marketing to attract foreign tourists i'll send it back to you. >> yep of course, we heard from bookings holdings thanks to you last week as well, seema appreciate it. seema mody reporting for us on that resumption of travel from foreign lands. that's it for us on "squawk on the street. "techcheck" starts now ♪ ♪ good monday morning. welcome to "techcheck" i'm carl quintanilla in new york. julia boorstin in los angeles. jon fortt is in d.c. and deirdre is off today elon mask uses twitter to decide and looks like he may dump a big chunk of tesla stock the real reason behind that sale next then we seriously consider bitcoin hitting 70,000 another surge for crypto takes its total evaluation to above 3

trillion later, paypal expectations, software pops and walmart's walle for delivery first, breaking news out of the fed. let's get to steve liesman steve? ♪ carl, thanks fed governor is announcing he has submits his resignation and it will be effective at the end of december. he joined the fed in october, 2017, as vice chair for banking supervision. he ends his four-year term as vice chair in october. that ended and now he's on the board. this highlights four jobs that president biden has to fill or will have to fill in the coming months we'll count them, the vice chair supervision, vice chair for the federal reserve board, his term ends in january, of course there's jay powell, his term ends in february as chair. and there's one unfilled spot, just real quickly, we did see or we know that fed governor brenard and powell were both

seen at the white house last week so we're waiting any day, any minute, any hour, any month, any week now, jon, for the announcement of who will be the next fed chair >> yeah. and i know you'll be on top of it when we do hear thank you, steve liesman. now we're on track for more record highs today the nasdaq now up 26% year to date but that's masking some very real pain we've seen in a few stocks in tech the last few weeks. while indexes are at highs there's been sharp downward moves for individual stocks when growth disappoints zoom, eloton, tech company che have been cut in half this year. peloton and chegg hit hard after third quarter disappoints. october also rough on certain areas in social media that had run-ups in valuation thinking snap and pinterest here which are down 30 to 40% off their recent highs so what's been winning well, a lot of everything educational. some of the back end ecommerce names like bill.com that stock tripling in the last few months.

payment names like affirm. not the whole sector semiconductors beat expectations, nvidia, qualcomm, a & d shot higher. guys julia, we were talking about this this morning, it's interesting to see largely things have moved higher, but there have been some stocks that had these massive runs on expectations that the world has changed. hey, maybe it has. but maybe not as quickly as bulls on these particular stocks had hoped. it reminds me in a way of stocks like amazon, which had amazing runs when they were young but then pulled way back during the dot com bust, they pulled back too far. for investors, they have to decide, is this a platform play. is this strong leadership. is this a vision that's going to carry or is it a flash in the pan? >> and jon, that really all comes down to what is the new normal look like, right? and how much of the trends that we saw accelerated during the pandemic, how many of those trends, whether it's fitness

from home, like peloton, or che fwrks g or some of these other plays like pinterest, are these things that people adopted during the pandemic and are just going to continue using permanently? or were they more things that really benefitted from the pandemic and people may use but not in the same sort of permanent, stable way that a lot of these companies had hoped so the growth will not be that sustained. carl, one thing i think that's notable and we look at this divergence within the tech sector, just shows you how broad and diverse tech is itself tech is in everything we do from advertising-supported companies to these enterprise companies that really seems looking forward that the enterprise software play will be benefitting, specially in 2022 >> all right it is fascinating. you're right about tech, julia it's so desperate. but we have been talking about this for a while now that the idea these dislocations out of covid will last a lot longer than we thid hybrid work changes, moving patterns so zillow is hurt job market is super strong and

enrollment goes down roku, disney, comcasts are hurting as people leave the house. we'll see how long it lasts. >> yeah. and of course we can't underestimate how much some of those stocks did have a big run-up over the past year or so. now, speaking of humbling bets on tech, softbank saw first quarterly loss since the beginning of 2020. ceo blamed his chinese investments saying, quote, we're right the middle of a storm. the biggest strains on the company have been in ecommerce with alibaba, its biggest holding falling 35% during the quarter along with qupang fell 33%. carl, you have to wonder, this is a storm but should they have been better prepared for this storm? >> meantime, shares of tesla on the move this morning thanks to elon musk. as you know by now, robert frank explains robert >> well, carl, tesla shares now down less than 3% for the day despite elon musks promise to

