lated stocks new coarse had a great run, some of the steel stocks down today. >> all of this as we await another direct listing square space and another ipo tomorrow what a week to be going public that's going to do it for us on "squawk on the street. kharpal starts right now. happy wednesday morning. welcome to "techcheck. i'm jon fortt with carl quintanilla and deirdre bosa today crypto crashes bitcoin lost a third of its value and touches 30,000 we will tell you what's behind today's drop google i/o, head of the payment division joins us this hour and we are all over today's overall sell-off in check. barclay's chairman is with us in

just a moment. carl >> jon, stocks getting pinched today. nasdaq down for a third straight day. session low, nasdaq was down 17. as you can see down less than 1% dow, s&p set to post their biggest drops since january. qqq down a percent at biggest laggards this morning, chips deep in the red the reopening trade is a victim today. >> it is carl, we got to start with this crypto crash bitcoin off its lows, but still down around 20%. as china bans financial and payment institutions ether and dogecoin plunging. at one point this morning, the total crypto market cap was down over a trillion dollars from its highs. this crypto sell-off sending shares of coinbase lower well below its opening day price of $381 a share from last month the crypto exchange company even

going down for some users this morning. carl and jon, bitcoin is still up about 20% this year it's more than tripled over the last year. but this is about as volatile as we've seen it in a long time and a lot has changed. it's much more integrated with financial markets, different asset classes. the question here is does this send ripples across other asset classes? >> it's true there's a big question right now in the markets as to whether or not this can be limited to as one person said the selling of these digital pet rocks or if it moves across asset classes clearly people are starting to assemble the bear cases which involves esg concerns, elon musk's about-face, the chinese cracking down, sec scrutiny and other things like that. >> yeah. i wonder the degree to which maybe there's -- i mean systemic risk is a bit far, but within the riskier or more speculative assets how much are all these things tied together

how much security is somebody who owns crypto look to that as their piggy bank as they're investing in other things, meme stocks or ipos the tech stocks down the most, coinbase down 7.5% you have tesla which is connected to bitcoin, at least in a way, down almost 4. a firm in the payment space down almost 4 square down 3. so all of that, to me, suggests that there could be something. i don't know >> absolutely. the question is very different than it was back in 2017 and then in 2018 when you saw the start of the crypto winter it wasn't as integrated. there's an ecosystem built around crypto currencies right now. cathie wood thinks that bitcoin will go to $500,000. although this isn't necessarily a bottom, carl if you are thinking that this is sort of a long-term bet that it's going to be bitcoin or

ether or crypto currency as a technology here to stay, could be a buying opportunity. but, of course, we're watching in real-time as the markets sort this out. >> indeed. let's talk about that and the tech sell-off in general with bob peck, chairman of banking at barclays good to see you again. >> thanks again for having me. looking foorsds to finally getting live on the desk hopefully soon. >> yeah. we're going to get there, believe me, sooner rather than later. as far as crypto goes, the correction itself on a percentage basis is something historically you kind of have to be accustomed to at this point, but the number of dollars affected is different. what do you think that means >> the volatility you're seeing in crypto and the volatility you're seeing in markets, inflation, interest rates, is something our clients are looking at very closely. as you know right now for our tech clients you're in one of these mega trend cycles where it's never been easier to start,

scale and fund your company, your idea from the beginning of a scaled asset as we think about this volatility and we look at it every single day and talk about it with our clients what does it mean to the ipo market how should we think ate going at a traditional ipo? so one of the things we do when we talk to our clients a bit, let's pull the lens back and think about inflation and interest rates for a second. as you know the 10-year has bobbed between 1.5 and 3%, basically besides the recent dip during covid since 2011, 2012, so you've had to go back and forth in that channel. as you know for that period of time for stocks, it's been an amazing run for stocks, right. in fact, if we look at 2019 as the most recent example of having it bounce around in that range, what did it mean for the tech ipos and was the ipo market open for them? well, in 2019, you had about 20 ipos those ipos popped north of 35%

up over 100% today strong valuation metrics, double digits on a revenue basis. we didn't really see an impact in the 2019 ipo market we think the ipo market is one of the many options our clients still have right now, even if interest rates go up we think interest rates would have an impact on things like a spac, direct listings or our funding mechanisms that our companies could pursue >> that's interesting. i mean it's a little bit far field for a tech show, but we are definitely paying attention, bob, to the downside correction in in some of those what the fed would argue are transitory inflationary signals in commodities. if those came down and stayed down and the fed's view about transitory panned out, i wonder, would that set a new wave of ipo windows, vc dollars and the like >> yeah. absolutely and i think you hit on a couple key things right there one, as a private tech company you have so many options for funding right now. vc, which is a big one, right. you could ipo or de-spac now

