will be latino home depot says we'll be there for you. morgan >> contessa brewer, thank you. some really interesting insights there. we appreciate it just getting another check on the markets as i mentioned, we are at session lows right now all of the major averages sharply lower for the month as well that's going to do it. "techcheck" starts now ♪ good thursday morning. welcome to "techcheck. i'm carl quintanilla with julia boorstin tech continues to see a rough september. several cloud stocks are leading this morning's rebound it is no play day for facebook on capitol hill today. live updates as an executive testifies on the alleged

toxicity of instagram. and later, you know john's not a surface-level kind of guy. we've we're live at microsoft headquarters talking about hardware and the supply chain. our feed, though, is going to begin with facebook this morning, sharing its own heavily annotated version of two internal research reports that try to downplay any mental harm that apps like instagram have had on teens and children. the journal has been publishing a series of articles that allege facebook knew of the negative impact on young people and especially young girls and unnerving language, including the phrase "leveraging play dates," which caused a bit of twitter beef last night between "the new york times" and the policy director. when facebook dropped its kids project. today the senate gets facebook's global head of safety and testimony happening right now on the hill and then there is this >> she left facebook concerned with copies of thousands of

pages of research. what don't they want you to know the facebook twils blower, only on "60 minutes" sunday >> julia, one of the questions will instagram's alleged toxicity be the straw that finally breaks this camel's back shares are down more than 10% this month >> well, i think the real question is will this regulatory scrutiny of facebook's knowledge of that toxicity push facebook to pull back the way it targets teens and keeps teens engaged on instagram, and can that damage instagram's ability to grow? we've seen that facebook has lost ground with younger users, and instagram is really the place where facebook still has that stronghold on kids. but has a lot of competition instagram and facebook, the percentage of their user base that is those teens of both boys

and girls is not as high as that of youtube and others. it's a question of how these younger users and grows and is facebook inevitably going to lose some of them as it pulls back the strength of its engagement under the scrutiny, john >> there is a question, i think, of external impacts, what do people do to facebook, what governments do to facebook, what do regulators do to facebook, if anything significant there really hasn't been much impact from fines. and then there is the question of what does facebook do to itself does it feel so constrained by criticism that it changes strategy does that lead to a difference in trajectory for the stock? because if we're talking about external impact, those seem to take so long that investors have been wise up to this point, not to react too quickly to even these series allegations and

issues of the company. >> yeah, the company has become adept, julia, some argue, as offering sort of innocuous lines of defense, waiting for either for us to death forget or for the market to find other reasons to buy we're still a few weeks out from the quarter, but i'm sure investors are going to start to ask questions about whether or not these kind of things depause on instagram for example, has an impact on guidance and their engagement guidance for the coming quarters >> look, karl, there is so many issues including that issue about apple making app targeting more challenge can go. i think when you talk about teens, this is a longer-term issue. you got to stay cool with the kids, right? that's essential to the long term success of a social platform, and i think that's going to be something we're going to watch i always closely watch those

monthly active users in north america cause there is a sense that there is a saturation here, especially as the energy has shifted with younger people over to tiktok and snap so i think going forward, maybe revenue is going to be more impacted by the apple issue, but this is an issue not just for the next quarter this is the issue for the next three years, five years. >> yeah, i don't know if you're a marketer, if you're a company that's looking to reach digital audiences, how many choices do you have like if you're going to back off of facebook, are you going to put it to youtube or do billboards it's not exactly the same, and there are other smaller properties certainly we've seen snap do well with snap chat. there are others out there, but just in terms of raw volume at a time when we've been talking so much about how much of the economy, half-hour of commerce is shifting online you know, i don't know that absent a

bombshell even bigger than this one, the revenue impact of facebook is going to be any bigger than that summer band what summer was that 2020 that everybody was supposed to be boycotting facebook? how did that turn out? >> it was a while ago. but jon, if facebook has to make changes to its algorithms to be less sticky, does facebook have a problem with it? isn't able to have the engagement with the younger kids to show them the ads so yes, there is a digital du opoly. amazon is on the rise. remember, they're on twitch, which is super engaging with younger viewers. i'm not saying advertisers are going to boycott we've reached out to dozens of advertisers and asked them and none of them said yes. so i think it's more about are you going to keep the users engaged cause that ultimately drives that revenue. >> fascinating question. as we mentioned, facebook's down more than 10% this month

