want to check the banks quickly. we started off at 9:00 discussing what seemed to be quite strong numbers from jpmorgan and goldman sachs but both names as you can see are in the red fairly significantly. nothing from either one of the conference calls that would seem to be a reason for that decline. that will do it for us on "squawk on the street. "techcheck" starts now happy tuesday. welcome to "techcheck. i'm jon fortt with carl quintanilla and deirdre bosa we're live outside the courthouse as elon musk's second day of testimony begins. tesla coming off a big day for the stock. and later president biden beefs up his security staff.

we'll talk about the investment pieces for companies in the space. we're watching the banks, both goldman sachs and jpmorgan kicking off earnings season with strong results, both stocks are currently in the red this morning. we're going to talk about methods in which the banks will try to get more competitive. >> yeah, and despite both of them beating expectations, but the question is that where the real growth is fintech is becoming a bigger and bigger threat to the big banks with public companies like square and pay pal rivalling or beating in terms of market caps. jpmorgan is trying to stave off rivals by investing with three acquisitions since december including esg platform open invest two weeks ago jamie dimon pushed for more regulation for the companies he also tried to share some optimism on today's earnings call saying while the competition is very large and very tough, it doesn't mean jpmorgan won't win you got to give jamie dimon credit for thinking about

fintech, which he has for a long time, a few years ago confessed to having square envy. he said they innovated where perhaps they should have and earlier this year he expanded the threat beyond fintech, your typical finteches, to big tech on an analyst call he said that he told his employees to watch out for the likes of amazon, apple, and google as threats that the banks need to keep their eye on. >> yeah. and amazon, of course, playing in -- apple teaming up with goldman sachs for that apple credit card as well. but i can't help but think, carl, this environment is likely to shift so many of these challenger banks or, you know, consumer techs depending how you want to see it, they're paying for customer acquisition, promising higher interest rates on savings, that kind of thing, maybe game phiing trading of various popular assets that's probably not going to continue forever and there might be this flight to more safety.

how do they spend their marketing dollars, how do they promote their product in such a way that consumers feel like it is a better experience long-term? >> directionally, guys, the banks have tried to evolve their business models, goldman moved to the consumer, morgan stanley made large scale m&a last year, trying to be more consumer centric. but we are -- still awaiting the moment where they make some explosive purchase of a pure tech company to try to move into that space and dimon i think probably most of the big banks has hinted that's the direction they want to go. >> a few years ago, you got to note that david solomon said if markets were silicon valley startup, people would be throwing money at them, but as john just mentioned, there has been a lot of competition that has come into the marketplace since then those savings rates aren't as attractive as they looked a few years ago. join ing us for more is the production board founder and ceo

david friedberg. david has invested in sofi and among other fintech firms. david, thank you for being with us this morning. i think you were just listening to our conversation and you are on the fintech side of this. you think they will ultimately win out against the big banks? >> i think it is a classic innovator dilemma in the marketplace. a fintech company generally has a lower operating expense per customer, so they can make less profit per customer and build a great business they also have this issue where they're not going to have shareholders lambaste them for a decline in profit or revenue over a short period of time, a couple of quarters so they can make the investment to take a more aggressive approach, make less money per customer, per year, and gain scale very quickly, as we all know, this becomes a scale -- i think there is this inherent kind of dilemma problem that old school financial services firms face they try to buy something, they step into m&a, and they face this issue where they either

leave the company alone and let them kind of grow on their own, and if they do that, they lose the leverage over their existing base it is this kind of classic innovator dilemma moment we're seeing in financial services as the fintech companies storm the field. >> david, one of the questions on regulation, it comes down to scale and i know this is a very different market, look at what happened to ant group. biggest fintech company in the world, about to go public, regulators got worried about the business model and businesses that they had branched into. talking about credit is there a scenario where you think that u.s. regulators could take aim at american fintech and remember too we were talking, jamie dimon called for more regulation. >> you know, it is interesting, i feel like the robin hood fine of $70 million was a good red

herring for what is going to happen in this industry. which is that the big financial services firms want to participate in this market and they don't want regulators coming in. and reregulating the market. they see the opportunity in the same way that the startups do. and it is a self-regulatory organization and putting the fine on robin hood was a big enough fine to say, you know what, we don't want the s.e.c. coming in. we don't want big regulators coming in and telling us how to run digital businesses in financial services we have got this figured out, we're going to regulate our way there. and so the financial services firms that you heard jamie dimon speak and others about the opportunity, they want to see this market evolve and they want to compete, i just think you know, the regulators will be pushed off for a while as they try and chart this deal. they chart the course a little bit. >> let me challenge you a bit on that innovators dilemma thesis it seems to wear off after a while in tech. look at walmart, and e-commerce.