sell over $20 billion in shares. twitter poll over the weekend he asked whether he should sell 10% of his stake, 58% of voters supported a sale but he was likely going to sell any way. that's because a 2012 compensation package granted him options on 23 million shares those options expire next august so he has nine months to exercise the options and pay the taxes. the tax bill, by the way, on these options both federal and california will be around $15 billion. now, he can't borrow that much, so he was always going to have to sell shares to pay the irs. selling 10% of the company gives him about $20 billion. that's enough to pay the tax and maybe give to charity, which by the way, could also help lower his tax bill where does this leave elon musk's stake in tesla and his wealth well, he owns more than 20% of the company. he will own another 10 million shares after all this option exercising and taxes are paid. and his wealth has increased by

$170 billion just this year. his total net worth right now, that's between the tesla shares and his stake in spacex now at $340 billion he's now worth 1.5 times jeff bezos. by the way, jeff bezos has also sold about $20 billion of his shares this year and last, though we didn't hear much about it and of course, he never tweeted about it guys >> robert, speaking of these billion dollar tweets, i think a week ago elon musk tweeted something about $6 billion to fight hunger kind of as a response to something that someone had said about billionaires what do you think is the impact in public perception of the ultra wealthy, of you know, him trying to democratize how much stock he sells or what he spends it on? is this a savvy move >> i think the perception of the

ultra wealthy by many certainly in political circles and in d.c. lately has been that they don't pay their fair share that there was a year or two or maybe even a few where elon musk did not pay any income taxes so the fact that he's paying taxes of up to $15 billion in one tax bill i think is going to slightly change or at least add to that debate and the fact that he's going to perhaps give up to $6 billion to charity, we'll see what he does with that. now that does lower his tax bill, but that's tremendous amount to give to charity. i think this is going to add at least a little more fuel to the other side of that debate, which is, hey, $15 billion in taxes is a lot. no matter how much you're worth. >> robert frank, what a story from the weekend appreciate that. great piece today. thanks very much. stick with tesla here. bringing analyst who did increase his target on the stock to 1040 from 940 keeps a buy rating street high 1,400.

good morning and good to see you. >> hey, good morning good to see you as well. >> so increasingly the sell side has been arguing, this is a self-funded growth story, revenue story. it's a margin story. how much gets complicated by a sale of stock by musk? >> i don't think any i mean, from fundamental perspective, i don't think it changes, if anything, i think through this strategy, if we can call it that, musk has taken off the narrative that would have been purported something wrong in tesla that's causing them to exercise those options so, if anything, i would say it's a net positive. >> what do you think the story is right now between tesla's growth trajectory and the incoming wave of competition, some believe from legacy oems. how much white space is there? and how much do you expect it to compress, if any >> well, i think you're going to continue to see competition. however, having run a division

of a fortune 500 myself, i will say that wall street still fails to understand that most investors is the role of culture and the challenge that the traditional oems are going to have is not can you build a product that's as good as tesla, but how do you change the culture that enables the ability to keep building products as good as tesla. it's not one thing that the company does, but it's all these little things that add up to a big difference, starting with whether it's the battery technology, the 4680 that they're bringing in or the inverter using silicone carbide. there's a lot of things that allow tesla to maintain advantage. and i still see that white space as pretty far. >> jed, it looks to me like price targets on tesla keep going up because the stock keeps going up and it seems like that's not how it's supposed to work. so what do you have to believe differently about tesla to have,

say, a 1400 price target on it versus, you know, what seemed like an ambitious say 1190 price target a couple years ago? >> yeah. i mean, remember we were one of the first that came on with i think it was put a price target of i think 500 this was before the splits were looked at as crazy and the bulls on tesla you know, yeah it's a little bit -- it becomes a self-fulfilling prophesy in terms of the stock moving up and you see things follow. i think the net take away is believe fundamentally tesla has an advantage in the market and the market is shifting over to evs and beyond that it's an energy story which is kind of our thesis and if you look at it that way, i think there's still room on this one >> finally, jed, on chip shortages and supply crunch, there was some work last week done on october global sales inching up just enough to make

