here have to leave, but i'm going to have you back. we have to figure out are central banks helping post-covid or making decisions more difficult. thank you for joining me today morgan, back to you. >> rick santelli thank you. dow down more than 1%. that does it for "squawk on the street." "techcheck" starts right now. ♪ good tuesday morning welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa amazon trade watched, sell offoffto mid and small caps what investors are looking at outside of big tech. what's going on with twitter? tumultuous stock sliding 30% off the highs. later, exclusive look inside

the epic apple courtroom jon? >> calmed tech stocks getting slammed this morning higher names hit hardest older techs not as bad all feeling pain as the nasdaq drops more than 2% biggest losers today chip stocks applied materials, land search and nvidia lower all components in the s & h lower. and trading in the session down loaded 20% in the last three days more on that this hour d? >> jon, today's sell-off could be a wake-up call for investors consent to just hold big tech. dom chu has more on the small to mid-cap stocks outside of faang moving this year but moving lower today, dom. >> so this broadening out of the stock market rally is very much in effect with the biggest and most consequential in the s&p

500. technology sector. 27% of the s&p underperformed the overall market over the last six months this indicates that the big effort and most influential tech stocks have not done nearly as well as other parts of the sector, or overall market. so one chart that helps encapsulate this broader underperformance of the biggest tech stocks is the one you see now. a comparison between an exchange traded fund that tracks the market value weight of s&p sector versus the etf tracks the same sector but on annually weight basis ryt outperformed traditional market value weighted tech sector, ticker spy over the last six months's 24% thverse 6% three of the best performing stocks aren't close to the market cap vicinity. stocks microsoft and apple are in look at computer chipmaker,

equipment maker, supplied materials doubled in of the last six months hp, 85% up in the same span and western digital, makes computer storage products up 78%. compared to the likes of apple and microsoft. far and away biggest influences on the tech sector and of course overall market up between 11% and 15% during that same six-month span one. reasons why tech has underperformed in the overall market is that when it comes to tech, prevailing theme over the last several years, mega caps, but the smaller tech stocks these days that are making more of those waves, deirdre that's the big deal. watch the smaller s&p 500 tech stocks not necessarily apple and microsoft, they're the ones getting the most attention now. >> right a little bit of a value plan tech here, dom, we talked some of the legacy named haven't run up as much over the last few years. you can still make a case mega

cap tech names a good postpandemic's trends capitalized, cloud, ecommerce, advertising they're not going away right? year over year those comps could get tough. looking for long term, still look like pretty good bets it's all about where investors are looking and for those legacy names, yes, could be opportunity this year. further out? maybe not as much. >> so the legacy is the big point there, right not only legacy plays. funny characterized companies like facebook and microsoft and apple as legacy plays. weren't that way 10, 15, 20 years ago, they've now become the blue chips right? this generations blue chip technology and communications services stocks. we talk about this idea of base effect right? so much harder for some of these companies to grow or provide projects that will grow their profits and revenues at a meaningful rate given the size business they already have for many investors out there, these are quote/unquote safe plays. tongue in cheek, but a little

serious as well. now the ones 800-bound gorillas, the most dominant parts of the market in play could be considered safest just not the ones that grow fastest. smaller and mid-cap names are the ones people look for for more hypergrowth rates. >> dom, you used the word "dominant. yes, become extremely dominant that could raise a few red flags. certainly regulators are looking at it. thank you so much. a really good starting point for our first guest this morning, who is investing in what he calls the anti-amazon trade saying "if amazon is the empire, we like to fund the rebels." gary, good analogy coinbase original investors and partner initialized partner, did not go lost on me. talking about the rebels, incumbents, shopify and big commerce, we see larger valuations, less history than

amazon where's the value here >> i think what you have to look at is who can hire software engineers? the whole show so far talking what is the future and where is the growth what we see, you know, we funded these, some of these companies at the earliest stage when they were just one or two people. a software engineer writing code for instance, the company instacart, absolutely arming the rebels in terms of every grocer and incumbent out there. the really key thing to remember is that a lot of the supermarkets, supermarkets, convenience stores, these types of businesses can not hire and foster great software engineers, designers and product managers that's really what we're talking about here there's a certain type of firm that can build software, and you know, these tech giants, right, these tech giants and the people who can arm the rebels you know all of business, we think, is really going to sort of turn

