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tv   Tech Check  CNBC  April 28, 2022 11:00am-12:00pm EDT

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amazon apple has been treated like a consumer safe stock. >> you know it's a well rounded show when you're finishing it with mike santoli at the telestrater. so that's going to -- >> i'll bookend it, sure. >> that's going to do it for us here at "squawk on the street. "techcheck" starts now good thursday morning, welcome to "techcheck," i'm karl sint nil la, jon fortt, deirdre bosa, and julia boorstin the ceo of service now, we're going to get to all after that, but we're starting with meta, surging this morning as daily and monthly active users bounced back, stock had been cut in half this year, prior to results. julia is all over today, j.b. >> it's really interesting, carl, there were various warnings signs here including the company giving guidance of between 28 and 30 billion revenue second quarter
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it's worth noting if meta hits the lower end of the guidance its revenue would be declining year of year, which has never happened before. this quarter, 7% revenue growth was its slowest revenue growth we've seen since the company went public, but there is just so much relief now, that they have been able to reaccelerate those daily active users so, jon, it seems like investors have really low expectations here >> well, they have low expectations in part because facebook, meta, works so hard to lower expectations last quarter. this is what we were talking about three months ago are they bluffing? maybe not bluffing sandbagging a bit, right the beat here was on the earnings line, and the expressed confidence both of those gave me the sense that they did make things out to perhaps be a bit on the worse side, maybe they weren't sure, but they continue to project things that aren't too exciting, there could be upside from here,
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right? >> there could be upside and i thought that the key upside is going to come from reels. they revealed that 20% of activity on the platform is in this short form video format reels, and they've been very clear they are undermonetizing reels. there's big potential down the line so they did say that we should expect the fact that people are spending more time in reels to be a factor that's slowing fwrout for this year, but can you imagine, a fifth of their activity on the platform is being undermonetized d., it seems like that's huge upside potential. >> the larger picture, julia, we spoke about this yesterday but mark zuckerberg's ability, willingness to pivot the business when he sees that he needs to reels is that story. he's trying to catch up with tiktok the whole business sort of changes here he's basically going all in on this algorithmic driven tiktok model and pushing the social graph aside. is it going to work as well this time
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is he going to be able to pivot? i wonder did people have tiktok, at the time they were going to mobile, wasn't much of an alternative. do people know where to go i hate that feature of instagram. i'm always turning it off. hide those suggested posts for a month. are people responding to it? dooin do you think they'll continue to >> the user engagement, the answer is yes, they are responding to it they're trying to figure out how to make it work as well for advertisers as it is for users facebook would say their version of tiktok, their reels is different, it's more customized to the way people interact in that social way on the platform but they get that people want the shortest form content possible, and mark zuckerberg himself pointed out the company has gone through various pivots, back in the day it was from desktop to mobile, and then it was from the text format to photos and videos. so they do have experience with that i think the real question, though, is, carl, how they balance these investments with these long-term investments.
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i mean, it wasn't that many quarters ago they've renamed the company meta, and they declared their commitment to investing for these long-term projects in the metaverse, and now they're saying we're going to slow down that spending because our overall revenue growth has slowed we have to slow down these spending and projects that aren't going to pay off for a long time. >> you can look back to october when they made the name change and see what the stock's done since then julia, ad impressions of 15, when you roll in what we learned from youtube and snap, and twitter today, how would you characterize the overall ad market right now >> well, i think it's not as bad as many had feared yes, there are these macroeconomic pressures, but i think at the end of the day advertisers want to make sure they're getting their most bang for the buck and so i think because of that these platforms where you can target consumers, and also measure the impact, shows that they're going to be perhaps a little bit more resilient than maybe an old-fashioned format
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like, say, radio or outdoor, or even, say, like print advertising. i mean, there are formats that are going to continue, even traditional television advertising, those formats will continue to gradually move to digital formats, some advertisers are going to go for the digital video ads. we heard about that a bit on the comcast call today but i think that this sector is a little bit more resilient than some feared when we got those warnings from snap. >> yeah, julia, thanks, appreciate it very much. we'll talk to you soon, julia boorstin mark, it sounds like you would agree if you look at a two year stack, certainly, meta's revenue growth remains resilient. >> that's right, carl, this is a key critical point for investors, if you look at the reported revenue growth, put it in a vacuum. you have slow dramatic levels. we had this extreme events, covid, that created these wild
