>> all right farmer jim >> transocean. this is a risky name, but look at the news today. they're taking abn idle rig and bringing it back this is a good name. >> thanks, everybody i'll see you on the "closing bell." ♪ ♪ hi, everybody. welcome to "the exchange." with a big hour ahead. i'm kelly evans. google's developer event is cooking off right now. investors want some reassurance about google's ai plans.l the b headlines as we get them speaking of ai, it's helping shares of ba lingual so how are they using ai to its

benefit? the ceo joins us alive and with fresh signs that inflation is cooling and new data that spending on services is slowing, is the stage set for a fed pause in june? you know we'll debate that first, a look into the the markets. hi, dom. >> it is a debate in the markets and it's about the fed if you look at the markets right now, it's mixed. kind of flattish you look at the broader s&p 500. but the real story is about the trading range that we have seen today. some of the more encouraging parts of that cp ireport this morning did lead to a high of the day of around 35 points in terms of gain for the s&p 500. we've been down as low as seven. so we're losing momentum here. the range has been relatively wide in terms of up-to-down. 4116 is where the s&p 500 is right now. dow is 33,370 or thereabouts the nasdaq up one half of 1%

12,244 one of the reasons why that tech trade is flourishing today has to do with cloud computing it's a mixed picture this up 8%, better than expected results and better than expected forecast they raised there. twilio, down 16% their current quarter guidance for revenue, not what some expected on balance, check out the cloud-based etfs wisdomtree cloud computing, global x, up around 1 to 2% on the day. and then as kelly mentioned, ai this, ai that. this is all about the google io conference the shares up 1.5% today but remember, back on february 8, when alphabet/google introduced its barred ai assistant, that was right about here remember on that day, we saw a

huge drop in alphabet shares to the tune of about roughly $106 billion in lost market cap on one day alone. so yes, the stakes are high, kelly, when it comes to this google io conference we'll see what they say about what their ambitions are and how they realize them in the future. >> and they're back to the pre-crash levels and even higher dom, thank you very much let's get more on this high-stakes event and what it means for the race to be the leader in artificial intelligence diedra is live today what's the market expecting? >> reporter: you know, kelly, i just heard a loud cheer behind me people here are very excited this is a developer conference, but what is at stake is more than just developers i mean, google has a chance today to really prove to developers, consumers, to investors, that it hasn't lost its innovative edge and it

hasn't given up the lead in this huge platform shift to microsoft and chatgbt. so that's really what is at stake today. dom just showed you what happened at the last ai event, which was in paris a few months ago. that huge drop as investors became skeptical that google is going to win this, despite so many years, despite calling itself an ai-first company for many, many years that's what we're watching today. it has to excite, and that's really going to be the ceo's job. he has to show investors, consumers, developers that he can be as excited about this as some of the other players that are quickly gaining steam in this ai race >> absolutely, diedra. i guess the real -- he also had that leaked document i don't know if his authenticity was confirmed, but it seemed legitimate it talked about how it wasn't about google or microsoft, it was really about whether open source was already off to the races with ai.

and everyone else just scrambling to catch up >> reporter: yeah. some of the previous people have questioned how google will manage to be at the forefront of generative ai, while not cannibalizing its still bread and butter, which is search. what is going to happen to those true blue links every time we search in a google search fwbox? is it going to assist some of its competitors in this space? these are all very big questions. we are at the early innings. while you have seen some volatility, it's important to note what dom just mentioned, each though we saw over $100 billion wiped off the market in one day on the back of that botched ai event, google and microsoft are neck and neck here investors are well aware that google has been here for a long time the question is, how is sandar going to play this today

is he going to go for pomp and circumstance, even in the opening preshow, kelly, we had a composer/deejay compose a song with the help of ai to open it up so clearly, they're trying to do a little more to show off the tools that they are developing >> we have a little pop in the shares as they get started we'll see you again as we get more headlines now to our next guest. he says the keynote by google's ceo will be critical alex, good to see you. it's like if he does the kind of thing you're talking about, it's an acknowledgement of their symbols, and they don't want to seem to acknowledge that >> i think they have to at this point. who are they trying to fool? everybody who is watching technology, the entire market, understands that google has been slow here. so if they take this tone of, we