over from non-tech to tech still just using -- go ahead. >> is this really and anti-amazon trade or an also amazon trade shopify interestingly armed the rebels in a way, but armed them to be on amazon but not rely on amazon solely. easier as a small business to sell through amazon if you want to also do your facebook stuff. instagram, lots of different platforms. handle logistics also. is it more about recognizing in giants exist and not necessarily betting against them, but having another strategy as well >> a fantastic point really, you can look at things like instacart or shopify and say, actually it would be sort of hard for these companies to normally get into market without an amazon. so what you're really seeing is a point/counterpoint incumbent business by default is not really going to invest in the technology in r & d.

it's the nature of business and now is opening a huge opportunity for new start-ups, new businesses some of those small and mid-cap companies, you know, suddenly with the rise of amazon, with the rise of google, with the rise of tech, they're real business models being assailed look at uber, how taxi companies were value and looked at 10, 15 years ago. that business will never be the same so or thesis, that type of transformation will actually happen in every vertical look at the gdp broadly in the world. you know tech has only really entered maybe a small slice of it. so much of the world is still using paper and pencil or perhaps they've progressed now to email and excel spread sheets i know some viewser are nodding, realizing, hey, i need technology as a part of what i'm doing and in order to do that you need software engineers. >> yeah. an extension what andreeson wrote a long time ago about

software eating the world. i wonder, you know, garry, at one point bezos was a rebel attacking a different kind of empire i wonder what kind of lessons are embedded in that what happened to those empires of that time how many of them are still around, and did they manage to find ways to co-exist with these new players? >> yeah. i think that more of those players probably could have existed. i think -- i really, hats off to toby at should bpify he started as a great software engineer building for him and people near him and suddenly with amazon rising, it was suddenly something that every business needed to have. everyone needed to transform that's a relatively new phenomenon it was really expensive to start a start-up 10, 15 years ago, and shopify was able to start on, you know, funny enough, cheap

cloud as much as i think that's just going to continue from here. >> garry, we can keep the empire rebels analogy going sure you heard buffett and munger's comments on crypto over the weekend. munger hating on what he called the bitcoin success and calling it contrary, and disgusting to interests of civilization. i'm sure you have strong thoughts on this >> you know, i mean -- >> what are they missing >> they are incredible legends, obviously. buffett and munger we have a ton to learn from them, but one of the things that buffett said he learned early was to not do the one last sort of investment. end of its life value bet. look and zoom out on the economy, you might find that like we said productivity generating software is coming for every segment of the economy. talked about uber. we have companies like shelf engine, for instance literally replacing the guy with the clipboard in a grocery store. so this is a company that is

bringing smart software into grocery stores they're in more than 1,000 stores now, growing very quickly. saved more than 1 million pounds of food since they started actually fighting food waste. but the most important part of this, they've put multiple percentage points of profit on the grocer bottom line that's the only thing that really matters here. >> is, maybe, the underlying point, the takeaway, that a certain type of investor, certain types of institutions, perhaps represented by berkshire hathaway, are focused on the down sides to crypto and the need for a certain amount of regulation or oversight to make sure it operates within the bounds of law in certain cases >> you know, i've deferred to katie hahn andreessen horowitz on the board. a frequent guest for you guys and is incredible. her point is really, really clear. you know, criminals love using

cash, because it's untraceable if you're using crypto, crypto is extremely traceable, and so it's really not what you want to use. but i want to call out, i mean, we are -- >> a lot of ransom ware attacks seem to suggest otherwise. >> that's right. but you'll be able to actually track every single bitcoin that goes out there call ow ethereum headed to $10,000. that's crazy at 3500. i'm excited where that is going because it's programmable money, actually. >> so before we let you go, garry what is the general mood coming out of the berkshire meeting last weekend what's being said among your peers? is it anger and resentment about charlie and warren or is it more of a dismissal about voices that maybe some find no longer relevant? >> i would never count them out as people to pay attention to. their principles are

foundational to what it means to be a great investor. but the outcomes from those principles, we can agree to disagree i think that ethereum is ultra sound money. i think there is a future here for both bitcoin and ethereum and sort of the whole world of cryptocurrencies because this is the continuation of what we're talking about. big tech will sort of first wave krit crypto is the next. >> garry, great way to start our hour we're grateful to you. thanks so much see you soon. when we come back, a lot more on the tech sell-off. obviously nasdaq near session lows here as europe's about to close. we get into the courtroom on ap ap apple/epic "techcheck" is just getting started.

