ford says it could help the company sidestep any future shortages. we know how dear those chips are. >> it's not an easy thing to manufacture chips. >> no. >> we got to go. see you guys tomorrow. "squawk on the street" is next good thursday morning. welcome to "squawk on the street." i'm carl quintanilla at the new york stock exchange. jim cramer is out west at one market in san francisco. david faber is at the media day in new york. we look at futures here, oil with a six-week low for a third day of losses. diverging tech stories, nvidia,

report sales, and alibaba earnings plunging 38%. the pullback lucid and arrivance are tumbling ahead of the opening i'm here at the liberty media day. we'll be speaking to john malone, and jennifer witt from sirius, all up in the next hour and a half to two hours. the revenue numbers out of nvidia are once again astounding, but the comments got a lot of attention. >> you're right, nvidia is one of those companies where you have to take the revenues up so big you're just kind of in awe, after this amazing growth, you ain't seen nothing yet cisco is the opposite.

they gave you full-year earnings, but what was most disappoint to me, the hybrid business, work at home, work at the office, and the security business seem to have slowed down, and i've had to be more circumspect about cisco. i love the order of growth, but you know what? in this environment you could have operational misses, say they're supply chain and have people believe, oh, so that's what went wrong. this is the quarter where people are saying, you have supply chain problems, give me the break. the other sigh is solves it. when you hear supply chains they days, you flonl see eyes glades over, you have people saying have you not figured it out yet? others have.

>> i think what they haven't figured out is how to -- on amazing orders it's absolutely true, supply chain is a true story, about you we thought they were best in show a lot of people went to chuck robbins to learn how to handle supply chain growth could trump that if you're a visionary, but come on, most people are not visionaries. david, you knew there was no price people would pay for cisco. you knew there's just no bits s i don't think it's even done going down it reminds me of walmart you notice when you miss in this environment, not only do they not want you, they sill you for several days >> chuck robbins did warn us,

and he did lace his comments with things that things were stabilizing in the back half of the quarter. >> we all recognize the supply chain challenges are out the good news is while we saw deterioration, we saw it stabilize in the second half, and we expect this quarter to remain stable that allows us to remain confidence in that full-year guide. >> how much credit does he get for that >> he could have easily lowered, but we need to see security stronger, because security is strong for everyone. if you're doing security, you have a lot of business i would like to see cisco capitalize on this on-premise at-home strategy i think practice that perhaps we have to wonder, did the campus business slow down, because

people didn't come back to the campus it was quizzical, that means sale, as opposed to when you get afternoon alibaba, and there's a lot of competition there, so i mean cisco is in the penalty box, no doubt about it penalty box means sell it does not mean hold. when you look at something like alibaba, that just means flee. >> we've defining winners and loser in this world. there doesn't seem to be a level that people will stop paying for winners. >> you're right, they will pay up for growthened and we'll be talking about that in a moment we also have made this point of

late, these moves are accentuated in both ways in this mark but certainly we have seen both moves up and down. in this case with alibaba, it's going to be down the results did come in below expectations i think neff revenue was up about 29%, but raising overall concern about the level of chinese consumption, i guess call, i don't have a lot of info from the call at this point to share, but we will get more. not to mention i think they have an investor day in the middle of december >> it's not at all, carl now we have a three-dog race, and jd.com has come on strong,

you start to wonder if there's room for all three >> a lot of desks started to argue the all clear was upon us in terms of china regulatory risk yesterday i think there was a nothing that the rivian/lucid craze will eventually lead the nios of the world. now you have free maulls. it's a fantastic market but i just come back and say to myself, wasn't this game, set, match for alibaba? and it isn't anynor. all these people want to go into china, everyone wants to try to call the bottom in china

they don't realize that the government doesn't like individuals being wealthy. who knows how much they put the finger on the scale against ali alibaba. i don't think it's a liked company within the government. >> we can't not mention the other side of the coin here, which is nvidia, jim, about of we move on >> wow. >> there may not be a better performing growth stock. it could approach $800 billion after the response to those earnings, the continued enthusiasm for what they are going to do in what they call the omniverse. just a blowout number, jim