some argue that maybe autos would be the first industry to recover, not fully, but at least directionally start improving on supply you agree with that? >> yeah. but i would say for tesla, it really doesn't matter. one of the things that elon did is reprogram the coding so that they wouldn't be exposed to the chips that were in shortage. that came out when vw elon talk to vw. we're seeing a lot of things that are a bit out of the normal and great for leading this industry forward >> jed, great stuff. always good to check in with you. thanks >> thank you let's turn to tinder, co-founder is getting his day in court against iec as opening statements of a high profile lawsuit get under way this morning. along with other early employees of tinder sued match group and its then parent company iac

they allege the company cheated them out of $2 billion that's how much they're looking for in damages now, at the heart of these allegations, rad said that a $3 billion valuation that matched an iac gave tinder when they were calculated rad and the other stock options was far less than the $13 billion that they say the company was really worth. now, along with sean had we expect iac chairman barry diller and greg blatt to testify in a three-week class it will be interesting to see how this plays out, carl speaking of technology trends accelerated during the pandemic, we have certainly seen the continued growth of digital dating in the last three years since this case was filed. >> yeah. fascinating. and jon, i'm trying to think, the universe of examples where you had a co-founder go back and argue for a bigger share of what the pie eventually became, it's not unprecedented, but doesn't happen too often. >> yeah. this dating business just seems

to be so dirty i mean, when you look at what happened with bumble's founder in this group and then sean rad said -- lots of accusations of cheating just like real dating, i suppose. maybe this will get sorted out meanwhile, remember, confluent, the stock went public earlier this year. we had the ceo on ipo day. shares have more than tripled since then ceo is back with us to talk earnings after the break stay with us we're getting destroyed out there. we need a plan! right now, at t-mobile, customers on magenta max can get the new iphone 13 pro...

time for a gut check and today it is crypto early this morning the overall market cap of all crypto currencies surpassed $3 trillion bitcoin is flirting with 70,000. we mentioned it earlier with an intraday all-time high this morning. ether is above $4,700 for the first time ever, up 500% this year alone and it trickles down the third and fourth biggest coins have each added more than 20% in just the last seven days. top seven cryptos all in the green this morning guys >> meantime, got some news on meta, announcing it is partnering with amd to produce chips for the service. amd is having a data center presentation today you can see the stock is rocketing up mid day almost 7%,

jon, as we're seeing another use case for names and sector that have been going parabolic in some cases. >> yeah. just crossed amd 100 bucks a share earlier in the summer and it's inching closer to intel's market cap it's at around 175 billion, i think, intel just over 200 who would have thought there we are. meantime software stocks trading at all-time highs. one high growth name confluent closed up 27%. cloud revenue growth of 245% shares of data dog also seeing a pop from earnings and some big growth numbers with results from snow flake, mongo-dp on deck, cofounder and ceo jay kreps. quite the growth numbers you seem to be on a beaten raise pattern. tell me about what kind of demand you're seeing and from the customer side what seems to

drive this outperformance. >> yeah. we were really happy with the results. you know, i think the big picture is it's $50 billion market opportunity and category. and these cloud services are an amazing way of delivering new capabilities around data to companies. and you know, i think that we're seeing really explosive uptake of that in our customer base. >> what about the customer add number to what degree is your customer size and the size of the commitment shifting? i think you had about 190 customer adds in the past. you had 290. you had 440. what should we read into that? >> yeah. you know, we have self-serve part of the product that tends to dominate that because people can show up and sign up and we have a sales team that goes out and closes deals depending on our tactics it will be higher and lower each quarter. we were happy with the growth of the stock. >> and that's that kind of product-driven, you know, sales

