entertainment, some of the most popular search tickers on cnbc.com i'll send things back over to you. >> thank you so much, dom chu. maybe it's good. maybe inflation really is transitory. >> not good for the bank stocks, that's for sure. down almost 3% on the week so far. >> make sure you join us it's happening again tomorrow, it's a wonderful think "squawk on the street" is next >> good wednesday morning, and welcome to "squawk on the street." i'm david faber along with jim cramer we're live from the new york stock exchange carl has the morning off let's give you a look at futures. we get ready to start trading about a half hour from now nasdaq was stronger yesterday, but jooverall not a great day f the markets. our road map this morning starts where we were focussed yesterday in part, a lot of those chinese stocks, didi certainly is

amongst them china's crackdown continuing to take many names lower. plus, apple is eyeing a new all-time high at the open with the nasdaq coming off a fresh record close and president biden saying the latest global cyber attack has caused, quote, minimal damage to u.s. businesses. we'll have a closer look at what is being called the largest ransomware attack on record. but jim, we want to start with china. >> yeah. >> and where things stand, sorry i m computer went out on me right there. you know, it's much more than didi of course we watched that stock decline, what, almost 20% yesterday. it just keeps ramping up there had been an expectation amongst many investors who invest in chinese companies that have become public here that a lot of the rule making changes would actually take place before the 100 year anniversary instead it's gone the other way. you could look at it as almost a

continuum from last summer when they started on ant financial and kind of just kept going around. >> well, i mean, there was this loophole that allowed them to raise money in the west. i want to say something, i've watched all the coverage from there. david, this is a cold war, and the chinese did something that was so offensive to the united states we're not even talking about it dae didi was just offensive. we don't care about the capital markets. we're finished anybody who thinks they're bigger than the government this is about chinese both there and there. i don't like that a lot of people are talking about it's about privacy. this is about what the soviet union did to us after world war ii suddenly out of nowhere they put an iron curtain up there was no iron curtain. churchill realized before others, wow, it looks like russia is not our friend after being our friend after world war ii the chinese are not our friend

they're building an iron curtain. i don't know why people see it that way to do something like didi to say basically if you do this, we're going to ruin your investors was basically to say we don't want any more money raised in the united states. look at bitcoin. >> that's another new story overnight. the latest crypto crackdown is what it's being called at cnbc.com saying they've called for a shutdown of a company that was suspected of providing software services for virtual currency transactions. >> selling gpus over there because they're losing their value. before anyone sells nvidia on that, nvidia makes cards that they're selling. but why is it, david, i got to ask you, why do people not see it as the cold war >> i'm not sure that they don't. in the conversations i had this morning with some money managers, i mean, the biggest

threat is china, taiwan. >> taiwan. >> a lot of people are concerned about that because if you keep going down this road and this level of aggression in our ca capital markets, but it were to extend beyond that you've talked about this many times. >> previous presidents -- i want to make sure you understand i will do something drastic if you touch taiwan i think people are testing biden. i think the russians are testing biden with their cyber attacks, and i think the chinese are testing biden with what they do first financially and then it will be -- >> you discussed prospect, the possibility could it actually happen that they would make a move on taiwan of course the chip making capability there is such a key to the overall world economy. >> people think it's going to be military they're just going to squeeze the economy. look, we've always had sovereignty and the government agrees with us, and we've got a new government they wouldn't do it with troops. it's not like the eighth army,

which is building bridges is suddenly going to take over. >> back to the stocks and you know, i have another source here that says, listen, no true fiduciary can own china shares it's impossible for the s.e.c. to regulate these shares as it does for u.s. holdings therefore, you should reconsider your holdings. >> i wrote that. who is that? my ghost writer? >> no, this is a long-time buddy of mine, a long-time hedge fund manager. >> i totally agree with everything he just said. >> by the way, did you notice that even though all the americans who participated in didi were shafted, gary gensler said nothing why not say i am going to subpoena goldman, morgan stanley. why not? why shouldn't they have subpoenaed why doesn't he just say listen, we want to freeze -- >> we want to know what you knew when you knew it and why you chose to do the offering if you

did know there was a crackdown coming on didi. >> the narrative had been they're going to do it in hong k kong then it became there's so much demand in the united states, we're going to rush that now we're thinking is it rush because they knew china was going to crack down friday it could be crucial, there's 30 more deals in the pipe >> they're not coming anytime soon. >> don't you think there's a sucker born every minute >> they're not going to be able to list here, least nat least now, bite dance, owner of tiktok, expectation had been at some point it will try to monetize and become public eunice yoon has been great on this stuff i want to get her take on exactly what it is we're hearing because there's been, eunice, just so much news in these last 24 to 48 hours, it's hard to keep track >> yeah, absolutely. in terms of what we're hearing right now, there's a lot of

anger on social media directed against the didi founders and their families right now they're being called traders with hashtags about the family and the company getting about 1.5 billion views. now, this comes after didi was -- had its app taken off the app stores for new users, but also today a new development is that didi's app has been removed from super app wechat and alipay they have a lot of mini programs embedded into their apps because they are so major. another thing that we heard today was that didi was among several tech companies, which included alibaba as well as tencent that were fined by the antitrust regulators these were small fines for some antimonopolistic behavior, about $80,000 per penalty. it still shows you just the overall environment about how beijing is really laying down the law and making sure that

people know that these technology companies need to answer to beijing. now, another thing that was interesting today was that chinese media was interpreting and reviewing the guidelines that we got out of beijing yesterday about the overseas listings, and the focus has been on one point that was -- that beijing is looking to close a loophole that has been used very frequently by chinese tech companies that are looking to list overseas. this is the variable interest entity or the vie structure, which essentially is a way forchinfor chinese tech companies to get around the regulations about sensitive data and be able it to put peri profit -- for many years, decades the chinese government has not approved of this necessarily, not outright anyway, but hasn't necessarily

been -- has tolerated it just because it has been seen as a way for chinese tech companies to be able to raise money overseas, which of course is really good for the companies in terms of their expansion plans it looks as though that vie structure might have a couple of tweaks coming to it. another thing that just happened a couple of minutes ago is that chinese media has started reporting that didi has faced two class action lawsuits in the united states. these are two law firms based in the u.s. and the lawsuits accuse them of not disclosing beijing's warning, guys. >> okay. one quick question, first of all, i'm glad you're not wearing the mask it gives me hope that the variant is under control let's talk crypto for a second, eunice i am getting reports, people are dumping, furiously dumping their bitcoin mining facility carts, which are most made by nvidia but they are scrap

