today. that's going to do it for "squawk on the street. "tech check" starts now. ♪ >> good friday morning welcome to "tech check." i'm carl quintanilla with jon fortt and julia boorstin there are three stories in tech, 30 billion gone in snap, stock tumbling 20% then another ecosystem play, google changing its app store model, cutting fees, names like bumble, match and roadblock soaring. third stock at play intel, shares are sinking as sales miss and the company sees a tough road ahead for its turnaround. you will not want to miss pat gelsinger in a first on cnbc interview just a few moments from now we can't wait for it, jon. >> we are looking forward to it.

s&p is just about flat we did hit an all-time high this morning, though. september's poor performance firmly in the rearview mirror. all three indices are set for their first three weeks in the green since july nasdaq just fractionally lower, about a little less than half a percent. tech has been under performing ahead of next week's earnings from apple, microsoft, amazon, alphabet, facebook and twitter julia, who is not reporting next week >> well, that's the question is who is not reporting next week, but we heard from snap chat and that's where we start right now. that stock plummeting, citing the privacy changes. that stock down 23%. saying that the privacy changes from apple make ad targeting much more difficult. also blaming global supply chain issues which snap says is leading to customers cutting their advertising spend, other ad reliant stocks like alphabet, twitter and facebook dipping as well with facebook set to report

results monday and that does set up a difficult decision. for investors in these stocks, i want to hone in on what the issue is here for the ad targeting. they say it's less about the targeting and more about measuring the impact if they can't measure the impact for advertisers and give them details on return on investment then it makes the platform much less appealing and i just have to point out here, most notable, about snap's move lower, this is a company that was pretty copacetic about apple's changes and were confident if their ability to continue to measure ad targeting impact through plap's p apple's own tools and now scrambling to create new tools apple was in contrast, which said it was going to be a problem. >> i could have swore the last time you had them on, that's exactly what he said, kind of oh, well, we'll be fine, but i wonder, if you have a sense of what it is about this process

that seems to have blindsided them and what the road is to modifications that allow them to get back on track? >> well, i think it's less about modifications and building more of their own measurement tools here we heard from facebook that they warned that they're off by 15%, their preearnings warning, so we'll hear more next week, but i think now snap is basically decided we can't count on apple's tools. it's not capturing all of the different things we're driving such as ad downloads so we have to build those tools ourselves carl, maybe long term, this ends up being a stronger situation for snap to be in to have everything under their own purview but for now, it's raising a lot of concerns about the fourth quarter. >> we have a bunch of people coming to their defense. goldman sachs and piper reiterating buys discussion on how they are a bit more domestically focused than the giants like facebook and google, so be careful about

drawing broad conclusions and then jon, today morgan stanley says maybe if you really are getting more dauer on social you move into the software as a safe haven or china internet names, the waters are more calm or maybe netflix or disney, despite the downgrade of disney and weak guide from netflix, maybe that gets more attractive on a relative basis. >> across all of these stocks and arenas of tech there seem to be icebergs beneath the surface for snap that's apple and the ad targeting. intel also had icebergs. that stock is plummets after earnings weaker than expected sales, component shortages hit the company. pc business shrank by 2% during the quarter. some of that due to the loss of apple business the biggest weight on the stock the company's forecasted gross margin and free cash flow will decline in the coming years as it ramps up investment in r&d, builds new chip factories, works on these process technology transitions.

intel ceo pat gelsinger going to join us in a couple minutes for more on the quarter, carl. this is such an interesting moment because the stock has lost all of its gains for the year i think it's trading about where it was january 1 before gelsinger was in place he's been very clear about his vision for the company i think in a way the conditions since then are lining up exactly with what he says intel needs to do but there's really high doubt about anybody's ability to execute on all of these things that he says intel will do over the next couple years. >> that's true you're right about the shares. back to january levels it's not as if the street is taking the message from intel, julia, and extrapolating it to the sector at large. amd in the green today the street is looking at -- after a nice run over the past month or so, the street is looking at this as a share issue, competitive issue, than a sector issue >> absolutely.