what's interesting on the spac side is that, you know, there's 400 active spacs right now with over $120 billion of value, right. so they're looking for rich targets. for these targets as the markets bounce around a little bit here, do entrepreneurs become more grounded in their expectation and what could that therefore do that could kick off a wave of de-spaccing as the entrepreneur's view maybe more alliance with the pipe market. the pipe market has been a little stuck over the last couple of weeks and months and we see that coming through here and seeing a wave of de-spaccing or getting public and capital happening over the next 12 to 18 months >> right bob, you say that there's still opportunity in the ipo market, but hogue before volatility and public markets start to affect private market valuations? look at squarespace today, two months ago the company was valued at $10 billion. today it's going public at a reference price of values at far

below that. >> yeah. that's a great question. we really keep a close eye on the volatility you will see the vix is around 24, 25 or so in that range carl, as you and i have discussed with volatility, 85% plus of all ipos have been done with a vix below 28. you're still in that range where ipos can get done. i think you're right, what you could have here is entrepreneurs maybe getting quicker funding and not going through processes longer processes by taking a lower valuation and looking longer term where their valuation will go towards. what i think is amazing for the entrepreneurs and tech companies they still have a ton of choices at their finger tips and could choose what optimizes best for them, today's direct listing, don't need to raise capital, private raise, traditional and m&a is on the table. we're having a record year in m&a over $2 trillion in global

m&a. rumors about amazon and mgm. we're on pace for one of the best years of m&a ever we'll see what the second half of the year brings in the u.s. same thing trillion of m&a done so far. and on pace. these entrepreneurs and tech companies have multiple choices to fund their visions and dreams >> there sure are. bob stay with us, because we want to hit google and its i/o keynote yesterday. i was watching it too in real-time, a long event. one thing that struck me about this event, jon, is 3 billion android devices now. when you see upgrades like the ones we saw across a number of features yesterday, the scale at which they can implement them, it's pretty remarkable. >> yeah. and deirdre, this is one of those big events in technology there aren't many. apple's wwdc is coming in about three or four weeks where the platform and the ecosystem are so big, that they have ripple

effects that affect so many public companies so let's talk about some of that i mean out of i slshgs o google versus apple. android is the biggest operating system and ecosystem in the world. they're doing a big redesign, privacy dashboard is a part of that, more design customization. when it comes to wearables like watches, teaming up with samsung, kind of gone separate ways because they were getting their butts kicked by apple and the apple watch, maybe together they can make headway with google having fitbit and samsung helping to lead an ecosystem google versus microsoft with workspace, formerly g-suite, trying to tie those products together microsoft has maintained strength in office suites despite the push from google zoom is outpacing google meet there. maybe they will make headway with workspace deirdre, we got somebody from google a little later on talking payments and some of the news

they're making there shopify moved yesterday on it. >> and that sets up sort of the battle royale between google and amazon we increasingly see these two companies encroach on each other's spaces where amazon is making this big push with some pretty incredible growth and success in advertisement and google on the shopping side, going into e-commerce, jon there's so much to unpack but it does involve the biggest names we talk about on a daily basis staples of our tech show the tech giants increasingly as they're finding new revenue streams, coming up against each other. >> and bob peck, back to you on this, this is where big tech really has to succeed on the larger platform plays we're seeing out of i/o, wwdc, if they're going to justify these valuations that we've got and continue this earnings streak they've had, right >> yeah. absolutely and don't forget eric schmidt many years ago said he saw

amazon as google's greatest competitor which at the time threw people a bit, but as these massive companies scale, particularly think about the 3 billion number you mentioned, just when you let that sink in, it's astounding the amount of data they can capture on those types of devices you mentioned the wearables as well i wear the ring, and the amount of data you can get now daily, real-time quite honestly, through these devices and how can we use that data, honestly as you think about it from the consumer point of view, perfect their experience and way of life, an iterate and scale your platforms these will continue to battle across the surveys you platforms. you mentioned advertising, shopping the devices. it's i think at the end of the day, the best part about it, it's a win for the consumer as all these behemoths compete against each other and provide the best experience and capabilities to the consumer >> yeah. bob, it's funny, we think back to last summer where, obviously,