the crackdown here started in may. is it intensifying, and why? because it sure does seem like the chinese don't want crypto in their country. >> reporter: yeah, i talked to a lot of people in the crypto industry who have been mining or are distributors for these mining machines, and they said that they feel that this crackdown is real. at one point there were some who thought maybe this is just going to be a temporary action before the 100th birthday party of the communist party, but now given the way that the government has been moving, they feel that the momentum is behind them to get some of those machines out actually, that's what they've been doing >> wow eunice, thank you. eunice yoon, reporting from beijing, and always helping us get up to date on so many different things of course you can't make that argument that that new -- those new rules in terms of amending

laws and regulations on data security, i think we have a full screen to show people. across border data flow, other confidential -- other confidential -- dting i think t total canard >> what it says, jim, is we're not going to let you really -- we're going to make it difficult for you to list overseas. >> there's nothing that we could use that data for. >> how important is that vie structure? >> loophole that they've led as eunice said, they closed the loophole and basically what they're doing is trying to cut down billionaires everywhere billionaires are bigger than the government they don't want billionaires. >> look, the companies and some of the individuals who run them have too much power. >> right >> historically do not like accumulations of power and they don't like capitalism. >> they started with the most powerful single businessman in

the country. what they're saying is we don't want capitalism. >> have we heard from jack ma in the last eight months? >> no. >> he liked forrest gump. >> he does like forrest gump. >> one of his heroes. >> we're going to have a closer look, by the way, coming up at the rally in technology, particularly apple, amazon, some all time highs being hit there take a look at futures, of course, as well, as we move on from faang for a second. they're set up for maybe a higher open, certainly on the nasdaq which we're goingo lk ouinusa nuteta y lily, i need a nes plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee

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take a look at some of the technology names we know so well some of the largest companies that exist in the world in terms of their market value, apple, microsoft, and amazon, facebook and alphabet that's the top five right there. and many poised to open at a record you know, yesterday, jim, right after trade got started, you did say watch for apple and amazon breaking out it was a good call particularly amazon which just galloped ahead yesterday. >> look, that was a very big win they got from the jedi. >> yeah. yeah >> but also, i think that there was -- if you take a look at the stock, there was some belief that when bezos stepped down that we should be concerned about it i said it was nonsense from the beginning just because i had jassy on "mad money. he's about the customer.

that's what you want in all these companies, about the customer i think these companies are uniquely customer focused, not bottom line focused because frankly, when amazon web services cut its prices, that's not the bottom line. what it does do, is they can actually make that up in volume. they are the superior mousetrap, and i do -- >> the revenue growth for that business and i think 13.5 billion in operating income, i mean, put a multiple on that thing. where do you end up? >> i mean, advertising now i don't -- but people are beginning -- i mean, going back and forth, we have all made mistakes, ordered too much or ordered the wrong thing. it's very easy to order the advertising one because -- >> you don't realize. >> no, you don't. >> but advertising is an important revenue component and very high margin for amazon. >> huge. >> you mentioned the jedi contract, that's something we

followed closely for quite some time was that $10 billion contract going to be awarded by cloud services for the department of defense. looked like it was going to be amazon's, it was given to microsoft. amazon said no, there were questions about the trump administration and the president at that time the contract's wide open again it's not going to be a re-awarded until 2022 o'rr so. >> i thought that was shocking, frankly. it's basically just saying, you know what? what president trump was doing with amazon was all about kind of how amazon fleeced the post office remember that? that was his thing the post office, of course it was an arm's length deal it didn't matter amazon did well, so we dehe decided to bash amazon i don't want to say the defense department wasn't totally under his thumb, but there was a belief that you don't cross that president. >> right is that wrong to say >> also, the world has changed so quickly in the time it took

them to award it and the litigation that was following, they have different needs as well many people expect, jim, when this is reawarded it's not going to be the one company. it could be to a group of the companies that provide cloud services and do it in different ways when i look at that move up in amazon's stock price, bezos now worth $211 billion 211 billion. what it's also good for is philanthropy because his ex-wife, mackenzie scott who gave away $8 billion last year or in the last calendar year, when her net worth went up by almost 3 billion yesterday. >> david, before you were born there was a so-called millionaire. people would wake up and someone would just give you a check for a million. she is giving checks to foundations that she feels were hurt by her company. >> 8.5 billion less than a year. her net worth went up yesterday

by 2.8 billion it's around $64 billion. mackenzie scott by far the most charitable single person in the world right now. that's a good thing for philanthropy every time the stock goes up. >> at what point do we start investigating the billionaires like we did before the last time we did it is because we had a great depression. >> 211 billion is a number that's hard to get your head around, as you say, it's larger than the gdp of many nations. >> when do people say these people are making too much money? >> finally real quickly on apple, any thoughts before we hit the break? >> i think when you go back and look at the bottom of apple, which was at 16, i would say that you read and what you find out is out of 116, there were many analysts, including tony s who said there's nothing ahead there was a piece saying there's not enough demand for the five, for version five

none of which proved to be true, ask and this is the season more importantly, david, have you noticed that apple, nike, a and starbucks, those are the three chinese stocks why did the chinese approve of those companies? >> that's a good question. >> yeah, it is >> a lot of jobs you've got a mad dash coming up. g et to work, figure out what yoreoi tta autu' gngo lkbo we'll be right back. only 6% of us retail businesses have a black owner. that needs to change. so, i did something. i created a black business accelerator at amazon. and now we have a program that's dedicated to making tomorrow a better day for black businesses. ♪ ♪ i am tiffany. and this is just the beginning. ♪ ♪ when traders tell us how to make thinkorswim even better, we listen. like jack. he wanted a streamlined version

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migraine foundation. yeah, mthere's a company that hs a pill i took it this morning at 4:15 why? because when you have this kind of storm almost everybody that has a migraine has a split headache just splitting i felt my head was in a vice nurtec is the device it's a pill that dissolves on your tongue. people thought biohaven was going to make 58 million this quarter, they've made 93 million. why? because you can take it before when you look at the weather and you see that you've got this variable cloud heading into a hurricane, well, that means that -- there's 30 million people who suffer from this, 30 million people can benefit from this very few people have heard about this pill. as the american migraine foundation, i'm trying to get people to understand there is help. >> there is. >> i took my shot.

>> there have been great advances made this treatment of migraines which can be debilitating for so many people. you feel fine right now? >> when i woke up, i felt that you were taking a hammer to my head and carl had the vice on me, and you were just hitting me over and over again. >> i'd never do that. >> i put nurtec in my mouth and 15 minutes later i did not have a migraines. we don't say a migraine anymore. it was joyful i don't know why pfizer doesn't buy these guys. it's crazy pfizer has a giant hole in its pipe after covid they should just -- this may be -- i mean i take the amovig shot, but it's ineffective when you have heavy weight hurricane coming and i thought today was going to be a horrible day and i was just going to have to like just pretend, which is what i used to have to do people need to know about this

medicine >> without a doubt people are not aware of both the monthly shot that changes so much for so many people. >> how can they not take the monthly shot. >> and these drugs you can now take proef laktically. >> i had a migraine 20 days out of 30. i don't know how i did my job. five years i am not a commercial for this i'm a commercial for the american migraine foundation i think it's important to get -- i want awareness >> all right we got an opening bell coming right up don't go anywhere.