>> it's a software company, and what they're talking about, the physical robots,self driving it's something that i think jay powell should feel ecstatic about. we're not going to have anybody -- train stations, it's just all going to be avatars, and they'll not make mistakes, it will be the answer to the labor shortage when you listen to him, he has a view on everything they started with gaming, but hi comments on labor shortages, that it will be over, over better, the avatars will be fun, great, not only life-like, but within a propensity to get it far more right when he's finished these life-like avatars will be funny and sbpg and -- interesting and

smart. >> we have to get our heads around there i am read ago story thor that barbados will open the first virtual embassy in the metaverse. virtual diplomacy in the metaverse? >> you can get your virtual passport stamp will there be virtual beaches? can i feel the oceans against my toes and the sand? i don't know i'm still trying to process, jimmy, the idea the labor market will be saved by the metaverse a lot of his call is about the labor market that's being saved by their software. my favorite part, he talk about the protein synthesis industry,

and then he says, of course it doesn't exist yet, but it's going to be gigantic he talks about an industry that does not exist, only in his mind i would like to know what jensen huang thinking >> i did have my -- i did have a sit-down with john malone, he's not here, but we did speak remotely, in an interview we did the other day. we did talk about the market et cetera -- market's love of growth we talked about how do you value the platforms around there, and will the market ultimately move from submet rickets to actual profitability. take a listen.

>> we talked about the results from note etflix, we're not loo at, to your point, profitability. i don't know when that will start to change. with netflix, it's more so, but to your point, when do we make that pivot and say, you know what the overall number may not be as important as what the margin looks like, and to your point, the stickiness. >> every investor has a different time horizon, a different perspective. to me, i've always been a long-term investor, so i'm much more interested in building this business brick by brick, making is solid and sticky, and how can you grow it? and how can you grow pricing power? how can you defend the franchises that you're building? it's that kind of a thing.

it's too early i think it's too early to assess the market is obviously putting huge market valuations on netflix, frankly netflix relative to disney you notknow, there's a car comp that's just going public that has a $130 market cap and hasn't built a car yet. >> that's true, rivian. >> there's no question that the equity markets right now are so interested in growth, above all other criteria, and this is like the bubble in the late ' 90s through 2000 this is all about growth this is a land rush. >> yeah. land rush, jim, that's what you

hear from malone, who has seen his share and benefited from a few of them along the way. >> it is so refreshing to hear someone who thinking long term, but recognizes you have to place some bets. it's almost as if he's thinking, they are all venture capital company that have gone public. some will work out, some will not. this is not a man who sits there and sets, this is ridiculous he gets his hands dirty. we have so many big rich hedge fund guys that say it's pie in the sky. why didn't he say pie in the sky and joke why does he still play why does he come to the office >> i think he was in the office in denver when we did that you're right, jim, listen, direct to consumers so, as you

might expect, of course, we spent a good deal of time talking about that opportunity, but it does go back to valuation. he certainly sees, at least in his you kneel to build maybe somewhat different to the way currently the market is driving it >> doesn't he look at something like at&t and realize they may not have the balance sheets to compete? >> in fact, by doing the deal with discovery, at&t is allowing itself to focus its capital structure and obviously its execution on one business, jim and it will have the wherewithal to compete, though judging from the stock pride now, there are

still questions. >> does he think people like stankey are nice >> i'll let him this i for themselves we'll share a lot of it, carl, in the next hour >> we can't wait to hear from more from malone and recutledge. we'll get to mary's kohl's, victoria's secret, but another upgrade of boeing and downgrade of activision blizzard don't go away. to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go! ♪ ♪

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we're coming off the second slide in three days as the november gain has shaved to about 100 points 'rba ia me wee ckn mont

time for cramer's mad dash good timing. s&p just revised the outlook on ford to positive >> they sure shoo, given how much rivian they have. a lot of companies i talked about earlier have the supply chain in hand, some don't, some are taking matters into their own hands. jim farley talked about a deal he just made with global foundries, to address auto chip supplies together we hope to create a secure supply of feature-rich semis. the key term there is feature-rich the chips that are needed to make all the cars and trucks are called feature-rich, which means they're not the high-performance chips, but that's what's been slowing down ford. this is a breakthrough deal.

