performance of these hotel operators, marriott, hyatt and hilton among others. back to you. >> seema mody, thank you for that well, the s&p is moving back into the green, right around the flatline that's going to do it for "squawk on the street. "techcheck" and cathie wood starts right now cathie wood. >> cathie wood. >> cathie wood. >> will join us on "techcheck." >> i've been waiting for this for my entire career ark stood for two things, democratization and transparency we're focused on innovation and very rapid growth companies. zoom, those who invest in technology are going to basically consolidate the industry our confidence in tesla, tesla, tesla, tesla has gone up for a number of reasons. elon musk's determination, creativity, ingenuity, roku, counterpart risk associated with deflation and i think bitcoin would be a hedge against that eventuality. teledoc, what you will not see

us do with the chinese stocks is pull out of those names that are more endemic to china itself shopify, coronaviruscrisis changed the world dramatically and permanently. consumers and businesses are not going back to the old world. i loved being a woman in this industry this is amazing. good thursday orning, welcome to "techcheck. i'm carl quintanilla with deirdre bosa big day ahead. cathie wood is with us at 11:30 a.m. eastern time. responding to the shorts that have been piling up at ark we'll get her take on tesla, robinhood, chinese stocks and more that's all coming up at the bottom of the hour then call it alex carp diem, palantir and why one analyst says you need to dump that stock today. the market prefers sweaters.

investors cutting hood after vlad warns of a trading slowdown, d. >> that's where we will start our feed this morning. robinhood shares getting crushed, down 8% in the first earnings results since going public revenue doubled but that was thanks to a massive surge in crypto crtrading. robinhood is warning of a coming slowdown, keeping investors away concerns over volatility and whether you can depend on that to be a tailwind quarter to quarter. still, there is some optimism. accounts worth 22.5 million, up 150% year over year. kate rooney has those results and hood's crypto influenced its outside doge influence what is your takeaway? >> the big takeaway is that robinhood was looking a lot like a cryptocurrency trading company versus a stock trading company in the second quarter.

i talked to cfo jason warnick after the numbers came out he said essentially robinhood is on the map now when it comes to crypto the numbers really say it all. it made up more than half of transactions-based revenue i'll read you some of these. it is really mind blowing when you think about it $233 million from crypto trades to put that in context, a year ago, that number was 5 million it is something like a 400 -- 4,000% rise year over year and it wasn't just existing customers. they say in the second quarter, more new customers did their first trade in crypto instead of stocks that indicates people are really going to robinhood for crypto and when it comes to existing customers, about 60% of those existing customers were trading crypto the big question for analysts and this morning one of the takeaways is a lot of it came from dogecoin. it made up roughly 62% of that transaction-based revenue from crypto the question going forward is it

sustainable, was it a one-time bump from dogecoin interests and can you sort of control those viral events, how do you forecast the company's revenue and results when a lot of this is based on what is the flavor of the month or the quarter when it comes to retail investor interest. >> kate, the other big piece of news you got out of the cfo was him telling you that payment for order flow is not a revenue source that would be necessarily all that difficult to replace. how is that possible when we know how much of revenue it makes up >> that's rite he said it was essentially easy to replace he said it is a small fraction of what they actually make if you look at the numbers, it is about 75% of robinhood's revenue from the transaction-based revenue, which is payment for order flow. they talked about some of the longer term ways to pivot and diversify, and that includes things like retirement accounts, but it really is still all about trading activities that say long-term play. he talked about international

expansion, which payment for order flow is outlawed in a lot of other countries he said it is possible framed it as sort of a small part of the revenue model. it is hard to sort of envision a near term scenario where payment for order flow is banned and robinhood has to pivot quickly he says he does not expect the s.e.c. to ban it because of what it does for consumers. there is more participation in the markets, free trading has been a good thing as he put it for the retail trading customer. but interesting he would say that it is replaceable. >> well, yeah, but also, you said, you started, kate, you said robinhood is looking a little bit more like a crypto trading platform, so more revenue coming from that side of things how does robinhood make money from crypto trading? it is similar to pfof, right >> it is, it is. they call it transaction rebates. so it is similar, they have marketmakers when it comes to crypto fixed percentage of the total trade, but it is extremely similar to how they make money

