that it could have ramifications more broadly for spacs in gen general. >> i think that's one read so that's i think the key question mark. >> yeah. even as we have another spac deal close with spire, the latest spac to start trading that does it for us on "squawk on the street. "techcheck" starts now good tuesday morning welcome to "techcheck. i'm carl quintanilla with deirdre bosa new rules in china saying tech stocks in china lower again. it is -- is it time to join the hedge funds and exit that trade? plus, the latest on a major data breach at t-mo it may have impacted up to 100

million customers. and how america's tech giants could fall morgan stanley making the bear case >> we start with another sharp sell-off in chinese stocks as carl mentioned big tech companies in china shed more than $50 billion in market cap yesterday after new rules were announced and they're down again today here in the u.s. baba, tencent, baidu, they are all in the red by about 10% each the new measures banned businesses from faking sales stats, posting misleading customer reviews, and hiding negative comments. and platforms they can't use data or other algorithms to influence customer choices today we got a peek into the funds that actually bought shares and are exposed to didi like tiger global. that stock is up about 4% today, but it is down more than 40% since its june ipo s.e.c. filings reveal funds including soros, tiger global and singapore sovereign wealth fund, where investors as of the

end of q2 knew headlines that operations at the company slowed dramatically also worth mentioning tencent music, you see on the screen there, down nearly 12% after revenue fell short of estimates. and that is despite a big increase in paid subscribers and, carl, the pain continues, there has been this idea, especially, you know, across the world, here in the u.s. and china, that consumer and users are willing to trade privacy for convenience. the key in china is that is really started to change with the public increasingly calling for more protections, some users likening it to running naked with their data, you know, being exploited and the question is, though, do you want the government to control that data or do you want the tech giants and clearly beijing is being proactive on this, and before it is too late, before the tech giants have it all, they're getting involved and saying, you know, we're going to crack down on this. and the question is, when does it end >> yeah, well, i think it is -- we tried to make clear on this show that we're probably in the

early innings. we had john chambers say things are going to get bumpier before they get better. we have talked about the amount of wealth that has been destroyed among the millionaire and billionaire and the social mission at least that the chinese government believes that they're on and you put all that together and it comes as no surprise that chairs a agagentzr warning people. >> there is both sides i like to look at the chinese stocks that are outperforming because i think it maybe provides some insights we talked about the hard tech sectors like semis, we know beijing doesn't want to boost up, and also waeibo, similar to twitter, up over the last 12 months and the government holds a 1% stake here. i wonder how key that is as we talk about, you know, another huge company like bytedance getting, you know, a 1%

reportedly stake from the ccp, the chinese government does that protect a little bit and is this a trend that will continue to see as more government ownership and what does that do to the investment equation, especially for americans thinking about these names? >> it is a great catch to see if that adds an added layer of complexity to the story, which we continue to walk into the office every morning and find out more about this massive metaverse miss, roblox down, down on the premarket, recovering here that measure of sales after the bell on thursday, despite the miss, bookings are still up 127% year on year and the game developer saw an 8% increase in daus in july from the prior month. some are still bullish on the space, the round hill etf announcing it surpassed $50 million in assets under management, less than six weeks after launching the fund and joining us this morning, amazon studios former head of strategy

matthew ball joins us. good to have you back. thank you for the time >> good to see you again >> we're getting all of these very near term crosswinds about whether or not peak consumers were going out more, versus being sent back insidebecause of the delta variant i assume it is not how you are approaching roblox in general? >> i found the past quarter encouraging. if you look at the comps, we were at the depths of the lockdown in the united states last year, despite that we're seeing that daus are up 30% and most importantly spending per user is up 120%. that's encouraging as to the resilience of this platform, its popularity within culture today and also shows galloping gains to revenue versus engagement hours. >> i wonder of the companies you track that have verbalized their mission around the metaverse, where roblox ranks in terms of the efficacy of the message and the relevance of the metaverse

