balloon. okay >> the whole thing what space satellites were able to track, radars were able to track and how we are actually going to capture it. >> capture it. well, we're captured, we're done on "squawk on the street." have a great weekend stay warm. "techcheck" starts right now good friday morning, welcome to "techcheck. i'm carl quintanilla with deirdre bosa and jon fortt the nasdaq goes pop and what the red hot number means for tech today deep dives on the results of the biggest of the big why apple turned around in today's session and amazon has not. later on an exclusive with the ceo of microchip, why the street thinks that stock is undervalued. what a friday, dee. >> what a friday we made it let's look at the markets as we close out a very busy week of earnings and economic data the nasdaq still down about

0.2%, but we were down as much as 2% in earlier trading right now it is down, like i said, 0.2% the dow up by a few points, 40 despite turning lower after earnings results, look at the mega caps. apple is positive. alphabet has been trying to make it amazon has clawed back a lot of the downside the nasdaq is on track for its longest weekly winning streak since november of 2021 all of that on the back of results that, let's face it, weren't all that great. >> yeah. well, let's start with apple, dee. iphone revenues falling as they continue to face supply chain issues in china, but a ceo tim cook pointed out to our steve kovach, it actually came in below operating expenses for the december quarter then there's amazon, they saw misses on the top and bottom lines, including a miss for aws. but surge in ad business, 19% year over year alphabet, google, being hit hard on that front, missing on ad

numbers across the board but they are talking about their long-term ai bets rather than talk too much about that, mentioning ai more than 50 times on the earnings call nearly twice as often as microsoft following its open ai investment and at the end of the day, despite average falling price targets, all three remain consensus buys of the three, carl, i've got to say, the more i've looked at it, apple had a good quarter i mean, given the macro economic headwinds on a constant currency basis, i iphone revenue was about flat, they said. their inventories are actually constrained and think they could have grown if not for those inventory issues and, you know, ipad grew they were pretty stable across the board. but cautious about the guide the other two, amazon and alphabet/google in a different place. andy jassy was on that call talking about the digestion process going through multiple

different pieces of the business, including trying to figure out grocery and then getting this supply chain in line, get some of that expansion digested that they did over the last couple of years. >> that's why -- well, certainly on the apple front, why it was so notable to see it down in the premarket and then reverse to the upside in the middle of this morning's session, dee three-month high, gets back to 157. by the way, we mentioned with cramer today, we got some actual price target increases from the likes of wedbush and deutsche reiterating their buy rating already. >> because the street was able to look through some of the turbulence and say the fundamental business is still good you might argue that it's harder to make that case with amazon and alphabet i mean, you just look at the pure profitability take a look at sort of amazon's revenue. over the last few years, it's nearly doubled profitability, however, has fallen off a cliff this is exactly the problem andy jasse is trying to solve

his first call ever, talked about stream lining. talked a lot about sharpening their focus. details were a little scant because we know they need to get there. alphabet, for example, talked about slowing the pace of hiring still. i wonder if the street wants to hear about more cuts they hired 300,000 employees this past year operating margins, 21% they were at 31% not that long ago. all the talk about ai. it's not new for google. they talk about it every quarter. it did feel like there was real urgency there, jon. >> i think -- on the ai thing, investors beware not because it's not real, it's not a metaverse situation, but a lot of companies have had an ai strategy for a long time they just know investors want to hear them say ai a bunch of

times. you have to drill down and look what's going on? >> i assume you have seen, for example, a chart of c3 ai today, up 21% i'm sure tom siebel is having a very good morning. jon is right, they're just screening for the letters. >> tom soiebel, i spoke to him the day before yesterday, they're incorporating open ai into their ai platform -- into into their product it is quite interesting. i want to go back to amazon. i think andy jasse talked about how they are driving engagement and prime signups. you talked about how grocery is a tough nut to crack and they'll have to spend this year figuring out how to differentiate grocery before they start to scale it again, but they expect to scale it again after '23