on the equity side and, yes, that's how they're able to offer trades, for free, they have a similar arrangement and it is in the s-1 what are the things that analysts are talking about this morning is the pressure that free trading on robinhood may have on companies like coin base we saw this play out in the brokerage industry robinhood put pressure on the rest of the industry to cut fees, people are wondering what that might mean for the margins when it comes to a company like coin base. >> talk a lot about inflationary fears, but financial services, it is not present for a long time, kate fascinating, great stuff, kate rooney on robinhood today. the other big earnings mover is nvidia, the chipmaker is higher after a beat on the top and bottom line. sales enprofits had the a record for the quarter, thanks to strong demand for graphics and gaming revenue up 80 plus revenue up 68 year on year amidst the rising demand for everything but its crypto chips. sales came in short of expectations one other headline from the call

was wong warning the chip shortage could last well into 2022 take the longer view, stocks up more than 1,000% in the last five year, market cap now half a trillion dollars a lot in there today, d., they did say that the arm approval is taking longer than they expected rosenblat goes 250 to 300 though as the name is maybe the most loved among the semis. >> and, carl, i heard you talking to jim earlier about the metaverse implications i love to count those mentions i believe eight or nine on the earnings call. and speaking of the metaverse, facebook making headlines after releasing its first ever widely viewed content report that gives details on the sources of popular content, 57% of news feed posts come from friends and followers and the top domains people see, youtube and amazon top the list there many critics called it an incomplete picture as it lacks detail on the content, that gets the most interaction, which is key, rather than views

the news comes alongside new virtual reality work space tools from facebook, which has been trying to pitch itself as a metaverse company. 20 mentions on that call these new tools would allow you to join meetings in a virtual space with your colleagues, wearing an oculus headset. today is the deadline for the ftc to file a complaint against facebook mark zuckerberg joined cbs this morning and had to say about covid misinformation on the platform. >> different countries i think are doing better and worse on getting their citizens vaccinated and the u.s. i think has a specific issue on this people use facebook and social media all across the world so if this were primarily a question about social media, then i think you would see that being the effect in all of these countries where people use it. but i think there is something unique in our ecosystem here, whether it is some of the political leaders, and -- or some of the media figures. >> so there you have it.

it is a line that we heard from them before, carl, when you think about all the things that mark zuckerberg wants to accomplish, going into the metaverse and how we talk about that now, trying to gain back some trust and we'll see how this all shapes up we talked to matthew ball about this a lot do you want facebook to be leading this charge? >> yeah, matthew, who, of course, runs a metaverse etf it is amazing how quickly this has gone from being a new term that was kind of mentioned, arcanely on an earnings call, to a live morning show speaking to a big part of the country and we're going to have to get used to the idea of the metaverse being talked about more and more ark, dominic chu looking at some of the performances of her ark funds, good morning, dom. >> deirdre, carl, this notion you have two big famed investors now duking it out with cathie wood on one side and michael bure of the big short fame and calling the mortgage mess back in the great financial crisis taking opposite sides of this particular position here, if you

look at the way the ark funds played out this year, there is a reason why there is negativity that flagship innovation fund is off 5.5% over the course of this year 15% gains for the nasdaq 100 trust and 18% gains for the spider s&p 500 it has been a huge move, especially this spring if you look on a more longer term basis, one year, that particular fund has actually been a massive outperformer at points over both of those markets. now they're all roughly in line with each other. at 30% gains for each one of these particular asset classes, and you can see there, that gap was massive earlier this year, around january, february it has come back to the rest of the market three stocks that make up a large part of this particular trade, the ones you want to focus on, tesla making up 10% to 11% of the overall portfolio then also what is happening here with teledoc and then roku as well each of these stocks, teledoc in particular, a big, big loser so far in a year to date basis.

roku the only gainer of them these three stocks, the entire portfolio. i would note when you have two big names, characters like this at play, it reminded me a little bit of carl icahn and bill ackman with herbal life. it will be great to see what plays out in the coming weeks and months about who is right on this is it michael bure, is it cathie wood i'm sure it is something we'll hear a lot more about. i can't wait to see the interview later on this hour. >> so, dom, you're saying michael bure should be calling in, in a few minutes from now? that would be something, wouldn't it? >> i would love to hear it i would love to hear it, deirdre. >> i'm sure many would thank you for that and we will be talking to cathie wood at the bottom of the hour probably not michael bure. unless he wants to call it and the rare cell call, palantir, that's next. "techcheck" is just getting started. it's another day. and anything could happen.