goldman sachs does reiterate as a buy. eric, i don't know if you've heard our conversation, but to julia's point, you have competition. you have algoes under pressure perhaps to be less sticky. you have advertisers looking at negative social externalalities. are these beginning to add up in ways that would weigh on the stock? >> thanks for having me, kar and there is a lot in there, so let me try to unpack a few of those things i do agree that i think there are elements of growth in younger users where there is a more diversed engagement in apps and you have to capture as much as you possibly can and obviously, advertising changes more broadly we believe the way the company articulated forward guidance back in july, articulated and captured a lot of that forward

head wind, especially from some of the apple changes that we talk about so we don't see a lot of downside to financial forecast we're always going to remain vigilant in terms of forward growth, especially from a younger demographic. though we have pointed out in similar research that the older demographic is one of the fastest growing demographic on the facebook app and ingram and frankly advertising dollars align more with 40, 50, plus year olds, than they do with 16-year-olds but i do want to make the point that i think some of the forward execution that's needed by facebook into initiatives like shopping, into initiatives like monetizing reels and video the execution goes up, as needed, to sustaining growth, versus let's call it the core blue news feed app that has fueled a lot of the growth over the last three to five years >> that's interesting. we talked about this a bit earlier in the week with

investors. one view was that the metaverse dynamic thesis is a little bit more immediate yem-term and that even things like ai might be on a burner that is in front of that do you agree >> yeah, i think the metaverse context i would put in the medium to long term camp we reframed the concept we're going to web, the metaverse augmented reality and ai machine learning these are all elements that i think are going to play out over a longer duration in the next 12 to 24 months the blurring of the lines between advertising, which you are going to see across the sector amazon, google and what they announced yesterday and more of the blurring of the lines between what's traditionally been commerce and advertising.

we think that's more short to medium term and watching execution and watching how dollars follow product innovation is probably going to lead to more money-making ideas in the sector over the shorter duration >> yeah. eric, stick around i want to throw here to a sound bite from richard blumenthal, where he compared facebook to big tobacco. >> facebook has taken big tobacco's playbook it has hidden its own research on addiction and the toxic effect of its products it has attempted to deceive the public and us in congress about what it knows, and it has weaponized childhood vulnerabilities against children themselves >> this isn't the first time this comparison has been made. of course, we heard mark years ago say that facebook and social

media is like cigarettes at what point does this start to become a fundamental distraction for facebook and start to impact either operations or advertising, to my point earlier that there hasn't been a boycott on this issue yet? >> a couple things there we have not made the analogy between social media and big tobacco, so i'll leave that to the senator's comments i think if you take a step back, look, advertisers want to rely on dollars with platforms they feel are safe and that amplify their brands in a good light and with a good context. so the extent to which some of these themes proliferate over the years, you have seen boycotts before across other platforms as well, not just on facebook to the earlier point you made, julia, we've been out doing our own digital advertising checks into september and early october, and we're not picking up anything that would say a boycott is imminent based on some of the things that "the wall street journal" have said, but we can't ignore that

that could pop up back on the radar screen, and we think investors are focused on it. but as right right now, we don't see anything like that from the conversations we've had. >> so eric, what's the headline that would worry you at this point? whether it's regulatory, legislative, something else? >> you know, regulatory and legislative, i think the headlines can cause a lot of volatility in the stocks and we want to be cognizant that this sector's general regulatory scrutiny and uncertainty is going to remain at elevated levels that's not going away as a risk factor we made that point recently in our initiation however, regulatory outcomes play out over long durations and this sector, facebook, alphabet and amazon, have seen a lot of multiple compressions, when measured against growth over the last three, four years, as we've been writing and talk a lot

about those issues so facebook is a relatively cheap stock for something that's compounding revenue growth at 20% plus a year. there are a lot of stocks that don't grow anywhere near that level especially when adjusted for cash that facebook does. so investors somewhat are ahead of what i think the potential outcomes could be. i think the other point i would make is the outcomes typically play out over three to five-year arcs, not three to 12-month arcs but i think what always worries me at the end of the day is revenue trajectory, relevance to advertisers, relevance to users, and we track that quarter in and quarter out. we don't see concerns for that right now, but we have to stay vigilant to that >> yes it's going to be a big day when they post for q3 eric, great to have you. we love having your help it's good to see you >> thanks.