too, the overall model. >> that's a great question when roblox filed the s-1 last year, there were five prior mentions of the term metaverse in the filing they used it 13 times. in the subsequent nine months, over 60 times in s-1 filings in, edgar filings. there is an advantage to coming up first, they have the dominant mind share they probably own the message more than any other platform most importantly investors are encouraged by the fact thatit is an end to end metaverse service. they have the engine, the technology, the payments and identity service, but they also own content distribution as well and that's a really compelling proposition for anyone who considers gaming to be the next big social platform. >> hey, matthew, it is deirdre i wonder how the 19 times compares to zuckerberg's mention of metaverse on the call i'll look it up during the break. i wanted to ask about the china

connection you talked about tencent before and they have called itself the closest thing to the metaverse i wonder, we talked about the chinese crackdown on gaming, and tencent has been affectedby this as well does that threaten its role and do you hold tencent in the etf >> tencent is one of the primary holdings if you look at the global landscape of virtual sim layings simulations of games, of viewsers in a virtual world, everyone from epic games to craft and maker of pub g to free fire is an investment company or partner of tencent to the extent in which having interconnection in virtual worlds is critical, tencent probably has the closest path towards that but now we're starting to see some of the regulatory or local environment limitations that may preclude them from doing that. the extent to which the ccp

prevents tencent from deploying a system, from proliferating data from one experience to another, consumer spending, all of that is an impediment to building up an ecosystem comparable to roblox's today. >> does facebook benefit here? are they licking their chops and looking at the regulatory action in china and seeing this could provide an opening i looked, 20 times metaverse was mentioned on the last facebook earnings call. >> there has been a run-up i think the metaverse is a convenient catch all term for the very many roe v. wade pror&d project, interfaces, xr, vr, game engines, virtual assets and anything crypto. i expect we'll see the term come up more frequently, even sinclair in discussing its forge coming regional sports network platform explained it is a metaverse. that's agood way to discuss

your point on facebook, which is irrespective of whether or not there is a crackdown in china or what daus look like, facebook's first and most important next step is to build a virtual space that attracts developers and users, horizon thus far is not doing that >> interesting i wonder, this may be a bit of a pedestrian question. but is there a seasonality to user engagement? i'm thinking about kids going back to school i don't know whether their mind share, their bandwidth shrinks relative to homework, and to that point, and does it then drive the developer rate should we be looking for seasonality in some of the names? >> there is always some degree of seasonality if you look at the video industry, by far the most common allocation of leisure time in the united states, you'll see the second quarter and to some sense the third quarter are the lowest for tv time in the united states compared to q4 and q1 that largely holds in gaming

but i think irrespective of whether or not kids return to school in person or at home, it is more important to understand that every successive generation is gaming more than the last we see that with y versus x, generation z versus y and alpha versus z i think irrespective the short-term cyclicality or seasonality of the industry, most time in the united states for leisure is spent on video, and gaming is rapidly devouring that if you look at videos specifically on a demographic basis, the average person age 50 up spends 6 1/2 hours per day watching video when you get to sub18, less than two hours per day. part of that reflects different allocations of leisure time differences in total amount. for the most part, if you're under 15, you're spending more time palauing playing game and n that's likely to persist. >> it is nice to have this kind of metric to look through that

lens matthew, great stuff thanks so much >> thank you be sure to catch the ceo tonight with jim on "mad money" tonight at 6:00 p.m. eastern time we do want to turn to walmart this morning and what we learned on the e-commerce front today. courtney reagan is watching that and has some results. >> good to see you walmart's comparable sales coming in stronger than expected but this quarter it was stores, not e-commerce, that led the way. so walmart's u.s. comparable sales did grow 5.2% with the 6% growth in transactions however, that net u.s. e-commerce number grew just 6% look at this bar chart and see how much smaller that increase is than what investors are used to from this u.s. net e-commerce number the same quarter last year saw sales grow 97% the retailer is now expecting global e-commerce to hit $75 billion this year.