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is a two-year high on cisco on that print >> great interview this morning with chuck robins. meantime, it is time for the fourth installment of our reality check series, looking at the other side of the street or the rare sell calls. we'repalantir. our next guest sees several growth risks not reflected in the stock price. with us now, camille machurek joins us one risk you point out is delayed returns from spac and related investments, but they're not really doing this for a return on the investments, they're doing this to gain more commercial clients and reduce their dependence on government contracts, right >> that's right. and thanks for having me so palantir made over $250 million of strategic investment in the last quarter. our concern is that this is not a sustainable growth driver and not true organic growth. a few risks with this. first, many of these are early

stage companies, which may not deliver on their contractual obligations over the next three to ten years secondly, we don't have enough information around the ownership, risks of the companies, to understand what investors can receive. and lastly, if you exclude the strategic investments, palantir's total contract they have been awarded has been -- for the past three quarters in both commercial and government sector >> do you see the quality of their commercial customers isn't really good enough or enough to make up for that reliance on government contracts is that what you're saying >> i think they're very high quality commercial customers on the commercial side, their revenue has grown about 20%, maybe even slightly less over the past five years, so for them to accelerate to their targeted 30% growth rate is going to be difficult to do it at scale. they're making investments to

help drive, but it is too early to know if -- how the investments will play out and how the investments in -- will play out we'll know maybe more in a year or so. i don't believe the risks are reflected in stock where it is today. >> we'll be talking to cathie wood in a few moments and she's obviously been a big proponent of palantir, picked up more shares this week what would you ask her about her bullish bet on the company >> cathie wood is an incredible investor and portfolio manager i'm sure palantir makes sense for her time horizon and risk/reward. but i never met cathie and i would ask specifically what she sees as the biggest drivers to accelerate, total sale value, which will flow into revenue over time, the confidence in getting that 30% growth rate >> kamil, thank you for

presenting the other side of this for us. we'll talk to you again soon. >> great, thanks for having me when we come back, those scooters all over your sidewalk are finally going public via spac the ceo of bird is going to join us after the break and as you know by now, ark invest cathie wood is moments away as this big hour of "techcheck" comes back in three minutes.

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in just a few moments, the interview you all have been waiting for. cathie wood talking about china, the shorts, macro and, of course, all the components in her portfolio. that's on the other side of this break. don't go anywhere. jerry is here! j! mate, how are ya!? it's so good to see you.

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bird, the company known for its electric scooters, is launching in new york city and announcing an expansion to over 300 cities it is going public via spac. and q2 results, bird said it saw revenue increase of over 470%, showing how transportation is rapidly changing joining us now is bird founder and ceo travis vander zanden you're about to go public via spac public markets haven't been kind

to mobility, you got uber and lyft that have underperformed the broader market since they went public. still trading below their ipo prices do you think that markets, you must, will be warmer towards micromobility? >> yeah, look, i think micromobility is a fast growing category right now i think we're riding the macro trend, the electrification of transportation transportation is heading toward electric vehicles and bird is the leader in microelectric vehicles, targeting the 60% of all trips in the city that are five miles or less the category is growing incredibly fast. we just announced our q2 earnings and we had some pretty massive year over year growth. if you look at q2 over q2, 477% increase year over year. and that represents a 43% increase over the same period in 2019 so microelectric vehicles and micromobility categories are growing incredibly fast.

>> right so talk a little bit about the differences in the business model, ride sharing is capital light asset model. but you guys own and operate your fleets of scooters. how does that enable you to scale better or differently and what do you think the best comp is for scooter companies, if not ride sharing >> yeah, look, if you want to draw parallels with ride sharing, you know, i think that's interesting i was an executive at ride sharing and know those businesses well. i think, you know, yes you have to purchase a vehicle in electric vehicle in the case of bird, but i can buy an electric vehicle and deploy it into a market for around the same price as it costs to on board a driver into the ride sharing space. only difference is the bird vehicles last 24 months on average and so you're seeing a much bigger payback in lifetime on that initial investment to acquire in our case the vehicle as opposed to the driver, so what we're finding is that, you know, the microelectric vehicle powered marketplace is way more