i think they actually did give some good detail, but with all of this optimization they have to do and the uncertainty on what's going to happen in the macro picture this year, investors do need to consider that. >> that's why you buy amazon the multiple so much higher than their peers but you buy it because you think they might be able to pull off groceries certainly they pulled off advertising. to your cp3 ai, it reminds me of 2021 when bitcoin or blockchain in the name were rising. i'm not making the comparison saying it's the same, but just the buzz takes hold. c3 ai has been on an absolute tear let's continue the conversation on amazon and alphabet with cowen's john blackridge. did you get enough detail on efficiencies and profitability from both those names? >> yeah. i was lifbing to i ing listeninu

guys in the lead-in. we didn't get quantification of the various cost containment efforts that they're doing, like we kind of got with meta the night before but what i would say for amazon, and both actually beat on their profitability in q4 for amazon if you ex out one-time items the one thing i thought was interesting and positive on the margin is they are seeing efficiencies of the fulfillment business i've been on, we've talked about doubling the fulfillment network the last few years, ramping the transport costs. their shipping costs were up 4% year over year, while they -- their unit growth was 8% and so talking to them after the call last night, that was better than they thought it was going to be. so, i think jasse kind of talked about it a little bit on the call so, that was certainly positive on the margin. >> jon, are you worried about

cloud prospects? we got that warning from microsoft last week. on the call last night, one analyst asked them, is mid-teens a holdable growth rate the ceo said, it's not we just don't know what does that make you think? >> yeah. so, they said mid-teens growth in january versus 20% growth in the fourth quarter i think it probably holds for the first quarter. and then after that, we have it going down, decelling a bit further in the fourth quarter and destabilizing maybe uptick as you get easing comps at the end of the year. i think it depends on the macro. they said multiple times last night macro is impacting enterprising spend on cloud. companies are trying to cut costs where they can aws isn't immune to it even google cloud's growth profile is higher. that also missed our number, too, although the growth was better than aws's. >> john, the most constructive

things the bulls are assembling on amazon, but mostly tech at large are, they've made their cuts and more to come. the guides are doable. the community is underinvested there's a collapsing vix, a more stable back drop everything's more investable in tech do you have a problem with any one of those things? >> no, i don't, carl the problem is that we -- i think you're going -- we -- take amazon, for example. we have their op income up 70% this year. it could be better and we've written about this and when you look at -- just take amazon op income this year, we have about $21 billion. if you back out aws and back out the advertising business, assuming some reasonable margin, the rest of the business is still losing -- i think we have $16 billion. so, there's -- you know, before covid, you do that same math and the rest of the business was positive one or two billion. so, you know, there's more to

ko in 2022 losses were in the mid-20 billion we're getting there. i'm bullish on the fact that we're going to see, i think, they're taking costs seriously and we're going to see it. it would be better if they were a little more clear and maybe quantifies it. >> john, let's talk about capex for a moment when it comes to cloud. we're talking about supply chain and the digestion that amazon has to do there. but it seems like cloud customers are doing their own digestion of cloud spend here where both amazon and microsoft are talking about opt imization. customers wanting to get more for what they're already spending what does that mean for what companies will spend on capex? it seems like that will come down if anything, what they're going to spend on is their own custom chips that allow them to run optimized workloads.

that could end up hurting some of the external vendors. >> yeah. that's right what did we hear alphabet told us their capex will be flat in 2023 at about $30 billion. amazon never guides. doesn't guide to capex, but take last year, for example, the aws portion, we think, was up about $10 billion. i think that's going to come down we have modeled mid-teens decline overall for amazon because i do think you get some relief on the aws spend. last year you had a big drop in their fulfillment capex spend with the big build over 2020 and 2021 i do think you're going to get lower capex at amazon and obviously alphabet told us it will be flat. >> right john blackledge, great to get your insights. >> thank you. big theme this week has been

the state of the ad market, as you know we have snap, meta providing some conflicting commentary. amazon and that disappointing number across the board. as we mentioned, ad revenue was one of the lone bright spots let's bring in julia boorstin to talk about their number and what it says about the fears of an ad recession. >> well, carl, some of the tech giants fared better than others with this feared ad recession because of how their particular ad products work we saw amazon was the best when it comes to advertising, soaring where others struggled amazon's ad revenue grew 19% snap's was flat. google's search fell 2%, meta's fell 4% and youtube's fell 8%. that divergence is because of how all the ads work brand advertising, which meta is exposed to the most.