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comps, wild. so a year ago in the june quarter facebook's revenue growth was well above 40%. you have to factor that in when you're looking at what the growth is like in the june quarter. if you do that you see the revenue growth have been very consistent, very robust, it's impressive there's not the slowdown you would think of if you looked at the reported growth number. >> right do you think the market is going to be as tolerant in the future now of the investments that metaverse is going to require? >> so i think there were three interesting changes that facebook made in this earnings call it explains why the stocks up double digit percent last quarter, it was we're going to spend on a reality lapse in meta, the future metaverse, regardless of the rest of the p&l. this time zuckerberg went out of his way to say that wouldn't be the case and they lowered operating expense growth last quarter it was about tiktok fear, this time it was about tiktok confidence. they think they can create a
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compelling alternative the third thing, last quarter they complained a lot about the apple privacy changes, how it was negativity impacting their business this time it was confidence about the ability to recreate the ad tech stock. night and day difference in the tone and that helps explain the stock up. >> they've done that over the years, mark, expert at underpromising and overdelivering, taking the hits and beating them later on the broader ad landscape, so much has changed in light of apple's ios and privacy changes. what do you think -- who is in new landscape set up for you hear both google and facebook talk more and more in their calls in the latest quarter about using ai, and machine learning and their technology do they maintain their relative due oply in this environment >> my guess is they do deirdre, it's the company with the most data and the best application of technology against that data that wins, and so if you have invested years in ai and machine learning, like facebook and google have, you're probably going to be the first
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to figure out a post privacy ad attribution model. there are a lot of head winds here facing advertising models why i like facebook so much here, you're going to have revenue growth acceleration as we hopefully move beyond ukraine at some point and beyond macro at some point, and they solve the ad attribution model probable created in part by apple and they monetize reels, three major revenue growth levers here. they're staring them in the face executed against them well yet, but give this company enough time, you'll see the stock will not stay at 13 times earnings. one of the best assets you can buy right here, right now on consumer tech, i believe. >> mark, good morning, again, it's jon first of all, you know, nobody wanted to hear this three months ago, but my argument is, maybe facebook's not fundamentally broken, right, the bold case is it still somewhat alive, whereas the bears three months ago, oh, facebook's falling apart, it's not working anymore.
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this quarter, doesn't it, argues that the fundamental things that were strong about facebook in the past, maybe not every revenue not being turned or expense being tightly managed. the fundamental assets facebook has are still protected and they can still grow off of them. >> jon, this is a classic dhq spot this is high quality asset still the leading global streaming media, social media asset in the world with the two largest messages applications in the world. there's a lot to come here they've got to monetize reels, they did it with stories, they should do it with reels, they've got to figure out this post attribution model. the scale, technology and rursz to do that, that's all to come, and they've got a business model that generates 30 billion a year in cash. they've got fire power to invest and return the cash to shareholders it's a growth story with a really nice value underpinning,
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and you can get this at 13 times earning. it's this rare air territory, this is what you look for. >> how would you compare it to other opportunities, and on a day where we're watching some of the resets on pins, for example, and even twitter's quarter >> twitter was interesting, there was sbsh intreptation was twitter sold to musk because the quarter must be looking bad. that wasn't the case, twitter came out with numbers today that showed very consistent revenue growth, and their uni metrics, which is what the stock trades off on more than anything else, right or wrong, i think for right, the uni metrics that mda used, the daily average users showed nice acceleration in growth i found that interesting to me, you look at twitter, if we hadn't been in a deal situation, twitter should have raid traded up on these results. pinterest shows a lot -- >> discounted the offer, and