microsoft in cloud, disney in media. after a while, it seems like smart incumbents do manage too to react more quickly. why in the case of the banks are they not in position with the huge customer bases that they already have they don't have to pay to acquire them in quite the same way. why are they not in a better position to react more quickly than some others have in previous ways of innovation. >> i think that you can pick the counterexamples, but the general trend in the industry is that the retailers have fallen apart. and they haven't been able to compete effectively. they had huge digital efforts, they spent an incredible amount of money trying to build digital teams, they all did big acquisitions there has been a few organizations able to get across the line a little bit, i'll ask you the question, when is last time you used wells fargo's website? if you compare using wells fargo's website to using the robin hood app or sofi app, it

is a different experience and the fees and the interest that you can earn and the trading fees are dramatically different still. >> i do use -- i do use bank of america and fidelity all the time as well as affirm it is a mix for me i get your point yeah >> yeah. >> i just feel like the structural differences are there, generally in the industry everyone is going to struggle to compete. but when you come into this market and offer a product that makes less money per customer per year because of your structural advantage, it is going to be hard for a big guy to say let's slash the fees over this short period of time to try to get there without getting beat up by the shareholders. retail banks in the united states rely on $30 billion a year on overdraft revenue. it is an insane number and so if you can come in and offer a 1% interest instead of .1% interest and offer a no overdraft checking account, you're already advantaged against those big guys, and you start to get to the point we were at in the late 90s, early

2000s, everyone was saying, i don't want to enter my credit card information into a website to buy something and guess what, everyone got comfortable with it and then everyone uses credit cards and they're happy to put it on any website. we're in that moment right now of financial services, digital financial services where it was originally kind of the millennials and gen y and now they're saying maybe i should have a digital bank account and go online and i don't need to go into a store and covid reinforced that. we're seeing that shift happen where the lower price, better digital product will start to win out. you'll see the shift happen over the next couple of quarters, over the digital offerings. >> i wonder, we can talk a lot about what the legacy banks would like to buy in that space, we can talk about what the regulators would allow them to buy. generalizing, obviously in the fintech space, who wants to sell

who wants to sell no to these g? do they really believe those tailwinds you just illustrated are so strong, they don't need to >> i think one of the unifying visions i've heard from the ceos and entrepreneurs in financial services, and i've been in digital fintech, i met a lot of folk over the years and we spent a lot of time together, i think everyone has the same vision similar vision, which is one stop financial services. you get your banking, you get your insurance, you get your credit, and you get your trading all in one place you already see firms start to do this. you're seeing square do this and so this move is to have one digital service that you can go to as a consumer, get all of your financial services needs met at a lower cost, better quality of service and in one place. and i think that's where everyone wants to take this. they're all in the offensive they're not trying to build a business, make money and sell the business i think everyone has this vision

that it is an inevitable vision, consumers should have one place to go to get all the financial services needs met it is a lower cost than going through the traditional routes i don't know if i would say, everyone is looking to sell and cash out i think there is a bigger game to play and it is going to transform the financial services industry as a whole. >> you got to wonder if at some point there is consolidation you have more and more finteches trying to do everything. discussion for next time david, thank you so much for being with us this morning >> thank you, guys >> we're looking at the nasdaq, another intraday record high while san francisco fed president mary daly is next on "techcheck." stay with us it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions

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let's get a gut check on airbnb double upgrade today, arguing that digital ingaugement trends have materially improved it is the summer travel season after all. it says valuations here to stay. lengthening stays, they argue, suggest is ample q2 topline upside shares down 1.5%, jon. and now let's get to san francisco fed president mary daly with our steve liesman in a cnbc exclusive steve? >> thanks, jon i'm joined by san francisco fed president mary daly. after this inflation report came out, president daly, thank you

for joining us >> thank you, steve. nice to be here. >> let's get right to the hot inflation numbers. 5.4% on the top line and 4.5% on the core numbers how do you react to this do you feel more or less secure knowing that your outlook that inflation is temporary >> sure, this has really been expected we expected a pop in inflation like this. and it will be for the next couple of months and the reason is there are a variety of reasons we have all cited them we had low prices during the depth of the pandemic. prices are recovering in airlines and other travel services once those are done, we don't expect those to keep growing we have bottlenecks, demand came back faster than supply and there are temporary bottlenecks. now it is steady in the boat, don't read too much signal and let's get through this volatile period so we can see where the economy is >> mary, when you look at the

data here, anything specifically that really helps support your view here when you look at, for example, used car prices up 10 %, a third month in a row of strong gains food prices up very strongly do you see more temporary in this or do you start to have some concerns that maybe there is a more permanent nature to this >> no, ri really do see this as temporary. the used car is a great example. they're a reflection of the temporary bottlenecks we see in a new car supply because of the semiconductor chips that need to be put into the cars and people are going back to work and need to get cars and there are lots of reasons why we didn't have a good supply of used cars because of the pandemic. all of these things worked themselves out and i think the main thing to recognize is several months of this doesn't mean it is not transitory transitory is about what factors are driving it and do we expect it to continue to grow going forward. and i just don't see that happening in the used carmarke or the airline prices or travel

and tourism where generally all of which are really driving up the inflation numbers. >> the real determinant of whether or not it is transitory is whether or not it embeds itself in the psychology of consumers. we just had the new york fed report that inflation expectations hit a record of 4.8% in the next year. do you start to get concerned there is an embedding of inflationary expectations in the part of american consumers >> so that's a terrific point. and absolutely we focus on inflation expectations but here it is really important to separate out near term inflation expectations from longer run inflation expectations when you look at the consumers or the businesses, the survey of professional forecasters, you see this pop in short run inflation expectations they're very reactive to the data once the prices stabilize and we don't have those high readings on inflation, they just come right back down. and importantly, long run inflation expectations haven't made that move at all.

they're really very steady so that's what i'm looking at, is how are consumers, businesses smoothing through what they see today and thinking about what is going to happen five years from now and you don't see a lot of movement in the long run, which as you referenced is what we depend on to maintain inflation expectations at our 2% target more generally. >> president daly, when you last joined us, you said that policy was in a good place. do you still feel that way and does that mean you're thinking about tapering an announcement in the fall and reducing the asset purchases sometime this year or next year? can you give us an idea of your timeline >> sure, steve of course. i think policy is in a great place right now. the reason i think it is in a good place is because it is ready to respond to whatever the economy brings us, right we have accommodation, a system is supporting the recovery i'm bullish about the fall i know there are risks out there

with the new delta variant, et cetera i'm confident we're going to have a strong fall like we had the momentum already with that, it is appropriate to start talking about taking -- tapering asset purchases, taking some of the accommodation that we provided to the economy down. we'll still be in a very accommodative position, with a low funds rate what we don't need all the tools as we see the economy get its own footing. so absolutely time to start doing that, having those conversations, my own view is we'll probably be in a good position to taper at the end of this year or early next. >> and what about raising interest rates the market after the last meeting and the press conference by chairman powell pulled forward the time of the first rate hike into the fall of october, fall of 2022. is that where your thinking is do you think it is longer than that >> we want to do the the following. we need to get through the fall. the delta variant being so

contagious and spreading throughout the globe and actually spreading in the u.s., that's a risk. we also have -- we need to open the economy fully and have kids go back to school, see how many people we can bring back off the sidelines, into the labor market, see how close we can get to our full employment mandate before we start talking about rate increases right now i'm focused completely on the timing, pace and composition of asset purchases and will do those first and then we'll think about, okay, what is the next step and that next step could -- will depend on the economy. and most importantly, where covid goes which right now looks to be we're getting through it, but, again, we're not through it yet. >> president daly, i hammered you with one side of the inflation debate, which is how and why it might be more permanent than you let on. there is other forces that make it both temporary and have really depressed inflation over a long time. and that is a lot of it where