amazon's cfo explaining that amazon's ad revenue grew faster than underlying sales revenue because of the advantage and the fact that, quote, our advertising is at the point of sale, when someone is ready to buy. this driving amazon's global digital ad market share to over 7% this year up from just 5% in 2020 as amazon makes gains on the two dominant players in digital advertising, google and meta another key advantage of amazon's growing ad business is it presumably has much higher margins than the retail business. >> on the alphabet side, the team talked about youtube shorts, 50 billion average daily views. it seems to have come out of nowhere. they want to monetize it this year how can they do so what's your take on it can they do so in a way that may be faster, easier than what meta has been able to do with reels >> yeah, it's so interesting because this is such a good comparison to what meta has seen

with reels youtube shorts is, again, inspired by, i will say, the success of tiktok and short-form video format whenever you have a new format, you want to drive engagement to that format first and then the ad dollars should follow the question is how much is lost in that transition as you try to bring advertisers over to the new format i think they're on track to try to drive that ad revenue the question is just, will youtube shorts ever be as profitable from an advertising stand point as traditional format has been? there's no question that's where consumers are going. seems like advertisers are getting used to creating ads for that shorter format. if you look at brand advertising, which youtube has been so good at, providing a digital alternative to tv, if they can do more direct response in that short format. >> julia, some of this commentary seems bad for pinterest and snap i know it cuts both ways, particularly with pinterest, but if the shift is away from brand

and toward direct response, what do they have to do >> well, it's so interesting snap has about 50/50 brand direct response, according to mark mahaney, who gave us estimates. he also says pinterest is the one most exposed to brand advertising with about 75% of ads coming from brand advertising. pinterest has a new ceo, who's very focused on driving transactions, driving commerce and guests, direct response ads on the platform. so, we'll be hearing a lot from him on monday about what -- when the company reports after the bell, but what the company is planning to really continue that transition into direct response. there's such potential in pinterest, carl, because people go there looking for products, many times looking for products to buy so -- but they do have a lot of room to go in terms of moving away from this reliance on brand advertising. >> obviously, busy week for pin with the layoffs this week up next, we'll dive further

into apple's quarter a miss for both revenue and profit is demand deteriorating or can they overcome a tough macro? either way the stock awfully close to levels we last saw around labor day we'll talk about that when "techcheck" is back. conventional thinking delivers conventional results. at allspring, we break away with purpose. harnessing data-driven insights and boundless curiosity. we dissect the market from every angle. helping to build portfolios that redefine what's possible. because investing isn't one size fits all.

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welcome back to "techcheck." apple's three-year winning streak of record sales and profits coming to an ends. the company reported its first quarterly revenue decline in nearly four years but shares rebounding in the trade after the strong jobs number let's bring in bank of america who went from a buy to neutral rating on the stock in september and cnbc technology correspondent steve kovach, who spoke with tim cook yesterday around earnings. steve, i want to start with you. i thought this quarter was actually pretty darn good considering on a constant currency basis were about flat on iphone, think they could have done better if supply had been more available and they're in a really good inventory position >> that's right, jon on a constant currency situation

they say they would have grown this quarter if not for all the foreign exchange headwinds because of the strong dollar production problems when i spoke with tim cook yesterday, he said it's largely behind them he wouldn't say they're back to full production capacity but they do have the capacity now to meet the demand they're seeing again, the big question for myself and analysts on the call was, is that demand that they had they couldn't fulfill last year carrying over into this year they did not have a good answer for that tim cook basically saying they don't have enough data yet to say are they seeing a carryover into this quarter. they did say a cross-product category, jon, that basically everything but services is going to fall again. sales will be down year over year what investors seem to be liking with the stock up a little over a percent now, i think it is, what investors seem to be liking is iphone is not going to fall quite as much. there's a little bit of optimism that even though there's

weakness among the consumer for demand that they're going to perform as best as they can. i would also point out that even in this tough environment, apple gained market share. >> that, i think, is the tough place to be in if you're neutral on this, right on the hardware market, apple is not grappling with oversupply when it comes to inventory or finished product while we're not sure what demand is going to look like, their strategy is playing out when it comes to vertical integration. they're continuing to work on the mac. we should expect to see some new products toward the end of the year might you have to shift your position here? >> well, thanks for having me, jon, maybe to quote you, on the other hand, i think what is important over here is to really understand what truly transpired through the quarter. the expectation going into the quarter when estimates are at $128 billion in revenue was