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we got about two minutes b before we get started with trading. i often ask the quakey to this market it's got to be the ten-year yield, doesn't it? >> it's the ten-year yield, we're getting here understanding people thought when it was 1.75 it was going to 2. mortgage applications are actually down a little bit it was time, the bell went off

how many people said you typically don't hear the bell, 1.75 that was totally wrong i think it's foreign buying. some people are saying to me, listen, jim, it's the worry about taiwan since that's what -- you know, a lot of people just keep telling me they're going to squeeze taiwan semi, which is of course the most important company on earth when it comes to semis because they make most of them i tell you, david, when you look at the rates in these other countries, you almost are not a fiduciary. >> so is this not a reflection of a complete dissipation of concern about inflation? >> the average piece that came out today i would call good as it gets. most of the people that i read are saying it's time to get out of anything cyclical it's as good as it gets. 46 down to 36, we know poppers

and batteries. great company was at 11 last year at this time. you just have a peak in commodities, and now it'sing with -- foreign buying is always elusive. we do have numbers later on. >> the opening bell for this wednesday, the big board, celebrating along for this -- >> over at the nasdaq mobile game developer play studios, it's celebrating a listing via spac there it is. we told you we'd bring it back we were doing some work in the studio that's all everybody had conspiracy theories about why we weren't showing people the heat map. who knew there were a lot of people who loved the heat map. >> i want you to take a look at the stock data storage, etsg this is a meme stock, all right? it's got -- its market capital is 23 million. already at 10 million, it's 6:00

about 3.3 million it traded. at 8:00, 5.4 million. >> data storage. >> it's a 2020 company, it's in the hub -- 26 people, sorry, i added too many people. it's in the great hub of the silicon valley of long island, mehlville. >> first of all, this is a market cap, which we would never discuss. >> i want people to know what a meme stock is. this is a meme stock, it's a bag em, gun em and liquidate them >> bgl this is boiler room stuff. >> you copy partner. throw the keys on the table. data storage corp., it does data storage for ibm. it yesterday had 6.8 million shares it did a public offering not that long ago. the public offering fell apart almost instantly two days later they named a new

cf cfo. they protect and offer cloud solutions and they did an u uplisting. this goes on i want people to understand it's a game of musical chairs >> stratton, ashford hospitality was one that was done. that was a game of musical chairs so if you're playing data storage, remember, 26 people mehlville, no real business, and take that company up, and you're saying, listen, i'm buying -- these are what a lot of robinhood people do, they're buying at 12.5 they're betting it's going to go to 14, all right and if it gets to 14, they can liquidate it another million shares just traded david david, this is going on why gary gensler fiddles. >> he has a lot on his plate >> i've got subpoena power

look at this, it's 13 million -- >> focused on -- >> i know. return swaps lack of transparency he's focused on crypto, can't be focused on everything. >> i like robinhood. i think they brought a lot of people in. when i watch what's happening to data storage again, 26 people from mehlville, i probably passed this going into the hampton's and didn't realize i was at the heart of the long island evew -- no it's easy vault is their product i urge you to go to the website, david, and you'll find out what people are doing here. this is a bgl situation disaster recovery they do that too i want people to understand what bgl is bag em, gun em, and liquidate them bgl. all right, so there, i did it. i might do a spac of the day

story. a run of the bgl story to go with your spac of the day, like that company that came public on the nasdaq >> yes. >> we need that company. have you noticed how much we need these companies don't you say that we need that company we don't need 3/4 of these companies. >> you don't think so? >> no. >> there's a lot of capital available. there are a lot of companies that have been raised via spac, and there are a lot of companies that have great growth prospects in out years in industries that we care about. ev is certainly one of them. >> ev. >> there's been a great deal of space of late. we had their latest deal they did for their spac, their latest spac i think it was number five for them in terms of -- you know, they take pictures from space of all sorts of different things down to like the hair on your head >> it'd be a fly >> we're going to have flying cars >> arc was buying yesterday,

netflix, netflix that's become a wood stock again, selling roku, home run, selling raven home run because of the polaris deal, and david, my favorite, buying walt disney, 108,000 shares you know what she's probably going to see walt disney is? cash equivalent. >> a cash equivalent >> cash giequivalent. >> we live in a time where i was listening to what people have been recommending, five spacs by this guy three spacs by that guy. >> people forget everything in the day. by all the china stuff, people would be buying china stocks in no time. forget all this stuff. >> where are they going to get research to buy -- find out whether you should be buying a spac where's the research in what do you just like read the -- >> what your point is many of these companies are going to come public and disappear in a sense because they have no

sponsorship as we call it? >> yes because the pension fund is not going to buy something whether it's just a 2026 projection that says it's going up to the moon. >> we have three different spac indexes now which is interesting. we have one that is spacs that have gone public but have not announced their deal we have another that shows when you have announced the deal, but you have not yet de-spacced. you've not yet closed the transaction, and then we're actually now tracking those that have closed for two years after close. to get a sense as to your point, how are these going to perform versus typical ipos and there is a look at the post-spac. you can say they're not -- let's call that $11.40 right, if you really want because most of these are priced at 10 >> not bad not great but it's not bad. >> i happen to like stem i think that's a good one. the grid is so bad, it's a big win. >> thank you, guys there you go

>> in the time since i mentioned dtst, another 4 million shares have traded. >> you're really focused on that >> i want people to know what dgl is, and i want the head of the s.e.c. you know what we're going to give that guy? we're going to go to denny's that's a full plate. say we understand you have the full plate, the grand slam from denny's and i know you're busy hey, i managed -- oh, now they're going to hate me the 26 people in mehlville >> i think you better be careful. >> you never know what's going on there you got to just be careful you never know >> so let's move on to -- well, you were talking about netflix did you see the announcement from our parent company about peacock? >> earlier. >> this gets back to things even back to memes to a certain extent because of the theatrical window. >> exclusively on peacock, part of what they're calling a dynamic redefined pay one

window. >> wow they announced the licensing agreement where beginning in 2022, universal filmed entertainment group films, and we're talking here focus features, illumination, dream works animation. we'll go to peacock following their theatrical debuts exclusively. >> exchanged them yesterday basically saying, look, kind of don't need the money playing offense. i think it's very interesting when you have news >> no. >> is your wife calling or something? >> that's our producers. i'm going deaf i can't hear a damn thing. >> i got something for you for that >> i have to push this in to listen to them, and they said there's some sound that we have, if you want to know everything that's going on because i know you don't like to be left out. we have some sound from david zazlov >> we're not done? we're like really done

>> let's listen to the saz -- >> i think the talk of the week is going to be the industry is probably going to start consolidating. brian's built al great company jeff's doing a great job at universal. so we're not done yet, you know. we're looking to get this deal done and then we're going to see. >> should be focused on getting his deal done. >> get this deal done. >> david -- >> i love him. >> signed my first contracts. >> the stock's flat. as you -- well. >> don't get me started. >> nobody hates at&t the way you do >> i have too many opinions some people say because i have a lot of people gunning for me, like the people who are trying to gun did dtst david, i just want to explain what a meme stock really is.