motion similar to what we have seen which also has big outperformance what degree will that be able to continue to drive growth as expectations rise, as those revenue numbers rise, how much do you think you're going to have to put more wood behind with the the traditional sales force? >> yeah. it's really a mixture. that's what i think you would see in confluent or really any of the high growth software companies where, you know, there's a self service aspect. there's a product-led growth side of this, but that works hand in hand with the sales team that can take the technology and make it something really strategic. you know, our goal with customers is to grow over time into a role where we're the central nervous system that connects solid different applications and sas layers and data systems to get there, you know, it's not just a matter of product-led growth, you need to interact and have strategic relationships at the company. and those two things really go hand in hand >> so jay, we were talking earlier this show about how some

tech stocks have really seen this massive acceleration due to the pandemic and some of those changes in the way that people and companies interact, but i'm wondering as you look ahead to next year, how much do you think you'll be able to maintain this growth rate and how much do you think perhaps some of the growth you saw this year was a pull-forward or whether or not these trends will be sustainable? >> well, the world of data and infrastructure, it does move a little bit slower. so, you know, maybe three days after the pandemic the ceo buys zoom, but it takes a little longer to shift the digital strategy and i don't think that's a shift that anybody wants to reverse. so we're seeing continued acceleration in investment in the digital side of businesses i think because the reality is this is an investment that probably should have happened at this scale even before the pandemic and that was kind of the nudge that got it started. and so, we're very excited about what lays ahead. >> i think that's interesting. i mean, the pointthat they're

not reinventing their digital infrastructure but then, i mean, jay, you look at corporate sentiment or cfo sentiment is nowhere near what you would expect given the cash levels at the big companies. what do you think that says about pricing for cloud in the year ahead >> yeah. i mean, look, the area of cloud has gotten competitive there's multiple cloud providers. i think the reality is this is such a better deal as a way of getting data capabilities trying to hire a team of engineers to run software in your data centers. that's an expensive proposition and it's gotten more expense as the cost and demand for engineers has gone up. i think that's really accelerated the rise of these cloud services, which allow you to do more with the people you have and have them focus on the part of the business that really differentiates you. >> jay, talk strategy a little bit for us

maybe demystify this for investors. talked about stream convergence. what's the strategic importance, customers want to do more, have more insight into their data >> yeah. the area we're in is all around streaming and data in motion so there's been a huge category of data, but it's mostly been about storage. like your data warehouse where is the warehouse where you keep all the data, you know n boxes to look it up at the end of the day and run a report. but increasingly the use of software and data is to run the business it's about the operational sides powering real live use cases, interactions with customers, logistics. this is what data inmotion is about. it's not just the data at rest, it's connecting all the parts of the business and being able to act on whatever is happening in realtime this is something that's been adopted by organizations like walmart or citi group or the cdc to be able to track activity around the pandemic. >> well, makes sense then why

we're seeing so much growth. thank you, jay jay kreps, ceo of confluent. ♪ cramer has been adding to paypal ahead of earnings, but should you we'll tell you what to expect this afternoon. ua a"thcckisacew tie-in for sqres eche" bk after this (man) still asleep. (woman vo) so, where to next? (vo) reflect on the past, celebrate the future. season's greetings from audi. 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.

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♪ welcome back to "techcheck." i'm carl quintanilla with julia boorstin and jon fortt nasdaq is looking for its 11th-straight session in the green. plus, take a look at amd surging on news of a new partnership with meta. amd and nvidia set up for competition in the space both stocks up better than 40% in just the last month. watch coin base today as well up almost 7%. a lot of movers today not necessarily on news but they will have earnings later in the week news update with rahel solomon. good morning, carl here is what's happening at this hour caterpillar leading the dow industrials after the house of representatives passed the democrat's infrastructure bill

also calling caterpillar a fresh pick because the bill will drive equipment sales for years. beauty company coty seeing its shares jump 12%. quarterly products doubled forecast, price increases maker of brands including max factor says that travel retail is coming back. coty optimistic about rising sales tied to workers returning to work. live nation shares following as much as 8% before rebounding. live nation was a promoter for travis scott's astro world festival on friday where eight people died. multiple lawsuits have been filed against live nation. nbc news says that stock plans to provide full refunds for everyone who bought. scott canceling las vegas appearance this weekend with sources saying he is too distraught to play julia, back to you let's get back to the market and the meltup rally we have seen in stocks the s&p now up seven sessions in