fully out of tesla it was saying he never would be we're talking to the pied piper of stocks after the break. demoing its surface lineup no one else is there but us. eche" bk two minutes. 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 that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. 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, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change. 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 that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

>> some cautious hesitant comments there from some of the street's biggest investors at cnbc's delivering alpha conference this year with high-tech valuations mentioned several times yesterday. mike sant li is with us breaking down some of those themes. mike >> yeah, jon, maybe what you might expect to hear, but over the last four weeks have reset

lower, and it's been a little bit tougher i think with a less clean bullish story behind a lot of those themes, whether it was growing 10% or it was you know, we obviously have these huge secular winners in tech at a time of low and negative real interest rates you can almost pay up more than ever before for the cash flow streams of those companies. i think it makes sense i also come away from a set of comments saying it's a net positive because it shows you there is not really a lot of exes optimism out there in the near-term. and of course, this is a group alfass is risk-adjusted returns so you have to on some level convey that you are trying to look around the corner to the potential pit falls, as well as maybe some of the return opportunities. so on a market-wide sentiment basis, not the worst thing in the world to have people maybe a

little more cautious >> thanks so much, mike. now one of the main headliners out of delivering alpha was a sit-down he is out of china he's quote, pretty confident that bitcoin has effectively replaced gold, and he's also completely reversed on one of his famous bull calls. take a listen. >> you saw the suesable stock position in tesla? >> no. >> you sold it >> yeah. over the last few years, really in the last year or so particularly, the prices allowed me to again. >> surprise to hear you say that after what you just said about the company. >> i don't have an infinite pool of capital i don't raise funds. i don't go to other people and the money has to come from some place. >> remember he told wapner back in january that he thought the

electric car maker's stock could double or triple again so much for that joining us now is new yorker contributor and pulitzer prize winning professor and his profile on the prolific investor went viral earlier this year thank you for joining us >> thank you for having me >> what do you think of the dramatic reversal on tesla >> saying that tesla is the best investment is a great thing to say to keep prices high while you're selling off all of your shares and the thing you have to understand is he's a captivating story teller, right? that's why he's on tv and put in newspaper and marine articles. but most of what he says is a story that is designed to help him look good or to help him make money it's not necessarily a story that is designed to reflect the fundamentals in the economy or to help you, the investor, listening to the story make a decision on what to do

>> that's a pretty harsh criticism, but to be fair, it is worth noting that his stocks have not done particularly well. at what point does that catch up with him, or do you think the story-telling ability is going to trump everything else >> i think the people have a relatively short memory in the short term, right? and so the fact that, for instance, chamath you know, when he brought virgin galactic public and he said it was a fantastic development and then shortly thereafter dumped his entire personal stake for about $300 million, that was probably a warning sign that this is someone who isn't discloseive about his feelings or what he thinks he's going to do in the future yet, when it came to tesla, we kind of forgot that and i'm not saying this is a bad thing people act in their own self-interest and try and maximize their own holdings. they try and maximize their own opportunities. and so i'm not saying that chamath is doing anything wrong. the fact that he is so

entertaining, he's so much fun to watch and says these crazy things and the stories make internal sense that is not necessarily a serious indicator of how the world is working your last guest from goldman sachs was interesting and not entertaining he had a lot of caveats and made a lot of claims of i'm not certain this is true if you're in a room and there is a really good story teller telling you what you should do with your money and someone else is telling you all the down sides, go listen to the boring guy to tell you how to invest your money, cause he's probably going to make you more money in the long run a final point, if there is a final point to be put. what's the difference between chamath and warren buffet? >> i mean, i don't know the difference between them, except that warren buffet has many more years behind him i think that chamath is someone who is in the business of