19 million shares now traded this is what's going on, gary gensler. okay >> this is a tiny company versus amc, which is a $25 billion market value now >> that's a believer -- >> and gamestop, which is a $14 billion market cap company that's different. >> a lot of people talked to me yesterday, i know david you're going to hate this. >> tell me >> about the logic of gamestop merging with amc >> oh, god, i know >> you let that little joke out, people stop me on the street first he told me that a spac is an airplane that's a car i thought it was a car that's an airplane and then he wanted to know if i thought that gamestop was going to merge with amc thank you, david, for complicated my life. no >> i was making a joke because you keep talking about how they're going to be able to grow even more as a result of all the capital amc has raised and i keep making the point they

already own most of the theaters so they're just going to buy more whoopdy do that's not going to help them, why not buy game stop. that's a joke. >> i said maybe david faber said i heard it through the grapevine. gme, also known as gamestop is located in grapevine, texas. heard it through the grapevine when is mr. cohen going to speak sn out. >> ryan cohen who's now chairman of the company he's in charge. i don't know when he's going to speak out. >> let's go back to the heavy weight stocks. >> can we do that, please? i assume you're going to be talking about apple, facebook, alphabet, amazon, microsoft, all of which are up. >> i want to talk about the idea that a lot of these companies, apple has complied to some degree with china. >> apple now up 1% these stocks have continued to break out. >> going back to these, apple

had outperformed and then underperformed this year. >> it still underperformed the broader market. >> it still has. there's a company called n phase energy this is one that does microconverters, enph. that's a solar play. now, one of the reasons why that's running is because genrack, one of my absolute favorite companies they have a private company, genrack is another solution for our ailing grid. i think when you think about what's wrong in our country, the grid comes to mind genrac all time high and these are the companies that make it so that we can use solar in our home as charging i don't understand, david, why we don't see more growth in the ev section, actual buying of cars i'm going to ask carvana tonight --

>> don't you think that higher gasoline prices should potentially stimulate some demand as well for ev? >> yes, yes. this is one of my charge points. a lot of people ask me which company is best at charging because president biden is in favor of charging. and then another one that keeps working is paypal. i think that paypal is just a reaction to you don't want to buy traditionalbacks because of the ten-year, so you buy the atraditional bank, paypal. this trade goes on like 50 times a week go out of the banks, traditional banks and into paypal. >> and to your point, the banks are not down sharply, so i don't want to make too much of it. and maybe in part they're down a bit because of the reduction in yield, ten-year hanging around 1.30, perhaps there's at least a thought that profitability of taking chinese companies public is not going to be there because

that can be a nice business to have, and certainly we've seen that, but all the major banks are down fractionally right now. >> finally breaking out on that. it was kept down by the etfs upgrade by goldman yesterday was simply beautiful they probably understand, i think june was very good i know may was very strong i happen to like the company new corp. the best stel coel compan the world. integrated in terms of recycling. i heard the word that damns any stock. what is the word comes down like a duck, it's g supercycle remember the coal supercycle now we have the steel supersiep cycle. and here's another curse, best that it gets what happens after best that it

gets >> came on with me, you mentioned freeport earlier i think he hit the top that day when he came on. >> $183 of copper versus 1848 in a regular battery. anything thinking ev, you should be thinking copper but the fact is we need some sales in ev. >> you keep referring to that. >> it's only 3% of the -- >> nobody said it was going to move up that quickly. >> no, but you need it because copper peaked -- that's also a chart of what copper did they also of course had the usual fra kus with indonesia nvidia because of that story i mentioned because of ethereum cards. it's 400 million max the numbers say it goes down to zero at the end of the year. they make the cars that allow you to be able to mine, and david, i think that the

crackdown in china is so broad that people are afraid to show cars, communist party. >> i like the way we started on china and now we're sort of ending this. >> i'm trying to make people understand that china is making major moves against us, and the way these squeeze taiwan is they'll take over islands we hadn't thought of. they'll do more flyovers one day we'll hear from the government they like chinese more than we thought that's what's going to happen. >> it will be a bad day for the markets. i think we can all agree on that. >> still to come right here, don't miss endeavor's ceo ari emmanuel dana white, they're going to join us. first let's give you a bond report of course we've already talked about treasuries this morning given we saw yields right at that 130 level you can see the ten-year a bit above that 1315, 0%, a level that hit

earlier today, since february that was the lowest we'd seen and of course the move does come ahead of this afternoon's release of highly anticipated fed minutes. fed is also going to be watching for may jolt's data out at 10:00 a.m. we'll be right back. ♪ ♪ ♪ ♪ ♪ ♪ hey google, turn up the heat. ♪ ♪ ♪ that building you're trying to buy, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it.

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it appears to have caused minimal damage to u.s. businesses but we're still gathering information, to the full extent of the extent of the attack and i'll have more to say in the next several days. we're getting more detail and information. >> president biden yesterday speaking about the global a ransomware attack. we'll continue to talk about it. and i have no doubt in future we'll talk about other ransomware attacks or other cyberattacks this is the world we live in and it is not going away >> got to find out, this is a company that guarantees that there is no hacks. give you $3 million if you are hacked plays offense. israeli guys and they will tell you whether it is true or not.

it is a private company. >> but last week, we had the -- >> what a home run they nailed it a lot of people felt that it was too late, but then you have one of these things and you see these stocks go up okta by the way is identification >> sentinel is off the charts. >> and todd would tell you that lot of these hacks are hackers impersonating people who have left companies and unless you have proper identification and know who people are, you are susceptible. i don't know why people don't understand that. when someone leaves your company, that is the person, they will find out that person's name and they are going to pretend to be that person. and they are going to burrow in deep that is what happens

okay why do people not know that am i a genius? no, i just talk to people. it is what i do for a living it's what i do -- kind of like what i do for a living >> i'm aware i know just how many people you talk to. >> george kurtz, 52 week all-time high. incredible but i believe that they have to go to dark, not basic instinct, and say how can you play offense, how can you guarantee -- >> i love the name dark instinct, taking on dark evil i think that that could be a new movie for universal. dark instinct versus -- >> dark and stormy we have to go. >> he said it, it is true. back after this. ok, at at&t everyone gets our best deals on all smartphones. let me break it down. you got your new customers —