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to add a channel or streaming service and stay caught up. let's get a gut check on the cloud stocks first trust cloud computing atf down almost 6% over the last week and individual names hit harder fastly, twilio, crowdstrike down 10% to 16% 59 of these 66 stocks in this etf are lower over that period

sectors favorite for investors during the pandemic, of course up close to 60% in the past 12 months, but we will continue to keep an eye on this sell-off. >> yes now apple and epic games back in court today. day two. arguing apple has unfair control of the app store both side delivered opening statements yesterday also got new documents filed like apple's longtime ceo and co-founder steve jobs calling facebook, feastbook. perhaps unintentionally. erin griffith a tech reporter and has been inside the courtroom, no cameras so far no sketch artist erin, so, one of the things to come out of day one was a stark parallel between what apple is doing with the app store and what console makers have done with games it's been mentioned before, but laid out clearly this 30% thing isn't new. >> yeah. this was a really big team especially for apple they're basically saying, why are you suing us, when all of

the other platforms or almost all the other platforms you publish games on are charges the same 30% they weren't permitting you to basically launch your own app store, basically what epic is telling the court to tell apple to do. saying, why -- at one point apple's lawyers pulled up a chart that had, i think, microsoft, xbox, playstation and nintendo on it and listed these three topics things that epic is asking for and made tim sweeney, ceo of epic go through each individual box and say, yes, yes, yes so that was definitely a big theme for apple, and sweeney -- epical answer is, basically, there's a different business model. the app stores don't need to take a 30% commission. they can charge way less, because that's how much it costs

to run an app store. whereas a consolemaker actually is losing money on the hardware and trying to make it up on the commission trying to make that distinction but it's very technical. >> i said no sketches, but here are sketches yes, there are sketches. does it come down to, if you make money, then we get to decide as developers how much you get to charge us i mean, because, yes i mean, the console gaming model in the past had to do with using the hardware as a loss meter, but apple clearly, all the games its in, to make money, should that be held against them? >> yeah. that's sort of part of the big question that's happening here that's kind of what apple is trying to say. they were really telling a story of, like, listen the app store, they, tim cook likes the use the phrase economic miracle we've created hundreds of billions of dollars of value and all these ad developers, their

businesses wouldn't exist without the app store. that is a thriving market. they even used phrase similar to that is what an anticipate trust regulator dreams of. so they were definitely trying to paint that picture and also trying to paint a picture of many options for app developers and game developers to publish why they were really sticking with the, like, look at all the gaming consoles. there's no monopoly. epic's argument, apple's own iphone, its own product, is a monopoly. >> right erin, feels like yesterday sort of went in apple's favor especially talking about the gaming, all the gaming platforms. not just ios what are the vulnerable spots for apple and cook that could be exposed over the next few weeks? >> in general the tide is turning against big tech seeing this sentiment for a while. for one thing it's one of the few issues of antitrust, one of the few issues both democrats and republicans think to sort of

all agreeing on. so i think there is a little bit of, like, public sentiment that could influence the judge on this i mean, obviously they're going to rule on the merits of the case, but they don't exist in a vacuum it's very possible that all of these other antitrust cases that are coming, and also the class action, potential class action lawsuits we could see against apple from both developers and from users that, that could sort of influence the judge's thinking a little bit. you know, there was a moment yesterday when the judge actually jumped in and said,'s listen, you know there is these other lawsuits coming, and you still went ahead and ignored them and did your own lawsuit. sort of wanted to know why epic kind of had a -- well, yeah so she's definitely thinking about that a little bit, too. >> right yesterday, talking to kara swisher about the so-called apple fight card