that's a number they don't normally give us and that is just its own good. so x marketplace goods, not a gmb number, pure sales number for walmart. when i asked brett bigs about the slow growth, he said, there are going to be quarters where stores lead the way and quarters where online leads the way and over the last two years, e-commerce sales have doubled. now, he said he focuses on the total revenue, the total sales number, and that total revenue number is impressive this quarter, in fact, the third biggest quarterly revenue ever for walmart, and the highest nonholiday quarter ever when you're looking at revenue. and another key growth area for walmart is advertising business, calls it walmart connect the retailer said that ad sales growth is strong globally with sales nearly doubling in the u.s. versus last year with active advertisers up 170% morgan stanley estimates the ad business will hit $4 billion by

the year 2025. shares of walmart relatively flat higher by just about half a percent on the total results deirdre? >> thank you staying with e-commerce, just want to direct our audience to look at shares of wish. that stock has fallen over 30%, just over the last two days. the company is saying that demand slowed with the reopening of the economy andreturn to physical shopping. users are disengaging with the site, now this he said they're looking to make changes to the platform to drive engagement, but warn they do not expect new initiatives to contribute meaningfully to positive year over year results before the second half of 2022. shares are up 2% they have been beaten down, though this is a recent ipo the stock now worth just a quarter of what it was at the start of the year. so up this morning, but down over 60% since the start of the year meanwhile, speaking of stocks that have been beaten down, uber and open door, both laggards in 2021 as well open door has been cut in half

since its february highs, uber back below where it opened on ipo day. $45. that is not stopping our next guest, oppenheimer's jason halfsteen, the number one sell side analyst in 2020 by tip ranks. his top two picks, uber and open door david tepper revealed a new position in uber joining us is managing director of internet equity research jason halfsteen. good morning and thanks for being with us now, the strategy over at uber has been one of m&a over organic growth deal-making. but when it comes at least to the delivery side, it is being beat by doordash in terms of market share and profitability how long should investors give him to prove out this strategy >> to some extent they are fighting with one arm tied behind their back. the thesis on uber is they will have the best super app.

your rides, your delivery, convenience, alcohol, delivery, et cetera, and because the people are not going to work on a regular basis, they're not going to meetings, you're not getting the leverage and the business from a mobility standpoint and we think as a result doordash really gets kind of exceeded them from a loyalty program, their dash pass product. we think after labor day, while we do understand that people are concerned with returns of the office and delta variant, we do expect cities to look a bit more normal in september and october, and we think that will go a long way to kind of what uber can offer its customers. >> when you say it has one arm tied behind its back, are you referring to the ride sharing business. >> correct, exactly. the idea would be -- >> sorry, i wonder, isn't that a hedge? if ride sharing comes back in a

big way, delivery is going to soften a little bit. people will be going back out to restaurants, something we have seen in both uber and doordash's results. >> correct so you just made another kind of positive point that there is a natural balance in their business so to the extent that they are seeing very good growth, not as good as doordash in food delivery and if the economy kind of starts to go back to normal and food delivery is closed, there is an offset what we focused on is the idea that uber should have the best loyalty program. the idea you use it, you can use coins you generate for rides to order food, vice versa, if you join one of their subscription programs, do you get, you know, are you getting rides benefits, food benefits, and so with the way the economy has been basically the last year, they really have not been able to tap what was called like the uber pass, right? many of us turned off our uber pass september of 2020 and

haven't turned it back on. and so, you know, as a result of that, i think that is where doordash is really been able to kind of run with the ball on their loyalty program. and we think after labor day, uber will be named much more competitive position with them as a super app in the loyalty program, and then severally, you know, compared to lyft, we look at uber's ability to add more drivers in the quarter lyftwas 23%, we think they're basically, you know, at 2x kind of where lyft is as far as adding drivers, and that's a big concern for people how effective will uber platform work when consumers go back to work >> that's interesting. i want to ask you whether or not we always talk about disney as being a hedge between a reopening and a reclosing of the economy. the idea that uber is the same thing between rides and eats, is

that false is that a strawman narrative, one has to suffer at the expense of the other >> generally in e-commerce you see that when someone is trying something new. you don't put the genie back in the bottle to the extent that covid brought more consumers to try food delivery, of course they're going it go back to eating at restaurants. but the kind of new run rate gets that higher it has been a positive for food delivery it made a lot of restaurants take food delivery more seriously, think seriously about that as an avenue of business, what platforms are used, how they're integrated into the kitchen. it has been a positive, but i think uber, while the market is not giving it credit, it does look like it is a much better natural hedge. i would say the reason why doordash is doing so well is grocery delivery i think you've got big players