he's dealing directly with -- i skew them for getting the job done i wonder whether secretary raimondo would weigh in on this. >> it's interesting. the president was an gm yesterday, drove the hummer, proof that america has what it takes. does that do anything to you to maybe have you take a fresh look at gm? >> gm is breaking out here i think it's terrific. mary barra is doing a good job, but when i think about who is going -- in skate, again musk, who has a get musk squad i don't think mary barra has a get musk squad but when you talk to jim farley about musk, it's tnp, carl take no prisoners. >> we're going to talk mo about

tesla, some of cathie wood's comments we'll have more "squawk on the street" in a moment.

so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go!

>> announcer: the opening bell is brought to you by -- keep your eye on the retailers today. macy's 123 beats a 31 cent estimate on the two-year stack, again, it's the retail dynamics are healthy demand, healthy inventory, maybe some margin pressure, but not in the case of macy's. >> i think this was a picture-perfect call, which is that 4.4 million new customers, they're the lifeblood during some curated packaging, talked about hiring an adviser to study separation that was discussed, i've used them, they're a fine consulting firm i think jeff gwinnett made very high goals for himself, and

then, of course, got hit by the pandemic the goals have been realized, and i applaud him. they're on a tremendous growth path now when you get international travel back, it's only going to get better, so the stock is not done going higher. the the gross margin at kohl's also was a slight beat. >> so much for supply chain issues. >> see >> we have spent a lot of time talking about that, jim. they weren't an issue for target and walmart, but frankly that wasn't a surprise, or for lowe's so far demand just seems to be trumping anything else that might be coming their way. >> yes, remember, they're buying back another $500 million worth of stock that's big it's not that big of a float, in the fourth quarter i think people have to

understand they behavely stole sephora when macy's was having troubles sephora is a draw. so you're going to be able to get a chance to beat that. you have two quarters to go in kohl's >> carl, tjx yesterday very strong lowe's had a decent day, the demand side of this equation is not one to forget, carl. it continues to be the likes of things we haven't seen you talk a great deal about the savings rate >> yeah. i guess we could probably extend it, jim, to victoria's secret will open up nine, sonos will open up almost three consumer still has a pretty deep well. >> i'm curious about what williams sonoma is going to do the stock was down 12 yesterday.

i think in the camp of, are they target are they walmart are they like usual mall stores? i think she still doesn't get the respect she deserves, but i think it can come. wish you were here pretty loud s at the big board it's equity greens, celebrating an ipo at the nasdaq, sono motors also celebrating its ipo. jim, got to get your quick read on sweetgreen. >> look, i thought they told a good story of course, andrew sorkin hit them with a roundhouse, when they want the company was profitable he had an interview last year and that was considered to be not cricket, according to andrew

it was a gap profit, not straight up profitability, so a question about how much money they're really making and how much they're not don't go on that show without having your numb ers. i guess the question you'll get on this name is how much are you willing to pay for this kind of growth? >> i think you have to look at it another way this is the next trillion dollar business remember, this was ha gaming company. i like to think of it as an inference company. have you ever bought something, and then it shows you what else you might want that's the artificial intelligence of the next leg we'll take all of the labor and have it dorn by an avatar.

he spends time teasing the omniverse, but is the omniverse is a halcyon place, kind of a, i would say, a wonderland. when you go over what mark zuckerberg talked about with the metaverse, it's pedestrian versus what jensen is thinking about in the ohm anywhere verse. he's thinking about you becoming a great artist other great writer, doing far more than you currently do i think it's the type of thing we've all wanted to be, somebody better than ourselves. that's jensen. >> i can't wait. no problem at all in the metaverse or omniverse. >> not his omniverse. >> it's all wine and roses. >> this is the bizarro world versus the superman world. >> i mean, there's a lot of verses out there