a row and on track to make today number eight mike santoli here with us on the all-important question, can it continue >> julia, we know it can because it has in the past continued higher after we've gotten some of these overheated readings, the ones we're seeing right now. very hot streak seven days up for the s&p 500. 16 of 18, keep kind of reciting all these statistics because it does show you that the market has been on a really strong run you don't see very often this, however, shows the semiconductor group against the nasdaq composite semis very interesting here because, of course, on one hand it's a gauge of cyclical expectations, usually a really good sign when semis are outperforming and they really are outperforming. on the other hand, this latest move higher in the group has largely been about nvidia, amd to a lesser extent, those two together about 15% of this index, things like intel, broad dlsz com, sky work not really helping things outs. so it is a unique thing, nvidia

a retail favorite and a story stock as opposed to necessarily being something about the cyclical expectations. now, what is a real historic meltup look like take a look at this year's nasdaq composite run relative to the calendar year 1999 some of the similarities here along the way was kind of this rolling rally with an upside buy since the pull backs up until you got to the fourth quarter. then it was just lift-off. you were basically right here in early november it went wild from there. another little tidbit in the two years ending this past friday, the nasdaq was up 89%. the two years ending november 5th, same date in 1999 nasdaq up 8% nothing like a prediction of what can happen, if you think today is crazy, it's not crazy just getting ahead of itself, guys. >> a lot of folks might not remember those days, mike. fascinating. thank you, mike santoli. >> one mover to watch is paypal. strong earnings out of square and short-lived acquisition

targeting pinterest. is the selling overdone? darren peler covers fin tech and joins us this morning. hey, darren. good to see you. >> hey, thanks for having me. >> when do you think paypal can shake off that pinterest report? >> you know, it's a good question i think a lot of investors really want to see that fundamentals are still really strong first and hopefully get some of the sense of that tonight. and then i think some long-term investors really want to check in with management again after those headlines. and kind of just take their pulse on what they're ana strategy is before they get back into the stock in a big way. >> do you think it's specific to paypal or are there sort of lingering curiosities about models at square and maybe some of the legacy credit card processors. >> look, that's a great point. i mean, there's been a real bifurcation looking at the new names and what a lot are considering the legacy stocks. look, the good news i think for square and paypal is most investors would put them in that winner's camp considering they

have everything from buy now, pay later, to crypto, they're a digital wallet and check a lot of the boxes i think they'll get the benefit of doubt unlike other stocks struggling along that way but they have to show the numbers i think investors really want to get a sense of what their strategy is in terms of mna and capital allocation now >> darrin, what is the significance of those pinterest headlines from days from weeks ago. it seems to me for paypal, there's so much work to do potentially in brokerage, in small business banking, so many -- >> yeah. >> stripe has so much growth already and paypal could compete with that. i was confused about why they would even consider doing it is that some of the explanation that you were talking about that analysts might want? >> absolutely. i mean, at the end of the day, they have a lot that they're doing already. there's a super app they're really trying to upgrade to provide a lot more capability around their digital wallet. i think investors didn't think they necessarily needed such a

big acquisition of a company that a lot of investors feel questionable about right now but, you know, i think what's happening is management looks -- is a very forward-looking management team. dan shulman is a visionary around fintech he sees a convergence between fintech and social commerce, like we see with facebook for that matter, right i think he's trying to look ahead a little bit, but investors really want to see execution of the current opportunities now as well. >> yeah. speaking of the current opportunities, darrin, i wonder what numbers you're most interested in. square, deceleration of the cash app, see if we'll see something similar in paypal. there's question whether there's been a slow down in downloads the paypal app what are the numbers you're watch for an indicator of what's ahead. >> it's a great point. look, the very important kpis for paypal, net new actives that are added, along with tpd, the