money and consumers were flocking to these services because we were all locked down at home. when clients ask you what's the best argument for those kinds of tech names, exiting a pandemic, what's generally your best answer >> so it's a bull/bear question on have you seen an acceleration of a trend or pull forward that will give back when you think of examples of what are accelerations, e-commerce has been adopted by more and more. it's accelerating and a way of life and expect things to get delivered to us today. other areas that are interesting are video streaming and when i say that, think about the amount of work put innologies and adop the rates to deploy. those types of things have changed permanently and you've seen the acceleration that is just going to speed up their business model it's an exciting time. >> bob, that's the way to start the hour always good to talk to you thanks as always

>> great to see you. thanks for having me google's head of payments bill ready is on the other side of this break. we have a lot to talk to him about. a big hour of "techcheck" is only getting started ♪ so it's another day. yeah- that's what most people think. but in business it's never just another day. every day is the day. there's the day your store has its biggest sale. the day you have a make or break presentation. and the day your team operates from across the country. but there's also the day you never see coming- the day when nothing goes right.

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get a gut check on crm morgan stanley ups it to out perform and says the outperformance of the stock post slack is an attractive entry point to address the digital transformation we see. shares up 2% there, and for a while, actually still, really the only dow component that is markedly green today. >> carl, google expanding its partnership with shopify the company is ramping up its e-commerce efforts and adding new shopping features to google platforms. joining us is president of commerce, bill ready, former coo of paypal and co of venmo and braintree. bill, good morning with an introduction like that, i do want to get these developments but with your

extensive background, i have to ask you what you're making of the volatility in crypto currency and the sell-off that we're seeing this morning? >> i don't have anything to share on that specifically i think it's been interesting to see that it is a much wider range of choices in financial services and in the long term that's good for consumers but these things have uneven rises over time. >> but google pay has done integration into its platforms like gem my. you created venmo and at paypal when they were experiencing with it, broadly, not necessarily as it relates to google, but what do you make of this as a veteran in the payment space >> again, i think people are going to benefit as they have more and more choices. i think that's one of where a lot of innovation is happening, people benefit from more choices. we're bringing in more choices for consumers in the broader shopping ecosystem and payments is an interesting part of that commerce experience and customers have more choices

that's a good thing for them customers will make their own informed choices we think we can present more, that's ultimately a good thing >> let's move on to some of the announcements yesterday. extending a partnership with shopify. and you said in the release that you guys believe that consumer deserves the most choices available. you will work to continue to innovate on shopping every step of the way does that mean that we might expect to see more partnerships going forward? would you ever integrate with amazon if that meant providing the most choices possible? >> well, you know, we support a free and open ecosystem for commerce which includes the largest retails, the amazons of the world, all the way down to small businesses so we are really here to support the entire retail ecosystem and help consumers have just as much or more choice in the digital world as they've had in the physical world so as we've opened up our platform and made our product

listings free and available to any merchant of any size, that really does support the entire ecosystem. what we see from that is that consumers benefit tremendously from that. we see more than a billion times a day people are shopping across google and our growth rate for retail we shared in earnings in q4 was 3x this past q4 the growth rate was 3x the same period in the prior year we're seeing the consumer really benefitting from a broader set of choices partners like shopify we announced at google i/o are helping more businesses come on the free and open web is really giving consumers more choice and we're seeing consumers have more choice, they're benefitting. billion plus shopping sessions a day on google that's many more consumers finding much more of what they're looking for from a broader set of merchants. >> hey, bill, it's jon tell us more about that partnership with shopify shopify merchants can already show their products on amazon or on etsy or on facebook or across

google, google shopping, but it seems like you're talking about a deeper integration that involves things like maps, youtube. how is that different from what shopify merchants are able to do today and is there something unique about, you know, the hooks perhaps that you'll have with shopify to enable that? >> well, what we're doing with shopify is in just a few clicks the 1.7 million merchants on shopify in a few clicks can publish all their products in inventory to appear across google we talked about our shopping graph yesterday at google i/o and what we're doing with the shopping graph is really taking our most comprehensive data set about products and a.i. enhanced model with 24 billion plus product listings connecting that across the surfaces of google. so all of these, you know, great products from all these sellers on shopify in a few clicks not