and i think it's so interesting just to reflect on what jon said, the idea that intel has its very crowded road map. they're doubling down on the foundry business mizuho talking about how they have a 100% ramp in foundry investment and raising the question about whether that could distract them from the core business and from competing with amd is this a situation where trying to build the foundry and spending so much money there will take them away from being able to maintain their market share. >> right what's the alternative i think clearly we're seeing that the only way for intel to dig itself out of process technology is to add foundry intel has to add foundry because it can't just give premade, predesigned chips to a market that now wants customization, carl so we'll talk with pat about that in just a minute. there's lots of doubters >> yep in the meantime let's get back to the snap story and apple's privacy changes and the overall impact on social media names and

advertising. we mentioned snap's earnings did take a hit shares of facebook and alphabet moving lower today facebook back to 323 their full impact next week when they report earnings here to discuss david rolfe whose biggest holdings include apple and facebook great to see you again so many moving pieces regarding the model today, given what snap said does it change the dynamic on how you approach the space >> not too much. to throw into the mix our two largest holdings are alphabet and facebook it's about 18% of our portfolio. getting hit a little bit today not too bad on the overall portfolio. we're barely in the red. you know, facebook, i means the market now is expecting the worst, given the news out of snap, and you know what, facebook has a high-class problem. if the stock is going to be in the penalty box for a couple of quarters, as they prove that

they can navigate through these changes in ios, they're sitting on a bunch of cash they bought $4 billion of stock back in the first quarter, $7 billion last quarter, and out of that $11 billion buyback, they haven't even dented their cash on their balance sheet which stands at $65 billion. if the stock is going to be in the penalty box, for a few quarters, and we're assuming that the business model is not broken and it's still going to grow and still one of the places advertisers need to go, i would love for them to be bullish on their own company and maybe buy back 10, $12 billion in stock over the next few quarters recall they bought a bunch of stock back in the second half of 2018 when the stock was getting hit really hard with all the political headlines they were buying 3 and 4 billion a quarter and those were smart purchases, so let's see what the company

does and what they say at current valuations, it seems like the market is pricing in the worst for them right now >> right more broad than facebook, though, when you put together the snap guidance, sort of the even paypal/pinterest move, the idea that these companies are having to move further into walled gardens, does it change the way you're approaching tech names, ex-facebook let's say >> yeah, it is we own paypal as well, so it's been an interesting week around here the technology is evolving it's changing. and, you know, there comes a point that you probably have to trust the ceos dan shulman at paypal has as much street credit as you can possibly imagine and if they do consummate this merger with pinterest, i mean he's got a tough tail to toe, but we're

going to give him a benefit of the doubt on that. the landscape is changing. tech has been easy for a couple years, not so much in the fall of 2021 right now. >> i just want to follow-up on your comment about paypal and pinterest. it sounds like you're bullish on that deal as being a positive for paypal i'm wondering if that's because you think it's good for paypal to have exposure to the ad market or because you see paypal transitioning, pinterest from an ad supported company to e-commerce company >> little bit of both actually when you consider the hit that obviously paypal shareholders are skeptical, stock hit hard, it's almost wiped out the value, the loss in market cap in paypal is almost as much as what they buy pinterest for. a little bit of that that goes into the thinking, but again, schulman has navigated paypal post the ebay spinoff, i mean he's almost ceo of the year for

a couple years in a row here we're going to give him the benefit of the doubt he has a tough road ahead and that stock is probably going to be in the penalty box for a little while as well >> yeah. pinterest shares down 4% largely on snapts news i want to get your thoughts on alphabet, you trimmed your holdings of alphabet in the quarter. this news about alphabet's google, you know, reducing its fees, so how does that play into things and what's your outlook on alphabet now? >> we're very bullish. we've owned it for many, many years and that trim was part and parcel that we won't let a position get more than 10%, so it was -- i hated to trim it, but the stock was getting too big in our portfolio we only own about 20 stocks so we have to be careful letting them run too much. interesting that alphabet is down today android should be picking up and have picked up market share from ios. a couple moving parts over there

at alphabet, but net net we're still bullish on the stock and tied with facebook at a 9% weighting in our portfolio >> wow that's interesting tafds, we'll see we got a lot more earnings to get through over the next few weeks. great to talk to you david rolfe. >> thanks, carl. >> pat gelsinger is next that stock is down almost 11% after earnings "tech check" just getting started. ♪ 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. only comcast business' secure network solutions