creating his legacy, and he's trying to be what he is, which is someone who is a media personality and knows how to use that media personality really, really well to promote stocks that he's invested in, to keep stocks high that he already owns, particularly right before he's about to sell them off. but that's fine. when i wrote this piece for the "new yorker," one of the things i pointed out is new things are created by the story tellers it was because of chamath and a handful of other story tellers who are talking a little bit beyond the facts, who made everyone else believe that sparks is something that ought to exist and something they should invest in now, a lot of people are going to lose a lot of money in sparks, right? it's unclear that it's a universally good thing for capitalism but it is a new asset class, and

over time these asset classes become normal and have rules applied to them, which is what's happening in d.c. right now, and that's a good thing. it just doesn't mean that we need to celebrate the story tellers and assume every story they're telling us is not only true but the story they've been telling for the last year because these stories seem to change very rapidly, and without much recognition that there has been an adjustment made. >> that's interesting. people have gone back and looked at the year to date and sort of the spac declined and how the peak coincided with two things one was the bloomberg piece and want you to know he's the next warren buffet and his own tweet, which basically said i'm about to really mess some stuff up, just fyi i wonder if you think there is a correlation between chamath's profile and backed valuations? >> of course of course. we are living through this amazing period where like literally all you need is what

20 or 25 people on reddit to create a bubble in a stock and everyone else piles on board i don't think anyone who thinks that what is happening in the market right now is rational, and so yes, if chamath can move the farct by tweeting a curseword without even saying what he's going to do that gets attention, then that would indicate that things aren't working based purely on economic fundamentals but again, this is part of how economics works, right this is part of how capitalism works, and it's going to crash everybody agrees it's going to crash. spac's already crashing. the question is do people pay attention to the fundamentals and make a wise choice, or do they get so entranced by the story tellers that they miss the real knowledge when it comes along? most of your audience, my guess is, is actually getting the real knowledge because they tune in to listen to what goldman sachs

says, rather than going on twitter and just saying oh, my gosh, i can't wait to see what chamath says next and making my decisions based on that. >> charles, appreciate it very much thank you. >> thank you >> charles' latest book "the power of habit" is out now and to watch the full chamath interview, go to deliveringalpha.com for details. jon? >> right now, karl, i am here at microsoft headquarters to take a closer look at the new surface lineup and do some windows shopping, windows 11, talking to a tech after the break. eche" lle ghe.er "thcckwi brit back

we see smarter software delivering cleaner power. emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize and improve the electric grid. emerson. consider it solved.

>> welcome back to "techcheck. we are resetting here at the bottom of the hour i'm carl quintanilla with julia boorstin and jon fortt markets are mixed. tech helping lead the charge there as growth does outperform

value for a change on this final day of the quarter let's get an update first, though, with rahel solomon >> shares of bed, bath and beyond down more than 20% and on track for their lowest close in a year second quarter profits badly missed estimates and the company's ceoing a they didn't move fast enough to maintain margins and lowering guidance for the rest of the year car max sinking 11%. investors focusing on weak earnings as well as the number of used cars sold. shares are still up more than 35% this year. jobless claims rising. economists blame a number of factors, including western wildfires, and higher levels of covid infections and merck announcing a $11.5

billion to buy accelron, shares roughly flat today you are now up to date jon, i'll send it back to you. >> raheld, thank you microsoft making a number of hardware announcements, as we are on the door of q 4 right now, gearing up to launch windows 11 on tuesday and announcing last week the biggest update to the surface portfolio i've seen, five new devices. i'm here now with corporate v. p. search and devices in redmond. okay so there is a lot to talk about, but everything in here has got chips in it. the supply chain has been a mess how have you planned for that in a way that you are actually going to be able to deliver this stuff? >> i'm excited to be with you on campus a couple days away from what i think is going to be the biggest moment microsoft will have this