only can they publish those to appear across google, but, you know, that's now crossing many surfaces where many people shop. on our main search results, image search, youtube, or new experiences like with google lens where you can point your phone's camera and start to search and shop the world around you so that the product, you can find that exact product or similar items on millions across the web. >> that leads to my next question about omnichannel and attribution. seems like some of the announcements around lens and maps, are about blending the digital world and the physical world and a couple of opportunities i see there, one, is a transaction that you start digitally that finishes physically which is something we heard home depot talking about yesterday in earnings and another is just that idea of google being able to say this digital experience led to a physical purchase, that

attribution that could lead to more digital ad sales. how much of that is baked into this >> what we're really seeing is digital and physical are truly starting to come together. people talk about omni for years, but now you see it really, really starting to pick up you saw that this past year with things like curbside pick-up or buy on line and pick up in the store. we think there's a next big stage past that, which is really being able to shop the world around you certainly with maps, with lens, that's bringing the digital world into the physical world. so before, it was much more about taking digital into the physical world but physical world would come back into digital as well like the lens experience, you can see something, window shopping, you can point your phone and discover what that item is, where you might get it similar looks and these things where the digital world and physical world are starting to blend even beyond curbside pick-up >> we appreciate you breaking

down yesterday's announcement what it means on google and crypto >> thank you crypto continues to crash. a bit of a recovery today, but still a lot of pain on the boards and this time it's not because of elon. rajohn will join us next driving shares higher an all-time high on tgt more "techcheck" still ahead ok, at at&t everyone gets our best deals on all smartphones. let me break it down. you got your new customers — they get our best deals. you got your existing customers — they also get our best deals. everyone. gets. the deals. questions? got it. but, why did you use a permanent marker? because i want to make sure you remember. i am going to get a new whiteboard. it's not complicated. only at&t gives new & existing customers the same great deals on all smartphones. get up to $800 off our latest 5g smartphones.

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nasdaq has seen its worst month since march of last year welcome back to "techcheck." i'm carl quintanilla, deirdre bosa, jon fortt. for now the broader indices continues to slide crypto is the heart of the action bitcoin hit a low today of 30,001 the 42 hour chart weakness as china does impose these new

restrictions on crypto currencies and that did accelerate the selling early today, jon. >> yeah. carl, let's stay with crypto, and bring in rajohn roy. i wonder how much this is reflective of the risk trade and how much it underscores, i don't understand what's moving cryptos and why crypto fans want them to move so much >> i mean, jon, i have to tell you, today watching that move at around 9:00 a.m., i don't even have any positions in crypto for full disclosure yet i was getting butterflies in my stomach the same as if i had a lot of risk on stepping back on the chinese announcement, it's important to remember china since 2013 has said that any kind of financial institution could not use crypto currency for payments or other related services let's remember, does anyone

really think the chinese government is going to wholeheartedly support a financial vehicle that is all about the decentralization of authority and power? it's more important that we take a step back and look at what has this cycle been in the last six months or so we're seeing something huge here bitcoin was only at $10,000 in october. elon musk started tweeting about doge only in december. he put #bitcoin in his twitter profile at the end of january and that spurred a 20% move from 22 to 28k on january 29. we're back there this cycle, i mean it's moving fast in that move to 60k, it all feels like it's getting crazy but we're back to where we were in january so i think -- >> it seems to me if you believed in bitcoin and crypto in january, what's changed really i mean it's gone on sale for you

then has there been anything fundamental that has shifted if you're not just chasing headlines and not just chasing tweets, if you believe in this or don't believe in this, it seems to me like you should still be in that camp? >> there are a lot of very smart people that i respect a great deal working in crypto currency and blockchain and who generally believe this will transform financial markets as we know elon was tweeting, and in february, he came out and said occasionally i make jokes about dogecoin and they're really meant to be just jokes and now we're back to the point suddenly it's not a joke and bitcoin is the problem because of its energy usage and dogecoin potentially could be the currency of the future it's that volatility and making joke out of the financial markets that i think is going to prevent any real progress in the

near term in the actual fundamental change that crypto currency and blockchain can provide for the financial system >> it's deirdre, good morning. i have to thank you for pouring some cold water on the china news and, you know, its effect on bitcoin we talked about this morning on a live stream. china has always been against crypto that should -- bitcoin, excuse me, should come as no surprise is it the bigger problem then that institutional investors may be driving this wave of selling? kate rooney told me it was on margin calls and you look at a chart seeing more institutions favoring gold over bitcoin is that a more bearish signal for crypto currencies than perhaps headlines out of china >> yeah. i believe that institutional money into crypto is chasing the wave when it dominates every single headline, of course