how many of the legal cases it is fighting. in europe, stronger, actually directly competes with apple music. do agree? >> true. apple has an arcade game thing and products that i think -- actually that was a case epic was trying to make yesterday was, painting a picture not of themselves as a gaming company really sticking to the this metaverse idea that "fortnight" is not just a game anymore it's evolved into a place where people socialize, hang out, go to concerts, and it's, like, our virtual world. that's the idea epic is trying to say this one company, plus google basically control our access to our entire virtual world i think that's the best case that they have >> it's interesting, erin. you know, because -- the very existence of the app store goes against conventional wisdom.

a lot of people forget, steve jobs didn't want it to van app store. apple the only one be with first-party apps web app for everybody else, developers in an uproar said, no with want to be able to distribute first-appear apps apple came up with a relatively secure way to do it and now suddenly -- well over time not suddenly -- doesn't seem so revolutionary. developers wants to dictate the rules? >> one of the big theemes epic went after in opens statements apple created this and over time used business considerations, not necessarily technology considerations, to strengthen the wall of garden and stuck with that metaphor a lot once they stuffed you into this garden locked the door made it difficult for people to get out. that over time, those decisions were anti-competitive. basically their argument they showed a lot of emails, which you had kind of mentioned, from apple executives talking

about how to kind of, like, keep people in the apple walled garden you could argue business epic arguing that's monopolistic. >> the trial continues erin griffith. thank you. >> thanks for having me. nasdaq down 2 2/3% now starbucks thinking out the box nominating directors to the board after growing a nearly 8% stake in the company open letter, grown increasingly frustrated with box's stock performance and lack of surge during the pandemic when similar companies like docusign and service now thrive begs the question, what's the future for founder and activists may get vocal as growth rates underperform or flatten out. >> yeah. carl, really goes back to the theme we opened the show with. which is sort of the big tech versus the smaller incumbents, as we just talked about as well.

hard to compete against the tech giants seen it with box, with dropbox, with slack and after years of battling them, sometimes activists investors ask, definitely leads to an acquisition. hard to see, though, jon, aaron levy as a ceo wanting that route. acquired the way that firefield and slack did with salesforce. >> i don't know. i think it comes down to the importance of having founders present if you're making a pivot. how importance is that how flexible does aaron and the rest of the team feel to different plans and pivots pivoted from a focus on storage, raw storage to begin with. to being a platform for the enterprise, but they've had to continually compete with these larger players in some sense making what box what dropbox, what these others are doing a little bit more commoditized or at least tougher to compete with those big

salesforces. d? >> yep absolutely speaking of courtrooms, elizabeth holms make her first public appearance in 15 months today. live in san jose later this hour. next, breaking down the twitter trade. why the stock has just fallen off a cliff this last week. we're back in two.

welcome back to "techcheck." i'm carl quintanilla with deirdre bosa, jon fortt and julia boorstin joining us this morning. tech stocks under serious pressure nasdaq worst day since middle of march. closing brings us back to about april 1. faang complex down similarly cathie woods ark innovation down more than 4% etf worse formens, mroderna, match, nvidia breaking down the selling, hawkish comments from the treasury secretary yellen, mike,

at this atlantic event did not help >> definitely didn't help. i think a little bit of a psychological overhang both about the direction of policy when it comes to the fed as well as potential for tax increases i don't think that's the immediate driver of what's going on, but it doesn't help when you have the market already a little bit in a defensive crouch. the nasdaq has been a little suspect for a while right now. the fact that the overall nasdaq couldn't really hold above its february highs for more than a day, despite the fact having blockbuster earnings and everybody has a sense that stocks are kind of already, maybe, fully valued relative to other opportunities in terms of central stocks a lot of that stuff is getting kind of filtered into the prices >> and mike, what are bonds telling you? i see now ten year yield below 1.58 yellen talking hiking rates to keep the economy from overheating. what's happening on this relative move to safety?

