land the overall index s&p is up about half a percent from yesterday's range, weakness in microsoft somewhat offset by little bounces in apple, salesforce and meta platforms. that's going to do it for "squawk on the street" this morning. "techcheck" starts right now. happy wednesday welcome to "techcheck" i'm jon fortt with carl quintanilla and deirdre bosa microsoft downgraded, meta named a top pick salesforce surge on labor plans. details on the plans to cut a tenth of the workforce and will jeff bezos pull an iger maybe a second round as amazon's ceo? i don't think so >> find out what they mean we want to kick off this morning with two big calls on the street

today. a buy call on meta and a downgrade of wall street darling microsoft. meta, to say it's seen its resurgence would be an understatement went from a dud to a favorite. stock got upgraded to buy at j.p. morgan, a top pick of the year at citi and goldman and new street initiating it with a buy today. why the optimism analysts are citing increased cost discipline to a rebuild of the ad platform, and the general idea that the negativity is getting priced in. let's bring in cnbc contributor to todd gordon to talk about it the note is interesting, they argue the privacy changes are getting absorbed, see tiktok as a threat that may fade later in the year is that pollyanna or not >> i think so.

i think it's taking the regulatory focus and obviously meta trying to reinvent itself and the focus on tiktok, i think it gives meta some breathing room to operate, reengage in the advertising space and i still as a small and medium business, a smaller business, where am i going to go to advertise, it is not snapchat, interest, meta continues to be the only place i think small businesses can go and develop an online community and focus their advertising dollars. it was a top ten holding the s&p now it's about 22, still has a lot of cash, it's got 180 billion in assets on the balance sheet, 42 billion in cash, i think it has freedom to maneuver with that. only trading 16 times next year's earnings. they're looking at -- the street is expecting $7.95 next year

expectations are way down. believe it or not, i think we'll adopt into the metaverse as they're going. >> that's interesting. one of the bull threads in the last couple of quarters was that their operating expense guides would be moderated a bit, wouldn't as draconian as they were seeing a couple of months ago and the metaverse bet might be focused and they might been focused more on reels but you want to see them go for the longer term moon shot? >> i do. i think mark zuckerberg managed expectations well. i think it came in close to 10 billion, their gross margins are still 80%, operating at 30, i think mark zuckerberg is delivering he was clear if you go back and look at some of the all -- the -- i would say under ground social media kind of podcasts and things he did. he advertises well before the

street ever got hold that he was going to make an vestment in this, and i think he's macknagig expectations i think we are going to continue to live online i think the metaverse will only enhance that managing spending well, a lot of cash, the question is can he thread the needle with bringing on the right hardware. they're not a hardware company, trying to compete against apple that's the biggest challenge but i think we are going to go there. is it next year? probably not five, ten years from now >> is it going to be zuckerberg's metaverse we'll see? while we have you, i want to get you on microsoft unlike meta it has been a stable place to hide for invests over the last year or so. but downgraded from neutral to buy and you cutting price targets azure growth has been decelerating and they believe an economic slow down could slow

down office 365 subscriptions and legal descriptions for activision blizzard. there was a piece of the note i thought was interesting. yes, the macro backdrop was going to be challenging but raised the idea that maybe the market is maturing how do you see cloud is it possible that it's maturing what does that mean for microsoft and the other hyper scalers? >> i read the report and it was very interesting and i should let you know microsoft is a top three holding in my portfolios the downgrade was predicated on the idea the second gen implementation of more advanced cloud solutions was here and people are more cost conscious, reducing head count, they're going more to the social cloud rather than the individual interpretation so i think that's a little bit of a reach i think a lot of the head count

reduction has been -- has played out. there's a lot of, obviously, reduction in forward earnings and spend. you know, the valuation i think is interesting they came out and they actually were ahead of the street revenues i think for 2024, the street at 241, eps street at 314, they're 1127. so it's all predicated on the slower adoption of the cloud but it's not just microsoft. microsoft doesn't have anywhere near the cloud share that aws has, right >> right. >> aws is 16%. where, you know, microsoft is more than that and they're trying to extrapolate the cloud slow down from amazon but amazon has its own issues, razor thin margins on the retail, on their online business so i don't think that's a fair comparison amazon's growing their software services, they're outpacing oracle sap, they still have