capital efficient, it is a way better return on capital, and as we roll out new and improved vehicles every year, the economics of this business just keep getting better and better and better that's something i've always loved about this space and the micromobility category. >> travis, you know, maybe it is just because i live in manhattan, but i have to imagine you're on boarding people who are new to either ebikes or e-scooters, they have ridden two-wheel vehicles but they have been bicycles. i wonder where safety plays in on all this over the long-term >> if you run a transportation business, safety has to be the number one priority and we certainly invest heavily in that here at bird we are rolling out our electric scooters in new york as part of the pilot program in the bronx and i know, you know, there is a lot of safety efforts going on to educate riders across all cities in new york city in particular, we're limiting the speed of the vehicles for the first couple of rides down to ten miles per

hour and then after you get used to the vehicle, increase to 15 miles per hour but you mentioned the ebike, we did announce our new ebike today we're selling and making available for consumer products, and people can now purchase the ebike which is something we're very excited about we think the e-scooter is great for the one to two mile trips. people love riding the ebikes for the longer distance trips and -- >> i think we lost travis. but when it comes to ebikes, carl, certainly you start to see more of them on the roads these days that was travis vanderzander, co-founder and ceo of bird. >> our thanks to him and apologies for the audio visual interruption there meantime, keep your eye on apple. katy huberty of morgan stanley remains bullish. earlier in the week she called it underowned, talked about the iphone outperforming in china. jpmorgan reiterates its own overweight this morning, says greater upside is ahead thanks in part to 5g. they take their price target up

to 180 we get those calls live on cnbc.com/pro as "techcheck" returns in a moment. millions of vulnerable americans struggle to get reliable transportation to their medical appointments.

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- southern new hampshire university, it was just amazing experience. - [announcer] find your degree at snhu.edu. the ftc has now officially refiled that amended antitrust complaint against facebook eamon javers has it. hey, eamon. >> the ftc had filed against facebook suggesting that facebook had engaged in

anti-competitive conduct and the goal here was to get facebook to sell off whatsapp and instagram. a judge said their first complaint wasn't sufficient, asked them to file a second complaint. we're looking at the four-page document now filed by the ftc moments ago. interesting item here is that the ftc seems to be suggesting that they have some confidential information they have filed under seal in the court and they want to give facebook some time to review that information in order to decide whether or not to oppose it being released in public we're working our way through this document in real time here, carl, but the important sentence i've seen so far is the ftc saying the first amended complaint includes certain information related to this anti-competitive conduct that facebook and/or third parties dig snated as designated as conl in the investigation the ftc must afford the

providing partners to seek an appropriate protective or in camera order there is a temporary filing under seal of the unredacted first amendment complaint and pr provides an opportunity for the defendant to consider information disclosed. so we'll get to the bottom of what exactly this confidential information may be here, but this is the expected ftc filing in this ongoing battle against facebook and we're going to have to get to the bottom of exactly that they're laying out here in the new case, carl. >> fascinating we'll look for more from you later on today in the meantime, hedge funds jumping ship and investors including michael bure placing millions of put contracts against cathie wood's ark innovation etf the fund grew a whopping 129% in 2020, this year down 6%. she hit back and said bure doesn't understand the explosive growth in investing right now.

cathie wood joins us here on "techcheck" this morning always good to have you. thank you for the time >> thank you for inviting me, carl always happy to be here. >> so let's talk about the short community at large, what is your message to them right now? >> well, you know, when i see such negative sentiment out there, especially when it comes to valuation, and longer time horizons and investment time horizons, i actually feel a little more comfortable. i like bad news and maybe news that is not -- the discounting is worse now than the news actually will be i feel better in that kind of environment for our strategies i don't think we're in a bubble, which is what i think many bears think we are in a bubble, i remember the late '90s, you know, our strategy would have been cheered on, ra, ra, ra, go get them, right

you know and you remember the leapfrogging of analysts making estimates, one higher than the other, price targets one higher than the other we have nothing like that right now. you see a lot of ipos or spacs coming out and falling to earth. we couldn't be further away from a bubble and the reason for that is the innovation around which we have centered our research, the -- these five platforms, dna sequencing, robotics, energy storage, artificial intelligence and blockchain technology, are barely off the ground. the seeds for all of these platforms were planted in the 20 years that ended in the tech and telecom bust and ended in tears and there is a lot of muscle memory around that but that's not what's going on right now. the seeds planted back then are beginning to flourish now. and it is just beginning with five platforms involving 14

