an economic downturn and pocketbooks being pinched, won't it hurt the business because we won't see people at restaurants and hotels in the same way we are right now? >> great question and one we're thinking about a lot we think we're going to be in a softer economic environment next year and that factors into our thinking because discretionary spending is a large part
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but this is much more of a share gain story back to deirdre's question, shift four has gained share from traditional players. at a rapid rate. they grew volume about 50% over the last five years on a compounding growth rate average and even grew volume in 2020 when the restaurant business was entirely shut down i view it as a testament to their platform they offer a superior platform for restaurants and taking share from traditional players that aren't as tech friendly. if they see spending come down 500 basis points, it's still going to grow at 40% it's more of a share gain story. >> it seems like for all of these companies you're bullish on, it's a share gain story and also the fact the stocks are off so dramatically. i'm looking at some of the stocks you have a buy on it includes paypal as well as affirm a buy on affirm there. but just walk us through sort of what you see as being the biggest risks here obviously, the shares have come
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down a lot, but are there areas you're concerned about or do you think we might even see consolidation in the space >> both good questions i am concerned about valuations. a couple years ago we were trying to invent new ways of valuing companies. at the end of the day, ebitda and cash flow are the most important metrics. companies need to be profitable and focus on that first and fo most a company like affirm has a different set of risks i still love that story. i think they're here to stay we are seeing good early results from what retailers have reported this holiday. consumers loveit, retailers love it. it's staying and affirm is a winner the problem is you're definitely going to see increased defaults across all consumer credit classes in 2023. so far, the short term nature of buy now pay later has proved to be resilience. they can make changes on the fly so credit quality has been relatively good, but you still have that macro headwind that makes it a tougher stock to get
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out in front of. that's why i'm leaning toward shift four, and square is in a category by itself for years it was hard to get a valuation that made sense. but profit growth is coming, and this is the way the cash app has performed recently the pandemic accelerated a lot of fintech applications and gave us a head fake this was here to stay, but the fact that cash app is still accelerating, especially in the third quarter, even without stimulus, is a testament to how consumers love this product and it's here to stay >> and able to monetize, something that paypal has had trouble with, with venmo i want to ask you about one of the biggest and buzziest companies that is still private, stripe a darling in the bay area. it took an internal haircut valuation this year. now worth about $174 billion has it missed its window to go public the company has not talked about being interested in doing so, but what's the future of this
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company. >> very interesting question i think there was a window to go public, but it's also a thing where a payments processor doesn't need as much capital as a lender, one that should have gone public earlier because it does need outside capital to continue to lend money stripe's business is much more profitable and closer to square, so i don't know if it necessarily has hurt itself significantly. they have scaled back their growth plans and they said they grew too fast in terms of employee count, so i don't think it's a huge negative for stripe given how strong their business model is, but i'm sure it will become public at some point. >> ygreat to get your insights >> thanks. >> coming up, the first trust nasdaq cybersecurity etf may be down nearly 30% this year. but with ransomware threats on the rise, is there more opportunity ahead? we're back in a moment
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commercial real estate vacancies are on the rise in san francisco. what might the tech sector have to do with it? yasmin is here on set with the details. you walk around san francisco, and you know this used to be a bustling area, but tech jobs, as
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they decline, so does the commercial space here. >> yeah, you and i live and work down here, so we see it. we got early look at preliminary numbers by cbre research showing for the 12th straight quarter out here, vacancies for commercial real estate in san francisco have shot up, now at a record 27.2%, prior to the pandemic, san francisco had one of the lowest vacancy rates at just under 4%. that's a big jump. today, more than a quarter of that city's office space is sitting here completely empty while the growing number of zombie buildings and commercial real estate continues to be a nationwide problem san francisco is hurting the most among the big cities. and it's because of its historical relationship with tech that vacancy problem is two-fold here tech's early embrace of hybrid and remote work culture was the chief catalyst in the early days of the pandemic. now, rising rates and a brutal macro economic environment, especially for tech, have caused
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many of those headquartered here in san francisco to dramatically cut their workforce and in turn, their need for office space. take a look at this. now only a third of the city's commercial real estate square footage is leased by tech companies. a number that was 50% last year, and as high as 75% previously. so everyone is wondering is a recovery ahead two interesting data points suggest this is more of a correction on tech spending than an indictment on living in san francisco. subleases continue to increase, about 8% quarter over quarter, meaning those businesses aren't leaving but instead downsizing and getting some sort of return on their investment. that big tech think meta, salesforce, google, still have more workers employed now than they did pre-pandemic, despite this year's big layoffs. the trick is getting them back into the office. and by the way, guys, if you're looking for that investor impact, this isn't just a long
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term trend to watch. there's near term impact for investors. ybre has a large presence in san francisco. that stock down 30% in 2022, but it's just the best of a bad log with most names down at least 40%. >> yasmin, thank you very much we're going to be right back after this break much more "tech check" coming up the first time you connected your website and your store was also the first time you realized... we can do anything. cheesecake cookies? [together] the chookie! manage all your sales from one place with a partner that always puts you first. godaddy. tools and support for every small business first.