>> seems like more of a global move i mean, really since the end of the first quarter there has been a bit in treasuries. first quarter worst quarter for bond performance in many years and people felt as if you had to get rebalanced back in global flows back into treasury seem like an element of support. the notion of the ap s absolutek level and uneven global nature what's going on recovery-wise because everybody covid or elsewhere. i don't know if it's all a macro story. a lot is kind of a flow story. but seems as if right now it's fitting into a general mood of, we have enough equity risk and are fully invested in equities the market itself raised everybody's allocations. maybe the direction of flow is more in the way of, let's pop up on the bond side of things. >> mike, looking at some of the

gig economy names like lyft, uber, doordash, set to report over the next week or so down big today what do you think investors are looking for from their quarters. lyft and uber especially does that run into hurdles given the broader market action right now? >> it does i think there's a little less of a willingness to buy the story. absence of retail trader energy an element, too, with a lot of these households names dash a great beneficiary of retail traders once it debuted a lot is also in the mix naturally, the perceived policy risks of businesses are not helping either to me it's across the board. i mean, you know, one way to think about it is, last year tech could do no wrong up into the summer, because the big scarce thing in the world was growth they had growth. the scarce stuff in the world

right now is real stuff. growth is not scarce overall s&p will have 30% earnings growth this year. yeah, cute google will have 20% whatever it is not exceptional this year compared to next two-year span, nasdaq 100 even after the pullback outperformed the s&p by 30 percentage points. still a premium that can erode in big tech relative to the rest of the market. >> overall where are we? the s&p overall back to where we were a couple wyche weeks ago. is it a big deal it's not a big deal. i don't think it has to become a big deal also qualifies not a big deal, 7% to 10% drop where we were at the highs. probably feel like a big deal on the way there. that's what you ask to get ready for is prepare for the idea that if you look at the one-year chart, or a two-year chart even, you're really playing with a lot of house money, and if some of that goes away, you're still ahead but probably going to be a

little nerve-racking along the way there, because i think you still have earnings estimates going up, good support credit markets good support, and you still don't necessarily have risk to the overall cycle. it's about a stutter step in growth coming off a peak rate. >> everything you're saying, mike, reminds me what this headline over the weekend from the co-cio of bridgewater said something like 10% of stocks are pricing in 20% revenue growth and margin expansion, and historically 2% of companies have been able to do that, but he follows by saying -- shorting that kind of market or bubble, if you think it's a bubble, is the easiest place to die. >> that's right. >> that's the real conundrum for some investors >> absolutely. incredibly hard to fight the general trend of valuation expansion and also, yeah, maybe 10% of stocks are priced that way and only 2% achieve that those 2% if they go a couple 100% each, maybe pay for the eight losers know what i mean

that psychology has gotten into the market by the way, nobody the short no shortages in this market at that multiyear low more deserving reality than saying, be careful don't be short this market, because i don't think it's popular to really fight it so far. >> great point, mike thanks for all of that look now to rahel solomon for a news update. >> good morning. what's happening at this hour -- pfizer standing out from other big pharma companies with a strong earnings beat helped in part by surging covid-19 sales pfizer experts coronavirus vaccines will make up more than a third of its revenues for the entire year. and shares down despite reporting earnings more than five times what analysts expected revenue topped forecasts and the company giving strong guidance second quarter. u.s. trade deficit yumping jumping to a new high. exports up strongly, but imports froze more fueled by rebounding

domestic demand. and jewelrymaker pandora saying, no, to mined diamonds. instead will only use lab-grown diamonds as a part of a move to sell jewelry that is both affordable and sustainable prices for artificial diamonds have been falling and are now as low as 1/10 that of mined diamonds deirdre, interesting the company said that among younger consumers, noticing they care a lot about sustainability. so another attempt to appeal at a younger consumer back to you. >> yeah. all right. makes sense. rahel, thanks for that. coming up, bim ll and melina gates split up we break that down next. and roadblock as buy with a 20% upside rebuy only on cnbc.com we're back in two.