different technologies, all of which are about to experience s curves and feed one another's s curves i don't think the market is ready for this that's what i meant, we're -- we dedicated our research and investing to inknow vacation because we think we have never been at a more provocative time for innovation in history. >> right and i do want to get to how some of the forces are playing out on your macro thesis, which you talked about a lot in recent months, as far as the shorts go in terms of how they have their eyes set on ark specifically, is it just, do you think, is it general macro bearishness or something more to do with your ability to analyze all these companies that you're now in and stay on top of that game >> i actually think it is more of a macro call. when i read the bearish analysis, they seem to be centered on inflation and interest rates going higher,

which will kill valuations and if anything, as you mentioned, carl, we're focused on the deflationary forces that are building up in the economy i think that's going to be the shocker out there. that deflation is the greater risk now not inflation. and not all deflation is bad there is really good deflation associated with these technologically enabled platforms. they follow learning curves, which are characterized by declining costs and prices, and enables more and more sectors to have access to these powerful new technologies so that's good deflation the bad deflation is going to be associated with companies whose -- who paid too much attention to short-term oriented shareholders who wanted their profits now, wanted their

dividends now and did not want companies to sacrifice short-term profitability in order to capitalize on these massive trends that we see building they're going to be stuck with obsolete products, and yet in the meantime they have leveraged up their balance sheets to buy back sales, and satisfy short-term oriented shareholders how are they going to service that debt? they're go to have to cut prices of these products and services that are not going to be as popular in the future as they have been in the past. and then the third source of deflation, which is really starting to come through now, in a noticeable way, started in mid-may, when lumber prices broke. we're seeing commodity price deflation. it's -- we have gone from -- lumber prices have been cut to one-third, less than one-third of their keep.

1711 to 400 right now. you've got copper down roughly 15%, 15% to 20%. you now have oil down nearly 15% to 20% and i think the cream of the crop here and the reason this may be happening and may accelerate to the downside is the dollar is going up and that, of course, might be associated with what's going on in china >> kacathie, good morning, it i deirdre. you talked about commodity prices before. i wonder if you're willing to mention the companies or industries you're referring to, those that are perhaps sacrificing those long-term innovations that you're not a fan of. >> well, i think that if when we look at the s&p 500, for example, we think that because of technology changes, and importantly that a lot of industries are in harm's way energy certainly is.

because of the electric vehicles and the move towards autonomous electric and you can throw in autos and any -- and the auto supply chain. they're scrambling it try and get into this new world. it is going to be very difficult. even when you think of retail, many investors, i'm sure, think, okay, well, we have seen the destruction there. we think it is just begun in a way because online retail sales have only hit 20% of total sales here in the united states. when a trend moves from, you know, 10 through 20%, it is usually moving into overdrive. so we think a lot -- much higher percentage of sales will be online so even retail and any business that can be done online. financial services, i would say digital wallet, defy, big problem, big challenge for financial services

>> right, and cathie, you talked about the innovative way you guys at ark structure your research i wonder what does someone shorting ark miss about your approach, the advantages or perhaps the differences of being an etf versus say a hedge fund >> i don't think the wrapper matters that much. i think our research is the differentiator and the way we set up our research department is a differentiator unlike traditional asset management firms, our analysts do not follow sectors. they follow technologies 14 different technologies that i mentioned involved in these five major innovation platforms so they are technology specialists, and they are generalists it comes to sectors. we have a very good idea based on our analysis of these

technologies, and wright's law, we centered our research around it it is a relative of moore's law. but moore's law is a function of time, wright's law is a function of units wright's law has worked better in the semiconductor industry recently than moore's law has. so we think that's a very important gauge of how quickly these costs are going to decline over time, and we also pay a lot of attention to price elasticity of demand. at what point in this cost or price decline trajectory will new sectors open up to these new technologies and so i think what we are able to see is our exponential growth trends that are not priced into the market i'll give you the easiest example. last year, ev sales were 2.2 million units around the world we think based on the declining costs of battery packed systems