are the leader, who is going to believe that i think the ceo needs to say, we know we're in the fight, maybe not for our lives, but one of the fights of the generation in technology and to do that, we have to get back to the roots of google and we can't look at it as a big company. and show the products that back that up. without that, i mean, the market has seen so much at this point, i don't think it will be fooled. >> the shares are back above the level where they tanked on that early demo, up about 25% so far this year. what if they sit back and say, why would we chase this right now when it's developing so quickly? why not wait and let the marketplace develop and be more strategic about placing our biggest bets >> well, look, google is a verb, because gpeople became used to using google they wouldn't use any other site consumer behaviors are difficult

to change once you get thome going. when you think about the way chatgbt is making headway or even bing, what google risks is losing that behavior to competitors. it won't happen overnight. this is going to take some time. we know that bing isn't overtaking google overnight. but you risk getting that behavior set in the hands of your competitor. if you're google, you don't want that >> looking through here, as we have the nuts and bolts of what to expect, it runs the gamete. hardware announcements, we see that pixle tablet, android 14, then we get into the ai stuff. reportedly, cnbc reporting a large language model includes more than 100 languages. they also have med palm two, which can chance medical exam questions at an expert doctor level and is accurate 85% of the time what other specifics would you like to see here

>> with the foldable phone, i don't think it's a needle mover. when you ask people what do you want in a phone, the first answer is not, i want it to fold there's a reason the pixle is still single digits in terms of market share, but it's growing focusing on the traditional phone is a better move than making it fold but who knows? and yeah, i think that we'll see a lot about the generative models of course, they'll talk about it on the developer front but consumers dune into this thing. how is this going to change the barred product there's been so many evolutions that have happened within chatgbt and within bing. i really see this as a game of catchup for google, which is not where you want to be when you're a company of this magnitude. every developer conference they've had has been all about ai so it's weird and very interesting that they have to come now and reassert their vision and try to play some defense in a game they're used

to playing offense in. >> one of the reasons why google was waiting to do more on the ai front, there were four reasons one of them woas responsible relief on that note, lina khan was on squawk box this morning. take a quick listen to what she said >> these are new tools, but it's important to know that the existing rules still apply there is no exemption or legal shield that ai enjoys. so for the ftc, that means that our laws prohibiting unfair practices, deceptive practices, unfair methods of competition, discri discrimination, all of those laws still apply and companies need to be on notice accordingly. >> i wonder if one of the concern it is you're google, you put this out into the wild, are

you setting yourself up for major problems down the road >> i don't think you're afraid of the ftc lina has been on the door talking about this stuff, she had a "new york times" op-ed i want to see more specifics how to implement these rules i don't think the vague threat of potential regulation, which google has been under threat of for years now, if not longer maybe over a decade. the fact that this stuff is coming at google, i don't think that's going to worry the company very much. one of the things she talks about is, you know, if you scam or generate text unside a generative model, then maybe the model will be held libel under what rules and regulations? are we going to prosecute microsoft for typing up scammer emails in microsoft word it's very shaky, and i don't think google can use that as an excuse >> and that was what the tone of the memo indicated, as well. alex, thanks for joining us

today. appreciate it. >> thank you alphabet shares up 2.5% right now. in a programming note, character.ai are set to announce a big partnership with google cloud, and the ceo will join us tomorrow right here on "the exchange." we already used the technology to simulate a chat with some of my favorite dead economists. we all remember the earnings last week -- this stock has been on a tear, more than doubling this year. up 10% today, and one of the few ipos from 2021 trading above its offer price. bookings, users and revenue up strong year on year, and the company hiking guidance well above expectation. is this an under the radar ai play that's working? joining me now is hue weese.