particularly in walmart and amazon who plan to be big players in that. i don't think you've seen amazon competing as effectively in grocery delivery because the challenges they had just keeping up with the demand for their overall e-commerce business. i think six to nine months from now we're going to be looking back and really saying, like, uber did provide us a great opportunity in the stock price because of some of the temporary head winds >> yeah, jason, grocery the next big battleground we spoke to tony shoe at the end of last week they're focused on this area as well thank you for being with us. we'll ask you next time about open door. >> okay. thanks coming up next our next guest has a warning for the investors in apple and amazon and alphabet how america's tech giants could fall and then bury the hatchet. cathie wood hits back at the new arc short. big hour of "techcheck" is just getting started.

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monday.com the software company reporting results for the first time since going public back in june. billings better than expected and both gross and operating margins rose year over year. the street certainly giving their nod of approval. shares up 25%. and nearly double, carl, its ipo price of $155. that's trading above 300 today >> yeah. what a chart meantime, d what if today's top tech giants could fall our next guest points to the historical cycling out of the top tech companies by market cap as evidence that big tech may not always dominate. and that regulation can come quick as china is an example today. it is all in his latest financial times op-ed. joining us is rushir your piece is a great reminder of the controlled fires that capitalism brings and that

recycling is a healthy thing for the long-term economy and innovation but can you flush out what you mean when you say that some of these tech giants could be vulnerable one day >> sure. so i went back and looked at the data for the last 50 years, five decades and found one very interesting factor, which is that if you look at the top ten countries in the world by market value, at the end of each decade, what you find is that eight if not nine of the ten companies tend to be companies that were not in the top ten in the previous decade. so the 1970s were all dominated by oil giants. 1980s by japanese bank 1990s by u.s. tech companies that we have all forgotten about. the 2000 emerging market companies. the last decade by the u.s. tech giants and we all tend to think that this is a permanent state of affairs but what history tells us is

that once you reach such a point, where you're among the top ten companies, the odds are overwhelming that over the next decade these companies will not only underperform dramatically, but actually generate negative returns. and i have no reason to believe that is not likely to happen in the coming decade. >> right obviously we can point to so many companies that fit that example. i guess the obvious question is how do we know which ones are vulnerable, right? is there a way to screen that out? >> well, it is very difficult, the only one which survived over the last three decades is microsoft. so my advice here as an investor, what i'm doing, is i would not allocate much capital at all to the top ten companies in the world today if i had a five to ten-year time horizon. the probability that you will be able to pick that one or maybe two out of the top ten is quite

low. and the magnitude of underperformance is huge that these top ten companies typically rise a lot in the last decade, they outperform the broader market by over 300% or something. and then in the subsequent decade, they give up the entire relative outperformance, so that's a huge fall from grace. and i think that's something similar could be in store for what we think are these permanent fixtures in life today. >> i wonder if the pandemic changes anything, could change the course of history. we saw this incredible digital transformation where more people relied on the big tech companies than ever, the fourth industrial revolution something that cathie wood's arc thesis rests on. could that change the trajectory >> i think what the pandemic has done is it accelerated many of the trends that were already playing out before the pandemic. so these trends have been telescoped and that's why i think some of these top

companies have generated a fair amount of outperformance over the last 18 months or so or the start of this decade so if anything, i think the situation is even more prime now for these companies to underperform from this point because they have already bunched up their returns pretty quickly as the pandemic accelerated the trend of digitization i think we forget that how saturated some of the markets already may be take the example of amazon nearly three or four households in america already has an amazon prime account or so. so i think that the school for growth of these companies from here is quite limited. and internationally these companies are finding it pretty hard to penetrate many of these emerging markets where the growth and digitization is really taking off now. >> it is a fascinating argument, and good reminder to investors

even though a lot of these giants that we talk about were founded by fehling prior giants, but something we have to constantly keep in mind. great to see you ruchir sharma, thanks. >> thank you, carl. after the break, t-mobile confirms hackers gained access to its system, but what data was taken? we'll tell you and we get another reality check. this time on ibm why they say it's a sell stay with us if you wake up thinking 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. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. yeah, i mean the thing is, people like geico