you are right now, which is san francisco and technology, talk about the other side of the story there, this being the "techcheck" show anyway, about how technology will play a role, you believe, in keeping inflation down over time >> it is not just technology that's absolutely a big factor one of the things happening globally is that the globe is with the aging of the population, slower productivity growth, we have slower growth more generally central banks everywhere are having trouble keeping inflation up to target technology has been one of the forces people point to that we have a very globalized economy and goods and services can move freely and technology helped us know the price for things across the globe. not just across the country. these things are still there those things aren't going away technology enabled production and service exchange really something that we are continuing to see in the economy. so i remain bullish about our ability to grow, and really focused on the fact that we are

going forward, we're going to be fighting inflation from below our target most likely, not trying to pull it down to our target, so pandemic recovery aside, the forces on inflation, the global forces are mostly to the downside >> two more areas i want to ask you about. do you look at things like the ten-year in the face of a hot inflation numbers like we got today and see a 130, call is 136 print on the ten-year, and say, wait a second, either the fed coming into this market is so distorting the price signal that i can't really get a read, or that these guys in the bond market are so chill with inflation, maybe i shouldn't worry about it either? which message do you get from the ten-year >> so the thing you learn most when you look at financial markets is they move around for a variety of factors, not just one factor there are reasons that the bond market is moving around, i really go back and ask what are the fundamentals the fundamentals as i see it are

these. we have some prints on inflation that were expected higher than we are usually seeing, and it has some people worried. most people, including ceos i speak to, are saying, wait a minute, there are a lot of reasons these are likely to -- and long run inflation expectations haven't moved that much so that's not going to be something you see priced into markets generally. the other thing going on is that we're all experiencing the fact that covid, while we have really good news on the vaccines and people getting vaccinated and getting this beaten back, this delta variant has caused many of my contacts to say, okay, the global economy is likely to be a little slower in recovering than we have once thought and we really want to make sure that that doesn't derail the u.s. expansion or if not derail it, really temper it i think we're really strong here very bullish but risks are here we have to be paying attention to those i think the bond market is paying attention to those.

>> let me shift gears to an area you have talked a lot about, which is climate change and the role the federal reserve there have been some conservative lawmakers who have said, you know what, this is out of bounds, offsides for the federal reserve, the federal reserve is getting too involved in social justice issues or issues that are out of its area of per view. how do you respond when you talk about climate change and the role the federal reserve and whether it should be as involved as it has been >> well, the first thing i want to say is this is how democracies work, we do our work and then other people ask questions about it why is that your work? it is our duty to explain why it is our work. here -- it is a simple explanation. climate and climate risk is affecting businesses or doing their business it makes it harder for wineries in california to get insurance it makes it harder for agricultural producers to find insurance for their crops. if you can't ensure, you cannot get a mortgage this affects banks, of course,

now they have rent money to people and to businesses that are not viable as they once were because of the weather the extreme temperatures make it difficult for transportation networks to thrive, make it difficult for people to work outdoors for extended periods. all of this comes back to the simple goals that congress gave us of full employment and price stability. it is our duty to understand the risks that face us, even when we don't have the levers to pull to mitigate them. >> president daly, thank you for joining us today and talking about these important issues that are out there in your district and in the nation as a whole. mary daly, president of san francisco fed. >> thank you. >> thanks to steve you covered a lot of ground there from the delta variant to the role of technology. tesla led the nasdaq 100 yesterday. goldman reiterating the buy on the stock. this morning, down 1%. we're live at the courthouse where elon musk is testifying. he's in the building you're about to see on the