pr -- luis thank you for joining me how is ai helping duo lingo? >> it's a major tail wind, and -- for example, the thing it allows us to do is teach closer to one on one humans this is what we wanted to do from the beginning and with the latest events in ai, we can get closer to that. >> understood, but when i look at what we're going to hear from google this very hour, according to cnbc, they're planning to announce general use, large language model that includes more than 100 languages. is that going to circumvent the need for everybody to get, you know, good at other languages with an app like yours >> language translation has been very good for the major languages for the last ten years. that's not prevented people from learning a language. most of our users are in two big categories

one is people who want to learn english and want to do it for a job or to move to a country like the u.s. i don't think those people can rely on having some sort of headphone that helps them translate all the time that's one big category. the other is people who are learning language as a hobby also they're not going to be affected by something like that. again, language translation has been very good for english and spanish for the last ten years so we're not worried about that. >> very early on, khan came on and said it would be great for business and education so roll the clock forward, how might duolingo app experience be changing as a result of this >> it will feel a lot closer to you doing role play. for example, you'll be put in a situation where you're told hey, try to buy a croissant from this baker in paris who happens to be pissed off, and you just try to do that. so i think we're going to be

adding a lot more of that, and that helps you practice your conversation so we'll be able to get a better deal the other thing we'll be able to do a lot more, we just launched a higher tier of our subscription one of the things it does is explains your mistakes in a very easy-to-understand way historically, it's been hard to give you an explanation of your mistakes sometimes the things that you enter are so weird, that we couldn't in the past really tell you what your mistake was. but now, with generative ai, we can tell you what your mistake is >> that brings me to the last question how expensive is it? is this your generative ai proprietary that you're using? >> we use a combination. partly some home brewed stuff, but this does cost money this is why we have it in a higher subscription tier but over time, we expect these costs to go down you know, we'll try to figure

out which tier, or maybe give it to everybody for free. it will depend on the cost which tier we put all the features >> you invented capta. what is next for you >> we're starting to teach things other than languages. we launched an app to teach math, we're working on an app to teach music. so we think we can teach most things that take a long time to learn with a phone in a very effective way, and we think that generative ai can help with that >> we just got a piano yesterday, and i have a 3-year-old who has shown an affinity for it, and he loves the ipad can i put your music up and it will teach him how to play >> it's not yet out. that will be out in a few months when that happens, you should do it it will be fun, just like

duolingo >> thank you for joining us today. still ahead, the ten-year yield plunging on this morning's cpi print, just in time for a traesh i option. we'll get the results. plus, tweaking its fad five portfolio. tractor supply is out and walmart is in. next, what is behind the call and why he is so bearish on one home improvement name. and here is a look at the markets. the nasdaq is up, the s&p down, and the ten-year is at 3.44. back after this.

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welcome back to "the exchange." let's get to the headlines rick santelli is tracking that >> hi, kelly indeed, you know, the cpi number changed the course of the outcome of the election -- or the auction to some extent why? because it took any concession away yields dropped aggressively. so the auction was $35 billion ten-year notes, the second of a three-part auction totalling $96 billion. and the grade was a c plus, the charlie plus the yield 3.448.

one issue was the 3.438. then the tailing was the issue most likely the reason it tailed is because aggressive bidding just wasn't in the cards without that concession. but the metrix were very solid we're making new low yields right now as i speak kelly, back to you >> wow, 3.44 on the ten-year so much for the massive debt ceiling problem. new data showing inflation is cooling, but is it enough for the fed? the consumer price index rose 4.9% in april, 10 straight drops. and airlines dropping 4.5% from a year ago and the new york fed's recession indicator spiked to 68% at the end of april that's the highest rating since 1982 does this position for a pause

in june from the fed joining me now are my two guests welcome to both of you michael, i'm going to start with you. the cpi print, does it pave the way for a pause next meeting >> i think the fed was on track to pause any way, but this takes out a bad scenario the report was as expected nothing terribly shocking there. still, if you look at inflation, the run rate is too high so chair powell likes to focus on the super core, but services taken out, housing inflation, that's still running at 4% an you will rate. so above and beyond somewhat he thinks is reasonable is it enough to fget the fed to change course? we don't think so. >> 68% odds for a recession at this point that's uncomfortably high. >> is that recession a feature it needs inflation to come down.