volume growth rate we look for quarterly and annual results the company talked about there being anywhere from 55 to 52 million new actives added during 2021 and so, for this quarter, we're hoping they can be roughly in line with what's called 13 to 14 million range to get us to skew up to that level for the full year as you said, some of the app downloads have been light. churn has also been down a lot so we still think they should be in line with those numbers then when it comes to tpd growth, we're still looking for a very strong growth, albeit against tougher comps. net/net, paypal is still 20% plus compounder from our perspective. still in the winner's camp so, i think these data points are a little more for the short-term investors, check the box, but long-term it's really more about the strategy that they want to check the box on before getting back in a good way. >> hey, finally for the space at large, we're watching a lot of pictures this morning of international visitors coming back into the united states for the first time in 19 months. do you think cross-border is

going to be material for the sector at large? >> oh my god, it's a huge opportunity. when you consider visa and mastercard, we talked a about this before. key names in our coverage universe have important exposure from cross border because it's such a monetizable, high-yielding transaction. these amass 40% of their legacy ref news is cross-generated less than 10% of their volume is cross-border when that comes back, if it's still only at 80 to 90% of 19 levels, and really 60 to 70% travel versus 19. >> right. >> that could be a big, big tail wind for those stocks along many others in our coverage >> darrin, good to see you appreciate it so much. thanks. >> thanks for having me. cyber security news here accused of some of the worst ransomware attacks eamon javers with this >> jon, that's right federal prosecutors unsealing the charges this morning

the department of justice has a press conference scheduled at 12:30 p.m. eastern time. we may get more detail on this what we know from the charges unsealed right now from reporting from nbc's pete williams is that the man who is involved here is 22 years old, ukrainian arrested while trying to cross the polish border at the request of u.s. authorities. they're saying they're seeking his extradition. court documents unsealed monday accused him of conducting around 2,500 ran someware attacks, including that cassia attack, one of the supply chain hacks they get into one company and from there get into additional companies. in that case they requested $70 million ransome. now they're saying this is the man responsible and they're seeking the bring him to justice. we should have more detail on that once we hear from the department of justice at 12:30 p.m. east coast time, jon. back over to you. >> wow, 2,500. that's a lot eamon javers, thank you.

meantime, keep your eye on these electric vehicle charging stocks nice boost thanks to the infrastructure bill. why they're saying this basket is a buy today that's on cbs pro. so check it out. we are back in just a moment

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let's get back to that amd news that now has that stock up more than 11%. that's news that's going to partner with meta, facebook, to

supply new data-center chips stacy rasgon joins us now with more stacy, it's not just about facebook also azure implied here. but we knew that amd was making gains in this arena. this is a big jump for that news, isn't it what else is behind this >> yeah. so, there's always been this hesitancy, you know, to believe in terms of how far amd can go and the fact that they just announced facebook and facebook you have to remember gave it enormous cap-x side next year. people would believe this would be meaningful next year. they're in place 10 of the top 11 hyperscalers. they're going to cross the cloud space seems to be growing massively. they announced microsoftazure and gave updates to gp road map and talked about the frontier super computer

they talked about new offerings to compete against nvidia. so it wasn't just facebook but i think facebook is sort of forming the lynch pin of a number of announcements here that are helping to fuel and support the long term data storage. looked good. >> stacy, amd looks to be at around 180 plus billion market cap. intel is just at around 208, 209. >> yeah. >> you know, amd just crossed 100 a share a few months ago it's now at 150 today. at what point does a further bet on upside for amd just simply become a bet against intel doing any better than it is right now? >> well, if you compare amd to nvidia for example, nvidia has had similar stock trends in terms of price nvidia is creating new markets, right? and so, with nvidia it's a

question of how big can you dream for the markets to be? and you can be as bullish as you want amd it has been a share gain story. the advantage their share is still low. even today they're sitting at 10% market share in servers, maybe 20% a little under so there's a lot of head room to go so, it is -- it becomes a question of how much you can believe in at some point, yeah, i think you're right it becomes a question of how well can they do against intel if you look at the real bulls on amd, by the way you talk to them, and i do, a lot have some very aggressive share numbers if you're looking out in the long-term. there's plenty of people out there that might have 40 or 50% market share for these guys versus where they are right now. i don't know it's aggressive but it's not completely insane to put it in the spreadsheet. 18 to 24 months ago you might have been insane to put that in there. it's not entirely crazy to think what could be possible today