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welcome back to "techcheck." still ahead, the largest ever seed fund specifically for female founders. first, let's get a news update with rahel solomon. >> here's what's happening at this hour. consumer prices surging in june. the .9% gain was well ahead of estimates and is the biggest monthly increase in 13 years prices for used cars and trucks shot up 10.5%. year over year inflation up 5.4% also the most since 2008 investors are already pricing in big beats for the earnings season, that's just getting under way this week. pepsico one of the major companies rising on earnings

this morning, getting help from higher drink sales in north america. pepsico raising full year eps guidance boeing is leading the declines on the dow, cutting production of the 787 jet that's after discovering a structural defect. boeing now says it will deliver fewer than half of the 787s that are in its inventory this year, instead of the vast majority of planes as expects. back to you. elon musk returning to court today to defend tesla's acquisition of solar city. shares closed up over 4% yesterday. but it turned lower this morning. joining us this morning is washington post tech reporter will remus good to see you again. it has been a pretty steady day of headlines what has been the lead so far other than he says he didn't set the terms of the deal and didn't want to be anybody's boss. >> and other than when he told the plaintiffs attorney he

thinks he's a bad human being, that made some headlines elon musk always brings the entertainment value, even to this state environment there has been a lot of back and forth between the plaintiff's attorney and musk. they don't like each other both men seem to relish the battles and the jousting i think what the attorney has done this morning is to show that musk was in close contact with the tesla team and the solar city team as this deal was being negotiated musk said he formerly recused himself from the tesla board negotiation of the sale price when the deal happened with the lawyers trying to show he was behind the scenes trying to make everything work, maybe trying to get a higher price for solar city and trying to hide just what bad shape solar city was in financially at the time that tesla was acquiring it. >> how would you characterize at least at this stage musk's ability to detangle himself from that line of questioning

depending on which way it went, it would have broader implications for the scrutiny he would come under given his strong control of tesla at least. >> he's a confident guy. he has not appeared shaken if anything, he appears exas exasperated. he delights on catching the attorney on a mistake or mistake in his timeline or that sort of thing. what we're seeing here is a clash between this grand vision that musk sketches out, where tesla had to acquire solar city because it is about you need the clean solar energy to power electric cars and the lawyers say musk orchestrated this bailout of his cousin's failing company to enrich himself and his cousin and a lot of dirty details that run contrary to the narrative that this was all about saving the world. >> alittle conceptual for us, how much of this is about

twitter elon musk, on trial in a sense, the elon musk who sometimes seems to believe the regular rules don't apply to him, he can kind of get around them with the way he wants to maneuver and with the results that he's going to deliver with his big ideas? >> yeah, you know, he's always been his whole career has been about, you know, trying to reach the stars and then doing whatever it takes to make that happen, often making promises he can't quite deliver on pressuring everybody around him to deliver on those promises elon musk we see in tweets, we see it is not that different from the real elon musk and the way he behaves offline and i think one of the most interesting parts is when musk said that a lot of his tweets are strategic. they're about getting free advertising for tesla. someone changed his title to techno king. even got lawyers to become

techno king of tesla he said that's cheaper than spending money on advertising on car commercials and look how many free headlines i got out of it to elon, he's the master, the wizard pulling all the strings and but, you know, if he's pulling the strings in a way that is about helping out his cousin or lining his own pockets, then, you know, the shareholders may have a problem with that. >> that's fascinating about that title change too techno king, raises questions about all his dogecoin tweets. i want to ask you a broader question, if musk loses this case, he will owe $2 billion, which is not a lot for him given that his wealth is above $150 billion. are there any implications if he loses this case for tesla or for the clean energy industry at large? >> that's a good question. you know, the tesla stock price suggests that the shareholders who are not part of this lawsuit seem to be pretty bullish on the

future still i think, you know, i think this is more of a referendum on musk and his leadership there is always this tension in the way musk runs his companies as to whether he is going to pull the rabbit out of the hat and deliver the magic and please the crowds and it will all be a happy ending whether at some point it is all going to come apart and his volatile nature and bending of the rules and of timelines will come back and haunt him and haunt the company and the shareholders i think that's -- those are the stakes here. whether musk can be trusted as a steward of this company, not to mention spacex going forward, it is a huge company now or whether, you know, he is the fast talking huckster that a lot of critics portray him to be i think it is poeersonal for muk i think that's why he's here he's making his case and, you

know, i think he's a guy who doesn't like to lose. >> certainly a courtroom has a way of bringing out the human drama in some sharper relief, will and we're all benefitting from your coverage for sure. appreciate it. thank you very much. shares of electronic arts leading the s&p this morning upgraded to outperform at bmo. price target to $168 up nearly 3% today they say ea shares are the least expensive among the gaming sectors. stay with us more "techcheck" next. (vo) introducing 48 square centimeters of earning potential. flawlessly designed. undeniably versatile. unlimited 2% cash back. this is the card built for...