i was going to ask about roblox, a free street high target. >> i love it. >> it's gone from 77 to 128 in two weeks. >> well, that's the stock i picked for the cnbc show-and-tell pageant, the super bowl winner. i felt it had it in them dave invented the verse, whatever you want to call it, verse. again it's a platform to write on jensen has 25 million developers on its platform, rho box should be at the center of where we are right now. it's entertainment it's terrific entertainment, family fun it turned on the to be not a pandemic stock i would love to hear what john malone thought about the verse on the, you know, whatever, nano, zucko. there's two -- there's bazuki, is the ceo of roblox, and then

there's zuckerberg >> i didn't talk to malone about the omniverse or metaverse, i'm sorry to say, but nvidia is back off a bit, so to your point about it becoming a trillion dollar company at this rate, it was only a few weeks ago it crossed $700 billion, so it could easily hit a trillion by the end of the year back to carl's question, 50% revenue growth i think they're guiding toward 47%, 48 pi 47%, 48% for the next quarter, does it matter at all? >> the interesting things about this company, first of all it's profitable secondly, it's always looked expensive, and then you look back at what the company earned. there was a period in the mid teens where it was selling at about 17 times earning when it

was selling about 80 times earns. we put out a note for the investment club last night that talked about it may be the biggest guide we have seen there's just a remarkable guide out. not one has ever predicted a gigantic industry that no one has ever heard of on a conference call and then predicted they would dominate, and we didn't know -- it only exists in his mind right now, but we're all part of his omniverse. >> it's funny, it does remind me another person who thinking about the future, masasan, they're selling it, that's a catch deal, but they sold their nvidia stake >> let me tell you, the people

who sold it, what their day is like today that's their day >> got it. all right. let's talk more about my sit-down with john malone. we do spend a lot of time talking about direct-to-consumers. whether it be what will be the combination of warner bros. and discovery, and discovery plus, hbomax, paramount plus, peacock, we can go on and on, apple, amazon i asked malone what he thinking will ultimately be the arbiter here in terms of success. >> i think the real issue, david, that the -- that you have to start thinking through is what is going to be the profitability profile of these businesses, you know, as they

increase and you go global, as they achieve various levels of scale and various levels of stickiness or content cost, and to me, it's almost looking back at the history of our business, the cable business, where we learned how to deal with bundling and churn and pricing, and end up with a hybrid service offering that was ad-supported, but also had something presumably for everybody in the household. >> right. >> so i think those are the lessons that these direct to consumer companies are going to be learning and competing over that will ultimately determine things like profitability, growth and economic value of the

enterprise the appropriate mix of ad and direct consumer, and the level of bundling. >> so, john what needs to develop for you to begin to answer the question you originally posed, which is what is the profitability i think there had be a brought set of consumers provided, some of which will add supported, some of which will be hybrid some of which will be subscriber funded only. >> i'm curious what you think about disney of course, they also seemed to have established themselves as the number two player, if they can call it that they still have a goal of some 230 million worldwide subs at

some point, but some wonder if they have hit a bit of a wall. disney has to decide to choose between profitability and scale. it may well be that they could have a of the more profitable business by focusing on the people who have young families and really want their intellectual property. i mean -- or do they put it all in a bucket and, say, you buy the whole bucket at a higher price point, but your satisfaction may not be as high, because you're buying a lot of things that you don't necessarily value. >> yeah. >> so disney has a lot to work with in that space, but they also have a lot of legacy commitments, and how they morph from a very profitable linear

sports world into a hybrid world of direct consumer, with some advert advertising at least are is the evolutionary things i this will determine the ultimate outcome to your point to how this evolves, do you have a sense when you talk to david how it should by thought about in terms of at the direct-to-consumer offering from warner to discovery will look like >> yes we've had many discussions i don't know that i would say there's a conclusion at this point. i'm a believer there would be many offerings, not just one gigantic offering. >> john, you seem to be of the belief that one size doesn't necessarily fit all for these kinds of offerings >> i'm totally, totally on that page i think trying to satisfy every

taste and every interest in one omnibus offering is going to turn out to be unprofitable. i don't think gus 100% subdescriber paid as a model a going to leave an awful lot of people on the sideline that would be content with something that's less expensive or free, but much more ad supported. >> which gives you a sense of what we may see when discovery rolls out its strategy of course, jim, netflix is exactly that by far it's the more highly valued than disney is right now. it is all things to all people and subscriber-only content. >> that was a devastating interview. what he said was disney has to