video games as you mentioned and microsoft is on a rotation basis showing more strength than tech as well as the qs so we're seeing some technical strength here. i don't quite see this as a downgrade. i hope that makes sense. >> todd if cloud is decelerating perhaps more than the market thinks it's a number two player, yes, but perhaps more room to grow than an aws, we talked about meta and advertising, amazon getting into advertising and video games so is there anything that could pick up the slack if we see cloud slow next year >> right again, if the focus and growth is going to come off the cloud and going back to the meta conversation, you can advertise as a small, medium business on different social portals but again the fact we are moving towards living our life online, you have to develop that community and i understand

they're having struggles with instagram and facebook and reels and getting through that but i don't know, i think they're enjoyable. i've been known to waste time there. we're seeing advertising and conversion of business >> reels or tiktok >> i think they're -- no tiktok. no tiktok. >> okay. >> on instagram. i've been known to convert a sale from the instagram reels. i think it was a shock when they first adopted and i think there's still areas to monetize in there and room to grow in there. >> all right we'll agree to disagree. i'm still not into the instagram reels. maybe i'll give it a shot. >> you're not? >> todd gordon, thanks very much. >> tiktok all the way. i hate to say it. >> tiktok. all right. that's another discussion. let's talk salesforces if up t -- salesforce it is up this morning after announcing a

layoff plan. they're going to layoff about 10% of staff for now the co-ceo put the blame on himself salesforce's move comes after a spate of tech layoffs in the past several months even companies that haven't cut yet seem to be scrutinizing their productivity, that's a euphemism these days including google, about 10,000 employees and a lower performance tier versus 2% before easier to layoff after low performance. big explanation for the layoffs has been pandemic overhiring, meta, amazon, salesforce all added ploys to their head coaches since the beginning of the pandemic and say now is the time to tighten the belt

the reason this is important for investors isn't raw job loss job loss matters at the personal level but stock level, i think the reason this matters is margin compression what this signals is these companies don't expect revenue growth to continue at the level to support the growth in cost they've already incurred so the question is, are they cutting enough now that that's going to come into balance throughout the coming year the issue to me seems to be a lot of these cuts were to get in line with what already didn't happen in 2022, if things slow further in '23, then that could be bad so these cuts could be a canary in the coal mine, not like it affects the overall unemployment rate. >> right what you're getting at too is everyoning expectationations for the year ahead star board called it in terms of sales force a subpar mix of

growth and profitability so getting the mix online, i would argue, the big picture for tech is the fed. and the trajectory of interest rate hikes and therefore labor is the most important thing. carl, tech layoffs make up such a tiny percentage, 2% of all jobs this isn't going to move the needle and what is going to drive tech, the year forward what the fed does with interest rates and that's dependent on the labor market, jobs and services, doctors, daulawyers tt aren't captured by the labor market. >> it takes me back to that call, goldman did the piece -- there it is -- about the people in i.t. and technology, basically arguing you can let them all go it and still would have a negligible effect on the overall employment rate the kind of thing the fed wants to go up as jon pointed out. >> but it'll have an effect on tech stock prices as we're talking about here can you trade the unemployment

rate that's kind of hard. but based on margins these stocks do move and i don't think the fed has as much to do with what's going to happen this year as actual results. i think there was a shift coming the economy is going to matter and individual company results are going to matter more than the direction of rates we'll see. >> we'll see it's going to be a fascinating few months that's for sure. >> bull calls for alphabet and spotify. more optimism for china tech on a day that's performing well still a lot more "techcheck" is ahead. stay with us get refunds.com powered by innovation refunds can help your business get a payroll tax refund,

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dow is up 90 this morning, getting a check on china names, a number of china tech jumping higher this morning after approval for a capital raise, a sign of progress on the regulatory front in china. stocks having a good start to the year extending the rally from yesterday in two days the k web is up 12%. and the china large cap etf up

7% pretty interesting and i know something you covered earlier this morning with specific implications for ant. >> here's the question ant financial or ant group as it's called now is closer to an i.p.o. once again. what is it going publically at this is a company once valued at $300 billion, really a darling such a huge player in the chinese market that smack down from beijing didn't just shelve the i.p.o. but also hurt the business so what does it go public at if it's less than $300 billion? if it's a fraction of that, it shows you what beijing can do if it turns the regulators onto companies which i say this time and time again, it begs the question are any chinese tech companies safe the bigger they get, the more data, the more attention from beijing. >> i'm not sure this surge signals a shift in the overall china narrative versus just another chapter with the perhaps