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welcome back to "techcheck." we're resetting at the bottom of the hour i'm deirdre bosa with carl quintanilla. coming up, why one analyst says you need to drop ibm from your portfolio today. but, first, let's get a news update with rahel solomon. >> here's what's happening at this hour. home depot by far the largest loser in the dow industrials the retailer posting profits and revenues above estimates, but same store sales disappointed.

home depot shares down 5% today, still up 20% this year, better than the s&p and rival lowe's. retail sales falling more than expected in july, online sales dropped. 1.1% overall decline due in large part to falling auto sales due to dtight supplis for vehicles home builders view of the housing market taking a big hit in august. a key index dropping to the lowest level in 13 months. sales expectations remain unchanged for the next six months. shares of spirit airlines rebounding from losses of more than 4% this morning the stock bouncing back after the company said its massive recent flight disruptions cost the company about $50 million and led to more than 2800 flight cancellations. deirdre, the company saying that it plans to reduce flight schedule over the next month or so until the end of september perhaps to avoid further frustration for customers.

>> yeah. thank you, rahel. time for day two of our reality check series we're looking at the other side of the street or the rare sell calls on consensus buy stocks today. it is international business machines, ibm. our next guest says their vision is more cloudy than cloud. you note that ibm's current cloud portfolio lags market leaders like microsoft, aws, google ibm argues that its strategy, hybrid cloud, is uniquely positioned take apart that argument for our viewers. >> yeah, it is true. large enterprises are definitely going somewhat in the direction of hybrid cloud. the challenge that ibm has is that that cloud -- hybrid cloud portfolio, built around the red hat acquisition, is really small. it is a few billion out of, you know, 70, 75 billion in revenue of ibm

and so they have got this little kernel of a business, built around red hat, that is in hybrid cloud, and is doing fine. i would say fine, not fantastic. but just within -- it is a little bit like trying to turn the "titanic," it is a very small piece within a much broader portfolio by ibm, much of which is in structural decline and being impacted by the cloud. >> talk about ibm's capital allocation strategy. underer ceo jennie rometty under krishna they have ban investing back into the business, small in terms of capex compared to the other cloud leaders that we just mentioned, do you agree that the proper metric to judge ibm's cloud business is capex over opek > >> i don't know in their case.

they're not building out big data centers the way aws or google is. they're more software driven this is like a red hat open shift type of products free cash flow is really, really critical metric for ibm because they pay a hefty dividend. they have about 6 billion in cash that goes up each year. and the real challenge they have been having recently is because they're in the midst of this spin-off of their big data center outsourcing business, they're taking almost 5 billion in restructuring costs associated with that spin. which is pooling their free cash flow dangerously low it is down in the 8, $9 billion range and they have to cover a $6 billion dividend, so you're just talking about only having 2 or 3 billion available for new investments to try to get this business moving again. it is -- they're kind of painted into a bit of a corner right

now. >> we have seen other high profile examples of other giants, where cash flow became endangered and people started to talk about the dividend being endangered are you anywhere near that front on ibm >> we're not near the danger, no i want to be clear about that. they have been very clear about their capital allocation priority is protecting that dividend because that's a lot of the investors holding ibm or holding it for that coupon and, you know it $6 billion, they have 8 billion or so on the balance sheet, plus they are generating 8 billion to 9 billion. we're not in that dangerous territory where the dividend might be at risk it is more that they -- they're at a point now where they can't really do both if their priority is paying the dividend, their flexibility to invest in the business to try to kind of catch up with the players like microsoft and google and amazon that are way ahead of them in cloud is much more limited