choose between profitability and scale. the wince he don't have to choose in this space so that was quite chilling >> well, we'll see he referenced sports, of course, because much of the engine has been espn, as we well know it's been replaced in investors fog culls by direct to consumer, but that business, as we've been pointing out for years has been changing. >> scale means profitability they should never be at odds with each other. he is basically saying -- it's very chilling, david very chilling. carl, a lot more from john malone and tom rutledge coming up shortly as well charter's ceo with david at

l liberty media day. yields are down almost across the board, jobless claims in and out a post-covid low. philly fed, highest since april, as the economy continues to be on fire in the manufacturing space. we're back in a moment so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go! ♪♪ for skin that never holds you back. don't settle for silver. #1 for diabetic dry skin #1 for psoriasis symptom relief and #1 for eczema symptom relief. gold bond.

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. welcome back to "squawk on the street." once again in person, we had a one-year hiatus, very happy to have tom rutledge here with me it's been a while again. >> good to see you live. it's really a pleasure. >> it's fun to be live and in person it doesn't mean we haven't been following the company, of course, which has had extraordinary growth for many years, a bit of a hiccup recently, and a concern about whether your broadband growth is

decelerating the first question is simply that -- are you seeing a deceleration do you expect that to continue or was that a hiccup >> i wouldn't call it a hiccup obviously nobody knows the future perfectly, but, you know, during the pandemic it was an unusual time for our business and we grew 3.5 million customers since the pandemic began, which is an enormous growth rate, faster than we had been growing people aren't moving we have the lowest churn, including move churn, in our history, so the effects of the pandemic are still real. we're growing nicely, but it's a smaller activity marketplace at the moment we're comfortable that our long-run trajectory will remain on track but there is anomalies in the way people are moving about. our growth is good, just not as

fast as it's been. >> right you know, there is this concern, and it hit obviously shares of my parent company comcast, as well as charter, that there's a lot of over-building, companies we know well moving into your territory, in part because the cost of capital is incredibly low right now, so the terms parameters may be different, and in part the actual technology is cheaper than it might have been when we saw this similar pattern years ago with the fios. is that a real threat to your business >> our business is competitive we've been competing in satellite technology for years, with phone companies, yes there is over-builders through our history, and the pace of that hasn't changed very much we do quite well in most of the competitive areas that we operate. in fact all of the competitive areas we operate with

over-builders, and there's direct cellular kinds of connectivity, wireless broadband. >> yes. >> and we're selling a lot of products so it's still a competitive satellite business, we're in the mobile business, growing quite rapidly. when you look at our whole product set and where we stand, we're still a high-growth company in a very competitive environment. >> right. >> when you put all of our products together into a single package, the value proposition is good. if you look at pricing now that we've been, say, for mobile, or mobile prices are about half of what people are paying that's a huge opportunity. and we're very under-penetrated. >> that doesn't mean, if somebody comes in because they have a low cost to capital, that they price where she shouldn't. >> the irrational competitor is always difficult to deal with, but you know, verizon's

over-build process didn't work out very well, ended up selling most of it it's a difficult business, it's a slow business, very capital intensive, and we think that our access to and upgrade our netwo and keep our network competitive and speed up is easier and more efficient than our competitors and we think that we'll succeed in the marketplace. >> you mentioned wireless and i would like to spend a little bit of time there as well. it's a growth part of your business you have 3.2 million wireless customers. >> that's right into which people may not realize obviously if you watch football you see the adds and know you are out there. >> right. >> can that grow quickly enough perhaps that it ultimately replaces video as the second leg of the stool >> i think so, actually, yeah. if you look back at our history, when i -- in 2004 i launched the

first voiceover ip platform and we were selling wire line tel telepathy and in this marketplace the average phone bill was $72 for wire line phone, today it's $13. the major share of that business has moved to our business. and i think mobile is a similar opportunity. >> you do? >> i do. >> every time we sit down i have to ask you about the video business i used to ask about it years ago -- >> you don't lead with it. >> now the question is why even bother i think you lost 121,000 video subs last quarter, less than the overall universe. >> we're the best of the worst. >> right. >> but how do you get business at this point? >> i look at it, it's a problem business in the sense that it's a business in transition and the cost of video has gotten really