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keeping an eye on the tech sell-off social etf social down about 3%. gr groupon down and sliding below $54 a share, off 30% since beginning of march is match

group. julia boorstin looking at retailers in the ad market putting more pressure on companies like that. julia? >> well, jon, amazon, biggest of all of those retailers hosted its biggest-ever presentation to ad buyers yesterday revealing that its ad support streaming video content reaching more than 120 million monthly user up from 2020 driven in part by twitch, streaming video game platform amazon owns. amazon's earning last week the company reported 77% revenue growth to nearly $7 billion in its other unit that is largely ads. also about seven times twitter's quarterly revenue. now amazon is well-positioned to keep on growing its ad business further with apple's operating system change prompting people to opt out of ad targeting, amazon's ads are more valuable, because the company has so much

data about what you want and what you are looking to buy. now, that's why walmart and tart and a number of other retailers are also investing to build their own ad businesses. in fact, walmart, which launched a self-service ad platform in january 2020 is projected it generate over $1.5 billion in ecommerce ad reservvenue this y and walmart has search revenue and 19%, and 57% share in google another side of amazon and amazon the rise. another sign google and facebook both investing in their own marketplaces to learn more about what people want to buy, jon. >> julia, instead of investing specifically in that direct kind of commercial relationship, turner's done this acquisition of scroll today. what does that show about where their focus is and how they hope to expand their market

>> well, jon, we've talked about twitter so much in the past week pine think what this really shows, they are diversifying away from reliance on advertising. we already saw them try to diversify away from reliance on brand advertising to direct response advertising, directs response more valuable these days now this new company they bought is a subscription service to allow people to subscribe to get out of ads they already have a subscription service for newsletters and working on a super-follow thing let people pay to get access to special, exclusive tweets. this is a company that really has ramped up its pace of innovation talked about twitter spaces, their audio tool they want to give people more chances to pay them to get access to the kind of content they put on twitter. >> bring it full circle now. twitter is trying to diversify outside of just advertising into subscriptions? some of these retailers, good at subscription, amazon's got prime. walmart's got its thing it's been working on. target, et cetera, moving into

advertising and they have strength in shopping data. i mean, is this -- who's this going to end well for? >> i think it's going to end well for amazon. definitely already going well for them i think it's the companies with scale that always win, jon right? look at facebook facebook has so much data that they've said they're going to be fine even if they can't target ads, because their sifti shifti shopping mod's companies with scale, biggest advantage. twitter shares down, i think that's why since reporting earnings twitter put out optimistic growth numbers what they expect to hit by 2023 said it back in february, their analyst day. and i think there's a lot of concern based on earnings result seen in the past couple of weeks maybe twitter's not going to be able to hit those numbers. they said they are keeping that long-term guidance in place but analysts are wondering, facebook is growing so much and alphabet, other giants

will twitter have a hard time hitting those numbers when it's competing against these behemoths? >> yeah. back to what garry tan said at the beginning. maybe not the exact anti-amazon but surviving in a symbiotic way. >> frenemies all frenemies. when we come back, elizabeth holmes returns to court today. that's coming up next. and oakland as weighed into crypto the first baseball team to sell tickets via dosh a lot more "techcheck" straight ahead. so stay with us.

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stocks across the alternative energy spectrum selling off today as well including names like plug power, fuel cell and neo. battery player quantum scape falling as well. stock at 75% off the december high hit shortly after going public via spac we'll continue to keep our eye on that obviously. carl, speaking of bad energy -- a joke from my producer -- bill and melinda gates announcing a divorce leaving huge questions over the fate of their fortune. we break that down. >> bill and melinda gates citing a separation agreement it their divorce filing that basically means large

they've decided on a process how to divide that $130 billion fortune. wall state is a community property state that means that assets acquired during their 27-year marriage can be divided equally microsoft stock unlikely to be affected here. gates owns only about 1.4% of the company. about $26 billion in shares. most of their wealth is in cascade. family investment vehicle with about $75 billion in assets, and includes big positions in a lot of publicly traded stocksin' they've got clean energy project, co-owns the four seasons hotel chain. big real estate projects in tampa and other cities, and, by the way, own more than 250,000 acres of land. the largest farmland owner in america. now, in the philanthropic world very focused on possible impacts from the bill and melinda gates' foundation the largest foundation in the world with a $50 billion