regulatory cooling, you know, stocks continuing to list here instead of dual listing in hong kong, it's going to be a long year we'll see. auto maker stellantis already a big player in electric vehicle development is branching out into es tolls. upping its investment in archer aviation phil lebeau is with the ceos of both companies in a cnbc exclusive. >> thank you joined by the ceo of stellantis and archer this is a partnership you're announcing on cnbc stellantis is going to be taking a bigger position in the future of archer. you're going to build the midnight ev tall back here, working with them to build that and extending potentially a loan to archer in the future. why now? why extend yourself into ev talls when you are in the midst

of becoming an electric vehicle company. >> it's about freedom of mobility and the midnight aircraft is about mobility so we are committed to deliver to our fellow citizens as many tools as possible related to protecting their freedom of operatability. so for us it's a fantastic partnership, a big opportunity with a great company called archer under adam's leadership and we see a perfect synergy between what they are doing and what we can bring, namely but not only on the manufacturing system. >> so while it will be their facility that will be building the midnight, you'll be the muscle behind it, correct? >> absolutely. you need to understand that we are making more than half a million cars per month more than half a million cars per month. with more than 4,000 parts per car. so manufacturing and high volume manufacturing is something that we think we know how to do of course with a lot of rigor

because of all the compliances that we need to be delivering. so we feel very good about helping archer in this >> adam, you have the potential to borrow up to $150 million from them provided you hit benchmarks in the next couple of years. without their commitment would you have to raise capital as you are trying to convert into manufacturing these ev talls >> from the beginning archer has been focused on finding the most efficient path to market and shown incredible progress across aircraft design and working with the faa towards our certification but the question now moves into scaling and manufacturing. so it's actually an equity commitment from stellantis that we have the ability to use to help ramp up and scale manufacturing. >> if you didn't have that, would you need to raise capital? >> what we've said from the beginning was we had enough capital to get through the certification process and we have an order lined up with

united so the extra capital that stellantis is making available to archer helps to accelerate and derisk the company. >> carlos, a lot of people are going to look at this and say i applaud what you're doing but is this a wise of capital as we're looking at a recession potentially and those hit auto makers. >> it's fair to say the family of stellantis have become experts in facing crisis it's crisis after crisis after crisis after crisis. so one more crisis, okay, one more crisis, okay, that's possible we have a very sufficient shield it's called break-even point we have the lowest break-even point of the auto industry in the world. so yes, there is a crisis, a slow down, we'll make it, we have absolutely all the

techniques, the financial robustness to face that. and that does not mean that our fellow citizens stop looking for freedom. and we are here to deliver freedom of mobility, which is safe, affordable, and clean. this is why this initiative makes us so happy at archer. >> you know the history, adam, that certifications rarely go on time new aircraft, it takes a long time for them to be certified. from your perspective, do you expect this to be in service, commercial service in 2025 >> yeah, we absolutely do. we've seen incredible buy in and support from the faa billy nolan was on -- the faa administrator was on "60 minutes" last year and talking about certifying these in 2024 so there's a big initiative to make sure they're used in the 2028 olympics in l.a so we have to get to market in

2025 to make that happen we've made incredible progress with the faa and don't see any reason why we won't stay on that schedule >> always good to talk with you both on a day where stellantis is saying we may be headed into a recession and there's a lot of their plate with ev development but muscling up when it comes to ev talls back to you. >> thank you, phil lebeau. appreciate that. can apple's buybacks keep investors happy during a slow growth period? we'll debate thaon t oert heth side of this break stay with us host doesn't stay. because without privacy in your vacation home, it isn't really a vacation... ...is it? [birds chirping]

welcome back let's spend time on apple, showing signs of life this morning but the stock is still down 30% from the all-time high a year ago after its worst december in years. it's going to be a battle of growth questions versus buyback. steve kovach joins us now.

the most important thing happening at apple is the iphone. >> yes. >> holiday season saw supply issues based on what was happening in china with covid. probably also demand issues in china. and now the question of what's happening for well-healed consumers around the world so i don't know, analyst estimates are still high on this price target is high how much risk in the next quarter? >> some price cuts today. >> but cuts like 175. >> yes 180 down from 200. at 127 now. >> so look there's a lot of optimism around here the iphone is the one in question and the uncertainty around the iphone is in question we know the plant that had the shutdowns late last year is back up to about 90% capacity so in theory if you -- you know, they can catch up to the demand. now the question is is the demand actually there? that is the big question, are people who missed out buying an