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cuts the fees from 15% used to start at 30% on demand music streaming services could see fees as low as 10% the move sending names like duo lingo, match group and companies that depend on app stores higher spotify and zynga spiked and lost their gains, but the change is not set to go into effect until january 2022, it does remain to be seen what exactly

the final impact will be and we'll have to see how much apple feels pressure to follow in google's footsteps here. >> lots of pressure on those business models. speaking of pressure, ugly morning for intel after the company missed wall street expectations for revenue pat gelsinger pointing to supply chain challenges, computing down 2% in part as a result of that and tough competition from the likes of amd joining us the ceo himself, pat gelsinger. pat, good to see you you know, good quarters and bad, you came here for a turnaround there's been more rough quarters than not i want to talk to you first about the overall setup. at this moment i said this last hour where intel's highest transparency on your plan seems to be meeting investors' greatest doubts about whether you can pull this off. you say that leadership products will lead to leadership pricing, will lead to leadership margins

over time. right now you're targeting 51 to 53% gross margin does that start to change with products like alderlake which in the leaked benchmarks seem to be pretty competitive >> yeah. thanks, jon. always great to join you guys on the show what we laid out yesterday was a clear picture of the future of ini intel where this is a pivot point. with transparency we chose to be direct to the market and give them the view of the financial guidelines in terms of capex, free cash flow and margins and we're making investments to build out our capital base we've underinvested in the market and a growing market and committed to leadership and making investments to build new business areas and starting to see the seeds start to come to sprout the comment on ailederlake is a great example. we'll be talking about this next week at our innovation conference, and the product is

looking great. already in production. we expect that to be one example of how we gain back leadership, gain back market share, have the capacity and have the best products which give us the best pricingpotential in the future >> part of the trouble here i think with the stock when we heard this on the call last night is, what you're attempting gutsy and unprecedented though possible, promising to do multiple things intel has never been able to pull off before you're talking about process technology leaps over the next four years you're talking about scaling foundry where intel couldn't do that before. you're talking about rethinking the way you do design, packaging and outsourcing. how much wiggle room is there for error and for external shocks that you don't anticipate since all these are tied together is this the sort of thing where anything can sort of derail this plan >> well, we feel very confident in the plan or we wouldn't have

laid it out. as you've known from my prior ceo role at vm ware, i'm a beat raise kind of guy and we've laid out a plan we think is clear, executable, we're making the investments in it and, you know, just one example, jon, if we were here eight months ago, right, and we would have said that intel 10 is healthy, intel 7 is in production and intel 4 is looking good, we're ahead of schedule on intel 3 and intel 18a, our nextnew five process notes were all on or ahead of schedule you wouldn't have believed it, but it's true we're demonstrating exactly what we're saying that we're going to go down and just as a process technology, wow, that's a lot of progress in a short period of time killer new products like ailederlake, sapphire rapid, our server product coming in q1. next week a bushel of innovation that we'll be rolling out at our conference yeah, the momentum is building we've clearly laid out a plan

that we believe is executable, aggressive, of course, but this is a great company with great capacity, and i'm committed to make this plan come true and we're going to have a string of great successes in our future. we've laid out a clear picture to the street of what to expect over time and today, never like to seat stock go down, but i feel great because now everybody knows what the plan is and we're focussed to make it happen >> investors might ask given you were very clear on the call that foundry is going to take like four years to play out and then start adding to contributing to the compound annual growth rate that you're targeting at 10 to 12% down the line, but investors might be asking, why invest in intel now when that piece of it, which is key to the strategy and the scale vision that you've lined up, is years out how much rough sailing is there going to be in between now and then. >> i would say we've laid out the progress on our core businesses, client and data center

we've also said there are four growth businesses. our accelerated computing and graphics, we're launching those in q1. you're not waiting multiple years to start seeing the proof points you'll see those in q1 of next year our networking business, we're going to start giving clarity on that and that's already a healthy growing business and we're uniquely positioned in 5g and edge our mobile business is crushing it that team is on fire at the great inflection point of the industry the only one that will take a little bit more time to see the benefits of is the foundry business, but we've already have our first revenue with the amazon packaging deal. our next big customers like qualcomm and the u.s. government we're going to be giving a lot of proof points along the way that give people confidence that yes, this story is materializing. the key to the foundry business is, leadership process technology, which is what i already described. we're seeing great interest in intel 18-a as that killer