>> i thought, chris, i don't know what else you can say, but chair powell said in the press conference last time that his base case was not for a recession, which surprised me. >> sure. well, it didn't surprise me that he said that there wasn't a recession, because he really can't. but recession is a qualitative thing. if you slow too much, you ease into a recession that wouldn't be the worst thing in the world for equity investors, we can buy things at lower prices so i do think, kelly, we're still in an economy, in a stock market that is speeding down a cul-de-sac it seems happy, but there's really no place to go. there's no outlet here that ends happily in the short term. >> and do you -- we talked about the stocks of j&j, dollar

general. i think you mentioned domino's pizza might be on a pullback is it just a matter of waiting then if we wait, four, five, six months, that's going to be the macro event? >> i think so. and i don't think you have to wait forever i think there's things you can buy right now, the johnson & johnson john johnson, the dollar general, both stocks would do better in a recession. so you can buy those now johnson & johnson is doing a spinout with tylenol and other great brands, happening over the course of the year so that might work, even if the market declines. dollar general is a countercyclical business people shop there more when the economy slows. there's stuff you can do now but use a rifle, not ashotgun. you have to be intentional and since you're getting 5% for your cash, there's no fear of missing out right now, that's different than it's been for

quite a while. >> do you think an opportunity in bonds is a one-off and it will go away as we near the end of the year and look back and go wow, we have 5% for a fleeting period of time >> it's impressive right now the front end is fueled by the debt ceiling and people are thinking do i want to buy these t-bills in june or august? you have some wacky yields 5.50 is even possible. that's a one off, i agree with that and if you extrapolate going into next year, you'll see yields come down quite a bit so yields are probably high for a bit longer but won't last much longer >> so we heard that 2.75 is the next stop in terms of major trading moves. is that on the table for you >> that's pretty big move. if you think about it, is that plausible? the debt ceiling would have to go totally off the tracks. maybe not a default, but prioritizing payments, something like that, that feels uncomfortable to a lot of

people and me perversely, they'll buy bonds. >> i guess my final question is, what does it mean for stocks if we have this reset in yoelds, is it going to be supported? >> everything is going south at that point so bad for credit, bad for equities no one wants to see it but we're definitely advocating people stay light on risk. >> thank you for your time today. michael shoemaker and chris, thank you. still ahead, disney earnings on deck. we'll get the details next with the shares down 2% today and here is a look at the dow more broadly, as the composite is around session lows amex, nike, and disney are among the worst performers salesforce, microsoft, ibm in the green. ckft ts.ba aerhi again. what do you mean?

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welcome back to "the exchange," everyone. if you're wondering why we're at session lows, i don't have a lot of explanations. the nasdaq is hanging own to a seven-point gain treasury yields are lower this morning. that new york fed recession likelihood up to 68% that could be spooking people. the s&p looks now like it could crack 4100 again airbnb is the worst performer in the nasdaq, after giving weaker than expected guidance guidance, again, the problem with so many of these reports. the stock is down 10%, which is overshadowing its first-ever profitable quarter and 20% jump

in revenue on the call last night, the ceo said u.s. customers are price sensitive right now, with the lowest price listings having the highest occupancy. and he said this morning, he expects to see more distributed workforces around the world. flexibility, he said, is here to stay despite todd's decline, the shares are still up 30% this year, and since the ipo, they have more than doubled they have had their best start to a year since going public in december of 2020 now over to tyler mathisen >> thank you very much here is your cnbc news update. a pakistani judge said the former pakistani prime minister could be held for eight days after khan was arrested on corruption charges yesterday the arrest set off violent protests in the country that have killed at least six people. this is according to the associated ress. khan very popular in pakistan. back in the u.s., governor ron desantis signed an immigration overhaul bill that

bans local governments from issuing identification cards that can't prove citizenship is one day after the biden administration will end title 42, that could lead to a surge of migrants at the border. and joe biden will host prime minister modi in june. in a statement released today, the white house said the upcoming visit will affirm the deep and close partnership between the united states and india. biden is expected to meet with modi in australia later this month. kelly, back to you >> thank you so much coming up, key retail earnings on deck, including walmart. it's a buy for my next guest, but he says be careful with some of the names connected with one retail trend in particular we have the name and what makes m utusnext ome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected

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welcome back to "the exchange." we're through the big tech names, which could only mean retail earnings are around the corner we kick it off with home depot next tuesday target reports on wednesday. walmart next thursday. my next guest upgraded walmart to outperformance.