iphone in time for christmas, are they willing to buy it now or looking at their checking account saying if a recession is coming soon, should i hold off and upgrade for the iphone 15 or 16 and wait and see what happens? that's the uncertainty here. plus the easing of covid restrictions out there in china, which we know what happened when we had zero covid in china, but now if workers get sickened like we've seen in shanghai with tesla and they have to shutdown production it's a new can of worms. >> the armor that apple has against tough times, 50 billion or so in dry powder cash wise plus cash equivalence -- >> 200 sml billion. >> yes 200 something billion. it can use its cash and resources to vertically integrate to potentially boost margins in tough times how do you think that protects

the loyalty and strength argument for apple here. >> we know apple doesn't like making big acquisitions, if they are, they're small, they buy themselves apple's favorite thing to acquire is itself. shares of itself there's this -- i don't think we talk about this enough, about the buyback factor what we saw last year. apple was largely resis ttant ls year to the peers amid the market falling, down 27% last year the other end we have tesla down 65% in 2022. part of that is the strength in the consumer demand for apple products it was unique in that way, resistant in that way that other companies weren't but also the buybacks 20 billion quarter in buybacks keep investors happy the question now is amid all this uncertainty is it going to keep them happy enough dee, i think you're chiming in. >> buybacks is an important part

of the story, so is the potential to raise dividend. it comes down to what's the best use of apple's cash. they haven't used it for any big acquisition but something interesting that's emerged over the last few years is that apple is using its balance sheet like a bank using it to fund buy now, pay later loans what else could it do in terms of the fin tech space and could that get investors excited in terms of the next leg of growth >> services is the place to look iphone growth hit a wall and it could just fall if we head into a recession. talking about the services growth, fin tech is the way to watch. you mentioned in addition to that they're also doing a high yield savings account. so if you have an apple card and you get the cash back 3% or whatever it is it goes into that high yield savings account. so they're using their pile of cash to fund these projects and that's an amazing thing. they're acting like the apple

bank without being literally a bank. >> the other fin tech can't do at all. >> no. a firm can't go ahead and fund this exactly. that's why when they announced the buy now pay later thing, we saw other firm shares fall they're not going to acquire a netflix or disney but they will build within their ecosystem. >> nothing people said apple should buy apple actually bought. >> peloton. >> yeah. >> steve, thanks. taking apple head on, why shopify is trying to fill the advertising void left behind by apple's privacy push and what that means for the stock when "techcheck" is back in a minute. e is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support.

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welcome back to "techcheck" i'm contessa brewer with a look at your other business headlines today. mortgage rates shot up at the end of the year pushing down mortgage demand by more than 10%. mortgage applications ended 2022 at the lowest level since 1996 higher rates clearly is constraining demand. the average rate on a 30 year fixed home loan today is almost 6 1/2 percent. southwest said it's making solid progress on refunds stemming from the system-wide disruptions last week. it cancelled more than 16,000 flights during the holidays and could cost the airlines as much as $700 million in lost revenue

and refunds. the stock is down more than 15% in the last month. the federal reserve will release the minutes from its last meeting at 2% today they raised the key rate by 50 basis points in december these minutes give investors an update on how the fed is thinking about the flight against inflation. how it's stacking up, carl. >> thanks. got 1% gains here on the s&p this morning, a nice bounce, nasdaq reversing losses to end the session ahead of what may be a do or die jobs number on friday our next guest highlights both alphabet and shopify as stocks to target during this uncertainty for the sector joining us this morning, paul hickey great to see you again hope you had a great holiday we talked in december about the longer term challenges especially for technology and i'm wondering if some of the headlines ratify that view for

you? >> i think these longer term headwinds remain in place. this morning the market is rallying on the positive inflation news we saw in the -- over in europe and the eyes of the manufacturing, i think so all signs are pointing towards lower inflation in the short term so i think that's help to give a boost to market and tech in general, even after that initial selloff on the stronger than expected jobs report but i think investors are thinking ahead and in the short term here breathing a sigh of relief that the inflation data was positive as long as the fed remains restrictive and doesn't show any signs of getting off that hawkish stance, it's a longer term headwind for tech. >> some are pointing out resilience in the job market at least through the lens of jolt, do you think that clouds the picture in the months to come?