high our wholesale cost is high the rates we pay to carry all of the products and it's difficult from a pricing perspective to create a value for a lot of customers. on the other hand it's still the best product out there from a video perspective. if you look at the direct to consumer products and look at what they cost they cost more on an aggregate than the traditional bundle i think that it's still a business that we need to be in i think it's a value to our customers. you know, most of our customers still subscribe to video and i think, you know, the rate of loss in the bundle will probably slow some people. >> it will slow? >> i do. >> doesn't seem yet. the proliferation of all the different bundles that i put together with streamers seem to be pretty robust. >> well, there's no sportness most of that. >> no. >> and so it's -- and it's

premium television in most cases. >> yeah. >> so the traditional tv, traditional sports, that's still packaged in these big packages. >> and news. >> business news in particular. >> i did want to talk about bundling, because roku has created a business, a significant one. comcast is selling a tv now. >> right. >> so people who may be charter customers. >> right. >> how do you view it and would you consider trying to compete in some way, bundling the streamers that roku has been successful at? >> i think there will be reagfwregation of streaming products and i think there's an opportunity to having a storefront where you're selling television transactionly and because of our subscriber relationships we can do that. >> what does that mean selling television transactionally

>> if you have direct to consumer services having them all in one place and a user interface that shows what's on -- if you try to use these services and find what's on it's a struggle i think there's a way to bring those products together and sell them more efficiently in a packaged way with a company like us that has a relationship with -- >> not by buying a roku. >> not necessarily buying the roku >> business services is 13% of revenue. i don't think i've ever asked you about it but notice it's a larger percentage overall. is that an area that you can continue to accelerate >> it is it's actually an area through the pandemic that, you know, was difficult because a lot of businesses closed for perz of time, but we managed our way through that and the growth has returned and we have a large enterprise business where we're serving big, you know, facilities and we have a very

small business enterprise business and both of them are growing nicely at the moment we have excellent networks, excellent products we've got managed services and enterprise and we have credibility now as a sophisticated carrier and businesses are choosing to relate to us it's actually a growth opportunity for us >> and finally, i'm just curious about you and your future, doing this for a long time. >> right. >> looking good. >> thank you. >> but, you know, i notice, i think it was your coo retiring. >> right. >> and some people wonder about succession do you have a plan in place in terms of when you may give up the top job? >> i don't actually. i'm not committed to giving up the top job. but we have good people and we have people that we just promoted as a result of john bicham's transition. john is 77

we've worked together 31 years in three different companies so it's a big change, but it's exciting, too. the people that we've been together with in charter, i've been together with them for ten years, and they know what they're doing. if i trop deadtomorrow, there is a plan for that >> all right well that's not particularly hopeful place to leave things. >> no. and i don't expect to. >> glad to hear that into i look forward to future interviews as well and appreciate your time. carl, back to you. >> david, jim, what's on mad tonight? >> you have to have macy's the stock the star of the day. jeff beganette workday and twitter, what is going on there we'll speak to the cfo tomorrow, yes, we've got pretty good guests because workday has pete we have nvidia tomorrow and i want to be part of the nvidia

world and, you know, it's his world and we all live in it. >> leading the s&p up 12% now, all-time high macy's three year high. >> got them both. >> we will see you tonight "mad money" 6:00 p.m. eastern tonight. when we come back more with david from liberty media day, still just south of 4700.

so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go!