>> yeah, stacy as we see those amd shares up over 10%, i'm curious if you see other stocks in your universe that you cover could be beneficiaries of this new land grab we talked about the streaming wars now it's the meta-wars i'm wondering as we see more headsets built, we have the apples and googles of the world investing in this space as well as the video game companies, which of your other companies could really benefit from this >> that's obviously nvidia's in my world that are ripping. i think one sort of sleeper -- but if you want to play the metaverse, i'm not sure what to make of metaverse thesis at this point, we'll see but if you wanted to play that theme, qualcomm because you can imagine -- they're already in a lot of headsets and can imagine not just for really power efficient displays and connectivity

right? and so i think qualcomm is one if you're looking to play a stock that could in theory benefit from a metaverse story where there's probably absolutely nothing priced into it. >> it sounds like you're saying this rising tide of this new use case that we're getting familiar with, stacy l start to lift more votes? >> i don't know. like i said, i'm not entirely sure what to make of the metaverse. you have to be careful, even though i'm a semiconductor, i'm a laudite. i'm not sure what to make of this yet but to extent this is becoming a bigger narrative, we'll see how it plays out this sort of stuff will take a while to play out. but as long as the narrative itself is being shaped, there are a number of names probably that could benefit from the narrative that are not yet and qualcomm is probably one of those. >> yeah. it's amazing, stacy, metaverse seems to be taking a bunch of stuff these companies couldn't sell before on ar and vr and calling it metaverse and now it

has a narrative. it's amazing. >> look, that's not unusual, right? sometimes it takes things a while to find an actual use case, right? >> let's see if they sell. that will be important stacy, thank you up next, the sub stock ceo will talk about facebook's original sin as he sees it more "techcheck" straight ahead. stay with us ♪ at pnc bank, we believe in the power of taking steps forward. moving ahead. whatever the pace. and whatever the size. that's why we set out to help make it easier for everyone to move forward financially. with small business, personal banking, wealth, and corporate solutions that help you reach your goals and plan for the future... it's a girl! ...we're doing everything we can to help you get where you want to be. because sometimes a little help is all you need. see how we can make a difference for you at pnc bank.

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♪ some news today the robot delivery world autonomous delivery companies serve robotics announcing expanded partnership with uber this morning to bring on-demand robotic delivery to uber eats customers. the robotic delivery service will launch in los angeles early next year. i spoke with the co-founder and ceo dr. ali who says the robots are not only efficient but can make delivery more cost effective and environmentally sustainable. that full interview is up on our twitter feed at cnbc "techcheck." yeah and speaking of delivery, new this morning, walmart making an announcement around a fully autonomous delivery vehicle frank holland has that frank, this seems like maybe the beginnings of a solution to that trucker shortage >> yeah, you know what, good morning to you, jon. walmart is hoping its beginning a way to ramp up their grocery delivery business. keep this in mind, walmart is the nation's biggest grocer. now they're trying to gain more

market share by using these fully autonomous, completely driverless trucks to move online grocery orders walmart is partnering up with a gatik. they're using gas-powered trucks that operate 12 hours daily. those trucks are loaded up at warehouses called dark stores that travel to neighborhood market locations they get unloaded and then they go back for a seven-mile round trip now aiming to improve efficiency, walmart is moving to a hub and spoke model operating smaller warehouses that are closer to their customers. that requires more restocking. and you have to remember, traditionally grocery is a very thin margin business that's largely why kroger is testing autonomous last mile delivery they're doing this with a company called nuro in the houston area and using automated warehouses grocery in places where kroger doesn't have stores albertsons is also using remote controlled delivery with a startup called tortoise.

save 60% on delivery costs using their tech 750 billion on spending commercial autonomous vehicles 2027 aurora and too simple. other companies plus and you've got earnings coming up on wednesday afternoon, but this morning, it is offering a discount for disney plus in efforts the boost subscribers, offering one month for $2. the stock is up about half a percent this morning and tech check is back in a moment.