there was going to be a ten-point fx headwind. what ultimately transpired was eight-point fx headwind so that's less than anticipated, and yet revenues came in at $117 billion. also we have to remind ourselves that iphones would have been up without the impact of the supply chain issues, but on the other hand, you did have an extra week in the quarter, which tells you there's about a seven-point benefit they got, so they would have been down on apple to apple compare. there's a lot to parse through in terms of fx, in terms of productions issue, channel inventory. the reality is demand is weak and the management team acknowledged this on the call that the macro was tough, it's been a long time since they attributed anything to macro frankly, as you look into next quarter, the acceleration is coming more from a reported number based on the lack of the extra week rather than improvement in the demand

fundamental. i think when you parse through this, what's lear are estimates are still coming down. we downgraded the stock back in late september, i think consensus estimates were around $6.45. i think as the dust settles we'll be closer to maybe $6 in earnings in this meantime, the market multiple has moved up and so has apple's. >> there's a lot of nuance in this quarter if we could broaden it out a little bit, i know tim cook told you production problems are largely behind them. but they kind of popped up in the first place unexpectedly, especially talking about guangzhou city where they make the iphones. >> iphone city. >> right what de talk about that diversifying that to india and vietnam? is there still that urgency even if that has largely gone away. china is such a black box. >> one of the big quotes on the analyst call yesterday from tim is, i'm very bullish on india. he was mostly talking about the

consumer they're about to open up a new store there. they've been trying to crack india for so long on the consumer side. india doesn't have that rising middle class like in china what he did say is we're looking at china the same way -- or india, rather, as we looked at china as this growing opportunity for, obviously, manufacturing. we know they're increasing manufacturing there to alleviate in future pressure in china and across asia. also the consumer, they see more opportunity there now. seven years ago they tried, didn't quite work out the same way. even on cheaper phones it seems like things have finally shifted and they feel like they can make moves. >> thank you talk to you both soon. up next, layoffs are driving workers back to the office we'll take a look at occupancy data and what it means for the talent right here in the tech sector. plus, check out shares of upstart holdings, downgraded following an 80% rally to start the year only down less than 2% read more about that call on cnbc.com we will be right back.

we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

welcome back that hotter than expected jobs number sending the dow lower workers are returning to the office at the highest rates since the pandemic began the return-to-work surge comes as companies in virtually every industry cut head count. robert frank has more on how the layoffs are bringing workers back to the office i noticed the journal piece saying the boss is back in charge >> certainly a little more in charge than they were before since the first time since the pandemic, a majority of the nation's office workers are back in the office. office use for the ten biggest cities hit 50.4% last week that's according to cassel there are still big differences between cities, though austin, texas, you have 68% of the workers back in san jose, back there in tech land, it's only 41%.

new york now at 48%. the actual number, though, could be even higher a survey of new york's biggest employers by partnership for new york city found that 52% of manhattan office workers are back for most companies that means three days a week, only 9% of new york employers are mandating five days a week back in the office they say the new normal for manhattan occupancy will be around 56% so, that's where it may level off. now, the industries with the highest office rates in new york are real estate, finance and law. tech among the lowest. though labor experts say the layoff fears that are growing now may be driving many workers back to the office more ceos are also cracking down starbucks telling employees to be in the office at least three days a week. disney requiring four days a week back in the office starting in march carl, as you mentioned, as that balance of power starts to shift

a little bit back toward employers, we may see these numbers start to drift even higher >> robert, we know that the new york area, manhattan specifically, has been lagging the national average in terms of those card swipes. what does it mean for the new york economy >> the new york economy is still in denial about this you have the governor and mayor all saying, please, get back to work although you've got the subways now looking at this shorter monday and friday schedule but look, whether you're talking about restaurants, whether you're talking about all the commuter economy that's based on a five-day-a-week economy, that still has to shift to three days a week we have 100 million square feet of empty office space in new york it does not look, based on this survey, that employers are looking to add space any time soon >> yeah. might even take advantage of maybe smaller footprints once some of these leases roll. pretty interesting numbers, though, certainly nationwide, robert thanks

robert frank san francisco, where i am still some ways back to get to that occupancy speaking of return to work, we'll have a lot more on the morning's job report after the break. take a look at tech impact major averages are off session lows and the nasdaq has turned slightly positive. the ten-year is at 3.258 we'll be right back.