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$1 billion so millions more students, past... and present, can continue to get the tools they need to build a future of unlimited possibilities. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan at the new york stock exchange david faber live at liberty media's annual investor day in new york markets not moving around a whole lot but packed with news we're south of 4700 on the s&p, dow is down 128. it's all about earnings, nvidia, cisco, macy's, kohl's and macro with philly fed and jobless claims new post-covid low. >> packed is right 30 minutes into the trading session. here are three movers we're watching remember we're watching, but we'll start with three, retail

reports continues, macy's higher after the department store chain posted a beat and raise hiking its full year outlook and the latest to say it is well stocked for the key deholiday season the stock is up more than 200. alibaba getting bashed after missing on tonight and bottom lines, attributing the year over year drop in profit to a decline in equity investments. those shares are tdown 10%, abou 37% for the year so far. we will end with nvidia. those shares are surging, topping expectations it's benefitting from high demand for video game and data center chips you can see shares are up 11% now. something like 150% year to date has vastly outperformed the other semiconductor names. of course it is in those areas that are just continue to see the growth, carl. >> some of these revenue numbers on the print are jaw-dropping,

gaming up 42 again data center up 55 again. we cannot wait to hear what jensen tells jim tonight on "mad money" about the growth trajectory which investors are trying to understand. >> yeah. that is going to be must much tv for investors tonight. it is worth noting automotive sales did fall 11% quarter over quarter, but they're still up 8% for the year and this is as we're seeing the ramp for self-driving vehicle programs but the crunch within automotive supply chains overall and the crypto mining chips fell 60% which perhaps is not that surprising given what we've heard from some of the crypto currency companies, the trading platforms and what not about what that activity looked like last quarter too and the big question mark is arm now that we have the ftc joining uk regulators in questioning the possibility of that deal, nonetheless, investors are all-in on these numbers today. >> yeah. by the way, tonight jim has

macy's tomorrow has nvidia. as he wraps up this crazy week i wish it were friday. >> me too. rivian shares closing down 5% yesterday, still up over 50% over the red hot ipo last week joining us now is early rivian investor t. rowe price's joe thought. great to have you on the show. >> good morning. >> certainly getting so much attention from investors, the ev space and specifically rivian. you've been involved in this company and t. rowe price for a number of years now. i'm not going to ask you about valuation directly but i am going to ask you about what it was specifically in this company out of all the ev players out there that warranted investment and continues to capture your attention. >> good to be with you the way we focused on approaching this, given it's a

capital intensive business is finding right company to invest in and putting a lot of capital behind that one company. rather than what i call a spray and pray approach. so our view and my view specifically has been this is the right company with the right strategy, with the right products at the right time i've been -- i was a board observers at the company for a little over two years and led several private rounds and just really impressed by r.j. and his team, exceptional team there, and they've built world-class folks both on the manufacturing floor and in the executive suite. the other side of it which was a driver for us, two key spaces on the consumer side and really the most profitable spaces of pickup trucks and large suvs and on the commercial side the last mile. one of the help to the thesis was the fact that amazon had come into the company before we is it as we all know has put in an order for 100,000 rpvs.

i would also say for us, you need to separate the those over time it's about building a sustainable brand and product with customers once the products get in the hands of consumers and commercial drivers they're going to resonate and captivate people's attention they're really amazing i've driven them a number of times, both the commercial product and the consumer products the other side we like about how they're approaching this is vertical integration tesla has done this as well and it's going to be important as we move forward for the companies that are kind of starting the blame canvas to be successful over time and they're going to need to vertically integrate around health supply the last one is flexible manufacturing. this company is prepared in a way to build the organization to add multiple variants of the vehicle over time. >> yeah. i mean all of the points you made i think speak to the prospects for rivian, but given

the fact that company is only now just starting to roll out some of its early model, just starting to record a little bit of revenue, are you surprised to see how strong the reaction has been since it's gone public? >> oh, for sure. i think the entire ev space and i think, you know, since covid and the onset of covid, it doesn't cease to amaze me some of the gyrations we've seen in the market i think it gives you a sense and also captures the imagination not just the institutional investors but retail investors as well. this is a large addressable market take tesla, for instance, right. they're on a run rate to do a million vehicles a year and a trillion cap company there's a lot to be had here the focus we've had at t. rowe has been on the long term. we'll take advantage of the short-term dislocations and build positions in companies that we think have a durable growth profile that can outperform the market for many years and think that rivian fitness that bucket. i've been doing this for 20 years now, and it's been far one

of the best companies i've seen. >> i wonder if you're satisfied right now with the way the market is filling in from a price spectrum perspective we know it those get cheaper if it's going to be mass market but some of the favorite names like lucid and say race are extremely expensive cars >> yeah. no doubt about that. they're different type of companies. lucid's case, they're really going after a small market today and their challenge to expand to get to the lower price points. their vehicle, they said this, is really targeted at the mercedes s-class, a vehicle that sells 20,000 units globally a year and it is a high price point. the vehicle they introduced, the air really has a competitor in the marketplace, a great competitor in the model s. ferrari is a different an a mall, their challenge to pivot as they've done hybridization and evs but it is a high price point niche company that sells