now he's bumped it to his fab five list ahead of the results stocks are lower today, but walmart is a different story than lowe's. that reports on the 23rd, and he's giving it a negative on a lousing housing slowdown greg, welcome. >> thanks for having me. >> i hope you can explain housing. on the one hand we still hear about bidding wars and tons of price spikes but on the other hand, we know that literally turnover activity from the market, broadly speaking, is way down from pandemic levels. where does that leave the housing stocks >> it's a great question so the housing, and steve, our expert there, has been a little better than expected we still think that there is a fundamental housing shortage we can debate whether it's 2 million, 3 million, 4 million units, that was building up even before pandemic. so as supply comes back on, you are getting a little bit of a

pickup in housing turnover the problem is, it's a different cycle than for home improvement. so it's our home improvement indicator that went negative about seven months ago, and is running at the worst level in over 12 years. and that's because it's not about new housing construction it's more about housing turnover was down last year so traffic to the store is down. plus, as home prices start to decelerate or slip a little bit, that will hurt tickets so home improvement demand will fall 2% this year. >> basically, for people we all have to think about this as home improvement stocks, not new home sales, any way, let me get to the point here where we have home depot down year-to-date why is flora decor up 30%?

a lot of these home improvement type names are up strongly yet the big boxes aren't so i also find that odd. >> it's a good company longer term some of those names are up so much, a lot was how poorly they did at the end of last year. floor and decor had a tough november and december that allowed it to go up a lot this year when they did guide down earnings a little bit earlier in the year the issue is that they still, when they reported last week, they said trends were softener the second quarter but they didn't change their full-year guidance from a tactical stand point, that stock gave back a lot of its year-to-date gains lowe's could be set up with a similar situation, where we're below their guidance and the street for this year not massively. but if second quarter suspect any better than the first

quarter, which was down 3% for lowe's, we think that the street numbers will come down and they might end up steering people towards the lower end of their current guidance >> what is going on with tractor supply are you taking it out because it has done well? >> we put it in a few months ago and it had a 15% move. so we figured we would take that would love to annualize it but walmart is where there's better traffic momentum in the second quarter, and we upgraded on that traffic turn we figured it was time to get that one in there. >> my only question on walmart, why wasn't it in your top five to begin with? why did it come out? >> yeah, we run the top five as a top five portfolio we have done this a few years ago. we try to be not tactical about a week or two, but more about a six-month. so our normal ratings go out 12

to 18 months what we were thinking about with walmart is, back in march, it was in the low 140s, and we wanted to get some more confidence that it wasn't going to cost too much to get this traffic acceleration and roll out a lot of the innovations that they have to improve logistics and efficiency then we got that confirmation. and then i think our work suggests that while sales did slow in march and april, they didn't slow as much as they did for the rest of retail those are the two things that put us together that says, it probably has to catch up to the other staple stuffs. >> we saw some positive trends in auto zone a lot of chatter as people work through a difficult couple of months greg, thanks for joining us. appreciate it. >> thanks for having me. still ahead, from desantis to the digital ad problem,

disney currently facing multiple head winding, reporting second quarter results this afternoon we'll get a preview next and sticking with shares of dutch bros, down almost 10% after reporting a same-store sales loss and missing on revenues the stock has been downgraded to hold today "the exchange" is back after this ♪♪ choosing miracle-ear was a great decision. like when i decided to host family movie nights. miracle-ear made it easy. i just booked an appointment and a certified hearing care professional evaluated my hearing loss and helped me find the right device calibrated to my unique hearing needs. now i enjoy every moment. the quiet ones and the loud ones. make a sound decision. call 1-800 miracle now, and book your free hearing evaluation.

shares of alpha belt hanging on to gains. let's get back to diedra with some headlines from the dwgoogle i/o conference >> i have one eye on the presentation right now, they're going over an anticipated battle in this generative ai, and this is search gone are the ten blue links where you can click through, a lot have to do with the

advertising, the lucrative advertising model that google has built. so we'll update you on that as we get more of it. in terms of what else has been announced, the ceo talked a lot about responsibility that has been his tone over the last few months. despite sort of the enthusiasm and excitement that his rival over at microsoft is trying to portray. in the long run, we don't know he did talk about building with responsibility he even says they're developing tools to identify ai generated content, like using water marking and other techniques there have been some demos, but i will say, kelly, this feels carefully choreographed than say the ai events of the last few months the presenter often is following a script we did get one live demonstration. it showed off google work space with generative ai to write a kid's short story. the ai model reads the text, and