leading edge product as well as some of the existing foundry capabilities driven by can you build my products, can i have capacity in the face of a global semiconductor shortage we're seeing the proof points, the strategy is executable and exactly what a growing market needs. >> pat, i thought it was interesting is that you talk about managing these different priorities right now you also said that some of your customers who served china's video gaming market are pulling back because of some of those video game restrictions. i'm curious how significant you think that impact will be and perhaps more importantly if you think there are other potential risks down the line that are separate from what you're working on in these supply chain challenges that we've talked about. what could be the other factors like that, that could hit in the next year? >> yeah. in the china situation we think is fairly unique and somewhat limited in time. the regulations around gaming and children online and we expect that the chinese cloud

customers will adjust to that. maybe a quarter or two for them to finish those adjustments in their portfolio. you know, we're a bit uniquely hit by those because of our very high market share in that rapidly growing market you know, of course, the supply challenges have been the theme for the semiconductor industry broadly and as a result of that, everybody is limited our numbers would have been so much better had we been able to have full match sets from power supply components and network interfaces and wi-fi chips we would be able to ship so much more, but as it's well reported many of those semiconductor limitations across the industry, we're doing a bit better and making strong investments in our supply chain requirements and as a result of that, we think that we'll come out of this a little bit better than others, but everybody is being challenged in this environment we're rapidly moving forward our customers want more. they're begging us to, you know, deliver more capacity, more

rapidly, and my manufacturing team just an exceptionally good performance because we've had so many shifts in supply and demand requirements to meet up with our customers needs. overall, no business is without risk, but we think we have a pretty good eye of how we recover and as i've said broadly we expect the shortage to continue into '23 but right now is the worst every quarter next year we'll get incrementally better and we feel well positioned in our ability to be leading our way out of this period of grave shortage for the entire world. >> pat, how long, give me months or quarters, if you can, before the benchmarks and experts are saying consistently these new chips from intel are better than amds >> we expect that category by category on the client performance of alderlake, just already being recognized as you indicate as the best server products will be early part of next year with our

sierra -- our sapphire rapids launch when that comes out, best performance. we're already seeing great indicators on the a.i. and machine learning benchmark we expect those where we're unquestionably winning some of those benchmarks areas like networking, 5g, we're already well ahead of the industry mobility and automotive, we're already well ahead of the industry in that business. and, you know, overall, we're coming along very nicely i think q1 is going to be fun when we start launching a lot of graphics products in particular. because they're already getting great response from many of the top gain titles in the industry. so proof points are not far in front of us and i think everybody is going to start to say, one by one, the story is building, the pivot is under way, and it's time for us to participate in the great future of intel >> pat, this i got to see and you have that intel innovation event next week so i'm going to fly out, sit down with you in person see you in a few days.

pat gelsinger, thanks for being with us, good days and bad >> thank you, jon. >> jon, great stuff. meantime a lot more to come on snap after the break as that stock loses nearly a third of its value overnight. markets are down on some of these powell headlines a few moments ago, inflation well above target, may last well into next year. our view is that high inflation is likely to abate premature to raise rates and fed tools don't do much to address the supply chain constraints also on track to begin taper and complete it by mid 2022. back in a moment.

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welcome back to "tech check. i'm jon fortt with carl quintanilla and julia boorstin stocks lower following the powell comments dragged by snap, facebook, alphabet and intel you can see the s&p down fractionally the dow also happens to be about

flat we will dive into that right after a news update from kristina partsinevelos >> thank you, jon. here's what's happening at this hour american express leading the dow industrials profits shot up 70% from last year's levels. the company saying travel and entertainment spending is rebounding, but businesses are lagging consumers. severe weather causing problems for a meat producer beyond meat has lowered guidance because one facility lost its water supply for two weeks and another water damage beyond meat shares sinking at least 13% today. a government watchdog says the faa lacks oversight of american airlines maintenance issues a report says in more than nine out of ten cases examined, faa inspectors accepted incomplete reports on maintenance reports and says they were closed before american took corrective actions. >> matel bouncing off morning lows, reporting strong quarterly results and saying supply lags