that electric vehicle prices will drop below gas powered prices in a year or so they're already lower from a total cost of ownership point of view so we think that 2.2 million will be 40 million in five years. in 2025. not even five years. no one is forecasting that so the starting point from the top down, using wright's law, getting a sense of how quickly the costs associated with these technologies are falling, and how quickly, therefore, they will be taken up by more and more sectors and industries over time >> cathie, two things on china, one is i'm curious why you're drawing such a direct line to dollar strength in china, the other would be you had said recently you thought china names did deserve a reset. but after all the new regs and president xi talking about common prosperity, are some names in china now truly

uninvestable >> well, we have never said that chinese names are uninvestable what we have said is because of the social engineering it seems or reengineering taking place in china that the valuations associated with these companies are damaged and we don't think they're going to go up anytime soon linking to the dollar to china what we're saying is there has been a capital reallocation away from china, you might say bitcoin is a flight to safety. both have done well recently i would link that to china in some measure in fact, you know, there is an article today on bloomberg about the inability of the chinese population to get as they are leaving the country to get their retirement funds out

that's pretty daunting, i think, for those of us in the asset management world to consider as we're trying to figure out is china investable the one thing i will say is china wants to win the only way they're going to win is if they embrace innovation as aggressively or more aggressively than any other country. and they're trying to do that, but i fear for them, that becoming more insular is going to harm their speed in terms of innovation so, you know, we're weighing this back and forth, and i would say nationalizing an industry like the online education industry is -- that's going to sear our memories for a long time that could happen to any industry >> right i wonder what do you say to those who wonder why if there are these fraying elements of

capital, in and out of china, why some of our own companies for whom china is a temple, i'm thinking of apple and nike as a couple of examples, why they don't seem to beflecting tha kind of fear. >> we don't know what the talk in the board rooms is. and we also don't know what the dialogue between those companies and the government is. i know we can tell just by looking at what tesla is doing, in china, that it is listening very closely to what the government is saying, safety is paramount and it is taking more precautions i think than might otherwise have been the case and think the other side of this is china wants to manufacture very high end goods. it does not want to be considered the commoditizer of the world. and so i know that tesla, apple,

nike, they're all exporting from china, which says something about china's manufacturing prowess, and if you are listening to president xi jinping these days, he's saying we need to accelerate our movement up the stack in terms of quality and design when it comes to manufacturing so i think they're serving the -- the chinese government's purpose in some way. and the labor costs still are much lower in china. so serving those companies as well >> we know that they're trying to move up, especially when it comes to the design and manufacturing of semis cathie, i want to ask you about robinhood. we got earnings last night and the cfo was asked about raising capital on theback of this retail interest and he said they don't have any plans to do so. but when i think about that, i

think about tesla, how it used its momentum to raise money, grow its business in the funda fundamentals would you encourage robinhood or other names you hold to raise money on the back of retail interests, especially companies that are looking to diversify their revenue? >> well, in terms of our companies, we are very involved in the innovation space. we are not afraid as an investor, we're not afraid of dilution tesla, high fixed cost base. robinhood, very different, very low fixed cost base. so they're a little bit night and day. we were -- we wanted tesla to -- i'm not going to say to dilute us, but we wanted them it scale as quickly as possible we think if we're right on autonomous, that they -- that tesla could get the lion's share of that market, certainly in the united states. i think robinhood is a very

different -- they're moving very quickly. i don't think they need to raise funds. maybe they'll make an acquisition to diversify internationally, which they seem to suggest is their strategy that -- by that, i mean their global expansion i don't know if they'll raise, if they were making a sensible acquisition, we wouldn't object to it at all >> okay, also want to know how you're thinking about the crypto space these days we have seen sort of this explosion of stable coins, regulators are looking at it we have seen the popularity of stablecoins like tether and usdc on the rise that are not in fact backed one to one to the u.s. dollar. does their rising function and utility, does it concern you at all as well as their lack of transparency >> well, i think that -- i think there is so much more transparency in the crypto asset world than there is in the traditional financial services

world. that is where i'll start but i think that the movement towards defy, which is really taking middle men out of the financial services sector, taking the toll collectors out, cutting costs for traditional financial services companies, and creating many opportunities for new green field opportunities for other companies, i think it is a -- this whole space is, you is, y the vanguard of innovation the likes of which we have not seen before. the internet gives us just a clue >> one thing people wonder and ark, you have an interesting way of hiring analysts especially junior analysts big banks are throwing more money at them. but you hire from nontraditional tracks some people wonder if they're well enough speteeped in