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couple hours into the

trading day. a check of markets close to session highs dow's up 105 s&p creeping back into the green. nasdaq has gone positive in the last few minutes as well some of your big movers today, very busy session. clorex among the best performers ford shares are sinking after reporting that ugly quarter that did miss company flagging some supply chain constraints and poor execution for that miss. starbucks is lower as well q1 earnings and revenue miss com gloet a big drap, coming from china where comps were down 29 apple, session highs here. i think up near 4% a little better on a share price at $157, going to take you back to the fall of last year let's get a news update with bertha coombs. >> here's what's happening at this hour. secretary of state antony blinken is postponing his there ip to china this weekend, after a suspected chinese supply balloon was spotted over montana

near u.s. nuclear missile silos. blinken put his trip on hold as chinese officials express regret for the incident saying the craft is a civilian weather balloon that blew off course. new england is bracing for an arctic blast that expected to drive temperatures to 50 below zero in parts of maine public schools in the boston area have been closed ahead of the extreme cold, as well as from central new york up to maine. about 60 million people are under windchill warnings across new england. and a suspect has been arrested in that disappearance of two tamarin monkeys from the dallas zoo tips from the public led police to find the monkeys in the closet of an abandoned home. other tips led to the suspect, who's been charged with six counts of animal cruelty that's really a wild story, no pun intended, jon. >> it were a good pun if ended

thanks. back to the job report the economy adding 517,000 jobs in january big surprise to the upside, despite a flurry of companies announcing layoffs recently. so, was today's number a notch for the bulls or for the bears to try to answer that question, let's bring in cnbc senior economics reporter steve liesman, who also has a bit more on the impact on the tech sector steve, it seems like good news is good news and bad news is good news in this market >> yeah, i think that's right. i'm hearing a lot of astonishment, adjectives about this report. those saying the recession is off or delayed to those saying more fed rate hikes to come, to mark zandi from moody's tweeting out it's so unbelievable, he thinks people ought to ignore it 517 is what jon told you, blowing out estimates. those revisions upwards will tell you there's momentum in the

market low employment rate, the lowest since 1969 average hourly earnings were muted. that's good. hours worked up. leisure and hospitality are trying to recover the jobs lost in the pandemic. the first signs of tech layoffs did show up, but not very much the government registered a small bit of the 41,000 tech layoffs last month, but it was the biggest drop in the sector since august of 2020 looking at the computer infrastructure sector there, especially there may be more to come. i looked at just the computer infrastructure and data processing jobs. there are some 80,000 jobs over where they otherwise would be. they didn't go through the hiring frenzy during the pandemic there may be more to right size in that business the tech data is symbolic of other industries a lot of announced layoffs and industry saying the economy is slowing, but you wouldn't know it from looking at this report

>> the tech jobs make up such a small percentage of the overall jobs, right, which we've talked about in the past. it's been called a wow, wow, wow job report but, of course, the bears, there's always something for them within this report, could you say maybe that was services, costs and the market might be too optimistic about inflation how do you square this with the market reaction and the fed's intention to look at data over longer term than what the market's looking at? >> i think you probably nailed the big negative on this, which is it puts the fed back into play one thing we've been following is the gap between where the market prices the fed at the end of the year and where the fed is forecast to go the fed at 5.13% the market has come up towards the fed. that gap is now around 57 basis points it had been as much as 75. so, the market took a 25-basis point step towards the fed and the fed didn't move. so, powell is probably feeling not too bad.

the bigger question is whether or not this will ultimately really lead to inflation, this tight job market then, of course, you can't leave out those who say this may be the last really good one, but they keep waiting for this job market to slow down and it just won't quit. >> is this, steve, a sort of exoneration for the fed and the people that said, oh, my goodness, powell doesn't know what he's doing. he's running us straight into a wall it seems they went to 25 just in time or, you know, if not for the stat you just mentioned, some might say, boy, he really should have done 50 basis points but the market is getting closer to the fed maybe this is baby bear, you know, just right. >> yeah. look, the best possible outcome of this gap between the two is something of a meeting in the middle the market slowly takes its time you don't want this jerk, oh, my god, it's 5%, we have to go from