fiscal year with windows 11 and it will be marked by three things more personal experience for computing, more choices for apps and devices and creators and developers to your point, demand is at an all-time high for pcs and i'd say it's probably the largest mobilization across component makers, device makers, chip makers to try and get those pcs on shelves for the holiday the demand is huge and we ship 30 million pcs a year, so it's going to be a challenge. >> so that need to cover costs maybe not as much as an issue for you? >> well, it's definitely a challenge broadly, but we will do well because we do well in the high end, privately with the surface. economically it's certainly a better business opportunity. but we love to fill the demand for all the customers who want the devices and we're going to do a lot

with windows we have a billion people who use it regularly and we're going to make sure that we upgrade those devices. >> let's talk strategy, as you grab the studio over here. i was really impressed with the studio desktop, a laptop as well. it moves i had transformers as a kid. i love that stuff. initially was the competing with the oems what microsoft said is what we're really trying to do is raise the bar and get us out of this netbook malaise how have you done? >> we feel we've done great. we look at success with surface across three dimensions. we want to inspire the ecosystem. we want to be able to build higher class, higher quality machines right now we have the highest rated laptop of any device, higher than mac books. we pioneer, categories, a dual screen mobile phone fitness 5g

product that's out there more pixels than an ipad 11. and we think surface is a business in its own right and we've had great success. it's been growing every year, double digit growth. when you look at pc sharing the premium segment, we've done well, and we think surface has played a role, along with our oem partners >> duo 1, i was wondering if it was going to launch and all the questions about what the consumer was going to do but you have got three cameras in it now. what's the feedback you're getting and what is success here because this isn't a mainstream competitor to samsung or apple, right? >> that's right. it's designed for people who love the surface product line and who use android a lot. but it's been a sleeper in the preorders. already we're seeing huge demand for it because we fixed the top things that people wanted. they wanted 5 g and a better

camera and more screen to be able to dual task. it's the only device that you can launch two apps and once and take a picture, see the picture, read your e-mail while you're on the conference call. really powerful. it's small in building, but we're excited beside that one. >> i know you guys are probably hoping that this shift during the pandemic is one shift is durable, which is that no more one pc for the whole house, right? everybody's got to have one, right on down to the elementary school kids. what have you learned about the components and features that people now demand out of productivity devices that are going to drive how you design them into the future >> yeah, a great question and that's a big part of the designing windows 11 so we've learned over the last 18 months a couple of things we're going to work hybrid probably for a longer time to come kids are going to learn at school and at home so videoconferencing, text chatting we have one-button click, you can get a videoconference so

that's new we have a new news productivity feed that keeps you informed throughout the day and we're doing a lot to open up the store to get more apps and one of the amazing things is you can now run adroid apps soon on it and do other things that you do on life on the pc that you might be using for work, home, or education >> quickly x box short supply for a long time are people going to be able to get one this holiday season? >> it will be tough. x boxes. if you want one, i'd say honestly get out there and get one early. >> all right, thanks for having "techcheck" here guys, back to you. >> in case you forgot, sales forces was the index's top component. stocks up doubling digits in the last three months, as people start to think about the margin story being more secular

and the international trade commission ruling that its heated tobacco device infringes on existing patents. that stock has taken a dive down nearly 5%. we'll get more "techcheck" after this break

the internet wasn't built to be a place of walls. but then the walls went up and choice became limited. until now. now we're in a new digital landscape of emerging channels, data-driven campaigns and measurable outcomes. welcome to now - the new open web. powered by people-based software from viant - a new standard in media. the upgrade marketers deserve. viant. built for now. ♪♪

treasury secretary yellen testifying before services today. hi, steve. >> just realistic, was just asked a question of could the feds step in and help in the event of a default, and he said the federal reserve cannot shield the american public on the second day of testimony in congress, he told the house financial services committee that he does not anticipate having a conflict between maximum employment and high inflation because he thinks inflation is just going to come down next year >> right now we're far away from, we think, away from full employment, so that gives us incentives to keep accommodateive policies strong, in place inflation is well above target, and you know, we have an expectation that that high inflation will abate because we