traditional ways of valuing companies. another thing we hear is how many funds are too many and at what point do people start to worry about ark spreading itself too thin >> okay. well, i consider our research and our analysts secret weapons. i say secret because so much of what i read out there has no appreciation for how important it is when you're investing in innovation to hire individuals with domain expertise and 1 foot in the new world coming out of college, many of our new analysts steeped in genomics research our latest hire just finished a ph.d. program in genomics aroun agriculture. having that expertise is much more important than having an

mba. we seek the domain expertise with this thought in mind. this harkens back to the sanford c. bernstein days where they would say it is much easier to hire a rocket scientist and to teach that rocket scientist how to read financials and understand valuation in the equity market than it is to hire an mba and have, and train that mba the same way our ph.d. has been trained and it's not just coming out of school it's actually industry so i think we actually have a big competitive advantage relative to our peer because of our analysts and one other thing. because of our open research ecosystem, we are pushing our research out we give it away because we want to engage with and be a part of the communities who are innovating they love our analysis

sizing their markets and understanding the competitive dynamics we love their analysis understanding how these different technologies are evolving and who the winners are going to be. >> are any of them looking at the gig economy because for a long time, companies in this space or the shared economy space like uber, lyft, air bnb, were considered disrupters some say they're involved in autonomous technology and robotics >> so we call ourselves the first sharing economy company in the asset management space when it comes to research again, we're sharing if you don't give, you don't get in the sharing economy there's a little jargon there. no, we haven't invested in this space yet. it doesn't mean we won't i think, you know, the opportunities in our portfolio

are there because we're, we understand the actual technologies and how they are going to decline in cost what their learning curves are all about. and we feel many of them are more in their infancy than some of the companies you mentioned like airbnb. >> i'm sure it won't surprise you to hear everyone's listening to everything you're saying very closely. really good to have you. we always love getting an insight into how you're thinking about things thank you so much for the time >> thank you, carl and diedra. >> if you missed part of that cathie wood interview, catch it on our podcast follow, scrubscribe, listen tech check is back after one last break 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,

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i don't think the market's ready for this that's what i meant. we've dedicated our research and investing to innovation because we think we've never been at a more provocative time for innovation in history >> cathie wood with us just moments ago. the final performance has been a huge focus with the new short positions against it leslie picker here to help us break down what we just heard, who covers the short sellers

closely. one of the most interesting things she said, i thought, was that she welcomes this sort of blowback because if everyone was jumping on this band wagon, that might be dangerous like we saw in the dot com bubble >> that's kind of the take of a contrarian great interview, guys. she said she doesn't believe we're in a bubble. she said she was working in this industry during the dot com bubble and if that were the case, people would love ark because that's where they operate. she said they've never seen, we've never been in a more provocative time for innovation in history and great question about whether or not you know, the short sellers were targeting here specifically or if this was just kind of a macro call that a lot of this bearishness is stemming from and she answered that it's much more of a macro call unsurprisingly, she said it seems to be centered around inflation, interest rates going

higher n nonetheless, quite a bit of scrutiny over her strategy over the last few months. especially as it pertains to the recent performance >> she moved robinhood a bit on her comments and everything she says about individual names gets a lot of attention, but what's probably not much appreciated is her call about materials and commodities, which as we now know, seems to be playing out right in her favor at least in recent weeks >> that was really interesting her comment, especially as she talks about the costs going down on some of this innovation she's seeing really, really interesting obviously that's important as these companies try to achieve some sort of large scale they're investors for extremely long periods of time when inflation goes higher, when rates go higher, that tends to harm companies like hers because it increases the cost of capital. so if she sees the cost going

down being a deflation factor, that's clearly part of her bullishness. >> i think the judge is going to work on some of what we heard from her in the last hour as we get to the half. we'll keep our eye on facebook and the ftc refile d, we'll see you tomorrow. let's get to the half. >> oh, yes, we are, carl welcome to the halftime report front and center, the rally's red flag with stocks not far from recent highs. are the risks to your money mounting or overblown? joining me for the hour, liz young, josh weiss. they're searching for some direction today. we have the s&p and the nasdaq positive at this moment. russell and the dow are negative though the dow could go positive once again in just a few moments. it looks so let's kick this around, liz young. got a lot of negative st