>> i think there's a lot of uncertainty, the jolts number has been one strong number as far as the overall jobs picture is concerned you see continuing claims rising as initial claims go employment is definitely slowing, even the job creation has been declining for the last six months or so i think the economy is showing more and more signs of weakness i think as we see the days go by the question is, when does the fed step up? will it be too late? will we already be at a point where the economy is contracting so much that it causes problems for, you know, the fed that they can't pivot and stop the bleeding quick enough? >> right talk to me about what's interesting to you about alphabet and shopify, especially given the worries about software and advertising and concerns about an uncertain consumer, for

example, this downgraded target today. >> tech overall, longer term headwinds the sector still trades at a premium to the market but you want some exposure to the sector, the biggest sector in the overall market and alphabet you have the concerns over slow down in advertising. late last year, you had the concerns over the chat gpp being a potential google killer, you know, i think those concerns were overblown but what's interesting about google here, alphabet here, it's doing something it's never done before and that's play at a discount to the markets. i.p.o. in 2004, it's never created at a cheaper p.e. multiple than the last few months so i think that reflects some of the concerns in the stock and i -- overall i think the slow down in ad spend would i rather be in alphabet or some of these smaller plays? i think alphabet is one of the,

you know, bellwethers and blue chips in the group that's why you want exposure going forward in that stock. >> shopify >> hardly a value play almost the complete opposite extreme of alphabet here but what alphabet did, it did something earlier that we're seeing salesforce today announce job cuts shopify started the job cuts back in july they announced job cuts, 10% of its workforce now we're seeing the other companies step in. so they've been ahead of the curve, so to speak in that respect. the stock is so beaten down. but if you look at it over the last year, it hasn't done anything in six months here. so the nasdaq has ultimately gone on to make the low in october and another lower low in december, shopify is pretty much been in a sideways range here. what they're also trying to do

here is fill a void that's been left by apple's privacy restrictions and the audiences tool they're trying to become a one-stop shop for retailers of all, not just ecommerce but also the brick and mortar side and fulfillment. but the audience tool is going to hopefully help to deliver more targeted ads, better targeted ads to consumers and hopefully boost sales for shopify's clients. >> pretty interesting. two names to keep an eye on. digging the lava lamp, very groo groovy behind you, paul. thank you. >> we'll talk more shopify on the other side of the break and whether they can fill the void as paul was talking about. look at shares of general motors, session highs after reporting it sold 2.72 million vehicles in the u.s. last year, reclaiming the title as america's top auto maker

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let's take a closer look at shop shopify, trying to use apple's crackdown on privacy but our next guest is a skeptic. warning merchants to think twice before opting in joining us is alex cantwitz.

what's the problem shopify long connected merchants with facebook, google, to get the word out and there's a move with intuit, mail chimp, adobe, cloud others trying to leverage that to get around roadblocks what are the dangers >> it's in your question, shopify has long been doing this the program making headlines this week has been around since mid 2021 so if this was a game changer we would have known about it years ago. at the end of day it's insulting to shopify small business customers to say it's going to solve the woes with apple. it helps with targeting a little bit, helps but they prevent optimization with apple's targeting and this

doesn't solve that i don't think how it's positioned to solve the apple problem and baffling to me that people are looking at it that way. >> it's not going to solve it overnight but isn't the ecosystem inching closer to having the data and their destiny more in their own hands? if they can put together better targeting that improves over time without having to rely on apple's platform or google's platform solely they're in an amazon position where they can run ads in their own network and not have to worry about what's on the other side. >> i'm a strong maybe. for this to work it requires a pooling of data with customers are the most successful businesses wanting to merge with less successful businesses do we want to know who customers

are buying and target them on another platform there's a reason this has been around, it's gone through testing and it's been an alpha but a reason it's been around for so long and hasn't taken off meaningfully shopify has since dropped 75% in the stock market since it announced the program. so i don't see it as a saver. >> what will be? we have salesforce and adobe with their cloud offerings we have kwaul tricks using data to provide customers with better insight. it's not just apple and google going forward. meta is signaling that, facebook signaling that, creating an environment that creates its own future which third party is the main supplier to the small businesses that require first party data now? >> ultimately commerce today is going through the mobile when it does that, it goes

through the giants, the instagrams, tiktoks and other apps those apps are all dependent on these big mobile ecosystems. it might be tempting to say we're going to move beyond the operating systempy i think it comes down to can these operating systems protect privacy but also make it possible for small business to optimize and advertise to customer i don't think it's a lost cause. that's one of the things that surprises me, companies like shopify, for instance, we see them do the little incremental changes but don't hear them advocate for their customers in a way that's befitting where is shopify's leadership going to apple saying this is messing it up for our customers, we need help find a solution, find a middle ground that might allow you to continue your war against meta but allows our customers to reach their customers. for some reason that isn't happening. that's why you see the pullback.