4.50% to a5% by year end if it happens over time, i think it's okay. then maybe the fed comes down a little bit, not a crazy thought that if you get a couple good inflation numbers, maybe the fed reduces its outlook a little bit. let's say you meet at 4.80, 4.90 that would not be a bad outcome, jon. the bad outcome would be if we get to a place where the market thinks the fed ought to cut and the fed is staying the same or even hiking at this point. but you're right, jon, in the sense that maybe you want to think about adding another 25 to the upside here, at least risk management wise. >> and i give baby bear credit for making it just right goldilocks stole it but baby bear coined it. first, pet food, then video games and then alibaba and now high-end clothing. check out shares of bill.com, sinking more than 25% this morning, despite reporting an

earnings beat. it's the weak revenue guidance that has investors concerned ceo rene lacerte will join the show on monday

we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for

cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. if there's one thing that jeff bezos and elon musk can agree on, it's their mutual love of hbo's mega hit, the post apocalyptic hit "both of us,"

both praising the series on twitter this past weekend. and the audience agrees, an adaptation of the video game of the same name, spent 20 years of a fungled pandemic is hbo's second most watched premiere after "house of the dragon" and just renewed for a second season we sat down with the show runner, co-creator, ep and we asked him if the series has opened the door for a new wave of video game adaptations for television >> i tweeted an interview with hbo's marketing chief who talked about establishing trust with the game's fan base. a friend of mine quoted it saying, with the marvel/dc looking tired, maybe video game adaptations finally get the best and the brightest. it's a fresh field in terms of what's right for ip. >> it is in the past, adaptations of video games have in certain areas struggled because the companies were approaching it a bit cynically.

they didn't understand the passion people have for video games. they themselves weren't connected to that material in an emotional way. what they looked at was the balance sheet of sales and built an audience and made a calculated decision. the problem is that a lot of times you end up with an adaptation that isn't really doing anything for the people that loved the material in the first place. it isn't doing anything for the people who didn't know about the material, so you end up somewhere in the soggy middle. if there's anything that comes out of this that's good for our business, it's that maybe we've shown a different way to adapt video games that other people might heed i'm not saying we're geniuses that everyone needs to follow, but maybe we've shown a little path of how things could work better >> you can watch the entire interview on cnbc.com/binge right now. for the full uncut conversation, you can join us for a special livestream on twitter or youtube after the show today, 12:30 p.m. eastern time

dee, it's a phenomenon pedro pascal will host "snl" tomorrow night he really -- craig really makes a case that there's a structural blind spot in hollywood due to a lack of gamers >> i haven't seen it yet it is high up on my list i was trying not to look at the clips you were just running because i don't want to know anything it seems like the video game genre is having a moment, going mainstream i haven't seen the series yet, but i did read a novel that's entered the mainstream as well not based on a video game but with a video game very central to it, that is tamuro that a lot of people are loving and reading. the video game genre, it's here. or maybe it has been, but mainstream now >> jon, there's also -- it's another example of streaming shows making things go viral in this case it's linda ronstadt and depech mode and that feeds it in this era that is so critical on streaming. >> i'm so glad you hit on video

game genre and its potential it reminds me of "uncharted," the movie that tom holland did not long ago it got panned by critics i think it has 45% metacritic but did better than $400 million at the box office. fifth highest grossing video game film of all time. it seems like there's potential in these stories. >> i'm sure we'll see a lot more of it. great interview, carl. can't wait to see the whole thing. coming up, a check on chips. qualcomm and microchip out with quarterly results. we'll break down the numbers as they head higher this morning. we'll speak to the ceo of microchip. "techcheck" is back in a moment.