so it's a pretty safe live demo. we are about 45 minutes into this presentation. i expect we'll get some more again, i'm going to go back and watch what they're saying on search, because this is a big one, and the big question around google, how can it lead in this gigantic platform shift that is generative ai while not cannibalizing its bread and butter >> has there been assessments of whose technology is the most reliable in terms of the quality of its information >> i don't know if there's anything definitive. this is anecdotanecdotal, but ie both chatgbt and bard on a daily basis. i find bard to be the more accurate one but we know that there is more users using chatgbt. you cannot rely on these things. they sound like they're correct. they sound like they're giving you the right answer

but we know for all of these large language models that you have to be careful and look at the sourcing that's why i think it's notable that the ceo of google has not strayed from his course of doing this responsibly and while investors kind of want that excitement that microsoft and chatgbt is giving them, you could think that google might ultimately sort of be the leader here, because they're doing so carefully and thoughtfully really, they're not wavering from that today. >> i think a lot of people had your same experience it is funny how confident, arrogant even they are with results. any of these models. this is definitely the answer. diedra, thank you. don't miss an interview with the google cloud ceo thomas oc kuran at 4:00 p.m. today disney shares are lower by 2%, but it has beaten estimates 14 times in five years

will today be number 15? julia is here to answer that hi, julia. >> hi, kelly that's right disney doesn't give official earnings guidance, but investors are hoping for a number of updates from ceo bob iger, particularly on the impact of his cost-cutting moves and the progress that he's made so far towards the $5.5 billion savings targets, which he announced last quarter. the company is expected to show 7.5% higher revenue, while earnings are projected to decline by 14% for disney's fiscal second quarter. the one key factor investors will be watching is whether costs around the streaming division are declining while streaming subscribers they hope will continue to grow. as for the future, investors are going to be looking for insight into iger's perspective around general entertainment. of course, that impacts what he's going to be doing with hulu, which is a deal they have to figure out with cnbc's part company comcast before the end

of this year the other big topic that everyone is talking about is the writer's strike. the question, of course, is how much that strike could impact the company's business, the tv business in particular and then the other question is the economy. how much concerns about an ad slowdown are going to be impacting both the streaming revenue in terms of advertising, as well as, of course, all that ad revenue that comes in from the tv business. >> one of the big debates or discussions i heard investors having recently is whether the company is and should be all-in on streaming and trying to compete with netflix at some point, should they just say, netflix, we're going to license our content to you, reap a ton of money and not try to build a rival to that. i know it sounds crazy, but where is bob iger on this? >> there are so many subscribers, millions and millions of subscribers for disney plus. so that ship has sailed. the question is not really

whether they should invest fully in streaming, because they are invested solely in streaming the question is how much they want to compete with the likes of netflix with general entertainment. how committed they are to hulu it's interesting, because they will have a new reporting structure before the end of their fiscal year, which it will be espn, entertainment, and then parks and resorts and consumer products so they're lumping the entertainment business together. so we'll see what the long-term vision is for espn and when they want to bring more of that espn content onto streaming the real question for streaming is not whether or not they have a successful product in disney plus, they have that down. the question is whether or not they're going to want to buy out the remainder of the hulu stake that they currently own and they're really going to go up against that general entertainment piece. or whether they're more focused on the core audience, that core brand and all the franchises they have invested in. think more of it as a general entertainment play rather than do they care about streaming we know they care.

>> some of these shareholders, imagine how well they do if they can just give the contempt we'll see if bob iger doubles down this afternoon. julia, thank you very much we appreciate it coming up after the break, fertility is a booming business with the market valued in the tens of tens of billions of dollars and showing no sideline of slowing we'll speak to the finder of kindbody we'll talk about how she's helping employers like walmart, lyft and tesla offer these benefits to employers. the market is down, dow down 270. the nasdaq up a quarter president. "the exchange" is back after this