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companies could be regulated chris best has a new op-ed arguing moderation can't save internet companies, saying facebook is quote, captive to that original sin of the internet, the ad-based business model. the cofounder and ceo joins us now. so glad to have you here today lay out your argument about why facebook is so fundamentally flawed just because it relies on advertising. >> i think this is the basic problem with not just facebook, but kind of the first generation of social media companies is the business model that worked when they were coming up was advertising. there's nothing inherently wrong with that. it wasn't like an evil choice for them to make, but the way that that played out, the way this business exists that they become this huge machine for printing money and all of the users, all of the people that use these services to talk to each ovther, their friends, to

understand the culture, are not really part of the main economic deal those services provide. so you have those companies that exist to help people sell pizza ovens or car insurance or whatever, trying to regulate speech it's a mad situation to be in to begin with >> but chris, fundamentally speaking, you can't lose the whole internet to a subscription model because it would exclude a huge amount of people that can't afford to pay. are you saying there shouldn't be any ad-supported models >> i'm not saying there shouldn't be any i think that subscription models can be powerful for people who don't pay. one of the great things about subscription models is you can have a lot of content that exists that people can see and pay to support or not pay and still get the benefit of, but i think it's about giving readers and consumers a real choice over how to spend their attention

i think people are waking up to the idea that if i'm spending all of my time, all of my life, on some feed that exists, you know, to sell me stuff, that might just be a bad choice >> chris, how much work to you still have to do in figuring out how to make the subscription model work casey newton is a contributor to cnbc he's also got platformer on sub stack. subscribers just don't show up even when you're producing great content. it seems there are mechanics here that sub stack can work on to reduce turn, increase subscribers and it varies for how it's going to work for journalism versus comments >> totally i think we're at the start of what i think will be a sea change in what we think about paying for culture on the

internet i think substack is just one piece of a broader shift that the world is becoming ready for. people are ready to pay for things they care about ready to be thoughtful about how they're spending their lives and who they trust to get their information from i think there's a long way to go, but the basic models we have today is working astoundingly well it's working great >> so do you have a priority for say journalism versus serialized books or say comics or are you trying to do it all? it seems there are different types of investments that would be necessary for each. >> we are kind of focusing on we think of as any kind of person that has a unique per sspectivet bring. anybody who i want to invite into my life and give a slice of my time to, to subscribe to, so they can help filter the world and help understand the world around me. i think journalism is a big part of that.

also, fiction. other types of art and culture fit that bill. so we're not really focused on one narrow slice of oh, it's journalist and fiction it's more about this model of an independent writer who is helping curate how i see the world. >> chris -- wrote an explanation of why he is moving from substack over the atlantic after previously being at "the new york times" and moving to substack as you see companies like facebook introduce free versions of what you're doing with their bulletin, do you think your model is going to be under attack and able to survive when you see people like charlie leaving the platform >> i actually think when you see companies like facebook copying what we've done at substack, it's not that the model is under attack it's the sign that the model is working and that other companies are seeing this thing that's happening and kind of wanting to get a piece of the action.

i do think that the central to substack is the idea of putting, yourn you know, respecting people's attention if you have the business model of facebook, that's going to be impossible to do >> an interesting time for the industry and fascinating op-ed thanks for joining us. >> thank you going to be a very busy week earnings wise. tonight, we're going to get roblox, amc, paypal, zynga jon, the offense in semis this week, amd we mentioned this hour microchip later this afternoon broadcom on tuesday. nxp on thursday. we're going to get a good look at how some of these use cases evolve >> i'm curious about this interaction between amc and disney with this disney plus day ha happening on friday and these random disney movies that are going to pop up at amc theatres.

this is when disney plus meets amazon prime i'm eager to see how that works out. >> julia, we didn't really talk about disney plus day or how eternals did or how the return of international traveler is going to change dynamics in the theme park, but that's a discussion for wednesday night let's get to the judge >> welcome to the halftime report front and center, rally on as stocks hit more new highs today. one firm says they're going much higher from here our investment committee debating your money's next move. joining us, liz, steve, joe, and jon, the cofounder of ma marketrebellion.com. stocks have been up for five straight weeks we also have the big, new target for the s&p. look at the nasdaq going for 11 in a row. and then there's the yield on the ten-year below 150 at 148 is where that currently sits we're going to get to all of that i do