and they have been clear, their choices, the dividend, but the implication of that is that they likely, they'll be able to return to meaningful revenue growth is much more limited. this is a business that is just much more likely to kind of tread water, and just keep paying the dividend. >> lisa, we talked about cloud i want to ask you about another next generation technology that ibm likes to talk about and that's watson. artificial intelligence. it was early, but not particularly successful, now you have all of these startups in the enterprise ai space like palantir, ui path. is ibm a player here >> they have some good technology with watson they were very early in this space. and have had a lot of difficulty commercializing it so i think they have struggled we have seen them start to consider even selling off pieces of their technology there because while they have strong

underlying ai capability, what they have had difficulty with is figuring out how to create a product out of it that is commercialized, that people are really buying. partly because they have done these big industry specific full solutions like watson, you know, watson health, many competitors have chosen a more modular approach, breaking apart individual pieces of ai like voice recognition or particular types of big data analytics and pulling those capabilities apart and selling them just as underlying piece parts different strategy and that has sort of proven so far to be the more successful strategy in ai so ibm is struggling i think they got a strong, you know, still do have a very strong r&d organization and strong underlying intellectual property in a lot the areas but difficulty getting that out into commercial products and then face the question of whether they should sell off some of the ip versus keeping it in house.

>> lisa, as always, thank you for your insights. we'll talk to you again soon. >> thanks a lot. thanks. still ahead, jeff bezos is unhappy with yet another government contract. we're going to explain. plus, is palantir paranoid more "techcheck" after this. i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world.

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watch tesla this morning down again today after that 4% drop on monday news of that government probe into the auto pilot system is the catalyst there though today bernstein goes the other way, tony saginaki takes it up to 300 he does maintain his underperform rating, notes the stock underperformed year to date they're hosting an event around the ai strategy, d., on thursday that's going to be your first trip below the 50 and 200 day for the first time since late july. >> yes, shares at 660. coming up, the latest on a massive hack at t-mobile and morgan stanley upgrades the stock this morning, taking shares up, we'll check on it right now. 6% we'll be right back. [grunts] ♪ ♪

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t-mobile confirming it suffered a massive data breach, one that potentially leaves millions of customers' personal information at risk. eamon javer has more on what we know at this moment. good morning >> what we know and what we don't know look what the we know right now, which is relatively limited. we do know that there is a hacker who has been active on the dark web based on our research who is going by the

handle subvirt who posted claims about stolen data related to t-mobile on a site named raidforums the first claim we see on the dark web was made on august 14th so we know at least that much. there is a hacker who is out there making claims about stolen t-mobile data. here is what t-mobile had to say about all this in their statement, where they did confirm there was a breach we have derrdetermined unauthor access to some t-mobile data occurred we have not determined if there is any personal customer data involved so t-mobile saying some unauthorized access, but they don't exactly know what was stolen here, if anything they say their investigation will take some time. what we know about this is that the hacker is out there negotiating prices to sell this

alleged data to any buyers who might be interested. what we don't know, carl, this is the key, is how much data was taken here and how much of it is t-mobile data and how much of it is real. we don't know that at this point. there is a hacker making claims and offering to sell this data back over to you. >> interesting we're getting used to this kind of episode now but sometimes the victim of the hack is able to come and tell consumers what has been exposed, other times we're left hanging a little longer. this is an example of that but in general, what determines whether or not a company can make a full disclosure or something more clouded like this >> well, sometimes it is tactical they want to make sure that they understand what they're dealing with and also in the negotiations with the hacker, they don't want to reveal too much about what they know about what's been stolen, so not to give away too much more to the hacker in some cases they have trouble determining what was ex-filtrated from their own

systems and that can be a complicated process because the data can leak out 100 different ways so the big technical challenge initially is just getting your arms around what exactly was stolen, and then there is the tactical challenge on top of that of deciding what you want to reveal in the midst of a negotiation or an effort to reconstitute some of the data. so both of those things could be going on here right now. t-mobile says they're investigating. we do know this hacker is out there trying to sell something on the dark web. question is if there we be any buyers and if there is anything real to sell. >> thank you for that. we know you'll keep us posted. still to come, michael bury of the big short make a big bet against arc. cathie woods' response is next what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster,