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we're going to find out if that's raeltd to the closing uncertainties we're facing, that's a discussion for another time mark, good stuff as always, thanks, mark mahaney. another earnings mover shares of servicenow rallying more than 6% after a company posted a strong quarter. 29%, perfect customer retention rate joining us servicenow's ceo bill mcdermott. good morning, bill and this is quite a week for enterprise software. that's where i want to start with you in particular, enterprise demand i mean, we've got subscription models now that are making software stickier. but what is the shift in this economy, there must be some deal size, time to close deals, ability to grow your share of wallet >> great to be with you, john, we're in a sustained demand environment, and the enterprise. and as you know, servicenow is
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single mindedly focused on the enterprise we are the market leader in business software in the cloud in the enterprise. i think that's really making the difference in our results. one of the customers we looked to -- short term we'll lose ground in the midterm, and we mean in the long term. you'll see enterprise customers invest in business software -- supply chain dislocations. wars in ukraine, all these things come into focus, and the only way out is software this is the most deflationary force in the world, and will continue to grow really fast. >> all right, now different business, but we just had qualcomm with strong earnings with us here last hour i asked him about m&a and costs
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and he's leaning in to opportunities to grow, even inorganically. what's your mind-set -- yeah, the environment is choppy and tricky, but perhaps there's deals to be had out there. >> that's true, jon. the reality for servicenow is, we just did a beat we beat analyst expectations and we raised our guidance and the company's operating at the rule of 60 which is a combination of revenue growth and free cash flow, so we're a highly profitable company, and we'll grow really fast so any asset that you would acquire has a really high bar to servicenow, because most anyone i can imagine right now would be dilute of either the top or the bottom line. now, there will be opportunities out there because the capital markets are not as interested in companies that can just grow, but not make profits so we're keeping our eye on the marketplace. we have an organic growth
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strategy but we're very open minded, and there's nothing that's getting past us. >> bill, deirdre, good to see you. you're talking about the sustained demand environment what are you guys doing with your pricing power i know you were asked this on the call last night. i'm not sure i heard a direct answer, can you, will you raise prices for your customers this year >> thank you, deirdre. we don't have to raise prices for our customers. we have so much opportunity in geographies around the world in various industries and personas across the enterprise. we believe we're in a sustained demand environment, we believe our customers need us now more than ever. we're building trust, and we don't believe a price increase is the right way to gain share and improve our business results. what we are clear about, we deliver business impact for our customers. we should be fair in our pricing, and we should get a fair price for our software, which is what's happening. customers are very smart
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they're not buying software, they're buying business outcomes how can they get to serve their customers, and their employees with greater experiences and do so super fast. that's what we're great at. >> bill, eyes for leaning on the macro conversation, i wonder if you think the risks about europe in the quarters to come are being overstated or understated. >> well, i think it depends, carl, you know, there may be a consumer side of this conversation that will be more heavily impacted than the business enterprises the business enterprises, you might have a slowdown here or there, based on a company that should have done a transaction, didn't do a transaction because they're reorienting a supply chain, or some other issue that's driven by the war in ukraine -- in ukraine. but on the whole the demand case for europe, at least as it
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relates to the enterprise, i think will be very strong. and in many cases europe has to catch up, especially with the cloud formation. because carl, here's what's happening. we're in a war for talent. nobody's talking about this war for talent, but if you don't give employees a great experience, you're not going to keep them. and to recruit them, hire them, on board them, train them, and give them all the it was sfls was they need. you need a digital platform like servicenow as it relates to revenue, two years ago one-third of the revenue was getting generated digitally. today, two-thirds of the revenue for companies in europe and elsewhere has to be generated through digital transformation so the investment thesis to servicenow in a platform like this is undeniable one thing, finally, carl, this hasn't been covered very well. there's 750 million new applications that will be built by enterprise's four enterprises on a low code platform basis
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like service season now. what decision makers want, they want those applications built by citizen developers that work in the companies, but they want enterprise coherence and security, again, a force multiplier for service now the enterprise will be strong. >> how do you grow the platform aspect of service now, as the economy starts to open back up, and you've been pushing hard on that, on the partnerships, and utilizing the code base. what's your strategy to do that in this environment? >> well, jon, 100% we have the top ten systems integrate fors in the world right now, that have at least a billion dollars or more, business plan with servicenow. so all the big brands have adopted us as the standard for digital transformation, and the now platform as their biggest growth opportunity and beyondthat, there's lots o mid-size and small systems