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nasdaq holding on to gains this session up nearly 2.7% let's get a gut check on airbnb. that stock rebounding after hitting all-time lows in yesterday's trade. it's trading at $85 a share. still above that ipo price of $65 a share. "tech check" is back in just a moment . aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.
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just look around. this digital age we're living in, it's pretty unbelievable. problem is, not everyone's fully living in it. nobody should have to take a class or fill out a medical form on public wifi with a screen the size of your hand. home internet shouldn't be a luxury. everyone should have it and now a lot more people can. so let's go. the digital age is waiting.
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all right, welcome back to tech check around 770,000 jobs are unfilled according to the white house in this mission critical sector the most serious threats are coming from russia described as high tempo and high imp pact, china, and iran, where attacks are described as escalating. also forecastingransom ware is
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being replaced by pure extortion after data theft recently that's not been the tail wind for cyber stocks while most executives agree ceos i cited deals taking longer to close and customers scrutinizing their spend more than they ever have before. zero trust architecture forces users even in your own network and right now adoption just about 10% for s&p 500. gartner forecasting 60% adoption by 2025 making this coming year critical for that transition web bush also says there's mna on the horizon two cyber stocks are possible acquisition targets. also tenable more than 40% off its high >> i have to say -- i'm just
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going to say it seems like cyber security is that one thing people are going to invest in no matter what. and if there's one price offer going to succeed right now is going to be that looking at that percentage and just for that category of cyber security software this seems like just the start. >> except i'm going to take the opposite view. yes, it's necessary but if you have smaller and mid-size adoptions, what does that mean for risk you're seeing even crowd strike in particular are saying smaller buyers are scaling back. >> i think you're both right just on different sides of this. one of the big things right now people spending less is they want one vendor to provide more services and that's really gravitating customers towards a microsoft or salesforce.
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the chief marketing officer said customers are saying to them don't sell me another product, show me how to maximize the products i already have. in this case it might be impacting the cyber security sector and people are saying don't bring me something new, show me how to get the most of which you already sold >> maybe that's good enough approach if you think some of the smaller and medium sized firms are looking to microsoft, is microsoft's product getting better they're focused on a very, very large acquisition in another space, the gaming space. do you think they have the bandwidth to also take on the regulatory implications in acquiring more in the cyber security space >> there was a lot of thought there'd just be a general buying spree when it comes to cyber companies and threat detention companies. we haven't really seen it. the acquisition of the supply chain software company being taken private, but 2023 is a new
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year and if these threats are as serious if china, korea, and iran in that mix we could see more companies to shore up >> and also companies want to have a one stop shop in terms of the cyber security software. if you missed part of the show, don't forget to follow and subscribe to our podcast you can listen anytime, anywhere, wherever you download po podcasts tech check is back in a moment
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all right, time now for one more thing, the first legal recreational cannabis dispensary in new york city opens up today. the question is could this be an opportunity for delivery and fin tech companies, julia? >> you know, frank, it's funny because we've been talking about instacart all week and i thought maybe this could be another thing instacart could deliver. we'll see if that holds true for ordering cannabis as well. >> it's funny to think the very first one is opening up in new york we have so many here in california, julia, as you know
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well meanwhile it is the second last trading day of the year and the nasdaq up a strong 2 and three quarters of one% what's going to happen next year this is the question on everyone's minds, guys let's hand it to over to scott wapner and the half. welcome, everybody to the half time report front and center this our hour what the last days of the year might hold for your money as we closeout a tough run for stocks. will next year be any better does how we end this year have any bearing on what happens next we discuss and debate that with the investment committee joining me for the hour today. let's take you to the markets, we're basically highs of the day. dow jones industrial average good for nearly 400 points, s&p a bit stronger than that the nasdaq the


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