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apple shares up 1.5 p%. what a breakout. but we have some potential news here, jim, on facebook >> yes, former president trump

is going to sue not the companies but mark zuckerberg at facebook and jack dorsey at twitter. the stocks momentarily hit which is stupid as all get out but i understand and there we go. this is about censorship, free speech, first amendment. and it will be against commerce. and i think that first amendment will be trumped by commerce. you are allowed to do whatever you want in commerce >> is there a chance of going anywhere >> well, i think that it could be a show trial, david right? a show trial >> all right back to the actual stocks themselves, as you said, it shouldn't really impact them why would it >> the only reason why it would do it is because there are a lot of people who are nervous that these stocks have run so much, looking for a reason to profit >> all right we'll be monitoring that potential story. what have you got coming up on

mad tonight? >> the trade desk which is a direct competitor to google which does fantastic work on ad placement. and carvana, how strong is the car market i'll find out. ev sales have not exploded >> can't make enough of the f 150 lightning. >> well, they can, but there are semiconductor problems more than likely everything that ford makes is sold out can't get one. i want that maverick try to get it. >> we have another hour of "squawk on the street" coming up right after thisre bak up thinkig about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision.

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good wednesday morning and welcome to another hour of "squawk on the street. we are live from post 9 right here at the new york stock exchange carl has the morning off let's quickly give you a look at markets, the dow is flat s&p is up. and nasdaq is up even more than the s&p. morgan >> yeah, which is what we've been seeing lately

outperformance in some of the tech names 30 minutes in and our three stocks that we're watching, sources are reporting that former president trump is planning to sue facebook's zuckerberg and twitter's jack t do dorsey but the shares are still higher. and a sunnova getting a boost as the firm says buy the dip. they are up 4% and finally apple at record highs amidst a tech resurgence hitting levels that we haven't seen since late january as the big tech name joins the rally. >> yeah, that has been quite a story in the last two days amazon and apple in plur ab parti particular ten year yield hit santoli is js to explain what it all means >> yeah, obviously been a

confounding move for the majority of investors, really retracing a lot of that yield surge we saw starting about 11 months ago take a look, because it does show you the overall shape of the move and how we basically have been kind of consolidating back sliding off of this low from back in early august of last year. so essentially we've retraced about a third of the gain in yields from about half a percent to 1.75% and if we had the 200 day average here, it would look something like this and it would come right there around mid 120s is where the 200 day average is. still showing you that the kreel yields are trending higher, but testing that area and becoming frustrating and yes, it has filtered into a nasdaq-led market and this market wants to grab for stable incremental things. so far if that will be the continuing trend take a look at the high yield bond etf because if the drop in the ten year was really telling a scary

macro story about genuine economic weakening, you'd probably see more weakness in junk bonds this of course is based on the price of junk bonds. so we're not seeing any cracks in the credit story, no stress showing up there also, if you want to take a look at the banks versus tech as a proxy for value versus growth, it is still retaining a lead the banks are. it has become very ragged, we're like 8% off our highs in the s&p banks and tech has been much more steady, but it does show you that it is much more about kind of giving back some of the excess returns over the last year and not necessarily a genuine handoff of leadership. you had the fed minutes today of course could have implications for how the bond markets determines hawkishness and hawkish fed has meant a declining ten year yield so all those things i think contributing to the yield move but the action in the markets today, we're seeing banks tick a little higher. we're seeing the industrials do

okay maybe the market is saying maybe this yield move is culminating at these levels and not plunge immediately lower. >> all right mike santoli, thank you. let's go to rick santelli. >> main read on jolts is less than sxekxpected. we ended up with 9$9,209,000 and an all-time record every month this year we've been higher and we made new records because last month had a big revision so every month still indeed is higher the issue is from february to march, we literally leap from the 7 million camp to the 9 million camp it is not about openings anymore, it is about matching people to openings and that is what the markets are focusing on back to you. >> rick, thank you we'll set our sights on the department of defense right now. the d.o.d. scrapping as expected

the jed icloud program that had been embroiled in protests for years saying that it no long meets its needs. yest jedi had been most recently stalled alleging that president trump interfered with the bidding process. so enter the cloud capability program that is doing to replace jedi this will be a multivendor indifferent quantities that will solicit bids this fall and then be awarded next april. and acting d.o.d.cio john sherman saying that tell be invited to bid and that the d.o.d. will also do some research. it will look at the capabilities of other u.s. based cloud service providers such as

google, ibm and oracle jwcc will be in the, quote, billions of dollars but the amount won't be finalized until market research by the d.o.d. is complete come october. nonetheless, you can see shares of both companies higher on this news and they jumped when this first crossed the wires yesterday. now, we're talking about an up to $10 billion contract which is what jedi was and another contract in the billions of dollars. not necessarily huge sums of money either in terms of d.o.d. programs of record or in terms of these cloud computing giants, but obviously there is bragging rights associated and the fact that it represents the next critical piece of what is more broadly across the u.s. government convergence to cloud capabilities so a lot of future potentential business >> and this time to be split

perhaps among a number of vendors instead of just one sole company. >> which had raised eyebrows when the d.o.d. first crafted the jedi program that way in general. you had tech and defense folks who said that it is a much more secure process and also from a technological capability standpoint, it made more sense to be multivendor. so this is perhaps not unexpected given how long jedi implementation had dragged out and been stalled and where we're sort of at we were talking about this last we're, sort of war fighter of the future, unmanned everything. the digitization of our military capabilities is afoot and you need this overarching cloud to be able to pull it off >> i would think in the data alone, just the storage and everything else is enormous. the needs will be enormous >> and let's continue around the conversation around znamazon and its stock moves. joining us is ricky with mpm

want to get your thoughts in terms of government cloud contracting now and the fact that amazon stock responded so dramatically to this in the last 24 hours >> thanks for having me. yes, it was not surprising but again the fact that it came out that they will scrap the contract was a clear positive for amazon couldn't have been a better welcome gift for the new chief i think over the next several years to come amazon will be a clear winner and i think that is what the market is starting to believe. >> the timing is certainly interesting with jeff bezos stepping aside as ceo and andy jassy taking the reins officially