you're a fund manager building financial technology at a large bank, you have to do something your boss is going to be telling you, why aren't we in on this? they're the first to leave when the price starts going down if they don't truly believe in it the true kind of nature of all of this technology is about decentralization large concentrated financial institutions don't really at their core believe in it institutional money is going to be the first out the door. even the paper hands in this case as opposed to the diamond hands. i think that could be the most telling part of this >> yeah. i think that's -- i mean diamond hands, jamie dimon hands are much different even today, jpmorgan says institutional investors appear to be shifting away from bitcoin, back into traditional gold, reversing the trend to the prior two quarters i guess the question is, can the

market evolve and continue to evolve just on retail or do you really need these big players to say we're in we're in for the long term >> i think, carl, we just made a jamie dimon hands joke on cnbc but two weeks ago gary against her was on cnbc and andrew ross sorkin was interviewing him and are you going to be watching elon on "snl" and they laughed and said probably not. gary against her should have been watching "saturday night live" because elon musk did move a financial tradeable asset with a $70 billion market capitalization and remember, that didn't happen on an interview on cnbc with deirdre and carl and jon and julia that happened on an interview with michael che and colin jost. we have to remember that jamie dimon is against it, for it,

these things are moving so fast that they don't allow these technologies to develop in a responsible or a proper way. again, i believe that there is a lot of value to -- in these technologies, i believe there's a lot of improvement that can take place in the financial system, but when everyone focuses on a manic price movement, it's impossible for that to happen >> now, it was still on an nbc universal network though, i will point that out but if you're a risk manager, right, at a firm that bought into bitcoin over the past few months, what do you think you're thinking right now abilitout th volatility and what's caused it. >> if you're a fund manager that bought in the last few months you're getting a bit nervous you are not a long-term holder and true believer and just got out and i would be pretty afraid here's the thing, risk managers

should actually be on the front lines of this because, you know, our financial markets, i've been in and around financial markets for two decades now and traded emerging markets currencies. one of the most important parts about the united states financial market infrastructure, it's stable and secure and serious. now, all of this mania, dogecoin, dog money becoming a central talking point of financial media is putting us at the risk of, you know, at a certain point when you try to become a joke and everything becomes a joke, we will be a joke i actually think it should be the risk managers who are on the front lines here trying to prevent their own institutions from kind of chasing this mania. >> well, volatility continues. rajan roy thank you. >> thank you very much time now for a news update let's get to rahel solomon for that good morning, rahel. >> hi, good morning.

here's what's happening at this hour target, one of the few big gainers during today's downturn. earnings were 60% above estimates and same-store sales more than doubled forecasts. target saw heavy traffic in stores and online. >> i think the confluence of a stronger economy, a consumer who has been vaccinated,who is mor confident, who is excited about getting back to their normal life, all those things are benefitting us right now >> and lowe's seeing a surge in revenue as homeowners continue to put money into their homes, although the sales growth did lag that of home depot those shares have fallen to the lowest levels since march. energy prices falling. crude oil is down about 5% the worst one-day decline in more than a month. that's as concerns about weakening demand are fueled by rising infections in asia and inflation worries here in the u.s. you're up to date. deirdre, i'll send it back to you. >> thank you. still to come on the show, pinterest addresses its

diversity concerns that's up next and keep an eye on take two. a big beat on the top and bottom line providing a pop initially this morning up more than 5.5%. the tech sell-off and weaker than expected guidance did drive it down for a while. "techcheck" is back in just two minutes.

welcome back a tough day for the month, the nasdaq recovering somewhat and julia, we're going to talk about a couple of stocks on your beat this morning start with netflix strategy shifts overall perhaps in digital media netflix doing a bit more with podcasts. is this different from what they've been doing in the past which is marketing centric and an expansion into podcasts as core content >> before we talk podcasts, i know you and i love talking podcasts, i think the real reason that netflix is fairing better than some of the other stocks it got this bullish report from jefferies initiating coverage with a buy and $620 price target i do think there is this assumption that even though people may not be subscribing to a ton of streaming services,

netflix will be one even if warner media and discovery become a formidable rival. let's talk podcasts. there is a big report out in the "l.a. times" saying netflix was going big into podcasts, implication that maybe they would be a rival to shopify. what i have heard from my sources at the company is that netflix is going to continue using podcasts as a marketing fool tool, podcasts hold on to consumers let them know about shows and keep them engaged with shows. they're not going to be trying to do an apple or a shopify play there, but it's about taking the netflix content, putting it out anywhere you can find a podcast to keep those brands and those characters alive. >> interesting i wondered if they would eventually do that, try to use it as a churn killer on the platform itself. apparently not and then there's pinterest which has been taking a lot of heat on diversity.