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integrators in the personas we serve that can build businesses around this servicenow platform. we're just getting started. >> we like to see that on "techcheck" as well, and after earnings the stock so far today, maybe it's just getting started, up about 7%. bill mcdermott, thank you. >> thank you very much, jon, thank you, deirdre, thank you, carl, see you soon. >> and we are just getting started. still to come on the show, teledock shares getting crushed on results, comcast, the parent company moving sharply lower on subscriber losses. much more on meta, shares seeing a day in the green, "techcheck" just getting started sound like a broken record
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disappointed, slow paid subscriber growth, and shares headed slightly higher this morning, wall street, though, singing a different tune gugenheim, downgrouding to neutral. and slashing price targets by more than 100 appears, as they see a longer path toward double digit revenue growth shares 65% off the highs, volume coming down but not as much as some stocks. >> not as much as teladoc. what a story here. shares absolutely crushed now, down almost 50%. weak for guidance and a miss on q1 it's also a 6.6 billion impairment charge stemming from $18.5 billion acquisition of levongo. pandemic darling, another sign the stay at home trade has lost its luster the stock down 90% from all-time high in february of 2021 teladoc hit with a bunch of
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downgrades this morning. kathy wood, one investor, arc the number one shareholder in teladoc, 12% stake in yesterday's close. she has been buying all the way down trying to catch that falling knife, and, guys, pretty much a disaster today, i feel like there's been a shift over the last few weeks, you used to talk about how these pandemic darlings, jon, were approaching pre-pandemic levels, as if maybe it would stop there. but that's not the case. the case of teladoc, it's well below those 2019 levels, approaching that ipo price even. >> maybe betting against innovation isn't always such a bad idea i mean, i don't know carl, sometimes innovation doesn't show up as quickly as the valuation would suggest. >> or sometimes there's a mismatch on price, certainly kramer's point this morning was that the motes we thought were built into some of these models aren't nearly what we thought they were and maybe the next stage is consolidation in these industries
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why else would you have the ability to work hybrid as well as we do but not want to see your doctor over the phone >> it's an interesting contrast between teladoc meta bad quarter, people said there's no mote for facebook business is being run through. it doesn't look like that's happening. >> a lot of analysts this morning, jon, are talking about competition, but is that the problem or is it fundamental business problem john kornacki is the anthem president. he says that it is the business model for these solutions, like teladoc to work, they need to be integrated with the rest of the care system. and when it comes down to it, we talk about this all the time, guys, is it a platform or a feature teladoc looking increasingly like a feature in one, that other bigger health care players can create themselves. >> yeah, the high 308, back in february of last year.
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prettyamazing. meantime, our parent company comcast moving sharply lower today as you heard d say, despite the earnings beat. julia boorstin has wrinkles on the broad band. >> comcast beating expectations on the top and bottom line but we're seeing that stock sell off and it seems to be under concerns about broad band subscription growth. that's the thing that typically moves come that's shares, the company reported 262,000 broadband net ads in the quarter down from last year, but above the analyst expectations there is a footnote in comcast slide deck that says about a third of those net ads were customers receiving broadband under free programs and weren't previously counted wo out that one-third of that number, the net add number would have been a miss of expectations analyst craig moffit noting the
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issues weren't the companies acquired, they started paying in this quarter the reason we're seeing a big selloff is there are persistent concerns about the challenge in market growth in the wake of the pandemic pull forward. on the flipside. comcast saying that broadband is at its lowest churn in history, noting the people who previously had broadband for free are now paying and they note that covid programs that ended gave them a one-time benefit this quarter but will not have a negative impact going forward we see shares are down 7.6%. carl >> we'll keep an eye on that ahead of disney in the coming days, going to break, don't take your eyes off of meta. one of the big stories of the morning, we had one of the biggest gaps up post earnings in the history of its life as a public company hanging onto a gain of about 14%. don't miss the cnbc stock draft taking place 2:00 p.m. this afternoon, and among those on the clock, ryan reynolds, then st. peters university
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looking for another sin rel la run, and sharm tank's mr. wonderful and others, and hanging onto a 1% gain in the nasdaq "techcheck" is back after this at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. ♪ ♪ ♪ ♪ with a bit more thought we can all do our part to keep plastic out of the ocean.