think the factors that are causing it are temporary and tied to the pandemic and the reopening of the economy and what we say is we have to balance the two. >> powell also was asked about the recent resignation of robert kaplan, and he pledged to use the openings to try and increase diversity among the ranks of fed presidents >> i can absolutely guarantee you that we will work hard in both of those processes to find and give a fair shot to diverse candidates for those two jobs, as we do, and it will be a big focus of both of those processes. >> powell was not asked specifically about the conflict of interest controversy itself at the fed that led to those resignations and so far he's not faced much of any of the high-level or strong criticism on the level of senator elizabeth warren's comment in the senate, where she called powell quote, a dangerous man to head the fed

relatively quiet, karl, compared to that. >> although, steve, that discussion from house republicans about rental assistance i wonder how much do you think she's taking on fiscal issues today. >> taking a bit of it. just by the way, said that she thinks that they should do away with the whole debt ceiling drama and not have that debt limit at all she's taking some but she's paring back and not a lot of blows landed the parties aren't where they are on the fiscal issues and we'll see how it all comes out at the end of this week, carl. >> facebook's on the hill today to defend how its platforms impacts teens and a strategy on target the latest on that story plus facebook's head of finance. that's next.

your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire it's a thirteen-hour flight, that's not a weekend trip. matching your job description. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪

>> a gut check on snowflake. btig takes it to target thanks to a devote, rapidly growing data analytics market. important to keep in mind, it's still more than 30% off its highs of the yr.ea we're back p in two minutes. don't go away.

in business, setbacks change everything. so get comcast business internet and add securityedge. it helps keep your network safe by scanning for threats every 10 minutes. and unlike some cybersecurity options, this helps protect every connected device. yours, your employees' and even your customers'. so you can stay ahead. get started with a great offer and ask how you can add comcast business securityedge. plus for a limited time, ask how to get a $500 prepaid card when you upgrade. call today.

reports, all the findings? will you commit to full disclosure >> well, i know that -- senator, thank you. i know that we have released aid number of the reports, and we are looking to find ways to release more of this research. i want to be clear that this research is not a bombshell. it's not causal research it's, in fact, just -- >> i beg to differ with you. this research is a bombshell it is powerful, gripping,

riveting this hearing has been under way for the past hour or so. facebook senator blackburn pushing her on whether the company is targeting kids age 8 to 12, which would be in violation of the children's online safety act. davis responded no, and then in response to questions about what facebook did in response to all of that data in the "wall street journal" expose, davis saying that it's research did field product changes, including how to report content around eating disorders. now, there have been a lot of questions about facebook's interest with instagram, with kids davis playing defense, saying they are not currently targeting the kids market, but senator klobuchar asked davis how they estimate the lifetime value of a user, a facebook user who starts using facebook products before the age of 13. davis would not answer that

question and then just moments ago, senator marquis saying that pausing ingram for kids is insufficient, asking davis to commit to not ever launching instagram for kids no commitment in her but throughout this there have been a number of comparisons between facebook and tobacco davis saying repeatedly that facebook's products add value, connection with friends and family and a frequent refrain is this is all something that we'll talk to our experts about. today's hearing comes after earlier this week at the code conference i sat down with facebook's head of financial, david marcus we spoke about how the controversy surrounding facebook and its impact on teens is impacting his initiatives. we also talked about stable coin, regulation and much more take a listen. >> i have to ask you kr this broader criticism of facebook in general. we're hearing a lot about it on

stage here at co, does all of that impact your ability to innovate in the fintech space? >> it definitely does, but i still believe that when we have an opportunity to change the game for so many people who have been left behind by the current system, 1.7 billion people who are currently unbanked, over a billion people underserved by financial services when we have that opportunity to actually build a service, in this case, novi that can change the game for people where they can have stable, digital version of the dollar that they can send around for free around the world, then we should take that opportunity and fight for our ability to actually serve these people better and that's what i'm doing. >> so that's what you're doing, but when you mention stable coin we have initiatives like tether that have moved forward and even though you're among the first to get out there and push for a stable coin, they have not advanced as far as many had expected are you disappointed by how that's all gone?