it lost a chief operating officer, a woman who said she was not well treated there and they've been trying to make some moves to shift the culture, right? >> yeah. look, pinterest has taken a lot of heat not just about lack of gender diversity but a culture bad for women and people of color. they were criticized by two black women for how they handled culture issues last year and they just put out a new report saying they're going to have a target of increasing the number of women and people of color not just at the company but specifically in leadership roles. they set some targets there. it's interesting, jon, to think about the fact that this is a platform in the u.s. especially, its user base is largely women the fact that they don't have more women in leadership is shocking if you think about how valuable it would be to have management and an employee base that reflects the people that they want to serve with their platform, both in terms of gender and in terms of racial

and ethnic diversity >> yjulia boorstin we have a 900% gain on gamestop and a boost of its tesla stake inside the book next for more on the jefferies note, go to cnbc.com/pro "techcheck" is back in a moment.

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squarespace is going public in a direct listing as we await its open reference price was $50 giving the company a $6.8 billion market cap at its start. a disappointing debut today. we don't know what that is yet that could raise concerns about broader start-up valuations. just two months ago, guys, squarespace was valued at $10 billion in the private market. a quintupling of its valuation new to that round tiger global the most active investor in the start-up ecosystem this year critics have raised red flags over the crossover fund's tactics accusing it of inflating valuation, reminiscent of another player a few years ago. softbank and masa son. the sell-off in crypto and tech stocks in recent weeks when does that start affecting start-up evaluations. we asked this of bob peck and he

said there's still opportunity but squarespace could be a good indication this isn't a money losing company either profitable, $30 million in net income last year, jon. >> when i look at squarespace i think about go daddy on one side, right, which is kind of in this content creation website, getting smaller businesses online in that area. it's got a, about a $13.5 billion market cap other side, players like kajabi, doing the same thing but leaning into the new lessons and subscription modes also. i wonder how squarespace differentiates itself and i mean, how much is the crypto thing a part of this and how much, carl, is just sort of the rerating that we've seen in so many of these young growth companies that had such a strong start to the year? >> yeah. on the squarespace front, d, cramer's point this morning was as you said, there's well

entrenched competitors already in the market. also voting power is going to remain with the ceo, so shareholders will have limited voice. we're getting a couple ocomments from fed officials who say crypto does not hold broader implications for classes can this really be contained you take your loss in crypto but it doesn't infect other parts of trading. >> yep that's a good question as we see bitcoin now trading around -- back up around $37,000, but, of course, that steep drop over the last 12 hours or so. coming up next, what does the business world look like post-pandemic? today's top ceos and business leaders fill us in on their plans to adapt to the new normal do not miss cnbc's annual evolve global summit, wednesday june 16th, featuring the ceos of carnival, dick's sporting good, coca-cola, adidas and more register and learn more online

today. cnbc.com/event don't want to miss that one. "techcheck" returns in two minutes. we've been online for more than 25 years and have helped thousands of students reach their goals. as a nonprofit university, we believe access to high quality education should be available to everyone. that's why we offer some of the lowest tuition rates in the nation, and haven't raised tuition in nearly a decade. so no matter where you want to go, snhu can help you get there. visit snhu.edu today.

we know how much you count on us... ...and that's why we're here 24/7... ...and on the road maintaining a fast and reliable network. we're always working to ensure the internet meets your needs... ...by making access easier for all... ...with comcast lift zones and our internet essentials program. we're invested in making our apps easy... ...to give you personalized assistance around the clock. and we're committed to keeping our team and customers safe by working from home... ...and using precautions in store. see what we're up to at xfinity.com/commitment it is not just the price action of crypto this morning, it is the massive issues for coinbase our kate rooney has more on that hey, kate. >> hey, carl this is starting to be a familiar story in the fintech world, trading apps with widespread outages on trading days coinbase, the largest crypto