i've heard estimates that for aws specifically, the u.s. government is one of if not the biggest customer for the cloud computing division we talk so much about enterprise cloud, whether you have looked into what it means for amazon or others from the public sector. >> and that includes u.s., state and other federal government agencies, public health care so public sector has a whole probably is about a third of the avenues. within that local and federal government is probably about half again as a junky, some businesses are a very important froet growth driver. and if you look across the board, the need for sexually

making public sector cloud more efficient, we see that on amazon >> and beyond this news that we've been talking about the last few days, amazon has dramatically made up its underperformance versus the broader market do you think that move continues and what else do you point to in terms of the sudden awakening in the shares >> i think there were two things they were holding back amazon shares, i think holding back a lot of companies that did well during the pandemic. pandemic poster childs if you will but i think that there is a general realization that consumer behavior is here to stay and amazon will be the biggest benefactor and i think so that is a real saegs of the market. and send is a small nit-picky thing was around prime day

there was softness around prime day, there was a lot of confusion around what prime day contri contributed to the quarters in historical years and i think all of that confusion has been settled now, prime day softness has been something that the market has absorbed and i feel that it is onwarde eand upward that is where amazon is. and even at these levels, amazon is still a cheap stock, less than 20 times ebitda 2022. and for amazon levels trading at probably less than 40 times earnings on our estimates. these are very reasonable valuizava valuiva valuations in my opinion >> and you mentioned prime day and we talked about aws as well.

what are some of the other key segments or levers maybe i should say that amazon can pull to power this stock higher advertising i would imagine isn't focused right now. obviously all the media stuff especially with sun valley afoot. >> i think advertising and aws are two kind of double beneficiaries to amazon stock as in growing retail and more profitable than retail so both these segments as they kind of drive more value, more bottom line to amazon stock i think the free cash flow is something that people are underestimating for 2022 and that is where the reasonable valuation argument comes in. on top of that, in terms of layers of growth, amazon continues with the health care and logistics, what they are doing in that will macro in the next 12 months

and so that drives more sustainable growth and what ecommerce looks like in 2022, that is going to start to mitigate and dissipates a weeks go by. >> all right thanks for joining us today. as we head to a quick break, here is a look at our roadmap. the china crackdown on tech and big business, how should investors prepare for more potential regulation ahead and plus we'll talk about reopening, the outlook for the business and a big fight for con authorize conor mcgregor on saturday and finally, the space company that is among the latest spacs on the street and what has been a very busy space spac week a great show ahead

ufc 264 takes place this saturday at a sold out t-mobile arena in las vegas conor mcgregor and dustin poreia is set to face off in anticipated fight. joining us ceo of endeavor, fairly new public company and also owner of ufc. and dana white also joining us president of the ufc ari, nice to have you in person.

>> a month and a half i was here and nobody on the floor. fantastic to be here >> you have put on fights even during the pandemic. you had that island in abu dhabi as well that sort of kept you guys going there are you back to full at this point in terms of the schedule and the viewer ship? >> i think that is a question for dana >> i think that is a question for dana >> all right i think he's right go ahead >> yeah, we're back to 100%. we have been for a while we put on 41 events in 2020. so we started doing live events in jacksonville a few months ago, sold out, houston, arizona and now this weekend las vegas >> we know his voice is crackling because he's been up

tickets sold out having to figure out seating it has been kind of crazy on day that >> why is figuring out seating been crazy >> seating is the worst part of this business. i hated it 20 years ago and i still hate it today. every weekend is like a wedding. where you are trying to see the people no matter where you seat them, they are not happy with their seats. and we have more celebrities coming to this event than any other event in the history of the company. >> it is crazy this weekend. >> it is >> and let's talk ufc and then i'll talk to ari with a lot of other things in reading a bit, there seems to be at least among some of the fighters a desire to get paid more we can all imagine that would be the case of course but speak to me about this idea that basically you lock in fighter income at around 18% of gross profit and a lot of other sports closer to 50% and a lot of the fighters would say we'd be happy with something more than 18% why can't we get it?

>> that has been gaeen going on2 years too and the next 20 years. i don't think that you will ever seen a scenario where you see a fighter or anybody for that matter saying that they are overpaid and you are always going to have a certain level of guys that feel like they are being paid enough you don't hear the guys that actually bring in the revenue complaining about pay. >> can i say one thing about that >> hold on, ari. but paulie who you did pay well, he is saying come on -- >> he didn't fight for me. that bum didn't fight for me get your story straight. he is out there complaining about fighter pay, but i wouldn't seen him. >> i'd say the following se since 2005, our fighter pay is up 600%. for a sport that he created 25,

0 y 30 years ago so i think that we created a sport for all these fighters >> obviously an important acquisition for you guys and ufc is still not the largest revenue producer events and representation continues to be important. what are you seeing in terms of events right now nowthat we ar turn returning to con gra debating >> as i said to everybody when we went public, we're a reopening story. we have this event this weekend, in london it sold out. it is packed so in australia, we had fashion week, also sold out. and this coming september, this morning fashion week, sold out so across the board of our portfolio, we're seeing a lot more activity. and in addition to that, our activation company 160 over 90 was not doing a lot of business. corporations are now getting

very, very active in expe experimential events so a lot of activity >> and wall street is never satisfied. i hear from your investors that this will be a strong year versus 2020. but what about next year what are the expectations in terms of can you keep it up given this will be a hyper growth year. >> i watch your show and you talk about live events, music, you talk about gaming, you talk about sports, you talk about kept we're in every one of those sectors. and every one of them is in full bloom. you talk about a shortage actually in the chip business for cars, whether it was a shortage in content because you couldn't do production that is now ramping and inin 20 it will be huge. our music business will perform

very well into '22 so '22 is a huge growth business for us i can feel it now. and we're starting to book in to '22 and it has been incredible >> i'm curious as well, you watch the show, we talk about the changing nature of the film business where you obviously have a lot at stake as well. how is that going to work in it erm erms of payment for your clients given the end is not as large? are you getting as much up front and basing it off of what would be an assumed number even though frankly things will not be shown in theaters nearly as long and perhaps make not -- >> usuyou're talking the movie business >> so all are making big buyouts so you don't have to take the retail risk. if somebody was making 10 million, they will pay them $5

million as if they made so much. because there is a short think a of kept across seven big players.think a of kept across seven big players. but i think that there will be a leveling off each one will have a different conversation whether it be disney, viacom, whether it be peacock. we're going to get to a leveling off in '22 as they see where their numbers are. but the one thing for sure will be the case, content is king and you will get premiums and we're still getting a lot of premiums. >> and it would seem that the incremental cost is really the direct to consumer businesses. >> yeah, because they have -- you know, i have to do which is profit and loss. they do a business of costs and data >> warner is paying out a huge number on wonder woman 2