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welcome back to tech neck, i'm jon fortt with deirdre bosa and carl quintanilla despite the move higher in meta this morning, the stock is 7% off its 52-week high. is it cheap now or not but first, an update with morgan brennan. >> the u.s. economy unexpectedly shrank in the first three months of the year, gdp fell 1.4%, the first contraction since the beginning of the pandemic in 2020 the decline, a first reading,
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driven by a growing trade deficit, a decrease in spending in inventory by companies, despite strong consumer spending and business investment. sthar shares of comcast are dropping 8%. despite q1 results that beat estimates. the company warned strong gout for peacock may not repeat. surprisingly good results for an experimental weight loss drug are driving up eli lilly shares obese participants getting the highest dose, lost more on average than 20% of their body weight, about 50 pounds per person lily also posted strong quarterly results. activist hedge fund elliott management has invested a 3% stake. pushing for the oil company to review its business strategy and return more capital to shareholders s suncor stock is up 8% on the day.
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meta shares on the best pace since 2016, but only trading back to where it was a week ago. it's been months of tough trading. make santoli has more on the long-term picture, and you can see where the stock began to collapse. >> a severe break of a long-term trend. in three weeks it's ten years since the facebook ipo this is the entire history of facebook as a stock. now meta, of course, what you'll see here, a long scale, all percentage moves are portrayed as equals, going from 100 to 200 is the same distance as 200 to 400. it evens it out. what's fascinating it was riding this trend line all the way up to a trillion dollar valuation, going to have to fudge it a little bit here. but that's where it cracked. what would it take to get the stock at least on a long-term basis back up into that channel, probably up in the mid-200s, 250 or so. even with this break, though, stock cut in half. the annualized gain in the stock since the ipo, 18% compared to 6% for the s&p 500, total return
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for the s&p, 10% any way you slice it, massively outperformed since the ipo, even though you've had a massive retrenchment over the last several months. >> it's been throughout this whole history a relative value play within faang itself >> it had became that, yes i'd say over the last four or five years it became that. it used to kind of swap back and forth with alphabet, and, in fact, you know, for a while i think that's been the main comp, and right now, certainly, seems quite cheap to alphabet. which, itself is now being called inexpensive at less than 20 times earnings. >> fascinating way to look at the chart. we don't do that too often maybe we should do it more often. >> good for longer term. >> mike santoli, thanks. sticking with meta, let's bring in chief cnbc contributor nilay patel. after negative sentiment in recent months, meta is suddenly a growth story with a nice value underpinning in the words of mack mahaney earlier on the
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show do you agree, or do you think there are cracks investors are maybe overlooking right now? >> i think there's some cracks, the numbers, users numbers in particular are in that range where, you know, a good and smart facebook product manager can send notifications around the world, and make those numbers kind of go any way they want so i think there's a little of a story there. in that, you know, the user growth is kind of baked into the stock already before earnings, they beat them, facebook is very good at being conservative and beating expectations in these moments of crisis. the real story is on the earnings call, when mark zuckerberg said i think we're setting ourselves up with metaverse for a great story in 2030, which is a long time away. and he's spending a lot of money. he's at 17,000 employees working on ar and vr and right now the problem is tiktok and competing with tiktok is a ghost.