won't crush sales. it contracted more shipping capacity and matel has raised full year sales guidance holidays are coming. back to you guys >> they are coming soon. i haven't started holiday shopping yet >> i have. thank you. >> let's get back to snap as the stock continues to tumble, that stock is down about 24% as apple's i phone privacy changes disrupted the revenue model. we're seeing a broader rerating of ad supported internet stocks. facebook is down about 5%, pinterest, which we talked about this week is down 4%, snap also warning that global supply chain interruptions and labor shottages reduce the short-term appetite through advertising with us to address clear concerns amongst investors is ever corp's mark mahaney you describe what snap is facing as a perfect storm yet maintaining your overweight

rating on snap my question is, how are they positioned to overcome this perfect storm and how long will it take them >> in terms of how long, it could take them 3 to 12 months this is going to be an issue across the industry. one of the reasons, julia, we're sticking with the out perform rating and we may be wrong in this, we think this is a sector issue not a company issue. i may have given them too much of a pass in our note and now. we knew it was coming. the company didn't seem to be prepared for that. there's a little bit of an execution challenge at the company in addition to other issues that it's facing. >> what about facebook, how do these results change your outlook on what we're going to hear from facebook on monday >> we highlighted this perfect storm after facebook too companies that have very substantial mobile advertising exposure, direct response exposure, app and retail

advertiser exposure, that's snap chat and facebook. facebook's hedge it's a much bigger advertising play. there are millions of advertisers, 10 million, on facebook and so that there's probably greater density, less pricing pressure at facebook and also we'll see who is a better executer going into this my guess is facebook is better prepared and numbers on the street, the stock was more derisk, the estimates more derisk i don't think we'll have as much of a cut in estimates as we had with snap. i don't think they'll have that with facebook. a little bit of downside and why we had an under perform on facebook for the quarter and find out, of course, but my guess is that facebook is better prepared for this. still a headwind and going to be across all of the advertising platform names, q3 and q4 and beginning of next year i want to be careful with the ad names here >> what's going on with snap stock this morning is it really about the revenue miss it's down almost 25%, a quarter of its value

that's like total collapse in business model almost type drop. or is there something going on with certain stocks that were valued in certain ways that are perhaps going to be rethought altogether >> i don't know if it's the latter as much as the first one. lo look, jon, you know, estimates come down double digits, stocks go down more than that and a high multiple name like this trading at 20 times price of sales, go into earnings and cut estimates by 10% at least, stocks will correct materially i thought -- i would have thought that the stock would have held maybe down 20% versus 25% but i'm it in nitpicking he. this is the first quarter ever they've missed their revenue guidance when that happens that's a negative inflection point. people will shoot and ask questions later. by the way the company was up front in saying this is going to take time to fix these retail issues versus supply inventory

challenges, maybe margin pressures too affecting that part of their advertiser base and i think there will be a successor, a way -- there's too much at stake in terms of marketers, businesses and advertising platforms not to come up with a better way of targeting and tracking ad campaigns, but until that comes out there's pressure on snap and the shares should justifily be down today. >> while you're waiting for that process to work its way through the system, where do you turn in the meantime are there tactical plays in china or streaming or other areas of software internet >> yeah. thanks for setting that up, carl, because i think you want to be careful near term, i think long term, i'm generally a long-term investor, buying facebook, buying google on these corrections an facebook is the correcting stock, i think they're great plays if you're willing to look out 12 months. talking about three to six months tactical plays you want to steer clear of advertising and cautious on retail too go with netflix, you want to go

with uber and lyft those are my three favorite names. i think they have strong current momentum into the fourth quarter and first quarter next year. not just "squid game" but a content slate. as covid tapers, ride sharing recovers, you want to be long those two names, got an lot of rerating opportunity ahead of those three names. >> yeah. we have actually netflix trading at an all-time high today, which is pretty remarkable you also cover match and spotify and mention google curious what you think the impact will be of google cutting its app store fees and build it's really going to be -- whether it's going to be a game changer for match and spotify? >> julia, i'm going to guess that since google is dropping fees from 30 to 15% across the board, that that other platform apple is going to have to do the same too i think the market force political pressures are going to be too strong for them and silly