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female founders fund kwlus includes heavy hitters julia boorstin has more. >> female founders fund discloses the third fund at $57 million, the biggest ever seed fund focused just on female entrepreneurs. this fund was oversubscribed with investors including goldman sa sachs, and 23 me ceo. these investors were drawn to the receive of the first two

funds. the focus on female entrepreneurs. >> i think some of the newer themes post covid, so one would be looking at workplace efficiency tools in this post -- somewhat post covid hybrid world where you're looking at a combination of work from home and return to office what are different platforms and tools that can make that experience more seamless >> now, founding partner anu is focused on the categories she seized growing she's looking at healthcare, education, online community and climate change and as well as hybrid work. and now she's also looking at some of the ways that female investors might be an untapped opportunity. >> we believe that founders that

are successful are building oftentimes products or solutions that speak to their lived experiences. so when we look at funds three, the investments we made so far, are 70% bipoc. you look at the types of businesses the founders bruld i are building, it is a reflection of their personal experience >> and with female founders drawing less than 3% of all venture capital dollars in the u.s., the fund is looking for those untapped opportunities deirdre, over to you >> great piece, julia. thank you for that. after the break, president biden beefs up his cybersecurity team first solar dropped 20% in the last three months. sticking with the $100 price target, shares currently at 93 and change more "techcheck" after the break.

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the worldwide pc shipments have been shrinking for years. and then the pandemic hit. we needed new devices to do work and school from home now it is 2021 and global shipments are still growing up 4% year over year according to new data from gartner. that's a far cry from the double digit growth in 2020

lenovo had 24% of pc shipments worldwide in q2. hp and dell with 20 and 17%. which company saw the most growth apple. they shipped more units than in y2 of last year. chrome books not included. but the total market for chrome books grew 10% year over year. the m the chip shortage made it hard for businesses to find laptops in the u.s., hp, dell and apple lead in term of units shipped with lenovo and microsoft rounding out the top five. it is going to be an important metric to track how the windows 11 launch does and how apple is doing with building in its own chips in macs. >> yeah, interesting debate when the numbers came out from idc this week. as we know from the likes of katy huberty, there was a long-standing thesis that we

were in some kind of new normal for pc growth as the office environment was changing but still a big debate raging about what pcs do from a growth standpoint from here on out. >> right it is not like everyone is going back to work right away. this new hybrid work model means that many companies are still upgrading or could still be upgrading their equipment and that could mean more pc sales. that's the big question is do these sales continue postpandemic and you got things like the chip shortage playing a part as well but those numbers from apple. >> yeah. q1 numbers insane. by the way, check out shares of okta goldman does initiate with a buy. price target 312, 27% upside from the current levels. stocks rising over 1,000% since debuting in 2017 just negative for the year to date by the way, don't miss the biggest calls on the street. you can subscribe to cnbc pro,

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the biden administration filling out their cybersecurity team ayeamon javers has that for us, coming at a pretty crucial time. >> yeah, file this one under better late than never president biden is getting the cybersecurity team he wanted in place. the senate yesterday confirmed

jen easterly as the director she will be just the second senate confirmed director to lead the agency since it was created back in 2018 the senate also confirmed chris english to be biden's national cyberdirector, giving the white house a lead official at a time of the major ransomware impacts on corporate america the two officials. earlier this year are veterans of the national security agency. easterlily worked at the white house on cybersecurity and terrorism issues inkle he is is an air force veteran leading a brand-new office unit called the office of national cyberdirector out of the white house. i had lunch yesterday with admiral mike rogers the hid of the former security agency he was extremely bullish on both officials. one challenge for them for this white house office will be staffing up the unit and developing clear lines of authority over which agency is

responsible for which pieces of that cybersecurity challenge one thing for you upon a sfrat separate story we talked about the group r-evil going off line all publicly facing websites are flou dark. there is question as to who is responsible, the russians, the united states taking action against r-evil i e-mailed the national security official moments ago in response to my question about whether this is u.s. action emailed me back and said no comment. back to you. >> eamon, thanks i was going to be surprised if you got a detailed explanation there. but i know you'll continue to work at it eamon, thanks. >> nothing in detail from the white house. >> now, the next guest raised $150 million in series f round taking the company from unicorn which it was already to a $4 billion valuation in ten months. joining us now is the co-founder and ceo firm arctic wolf brian