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we don't know what tiktok's margins inside of bite dance are, if bite dance is choosing to lose money, holding back their ad load to keep prices up. that's a hard thing to compete with and it's taking an ever growing share of attention away from facebook right now. you're seeing that split in the earnings report. the word metaverse in the earnings release, only one time. >> i counted that as well. nilay, i wonder then, is this sort of stories all over again, in the sense that snap represented this existential threat to facebook but they rose to the challenge and they ended up doing really well in stories and monetizing it. is tiktok a different kind of competitor so much is the algorithm, technology based and can't forget this is a chinese company. is it different this time? >> it's a little bit different this time, right, the family of apps is growing overall, that's what kind of drove whatever growth we saw in facebook this quarter, but mark is talking about, hey, i've got to start bringing in content from the entire network, and showing it
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to people in an ai-based discovery engine, not a friends and family social feed, an ai-based discovery engine across the entire network his pitch is, i've got more than short form video if i do that, text posts, photos, all this stuff to show you. that's a head on attempt to compete with tiktok, which is obviously based on that network-wide ai recommendation engine, and it's so powerful that's a big difference compared to just cloning stories, which basically every social company tried to do, because the format was intrinsically simple the difference at the time was that snap was -- snapshot was a messaging platform, adding another messaging component. you saw with stories on instagram and facebook, it was beyond messaging they could differentiate a product that on its face was very, very similar here i think they're going in, and their competition is a little more head on and the user experience is a little better over there they've got a long way to go. >> nilay, but from an investor
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perspective, i feel like we've seen this movie before, with mobile, and post that, and cambridge analytica, and post that facebook seems to -- a big problem, and we're going to have to spend a ton of money. then they spend a half a ton of money and later they make up for it on the cost line, the earnings end up being better than people feared and the problem ends up getting solved faster than they made it sound like it could be solved. isn't there that argument that facebook's still pretty strong in its model, it's hitting a rough patch, but it's not exactly crashing. >> yeah, i think that's a totally strong argument. i think the difference that i would point to this time is the ceo of meta is really focused on something that will deliver in 2030 every other time he's faced in existential risk he's focused on the problem at hand and hasn't spent $10 billion a year on something else i understand why he's spending $10 billion a year on something
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else he needs to get out of the grip of apple and google, the mobile platforms that right now pose the deepest existential risk to his business they've turned off tracking that has hurt them in directing it's hurt their advertising business they say, look, i'm going to build my own platform. having that pay off eight years from now is a long bet, and the problems right now are tiktok, and apple, he's got to goat through them fundamentally. apple itself is also releasing a headset. even that long-term bet is going to come under pressure i think a question for everybody, a question for everybody, meta, question for investors, question for reporters like me, is where's mark's focus, on the big problem right in front of him or is it on a problem that's eights years from now >> nilay, we talk about innovation risk, and expense risk, but where do you think we are on reg risk, regulatory risk, we haven't talked about in a while, especially in the gop takes the house, and as we move closer into another election
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cycle, with the midterms >> yeah, i think between elon and twitter, and the potential of the house flipping over, right, the whole regulatory apparatus around 230 and speech and content moderation is up fo grabs again. i personally feel like this is a video game in the past year. but we're in for the next version of the game. that's happening we'll see how that plays out the real regulatory risk is in europe, where the digital service act is about to come into play, and the digital markets app is already in play facebook is about to face enormous regulatory pressure in europe. >> cheryl samberg mentioned that on the earnings call last night. head count, that actually grew bup 5,800, net new hires, it's funny the response that zuckerberg gave with with regards to attrition, he said sometimes the momenting can be good, we only want people here who want to work here.
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did that number surprise you that facebook has been able to hire so people amid the labor shortage, and amid its stock route as well? >> i love that quote from mark zuckerberg i thought that was great i don't know that i fully believe the second part where he said, you know, covid people were looking for stability and they stayed and maybe they shouldn't have we're in the middle of the great resignation. but facebook, overall, remains one of the most compelling places to work on the internet, and especially if you're interested in a company betting big on technology. you're interested in doing cutting edge ai work, and not for nothing, you want a founder-led company that does have that dual class stock structure that protects them from changes in the market, that might otherwise affect the company. so i think they have a compelling case for why you should work at facebook, especially in the engineering side can they actually build or ship a lot of these things in time? or focus on the challenges in front of them? right, a lot of that hiring is
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happening on products that don't exist yet. i think that's always kind of -- >> nilay, as always, thank you, talk to you again sen. nilay patel, at "the verge". up next, high ligts from my interview with the ceo of qualcomm shares of qualcomm climbing back towards the highings of the session. up more than 6%.