to keep 30% fees that's a guess when it happens all of the companies -- that's been a major tax for anybody who is trying to build their business through those app marketplaces you just cut their cogs and cost of goods, you just cut those in half from 30% to 15%, so that strikes me as dating companies, just a couple small places like duo lingo, small cap name and anybody who -- spotify, anybody who got customers, got them through those channels, they've had their cogs cut, it's a great win for them >> yeah. it will be interesting to watch how this plays out with the apple app store wars thanks so much. >> thanks, julia still to come, major indices have lost their gains, close to the lows of the session. dow down 40. we have big tech stocks at all-time highs netflix, ebay, tesla, microsoft,

all taking -- tesla taking the levels it set back in january. meantime it is the final of the half's tenth anniversary week and today, to end it all, jim reynolds, they're all coming up at the top of the hour "tech check" is back in two.

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>> i sat down with the director of the cfpd, on the job nine days and one of the first big moves was to demand information from amazon, facebook, google, paypal and square about their payment platforms and said that will be the next front in the fight over the role that big tech plays in our lives. >> based on the record of many of these large technology firms, they simply do not care for and respect our privacy. i think we need to know what are they using this data for are they combing it with your geolocation and browsing data? are they using it to engage in behavioral advertiser. are they going to use their own business incentives to decide who gets to participate and who doesn't. >> chopra namechecked the top executives at facebook and said he's worried about the company's push into crypto >> do we really trust mark

zuckerberg and sheryl sandberg to know exactly what we're spending on and who we're transferring money to? i thinks the next several years are going to be defined by big tech company's incursion into financial services and that's something we need to stay ahead of. >> he wants the bureau to identify new risks not respond to them after a crisis. >> we need to make sure their practices are fair, transparent and competitive and that they are not creating undue risks and technological progress is leading to meaningful help for families and businesses in our country. >> now we did reach out to the companies involved and they declined to respond. back to you. >> thank you. meanwhile, keep an eye on microsoft. trading at all-time high levels going all the way back to the ipo 35 years ago in 1986 you can look into the future here on "tech check" when microsoft reports earnings next week don't go away.

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♪ >> have you heard from the murdochs about succession? >> we have not heard directly. james murdoch gave an interview after the second season aired saying he never watched it credibility of any murdoch about anything, who knows. >> full conversation will roll out on monday. we talked to julia about what makes a hit right now, why he stuck with hbo and the influence of "squid game" what that does to compensation and we talked about netflix subs and disney subs after the downgrade from barclays the hits make a difference succession was the best premier of any hbo original series over the last 18 months >> i'm excited to watch it, and i'm a big fan of "succession" so doubly excited congrats on relaunching that bull call on zoom out of jpmorgan it ups the stock to a buy saying

the growth slowdown has been factored in and this level presents an attractive entry point for investors. shares this morning getting a nice boost they were up higher, now up just about two-thirds of a percent. stay with pus. ♪ ♪ there are beautiful ideas that remain in the dark. but with our new multi-cloud experience, you have the flexibility you need to unveil them to the world. ♪

we mentioned tesla hitting a new record level let's get a gut check on that stock. today's gain has tesla topping

its last high from way back in january back near $900 per share and also is tracking for its ninth straight weekly gain after getting a boost from an earnings beat this week that would be the longest weekly win streak since february of 2020, and on a month to date basis, tesla is on pace for its best gains since last december that stock is still up half a percent and all-time high today. there's more "tech check" ahead. stay with us new projects means new project managers. you need to hire. i need indeed.

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welcome back some companies argue remote work lets them hire and retain workers who can live in affordable areas away from tech hub, but here's a twist. yesterday i sat down with the founder and ceo of $3 billion start-up talently. going remote helped him hire top talent that didn't want to move to atlanta from silicon valley what those people used to make before, what if i moved my entire family for atlanta and for whatever reason it doesn't work out, what other company in atlanta can i work for >> now you can hire them, too.

you can catch that full interview we just tweeted from the cnbc tech check twitter page, carl >> robinhood ceo sat down with jim cramer yesterday saying he's proud of the company pushing further into crypto as the weightless for the crypto wallet has more than 1 million names. >> we're very proud of our cryptocurrency platform and giving people more utility with the coins they have. as a matter of fact, we rolled out our wallets waitlist a lot of people have been asking us for the ability to send and receive cryptocurrencies and transfer them to hardware wallets and transfer them on to the platform to consolidate and you know, the crypto wallet's waitlist is well over a million people now >> robinhood is set to report earnings on tuesday and with us in the meantime, new yorker contributor charles is back with us again good to see you again.