welcome back let's turn now to qualcomm, take a look shares up about half a percent posting a miss on revenue. quarterly guidance falling below expectations the ceo weighing in on the earnings call highlighting softening demand, higher inventory, adding the company will be tightening its belt, limiting spending, moving forward, carl. at the same time a lot of people saying this quarter not as much of a down side surprise as last quarter and handling costs pretty well. >> guiding ups at 215. the street at 229. i don't know, jon, whether or not you think you can take that,

amd, and others and argue the guidance was nowhere near what we were afraid of. >> and speaking of relatively good news out of chips very different story for microchip. we have the ceo joining us now after delivering a beat across the board in their latest results. upping the dividend, guidance coming in above consensus as well an exclusive now with micr microchip's ceo. it looks like the industrial demand is holding up pretty well minimal exposure to consumer is more volatile. how does it look in your perspective? >> we're off to a good start in 2023 confidence in the march quarter. it's hard to tell how the rest of the year will look.

we have strong businesses and strong end markets and some company specific growth drivers that gives us confidence we're still working through a large backlog capacity at that we want to improve >> so what does that mean you do with costs i mean, labor markets overall still seem to be pretty tight based on the jobs number that we got but how much are you investing and leaning into that versus being cautious given the cloudiness of the macro? >> we are cautious even in the upcycle so we don't have an overhang where we have extra costs. we're looking at the current environment to get some of the resources that were harder to find last year and the year before and having good success with it. we want to make good investments when good assets are available and some of those will be equipment, some will be people we're leaning in to where we can

go >> it's deirdre. how are you thinking about this market given rising geopolitical tensions >> great question. in the short term, last quarter was difficult. we had a double issue first from covid restrictions, which limited production for many of our customers. then as they opened it up, covid spread very quickly. we had 80%, 90% of employees and most companies i've talked to, people got covid december was a bad month the chinese new year is behind us we have two good months. people are back from chinese new year we're expecting china will get stronger into february and march. >> now a little more than a year ago you launched your microchip 3.0 strategy given the turbulence in the economy what's your pace for continuing to pursue that.

>> we're going full steam on it. growth improvements and growth margin, operating margin, cash generated and the capital return that we have significantly enhanced over the last 15 months we upped it again and laid out a scenario heading towards 100% of free cash flow within about eight quarters >> to follow up, i know in the near term you are expecting the chinese market to be incrementally stronger coming out of the covid wave. washington's potentially extra export ban >> so every time there is an export control, new directive, it does have some effect on some of us. the big changes that happened in

early october, but there are spillover effects. long term china is a big market. it's not something we can ignore we need to anticipate there will be some challenges local efforts within china we will need to xre h comprehend. we held our own with it. we expect that china will have new challenges that come along we are improving our existing business and sowing seeds elsewhere not just in chinese only >> ganesh moorthy, with that stock up about 3% post earnings. thank you. >> great, thank you. still ahead today shares of nordstrom surging this morning as ryan cohen sets his sights on that company details as we get a persistent bid. dow still up 35 points mom: hey! cheap flight alert!

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one more thing, shares of nordstrom surging more than 20% today, and this is as activist investor ryan cohen secures a,

quote, sizable stake in the company according to "the wall street journal." the retailer the latest for cohen following his interest in bed, bath and beyond and gamestop, of course. big plans in motion following nordstrom's lackluster quarter nordstrom responding in a statement while mr. cohen hasn't sought any discussions with us in several years we are hope to hearing his views as we do with all shareholders for now retail investors willing to follow him into this name it's notable when we heard about his stake in alibaba, though we don't know the size of it, the stock didn't move on that. perhaps investors think he has a better chance at making some change here. >> i think, jon, the street felt a bit confused this morning. i know bemo said we are not ambitious enough to opine on cohen's aspirations. a short-term positive. >> short term at least you know who else has a sizable stake in nordstrom, the

nordstrom family they have 30%. that's not going to be easy to deal with, carl. >> indeed. guys, we've been through a lot the last few sessions between the mega cap tech and the fed and the jobs number today. speaking of retail, those results are going to start to pour in in the coming weeks. have a great week. let's get to "the half" and the judge. carl, thank you very much. welcome to "the halftime report." i'm scott wapner the day after those mega cap misses, is the tech trade still poised to run or reverse we debate the road ahead for that sector and the markets with the investment committee joining me today jenny harrington, jason snipe, joe terranova, and steve weiss it's a bit of a different picture than it was after the jobs report came out and the dow had gone positive and it's still hanging around that line the jobs report was super strong, you have good revisions. ism services was really strong, too.