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that's cool, but ours save us serious clam-aroonies. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. ca michael bury thinks the ark innovation fund is is the latest poorly put togethergenica puzzle in a filing released minnesota burry disclosed' call against wood and another against wood and ticker arkk this summer, filing the short-ark etf. tracking the inverse performance of the ark innovation fund while barron's note that short interest on the etf is as a

record high. her pandemic performance was highly publicized thanks to high growth, high-momentum names. the etf has struggled to gain ground in 2021, still in the red since the start of the year, down about 7%. cathie wood or aunt cathie took to twitter to respond to the story writing in part, quote, i do not believe that he, michael burry understands the fundamentals that are creating explosive growth and investment opportunities in the innovation space. worth noting, carl, the filing also revealed that burry you said his short position in tesla with put options there worth about, sr. 730 million. >> we definitely pay attention to burry trades, dee speak of etfs with leslie picker is looking at tech stocks and fund managers including the drawdown in spacs. >> hey, carl

a lot of movement as far as tech goes, spacss go, lots of fund managering paring back a special purpose acquisition vehicle. more on that deal in a moment. he dissolved small stakes in several others he had recently acquired david i einhorn pard back exposure to spaks all of which were small diversified stakes as well kor vax had a sprinkle of spac soltd out oh alt mayor hudson executive acquisition corp. and vd acquisition corp. all of which merged with the targets during the question. trlg global boosting stakes in zoom, zoor dash wsh peloton and shop pie appear loosa led by david tepper selling down in a broad swath of

tech names alibaba amazon, micron and twitter, just to remind, these moves krp where the portfolio stood as of six weeks ago. they may have changed in the interim period guys >> i hope you can help our viewers understand the lawsuit against bill ackman's spac and the implications for how spacs may be regulated depending how that decision could go. >> this is a really interesting question, i think you're speaking to the heart of what the lawsuit is about now of course ackman spac, perching square, ton teen holding raised about $4 billion when it went public last year. there is a new lawsuit filed in the u.s. district court in the southern district of new york alleging it should be investigated as an investment company, not operating company the reason being and see perching square ton teen holding according to the lawsuit owns and invests in u.s. treasury and money market funds that own u.s.

treasurys. as a result it should be regulated as an investment company. that idea is something that pretty much every spac does, taking the money from investor raising in the ipo, hold it in trust, invest it in very safe liquid assets like u.s. treasurys waiting for the merger could be completed as they search for the merger target that's what people look at with regard to the lawsuit this morning and wondering, if they are successful, if any do get the court to agree to determine tontenee to be an investment company as opposed to a spac what does that mean for all spacs taking in cash and invest in investment securities does it throw the entire model to the wind? is that would certainly be a huge decision. i'm not so sure it will ultimately come down to that >> certainly getting a lot of eyeballs today, leslie that's for sure. thanks for the help on two fronts. if you missed part of the

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. now in semiretirement, jeff bezos spends his time parsing through government contracts t find out exactly where he has been wronged months after the jedi fight he and his company blue origin sue another federal agency, this time it's nasa, over the decision to award the building of the moonlander solely to elon musk's spacex. the contract worth just about $3 billion. not the size of a jedi, dee, but enough to get his attention. >> remember this, i'm looking at this meme. i haven't seen those cards in a while. one more thing before we go, that is perhaps you can call it paranoia a palintir, disclosing a purchase over $50 million in 10 oh ounce gold bars last quarter, adding, quote, such purchase will initially be kept in a secure third party facility located in the northeastern united states.

carl, jon is off this morning in protest over fortt knocks not be being considered i didn't write the joke. a software company investing in gold over bitcoin, moving to denver over silicon valley loving to be contrarian. >> they are thp words worst day for the nsa since july 2737 to the halfex inkts oh welcome to the "halftime report." front ant center this hour, is your money on the cusp a correction after another read on the american consumer badly missing expectations if the delta variant causing a slowdown, doug how long does it last joining me stephanie link, joe testify noor, jim lebenthal. look at where stocks are right now, stocks weaker throughout the entire day the dow down 337, nearly a 1% drop nads is off 1.25%. retail sales as we said, weak. jim