whatever that was even though that they won't see it at the box office >> that is their choice. everybody makes those choices. and across the platform, there are six people bidding for content. we just had a bidding war on a movie with david ellison it went to apple i think that apple will have a great movie on their hand. but a lot of players wanted that movie and i think that that will be the case into 22 today, 23 to probably the next 2e7xt ten yeas >> and you mentioned apple it is not anywhere near as robust as some of the other important direct to consumer do you think that they will continue to invest >> i think eddie and zach and jamie have done incredible jobs and they are investing heavily in content >> do you think that they will buy something or just organic? >> i think that it is tim's position that he doesn't believe in a library, but that might change but so far, no >> a couple things we like to ask everybody who runs companies these days, what is your back to

work plan? particularly i would think in an industry that does require a lot of collaboration, maybe a lot of screaming and cursing at each other. >> are you referring to my cursing? listen, there is a need to go back to the office because there is sir ren dip tis moments across any company we're coming back full in september. four days a week starting in july and then full-time coming out of the summer. >> and then finally the stock price itself, i'm looking at it right now, it started off quite well, but you've had a bit of a tip. not a lot of volume. are you happy with performance of the stock >> i was on theboard of live nation for, i don't know, 15 years. it was at $3 people finally understood their story and you see where the stock is it will take time for people to understand -- >> what don't they understand? >> because we're this multiple businesses, they have to understand that we're in sports ownership, sports representation, representation

of people that create content. ownership of content live events and music, et cetera and in gaming. all the areas that you talk about. they have to understand the network effect and it is proven how we've done it with the ufc. once they understand that story, i'm very comfortable where we'll be and the stock will hit the price it needs to hit. we are not short term players. >> ari, always appreciate it >> glad we're here together. >> i am too. very much so i think that it is a first >> yeah. fantastic. >> and i'm the only guy that can interview you because you represent everybody else thanks to dana white as well >> great stuff meantime, watch oil, devon energy and occidental were top gainers but they have turned negative as oil continues to fluctuate at these multiyear highs. we'll continue to watch that

story. especially with the fed minutes later today and all this debate around inflation

welcome back now time for our spotlight we'll look at vaneck a little lower this morning, but it is up almost 70% in a year as industries ranging from big tech to autos continue to struggle with those chip shortages. one core holding looking for more all-time highs? invidia is lower this morning. so we'll keep an eye on that and closing in on an eighth straight week of gains, shares up in just the last three months $1.5 billion in market value erased, the latest on china's tech crackdown

what's on the horizon? the answers lie beyond the roads we know. we recognize that energy demand is growing, and the world needs lower carbon solutions to keep up. at chevron, we're working to find new ways forward, like through our venture capital group. backing technologies like electric vehicle charging, carbon capture and even nuclear fusion. we may not know just what lies ahead, but it's only human... to search for it.

welcome back here is your cnbc news update. in haiti, the president there has been assassinated. early this morning a group of men fatally shot jovenel moise at his home and wounded his wife martine. it was a highly coordinated attack by a highly trained and heavily armed group. there is a nationwide state of emergency and the white house calling the attacks horrific and tragic we're still gathering information from this end. of course we'll be helpful in any way. but we're still assessing and gathering information and the president of course will be briefed by his national security team this morning. at a news conference this morning, chicago police officials saying that three undercover law enforcement officers, two atf agents and one chicago police officer were shot and wounded early today, injuries are described as

nonlife threatening. ten more bodies have baun found at that condo collapse bringing the death toll to 46. and also once again a tropical storm bringing heavy rain to florida's gulf coast, so far though no major damage or power outages. you're now up-to-date. >> china's crackdown on big technology continues to weigh on investors. our next guest saying the greatest threat is not disruption in the i aboutm mipoe but that companies could face a similar or worse fate under their arbitrary legal system joining us now, jeff moon. always good to have you. i certainly want to explore what we -- in the introduction what we just raise the, but i'd love for you to put in perspective what you think is going on right now in china when it comes to the waterfall of regulatory changes that seem designed to to

any number of different things what are they designed to do and why are they happening >> the problem here is regulatory risk and there are at least three forms of risks that investors need to pay attention to first of all, risks that are specific to d.d. it is unique to them and the investigations of possible shareholder lawsuits that will follow are also specific to d.d. then there is a general risk to the largest tech companies sense the middle of last year, the communist party has been concerned about the growing economic and political power of large monopolies you had jack ma openly challenging regulators and now didi and the government is said that they will act and the third kind of risks are specific sanctions that the chinese have adopted sometimes

over the past decade or so that can be administered quickly an capriciously so you get into cybersecurity, data security, social credit scores, a craft of these regulations that are out there and investors as they look forward -- companies need to assess those risks and see how they apply to specific companies. >> so do you think that this is simply about the government exerting its control over what are certainly very wealthy individuals who run these companies and the companies themselves >> china's leaders are most preoccupied by maintaining stability and their own leadership so, yes, they feel challenged. this is china's gilded age i think that china looked at jack ma and saw rockefeller and think that we need to control this xguy.

but there are legitimate interests and issues that are out there, some of which are also of great concern to the united states. president biden issued an executive order about data security for foreign applications and the delisting process as well so some of these -- some of these things are parallel in developments in the united states >> i'm so glad that you brought that up because the cfius piece of the puzzle. we saw it in focus around tiktok and grinder. in general, looking at whether it is the chinese side and actions that are playing out in the market this week or what we're seeing on the u.s. side, is it safe to say that the decoupling of these two economies at least where tech and data are concerned are just continuing to strengthen and

accelerate >> i really hope that that won't happen, but that is the trend of what is going on here. and the chinese are signaling through the didi situation that they do want to decouple, that they do want listing in china, that they will be very careful about any data that gets shared overseas and for the internet economy to work, you need to share data it is just not possible for things to work this the way that we want them to. >> and finally, jim cramer and i were talking earlier, nike, starbucks, and th apple, all wih businesses in china and all seem to be doing okay should there be a concern on their part given the growing ten up to grow tensions between the two countries? >> absolutely. relations between the two governments affect business in china unlike any other country because china is run by the government this is not a market economy,

this is a state-led economy. and ii didi also highlights the po importance of good government relations. so the didi situation is a little unique. >> you think that they could be subject to certain things that would make their business more difficult? >> absolutely. as i said, some of these regulations like cybersecurity regulations have been rolled out over the past decade and foreign trade associations have pointed out again and again how these are overly broad and could be administered arbitrarily this is the first time that they are being administered in a broadway, but they will be applied in the future to foreign companies and foreign companies won't get better 2r50e7treatmenn didi >> all right, thank you. and satellite imagery company planet labs announcing a

plan to go public via spac merger at a nearly $3 billion evaluation mpy'cein foined by the space coans o aew moments

bitcoin shrugging off more regulation from china as that country's central bank warns institutions to avoid crypto curre currencies or get shut down. chris, the conversation i find coming up quite a bit where china and crypto is concerned is whether china is actually trying to crush btc, is it and can it actually successfully do so. >> thanks for having me.