nay smith. a platform allowing experts from arctic wolf to really get hands on help manage a customer's existing security system why is this a particularly potent pitch at this time? >> well, two reasons the threat environment is as bad as i've ever seen it people are fighting. they're concerned we read on the news you guys talk about it all the time there is a real big problem there. the other aspect is there is a talent shortage. people can't find people to do this work. combined with the problem we're able to deliver a solution that helps them address the need. >> given the challenges we're seeing right now, ransomware, top of mind, how does a model like arctic wolf come to bear? are you able to get in and audit more quickly the weaknesses in an organization and act based on her that without bringing in new

software or new equipment? what's the model relevant to what we see right now. >> we work with whatever the customer has in place. they try to address risk, understand what's taking place in the environment and we'll work, no matter what they've got going in the environment. what we offer the customer is an enterprise class, world class security operations capability we leverage the tech platform and enable any organization of any size to operate as if a world class organization >> brian, talk about the decision to raise money in the private markets, $150 million in a series f funding versus the idea of going public when i'm sure you guys could use the publicity and marketing, why did you decide to go this route? >> well, one, because we could raising money, we needed a war chest. we're acquisitive in what we are doing. we see opportunities to build and add new capabilities for

customers and thought we could exploit that more importantly we don't have a challenge to getting seem to see the tune we deliver. there is foech fear in the marketplace people are looking for answers and how they can not be the next front page of the news the publicity dynamic is not needed we're on the road to going public it's in the horizon and coming i ran a public company previously we have understanding what that takes and we're on that path but we have plenty of opportunity to chase now. >> important to note so explain, please, how this is more than traditional outsourcing, how technology in your platform comes to bear to allow the experts that you have at arctic wolf -- i suppose to be more efficient and serve more customers at once? what's the technology involved that responds the effectiveness of this outsourcing and services model? >> traditionally what a customer would do is take something

called a sem, collect the log data and cost a lot to do that we built a unique cloud based native architecture and louing them to brit the dat to our environment. innovative getting a high 70s gross margin, but there is a tool kit not simply collect the data but the tool kit with the people necessary to do this service. all that wrapped together. it's that what we call the concierge model. we create an intimate model is so each khmer and threat l landscape is unique. it's hard for an organization of any size to keep up with the russians, the some other nation state, activists or ransomware event. we roll and move with that so the customer doesn't have to worry about it it's the cloud native platform combined with what with he call concierge combining the unique

speshs $experience for each customer they don't need everything to make it work backup we give them an outcome based capability. >> brian appreciate it. >> thank you. >> ceo of arctic wolf. carl. >> you missed part of the show, listened to the podcast, available wherever you download podcasts, s&p session high, 9 points from 4,400. ice works fast. heat makes it last. feel the power of contrast therapy, so you can rise from pain.

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before we go check out chainsaw internet stocks they have obviously had a tough run. but they're turning around including didir abalibaba and baidu in the green despite the recent regulatory crackdown. earlier didi and ant group holder, the large singapore fund said earlier this morning they remain optimistic and still looking for growth opportunities in the country carl >> no worry, dee dee emmy tom nomsic trickling out. a number of shows pushed ovt off because of the pan temg. netflix is the crown, bridgerton, the queen's gamm bit, the mandalorian tedy lasso from apple. by platform hbo has 130 nomes.

indemnity flicks one behind at 129. quick joining the front runners nbc then apple, cbs, hulu and abc, amazon last with only 18 nominations. the only streamer to win best drama is hulu for handmaid's tale let's get to the judge. >> thank you welcome to the "halftime report" what to do with your money as stocks at record highs earnings taking center stanl as jeffreyy segal joins the show. josh brown, pete najarian, good to see everybody checking the markets backup a good day shaping up on the program. talking about a lot. the nasdaq, new high s&p 500, new high as well. tech, health care, discretionary, all record intraday highs josh brown, apple trading near all-time high. alphabet all-time high starbucks whic