it's a big problem. >> if tim cook isn't listening to zuker berg i'm not saying he's listening to anyone else. >> but he hates zuckerberg. >> the analyst who predicted a double digit drop in stock last year said jeff bezos may be coming back to lead amazon as ceo. the markets, dows up 200 plus, a 1% gain on the s&p, nasdaq up more than 1% falling yoields are a bireong as pretty much a two-week low on the 10 year yield on a closing basis. back in a minute

snchts welcome back. here's a hot take on the year. could retake the ceo reins this year joining us now the managing partner. michael, welcome so andy jassy is going to get

fired for what >> well, listen, first of all i'm not a bezos whisperer, but here's what i do know. jeff bezos is an extremely rich man who got less rich last year. his net worth went from over $200 billion at the time he left to just over $100 billion. and i think $100 billion is the line in the sand bob iger just did this i do think it's possible he returns to the helm to study the show he's not like chairman emeritus, leaving the board. he's still executive chairman. he still has an operating role sl your sense andy jas as has

done better or worse than expected how much of this huge amazon stock drop is about decisions made before, logistics capacity and the overall direction of erscommerce versus something specific jassy has done wrong. >> listen, there's a lot of cross currents amazon is facing. amazon, the stock fell 50% last year that's its worst year since 2000 obviously when the dot c cc com bubble that's seven starbucks, eight intels, and paypals. it has the unenvied record of losing more than a trillion dollars in market cap. that's never been done while this is all not jassy's fault -- a lot of decisions were put there when bezos was at the helm, there is finger pointing

going on already >> i know these are large numbers, historical numbers because amazon has grown so large, but specifically can you name any missteps, anything you can attribute specifically to jassy? >> but aws their growth is the slowest its been since they broke out. without aws amazon is still, you know, however many years later since its founding still losing money without the crown jewel. >> he wasn't just the ceo of aws, he helped create it

and far ahead of when other companies started to look to cloud. he's also grown or at least helped grow this huge advertising and high margin business to another $10 billion business within amazon streaming, though, michael, this is kind of what got bob -- into trouble. it sort of looks like that's what jassy is doing again. very unlikely, but if you were a shareholder and you were going to complain. >> a lot of companies use their currencies which has grown massively and not just at amazon but a lot of other companies in 2019 and certainly 2020 streaming was the darling of wall street. think about how much market cap was added to disney plus, to disney since they launched disney plus. netflix obviously was on fire, and so amazon got in late to the game and they're still losing on

that and so i think they continue to get punched on that. they guided down there are a lot of head winds faced in this company and certainly not all jassy's fault. that's ridiculous. >> well, it is a hot take. i'm not sure we agree with it but we'll see what happens >> listen, i think a 5% chance appreciate the time. >> got it. >> meantime, guys, let's get a quick check on tesla today stock up about 5% this morning after that big drop yesterday, worst drop in a couple of years. morning star does think the company will deliver more than 40 vehicles by 2020. listen anytime, anywhere wherever you download podcasts tech check is back in a minute ice works fast... to freeze your pain and your doubt.

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one more thing before we go, coinbase surging after reaching a settlement with the state of new york over allowing customers to open accounts without sufficient backdrop checks and paying a $50 mill wherein fine to regulators and investing

another $50 million to bolster their program. ooze we keep in mind the regulatory sweep that may take place in a couple of months. >> affirm also up almost 10% at the moment so across some of these popular fin tech names at least for the moment, you know, paypal up almost 5%, there appears to be a bit of a surge >> i guess it feels like a little bit of a respite. yes, if you are an investor that wants to be playing in the crypto space, you want compliance, more transparency, more regulation, coinbase is your bet but i goes at the end of the day is this a profitable business earning the same type of fees as you have in the past for an interest bearing account >> it is profitable if our line-up as we cover ces this

year, you don't want to miss that tune in throughout the week. we're going to sit down with ceos of amd, qualcomm, and crowdstrike and nasdaq's adena freeman. >> and with good data how tech stocks do pretty well with ceos. look forward to that let's get to the judge and the half welcome to the half time report i'm scott wapner front and center this hour the only question that seems relevant right now -- are we going back to the october bottom or not our investment committee on day two of the stock summit. let's check the markets because we pretty much are at the highs of the session nasdaq having