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qualcomm ceo cristiano amon was with us last hour in an exclusive interview, breaking down how digital transformation in the enterprise is driving down qualcomm's internet of things business. >> for example, look at the microsoft results, and they kind of indicate the resilient of the enterprise in the phenomena of digital transformation in the enterprise that's driving the majority of iot revenue. 61% growth in iot, and that's very resilient, and that's a secular growth, and that's all about digital transformation we're the company connecting all those devices and provide them with smart processors that they are enabling the cloud economy. >> in case you haven't filled up on chips yet first quarter results from intel, the ceo is joining us on "techcheck" tomorrow to break
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down those numbers carl, the thread through all of this, i think, is a question of motes. qualcomm has been arguing that they've got one. not just having to do with smart phones, but having to do with their connected technology overall, and that their valuation isn't showing that yet. investors will decide what these results, you know, feather in his cap. >> we sometimes are too quick to say, oh, it's not an automotive play, or it's a mobile phone play d, i was strauk by what he told jon about the household becoming a mini enterprise, given the level of connectivity you need in your home. >> ours is trending that way the way he was speaking, though, you wouldn't know the chip space was under so much pressure, he was so positive. so i liked the part of the discussion, jon, when you talked about how their share gains doesn't necessarily mean that everyone in the space is doing well he said that they're growing on a flat market, because of them, and it's the premium and high end. so how does that play out or not
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play out across the rest of the names, the space, especially when we have intel tonight >> intel tonight, we've got apple too, so on the plus side with apple, apple plays in premium. so that should be good for them. but then at the same time, is apple stealing share from somebody, the way that qualcomm was able to steal samsung share from samsung, a neat trick when they're able to get a bigger share, samsung's premium phone, take that share from samsung's chip, carl. >> by the way, coming up, paypal is up on results, bounced off of 82, yesterday we're going to break down the quarter next. first, though, a look at crypto "techcheck" is back in a moment.
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company would focus less on absolute user growth given the business transition, many on the street are now calling the rough outlook a clearing event for the stock, and a reset of expectations that were incredibly optimistic about e-commerce trends that surged during the pandemic. shares are off more than70% from their highs, seeing a bit of up side today it is a big user base, john, that analysts are refocussing on. >> okay. meta not the only one. check out the semiconductor etf. the chips, one of the hardest sectors hit. losing about a quarter of its value. mention it again, tomorrow, don't miss the ceo, pat gelsinger here on tech check the company is reporting n'gowat. dot ay.
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welcome back apple reporting earnings today after the bell that's where we'll start today's overvalued, undervalued. saying they're the fourth biggest in space behind google, meta, amazon, partnership with google search. they contributed up to $18 billion of ads in 2021, part of that broader services story, not just about hardware sales.
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steve covac. the flip side of being excited about ads, the relative weakness in the consumer versus enterprise spending on pcs even though the premium end of the market is doing well, is the consumer weakness enough to kind of hit apple where it might hurt >> jon, you have to keep in mind, this is such a new thing for apple, these anticipate install ads are ads you see when you search for spotify or something and see an ad to install sound cloud. this is very new for them. also, you have to keep in mind, they've siphoning off some ad spent in this category from folks like facebook, snap, youtube because of the at&t tracking privacy thing they put in about a year ago. it is all up side for them from here because they're still launching this in new countries, just launched it in china, are going to spread it throughout the world.
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it really boosts their services revenue, especially as there are concerns now, jon, about app store sales growth slowing as people come out of the pandemic like we have seen with other software companies. >> that's what i wanted to ask you. where are we on app store fees in that services complex he said 90% of developers pay that lower fee, know that they moved quicker. what do we expect to hear, if anything, from apple >> we already got data about this from apple. early this year they put out the record of how much they paid developers and it was by a long shot higher, i don't know the number off the top of my head, higher than it has ever been that gives us a hint that, a, ad revenue grew like crazy, and b, developers are getting more money out of the app store >> steve kovach, we know you'll
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dow holding 141. we will watch meta this afternoon. qualcomm and service now some of the biggest gainers. we'll get amazon after the bell at 4:00 p.m., jon. they say a step up in buy backs and deceleration of cap x would be nice. >> is that enough to offset negative impact for more price into the consumer. intel losing share to amd and consumer is enterprise strength enough to offset that? that's my question >> good questions. big tech so far has been able to manage or surpass expectations which is good for markets. amazon, you want to watch e-commerce, but advertising and
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cloud margin businesses, are they making up for potential slowdown in the core. >> the week is not quite over. have to get through tonight. tomorrow, quite a few macro indicators on inflation. we have a lot more wood to chop. the judge is in the house. let's get to the half. i am right here. welcome to the halftime report scott wapner the real moment of truth for tech as apple and amazon report earnings in a matter of hours. how much is riding on numbers at a time some say the faang acronym is dead. joining me, jenny harrington, bob seech en, steve wise, jon najarian trying to get a little bounce and keep it going. dow good for 157


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