. welcome back the 11th annual cnbc disrupter 50 list was released highlighting prominent companies chasing some of the market's biggest opportunities. take is number 43 on the list, kindbody valued at over their 1.8 bill yonel the health care company looking to make fertility treatment more accessible and affordable. they are partnered with 112 companies including like well-known names like walmart. here is the founder and chair gina bartasi welcome. >> thanks, kelley. >> this is such a huge market area the only thing i wonder is how much does it cost companies to kind of get involved and offer, you know, products in your space? >> yeah. it depends if you buy direct through kindbody or if you go through a middle man

certainly if you go through a middleman it's like other insurance companies. they will charge you a margin which could be as high as 23%. when employers come to kindbody they save immediately off the top a 23% savings. other thing we do to democratize care and make care more affordable for employers is utilize technology so kindbody is the only fertility network around the country that owns and operates proprietary technology including our patient portal and kind emr. >> interesting so if a lot of employers all take the biggest insurers, unh, for instance, do they offer or do they cover these kinds of fertility needs? >> yeah. fertility is changing rapidly. i've been in the industry a dozen years, and can i remember my previous company was pro gen-y and employers would say what is a fertility benefit? we don't have a fertility benefit? well, how you build families is changing pretty dramatically, you're going to have a fertility benefit so the difference is it's moved from a nice to have to a must have, so health insurance companies historically had a rider, and you can buy up

a fertility benefit. it was typically a lifetime maximum of $50,000 or $30,000, always on a fee for service basis. at kindbody we think the fee for service model is dead in health care or should be dying if it's not dead and move to value-based case rates so the employer knows exactly what they are paying for when they go into it. >> that makes sense. is the cost of these kinds of treatments continuing to rise? we know obviously the demand for them is going on any sign on the horizon that they might become more afford and over >> reporter: >> they must it's a mission of kindbody to bring down the cost of care. we do see peers of ours in the space continuing to increase prices i think what's driving that is some artificial inflation and pricing due to supply and demand today demand for fertility treatment services is really outstripping supply of fertility doctors and clinics, so it's propping up the price. absent that supply/demand issue, prices really should start to

moderate and over time come down. >> i don't want to ask if you have an ai angle here but, you know, this is the disrupter 50 and shoup i feel like maybe there's some way in which this technology will be deployed. >> yeah. of course we have an ai angle. before we hired our first doctor, opened our first clinic, the first $6 million we raised in seed capital went to acquiring a proprietary emr, an electric medical record. in order to truly create change in health care you must first start with technology so we have our own kind emr, a patient portal the first thing a patient does when they start treatment is they want to know their prognosis. what's my likelihood of success of taking home a baby? so we have a tool. the patient enters their age, pregnancy history, their weight and other data markers, and we predict your likelihood of success with one cycle, two cycles, three cycles the more eggs you have the more cycles you go through the greater your chance and likelihood to take home a baby

and then ai is really about more data in. the refinement of ai so what we're doing now is we continue to build our ai solution it's pulling in sperm, morphology and mobility, and then what we'll do is put sperm and egg together and be able to have a prognostication and too that really tells the patient what their embryo, transfer and live birth treatment will be. >> i think about people who turn it on in the middle of the segment will be what are we talking about? >> sperm and eggs, all about babies >> in ten seconds, would you go in the broader health space or stay in this net >> we're in the broader health space, everything from menarche or menopause. >> i don't even know what half at stuff is you're doing congratulations, gina. >> gina bartasi on kindbody for the disrupter 50 that does it for "the exchange." but don't go anywhere.

come up on plooun we discuss our discussions with number 25 zipline, a drone company an track to make a million autonomous delivery by year's end and tyler is back. he's getting rdyea, and i will join him on the other side of this break a competitive advantage. ♪ it's raising capital to help companies change the world. ♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward to a greener energy future. [applause] sometimes the only thing standing between you and opportunity is someone who can make the connection. at ice, we connect people to opportunity.

asking the right question and opportunity is someone can greatly impact your future.

- are, are you qualified to do this? - what? - especially when it comes to your finances. - are you a certified financial planner™? - i'm a cfp® professional. - cfp® professionals are committed to acting in your best interest. that's why it's gotta be a cfp®. ♪ welcome to "power lunch. everybody. alongside kell and literally she was right here a second ago, i was really alongside her i'm tyler mathisen welcome to "power lunch. google is holding a very big event at this hour out in california and lots of breaking news within the past hour. we'll bring it to you, and we'll ask whether the company can catch up after a somewhat halting start in the chatbot race plus, the covid-19 emergency ends tomorrow as far as the