exchange, experiencing an outage right as bitcoin lost about a third of its value earlier this morning. in a statement to cnbc coinbase says, we're seeing some issues on coinbase and coinbase pro, and we're away some features may not be functioning completely normally we are currently investigating these issues and will provide updates as soon as possible. it is not just coinbase this morning. we've got binance gemini, the exchange founded by the winkleloss twins some are saying that they missed the chance to buy the dip. others were likely looking to lock in some of the bitcoin gains this year. coinbase reported earnings just last week and they've really been leaning into the platform being the safest, most compliant place to trade, especially as it sees more competition from traditional fintechs offering crypto trading shares of coinbase have been down as much at 8% this morning, they're down about 5% right now. bitcoin down about 12%

the most recent comparison is robin hood we saw the outages recently with dogecoin they had big ones back in march. that app is up and running today. when it saw the big outages in 2020 robin hood was hit with multiple class action suits because they said robin hood would not let them trade guys, back to you. >> kate, we've been talking about this this morning on our livestream ron john roy talked about it as well, but just the institutional piece. i wonder how you think that piece, the fact it is more mainstream among institutions could make this volatility different than the last time we saw, you know, the krimt owe winter begin we have been pointing to the chart of gold versus bitcoin totally reversed over the last few months what does it tell us about institutional appetite to actually stick with bitcoin? there you have it right there, but it has reversed over the last little bit. what does it tep you about the

piece of this and what it could mean nor the future of cryptocurrencies >> that's key to watch, and something i have been hearing this morning talking to analysts you might have had headlines out of china, which you pointed out is not new but seemed to effect the price. you had elon musk starting this trend and sort of the lower price action that is exacerbated by things like margin calls. so once the price hits a certain level, it triggers selling you see a snowball effect and it is a sign that bitcoin as it becomes more popular and it is more mature, you have a more mature options masht this is being driven by professional traders, some institutions from what i'm hearing. it is definitely something to watch. you see that jpmorgan chart lays it out perfectly that you have some institutions rotating from bitcoin. i think days like this poke holes in the argument that bitcoin is a store of value or safe haven i think institutions that might be considering bitcoin and the possibility of adding it to the balance sheet, if you think about it going up or down by 30% in a day, i think it brings it

home for people considering bitcoin. >> kate, i wonder to what extent crypto is a piggy bank for the meme stock trade i'm looking at amc, down more than so10% today. game stop is also down i mean all of this is down about 6% all of this is talked about a lot on some message boards i wonder to what degree. maybe there's no systemic risk from crypto, but is there risk trade risk >> i think it signals definitely sort of a risk-off or people moving away from the riskier, higher-growth trades in general. i think bitcoin has been the prime example of that. like we talked about this week, some people are calling bit coin boomer coin. it is seen as sort of the boring trade for the last month or so it has been steady around $55,000. it hasn't really been seen as a volatile asset or high growth asset. people have been moving into things like dogecoin to sort of get the upside we haven't seen that as much i think it is a rude awakening

for people who may have invested in bitcoin, thinking it was a little more steady and putting their other money in things like dogecoin and amc and game stop you have probably seen the same knock-down effects and places like reddit are an area where that comes out we've been monitoring those message boards this morning. >> that was a serious argument, that the money was spread into other coins, but they're all hurting today as you point out a good per spentive, kate rooney thank you. update on the sell-off here. the worst five performers on the nasdaq 100, on your screen tesla is number one, down to 554. "techcheck" is back after one more break

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it's not complicated. only at&t gives new & existing customers the same great deals on all smartphones. get up to $800 off our latest 5g smartphones. one more thing some interesting disclosures from the mormon churches secretive $100 billion dollar investment fund, increasing the tesla stake by 100%. other notes, $2 billion in apple and microsoft. they also cut their stake in berkshire, john, by 21 >> wow sure wish that we could have

insight as they're making those calls. deidre, you know, sometimes these institutions, just like the rest of us >> you kind of lost me at $100 billion secretive fund by the mormon church. i would love to see what is in that, carl >> yes yes. what a market day. let's get to "the half" carl, thanks so much welcome to "the halftime report." i'm scott wapner the continued upset in stocks, why the market can't get traction and where your money is safe and still at risk we debate it with the investment committee this hour. joining me, jenny harrington is ceo and portfolio manager. amy raskin stephen weiss, joe terranova tech has been under some heavy selling pressure bitcoin is getting trounced. we are working on our third straight down day for the major averages stephen weiss, is this bitcoin's turn and stocks for thatt