>> ooimi'm not disappointed we need to make the case for what is actually a good, stable coin i think that some of them that have been out there like the one you just named didn't have appropriate reserves to protect consumers and we believe that the right design involves a fully backed reserve with very high quality assets and dollars, basically cash and short-term treasurys and we believe that it's normal that at our scale we received that kind of scrutiny and we just have to answer with the appropriate things we're ready to do all of these things and we're ready to roll now and ready to launch our wallet >> what's the time line here we've seen twitter launch the ability to tip with cryptocurrency which is enabling the new cross-border payment systems and now there aren't cross border payments within facebook you can pay within india and what is your time line for being

able to launch some of those things >> you are absolutely right. today you can't send money cross-border and that's the novi wallet as long as timing is concerned we are read oat novi side and we're going to see what happens in the next few weeks, but the goal is to get ready for a broader launch on the dm network when it goes live. >> and so we just saw some announcements from tiktok pushing further into shopping and there is a partnership with square how important are payments and e-commerce which you do oversee. these pages in e-commerce within facebook and within instagram especially when it comes to small businesses in the creator economy which is something we talk about a lot >> it's very important because as you know, many, many small businesses find their customers on facebook and instagram and across our properties and they advertise on the platform and then they sell products and services that people want to buy, and i think that you'll see us continue to push to make that

experience better for consumers and for small businesses and payments is a big part of that because we need to make sure that we take out all of the friction from the user experience so that small businesses can sell more things and consumers can have a better experience. >> you've been working on this for a while and now we're seeing all of facebook's rivals, particularly tiktok who hit a milestone in terms of a billion users. how does all of that impact your ability to compete when you have all of these rivals jumping into the space? >> i think it demonstrates that the market is more competitive than some have portrayed and you know, competition is good. i've always believed that competition actually brings the best out of products and services and consumers always end up winning,y soy think it's a good thing. >> you can catch the full interview online at cnbc.com/techcheck guys, i thought it was very interesting to hear and very refreshing to hear this honesty

about how challenging it is to get regulatory approval for these things and how much more crudded the competitive landscape has gotten since facebook initially got into this whole stable coin business >> yeah. carl, i think it's interesting to hear what he had to say about tether also, before we're talking about antigany davis with the high school english student can take note i am curious to make of a few things and one is we talked about this in the last hour and what we might hear additionally from 60 minutes on sunday. the circularity between senator black burn and blumenthal talking about these issues with senate commerce and even as we're dealing with these regulatory land mines and they're playing out to reels and

mobile users and it's a difficult thing to do like definitely swimming upstream >> simultaneous offense and defense. look, i think david marcus is right that facebook's ability to do anything can be curtailed by all of this regulatory scrutiny and in terms of what we learn on sunday, i think the crux of all of this outrage in the wall street journal exposes and what's happening many people already knew and assumed that facebook and instagram aren't great for teens and the crucial thing is the knowledge and the lack of action >> right >> actual research about exactly that well, if you want the latest on facebook as the story continues to unfold, you, of course, can follow and subscribe to the techcheck podcast. listen any time, anywhere wherever you download podcasts "techcheck" will be back in a moment. >> you've got stay cool with the kids we see increased efficiency

connected to more comfortable homes. emerson's energy star™ certified sensi™ smart thermostat uses geofencing to simplify how homeowners manage comfort and costs. emerson. consider it solved. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

protect your pet this flea and tick season with chewy. whose resumes on indeed find everything from flea collars and sprays, to prescriptions that keep pests away. chewy has what you need to keep tails wagging and pets itch free all season long. shop pet prescriptions and more at chewy.com today. a quick programming note since i was here in the seattle area, i popped in on amazon, too. don't miss amazon's head of devices tomorrow we talked about how the

company's been handling the supply chain, and that will be a big part of the show with dave limp we also talked about astro, the new robot. we've got hands on time with that, and with that, let's get -- carl, where are we going. >> that's been fantastic john's been all over the place let's get to the half. >> thanks. welcome to "the halftime report." i'm scott wapner whether tech is about to face an even bigger pullback our investment committee debating that call and everything else going on in the markets right now. joining me for the hour today carrie firestone, deeg us wright, ross brown and pete najarian co-founder of market rebellion.com. wrapping up the month, the quarter and heavy focus on the nasdaq is down nearly 5% this month. s&p's looking for its first negative month since january, its worst since september of 2020 the nasdaq's barely hanging on