>> good to see you, carl in general, you're net cautious with robinhood, but robinhood technology is increasing asset investing good or bad long term. >> robinhood's claim to fame is they democratized access to finance, and i think they democratized purdue and oxycontin, making it easier to buy doesn't mean it is a good idea to buy it when you make it easier to buy, are people that don't understand what they're buying and that's fine if you have guardrails in place. robinhood does not have guardrails in place. >> what kind do we need? >> what i mean is it takes about a minute to set up an account on robinhood and the first thing that happens is you get a screen that allows you to play three-card monty to find out if you can choose a card to gain a free share of stock and that's

not really what we want to be encouraging people to think about the stock market if you go to fidelity or vanguard it might take up seven minutes, and those extra six minutes are spent to educate the user about how stocks work and how to invest wisely in stocks those are the kinds of guardrails, very simple things that can be done to educate people to make good choice wes th with their money. >> yesterday our colleague jim cramer pushed saying isn't it just like candy crush and asking him this question in different ways tenev said no, it's not like candy crush and there's a difference between gamification and accessibility taking a responsible approach now and what do you make of that comparison and his response? >> it's absolutely gamification. they have leaderboards, you can win points and they have competitions on the site the only thingthat they've remove side that you don't get

confetti now on your screen when the stock goes up. equally, what tenev has said is that he's rolled out 24/7 voice customer support you can call 24/7 if you have a question about the robinhood account. that's marketing and that's like saying, because i can call delta air lines at 2:00 in the morning and ask them whether i can afford a hawaiian vacation and they'll give me good advice as to whether i should do that. of course i'm going to hawaii. they sell airline tickets and just because i can call robinhood at 2:00 in the morning doesn't mean they'll tell me to do the right thing. >> the market tanks and people that don't know what they're doing and trading margin and trading options lose a lot of money and lawmakers step in and do what? >> well, lawmakers are absolutely going to step in and begin regulating not only robinhood. they've charged robinhood over $

00 m 100 million in fines and not only in robinhood and the crypto marketplace and the bigger cost is that we're teaching a young generation to think about the stock market in the wrong way. the stock market is the greatest tool for wealth creation in history, right it allows everyone to participate in the bounties of this nation and the world, but it also carries a responsibility which is at least to educate yourself a little bit about why stocks work. why they go up and why they go down and we're teaching an entire generation of people that they should look at the stock market as a casino the problem is when you go into the casino, it's fun and when you come out, you feel terrible and you say i'll never come to vegas again. what we don't want to do is train an entire generationy is they never want to come back to the stock market because they play with it in robinhood to get burned and then they think this isn't something some people can do >> that feeling of leaving vegas is familiar to many.

>> absolutely. two days in vegas is wonderful three days in vegas is terrible. let's not make that what the stock market is like. >> trying to encourage participation and carefully, it's well said and thanks so much we'll talk to you soon a new yorker next week will start to get busy we'll have facebook, apple, amazon, microsoft, twitter, as well as gdp and personal income and spending and durable goods sales and we have the nasdaq down a full percent. whether or not these worries about yield in inflation or the s.n.a.p. effect, john, is there something that you want to tell us about vegas, carl >> what happens there -- you know what happens to stuff that happens there. >> that's right. very much looking forward to next week and next week, julia, we'll get a read on cloud, microsoft, amazon, google. >> and don't forget about facebook monday afternoon we'll see just

how big that apple effect is maybe facebook did itself some favors by giving so many warnings and one more thing. i want to tease that you can find the whole interview that v l lad, and it was a great one, particularly the candy crush have a good weekend. let's get to the half. ♪ ♪ carl, thanks welcome to "the halftime report." i'm scott wapner front and center this hour, the continued rally in stocks. the s&p pacing for its best month in almost a year how long can the run last? we'll ask another group of all-star investors today the investment committee is with me as well let's first take a look at the markets and the major averages headed for a third straight week of gain, today losing across the board and the nasdaq the biggest loser now down by more than 1% we keep our eye on yields always the ten-year note yield touching 170 earlier and it's dipped down to 164, but we