endowment. they give away up to $5 billion a year they said in a statement that "we will continue to work together at the foundation." a lot of experts telling me, it may be difficult for bill and melinda to decide together on what to spend, how much to spend and, of course, what happens to the more than $120 billion they have, but have yet to donate to charity? guys >> robert, that was my question. the giving pledge associated with that. do they have to remake that pledge now as individuals versus as a couple? is it unclear whether they were both making that pledge for individual fortunes at the time? >> well, philanthropy is key to both of them and has become their life's work. no doubt talking to their friends and people close to them that they will continue to honor that pledge. they have said they will give away 95% of their fortune, which

now is at $130 billion you get around $120 billion they have yet to give away. maybe take their own paths with philanthropy see how much she ends up see hop with, but there is no doubt that most or nearly all of it will eventually go to thrill an tlopie the question is now that they're no longer together at the bill and melinda gates foundation, what will they fund? each of them have projects and causes that are unique to them, that are important to them so i think directionally you are going to see a lot of different chance for this money that may be different from what we have seen so far. >> right a lot of this still has to play out, robert. thanks so much for bringing us that a check on uber and lyft next with uber announcing a new strategic partnership. more on that next.

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founder elizabeth holmes making her first public appearance in more than 15 months in court scott cone is there live with what we're expecting today. >> hey, jon. one thing to expect is that elizabeth holmes will look different than she looked when we last saw her in february of last year because she is expecting her first child, due in july. it is one of the reasons that the trial was delayed yet again. ahead of that we will have three days of pretrial motions as the

government and the defense sort of stakeout their positions ahead of that trial. so we'll hear today on whether holmes will be able to do what the government says is blaming her victims, that is suggesting that these were sophisticated investors in the blood testing fund and they should have known the difference between puffery and information. what can the government produce on things like false tests and whether the company violated standards, neither of which she is charged with. later in the week we will hear about her wealth and lifestyle and how much she be allowed in the trial, her reliance on experts and centers like more f medicaid services which cast doubt on the blood testing product. we also will hear more about the defense she will mount, the idea whether it had something to do with mental illness. a lot of items have filed under

seal over the last few days and whether she was somehow victimized by the chief operating officer and her former boyfriend. he is scheduled to go on trial early next year. elizabeth holmes trial starts with jury selection on august 31st guys >> scott, thank you very much for that carl, it is so interesting you know, talking about the excess in private markets, theronos is seen as a prime example years ago, but we got a note that the average startup for late stage is $1.6 billion it feels like there's more money than ever, leading to the question is there froth right now. could there be other startups in the pipeline with shaky business models. >> and will investors be more discerning this time around. when we come back, jm morgan's jamie dimon on the tape today saying, quote, i'm about to cancel all of my zoom meetings i'm done with it, as we see a trend of some offices reopening. zoom is sub 300 for the first

time since august. we are back after a break.

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tonight, uber tomorrow a big week for the bit from whet was trading right after its ipo. what does the future hold? >> these are the gig economy plays, but, of course, uber and lyft better positioned to recapitalize on the reopening. however, carl, that story getting a little more complicated with the driver shortage, with recent comments on gig workers, status from the labor secretary. so there are sort of these hurdles these guys will have to clear. it will be interesting to hear from them after the bell, from lyft today, what they are focused on, and especially some of their spending as they see the driver shortage. that ever, neverending search for profitability that is supposed to happen this year, at

least adjusted profitability. >> yeah. morgan stanley did write last week they thought they could price their way out of even a national reclassification of gig workers, but it remains to be seen guys, we're at session lows here and looking at the worst s&p decline since february 25. let's get to the judge carl, thanks so much welcome to "the halftime report." i'm scott wapner front and sender this hour, two major stories we are following this hour, both with big implications for your money. first, apple down sharply today as the number one analyst cutting estimates for the services commission. the other, a treasury quote from janet yellen who said the fed may need to raise rates to keep the economy from overheating stocks are down sharply, the nasdaq down bill you see the 400 point decline for the nasdaq today the investment committee is with me as always to discuss it stephanie link, sara