i think bitcoin and cryptocurrency can't be shut down china may have its own reasons for this crackdown, things like capital controls and their own currencies coming out. but i think with every crackdown the effect on the market increases. so i don't see this getting any -- >> you are joining us from hong kong so you kind of have a front row seat to what is happening. given that there are crypto wallets, exchange, visa debit cards, what is your sense about activity in that region versus i guess the growth anded a dogs we'r adoption we're seeing some other parts of the world >> we're a global platform but the business currently about 40%

europe and the rest of the world excluding china. so we operate a double business so not much of a concern for us in our business performance. >> so in terms of that growth in general, i mean i'm looking at these numbers, it looks like you doubled your user count from $5 million in october 2020 to over $10 million by february of this year huge increases in revenue as well even as we've seen the price of bitcoin essentially cut in half, has that growth continued or is it ebbing and flowing alongside the volatility in the price action >> this is a highly cyclical market obvious first half of the year was incredibly strong. and we grew our customer base about 6 x, revenues this year probably 15 x comparing to last year so these are massive numbers and the growth continued very strongly in q2 it is tapering off right now

wit, but we're bullish on the space in general there is too much money sitting on the seed lines waiting to jump in at more reasonable levels >> finally, how big is the sports-related opportunity for a company like yours sense you inked the deal with ufc? >> we're about mainstream crypto the company is about five years old. these partnerships allow us to put our brand in front of large audiences. ufc, the deal we announced today, a ten year partnership, ufc is about 600 million fans globally plus we announced a five year partnership with formula one and so this is part of our strategy to get the main out there and many stream the

industry and give us a boost in growth >> kris, thanks for joining us >> thanks so much for having me. next hour, don't miss an exclusive with the co-founder and ceo of substack. that next on the tech check show

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welcome back could the u.s. soon see th welcome back could the u.s. see the highest capital gains tax in the world we have more with robert frank. >> president biden proposed raising that rate to 44.4% for people earning over $1 million most state cap gains ordinary income rates add to the rate according to tax foundation. state taxes add average 5 percentage points to the federal bringing total rate to 48.4% far and away highest capital gains tax rate in the world passing demark at 42, chile and france

and highest in the world for dividend taxes since they come from after-tax corporate taxes that combine corporate and dividend rate over 65%. beating number two ireland as well as south korea. the tax foundation saying higher tax rates on the individual shareholders reduce the return to saving and higher taxes on corporations, raise cost of investing, reducing savings and investments. see whether any or all of this actually happens guys >> man most countries you at least get free health care and free college for all your tax money i don't know what we get here. >> robert frank, thank you. get to dom chu with a sector check for us. >> something to think about. tax side of things, david, for sure relatively quiet day for the stock side of things awaiting the fed conference. and falling more than 3% sector

under pressure again today diamondbacks, oxidantsal, philips among worst performers keep an eye on energy games. "squawk on the street" is back after this quick break we've got more after this. >> announcer: reeltime exchange sector sort is sponsored by --

planet, a private space start-up operates a network about 200 satellites taking daily photos of earth announcing today it will go public via a spac merger. joining us, the ceo, and technology group ceo gentlemen, welcome to the show and congratulations on this deal well, i mean, going back a couple years pre-pandemic the talk within the space industry was that planet was a likely contender to go public. why are you doing so now and why are you doing so in this format >> look, real excited to be going public, because planet is ready for the big, wide world, and the world really needs planet so planet is ready for people to scale business at over $100 million in revenue, diversified industries from agriculture and crop yields to governments for security and response to massive

companies like google music to improve and we feel our business is ready for primetime and can scale a lot. and same time, the world needs planet, filling a hole especially as the world reboots as a sustainable company, every company, country on the earth needs to measure emissions planet has the data to move to a more stable economy. >> talking about data that potentially has applications in every industry on earth. i want to dig into that a little more first, why did you choose to invest or why are you choosing to sponsor planet specifically especially when there are quite a growing number of earth images satellites, names, out there >> we've actually performed in the sector a long time and believe it or out in, whilst there are other businesses attempting to sort of follow us, they are many years behind

right? so this industry's going ten years largely because of will marshall's vision and building a software and data business made him effectively, i say the 800-bound gorilla of the space 30 times more imaging revenue than the next biggest competitor ten times more satellites than everybody else combined. think about the sort of metrics that matter in this industry for leadership, we've got triple digit number of satellites, competitors in the single d digits nine figures of revenue. competitors auv little as zero or seven figures, only, of revenue this year. look, i've seen a lot of tech businesses a lot of tech industries and seen them scale. historically, the leading player, especially when the lead is this commanding, has outside returns. you know much faster growth than the s&p 500. much bigger share price returns,

and we think planet has, i would argue, the most commanding lead we've seen in any aspect of these challenging markets today. >> i realize you built out the constellation of satellites and basically the infrastructure enabling you to be a data and data analytics company and sign up hundreds of customers to these subscriptions. are your different segments, what's growing the fastest, and how large will you continue to grow this constellation to continue to add more capability? >> great question. so the video segment today, agriculture, government, mapping, and in forestry those are all growing really fast especially in agriculture. trying to switch the precision agriculture that improves crop yield and decreases fertilizing costs and also moves to sustainable agriculture and really important, a really important thing. we are seeing massive growth, and it really is a data business you mentioned we have 200

satellites, but we scan the whole earth every day, but we feed those satellite data feeds, as data feeds into people's work flows enabling them to make smarter decisions. think of that, on a subscription basis, but think of it like a bloomberg-type terminal people use to make smarter decisions and just like any data business, it's high growth and high margins, and we have great user lock-ins customers really like using that platform and it's pretty much relevant to every company on the planet earth. >> quickly, how are you keeping all that data secure with all the hacks and attacks seen across so many industries as of late >> absolutely, a critical question we encrypt our links to our satellites es treemly well aware we have a big service industry to attack, if you like, and we ensure we do all latest

technology to tkeep the data sae and it's a strong company. >> thanks for joining us today >> thank you very much. we've got the s&p slightly lower now. that's going to do it for "squawk on the street. "techcheck" starts now. >> using the force from valor and defense. never attack. >> tell me why i can't -- >> no, no. there is no "why." ♪ good wednesday morning, and welcome to "techcheck. i'm deirdre bosa with jon fortt. carl has the morning off coming up on the show today, "return of the