9,000 units a year and generates margins in the mid 30s they're different animals. hopefully that's helpful in kind of separating the differences between them but if you look at it today, tesla and rivian have the two largest ev manufacturing plants in the united states all the others, they're going to need a lot of capital to build the business and to have a full product suite that touches high price points as well as low price points over time. >> we're talking about evs specifically with rivian, but joe, how does it speak to some of these longer term bets that t. rowe price is making where next generation technology and mobility are concerned t. rowe has made interesting investments in spacex and abl and some of these other plays in emerging corners of the market >> yeah. i haven't specifically myself invested in space. i've had other colleagues that have i tend to thing through it the early stage of these i call green bananas, and they need to

ripen a little bit and need to make sure there's a model for modernization over time. where we've spent time and as you know we have been investing in privates going on 14 years, we're finding unique opportunities, particularly within the auto tech space broadly, within material science. folks innovating around the battery ply chain and inside the private investments for us include redwood materials and nano technologies which we think are interesting companies that are to come and we have multiple investments in autonomous vehicle companies including waymo. >> joe, great to get your insights today thanks for joining us. >> happy to do it. thanks for having me we're going to toss it back to david in midtown manhattan at the liberty media conference david? >> thanks, morgan. of course a lot of talk here as you might imagine about well all of liberty's businesses including liberty broadband. they own that large stake in

charter communications, which has been a great performer over a longer period of time. in fact, the best of the liberty sof entities over the last five years. when you take a look at comcast and charter stock over the last couple months our viewers know there's been continued or increased concern perhaps about what it's going to mean in terms of competition from these so-called overbuilders a recent downgrade from deutsche bank saying as a new environment that has to be characterized by lower returns. the business is transitioning to a more competitive environment i asked john malone about that environment. >> if you have capital that's willing to settle for very low returns, okay, it's a big threat the biggest threat has always been the guy with the -- the stupid guy with a lot of money coming into your business

because they may not end up with much profitability, but they sure as hell can damage the profitability of the incumbent and i believe the vulnerability of incumbents varies very much from market to market depending on specific, depending on just how cheap it is to over build and just how cheap it is for the incumbent to upgrade so you could well be in a situation where the incumbent is forced to expend capital that otherwise wouldn't or does it early in order to repel a competitive over builder the long experience of over builders in our cable industry was quite negative the ultimate returns were very

poor >> well, i asked that very question, of course, to tom rutledge the man who runs charter communications and here's what he had to say. >> well, the irrational competitor is always difficult to deal with, but, you know, verizon's over build process of fios xael actually didn't work out well and ended up selling most of it it's a difficult business. it's a slow business it's very capital intensive. and we think that our access to capital and our ability to upgrade our networks and keep our product competitive and capacity and speed up, is easier and more capitally efficient than our competitors we think we'll succeed in the marketplace. >> and morgan, i'll be sitting down with greg maffei who runs liberty. there he is. back to you. >> we're looking forward to it still a lot to come in this hour

from you and it's been great so far. still to come in general, elon musk out with some new details around spacex's starship this is the most powerful rocket ever built we're going to fill you in and ava lot more "squawk on the street" street ahead.

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$1 billion so millions more students, past... and present, can continue to get the tools they need to build a future of unlimited possibilities. welcome back to liberty's investor day greg maffei told me he's always happy to chat with me and you

too. the chairman of sirius xm and live nation and curate, chairman of trip adviser and director of charter and zillow, like to point those out. >> a that's my job. >> it is your job into another thing that's your job is figuring out a deal for the spac the last time you and i talked it was earlier this year when you announced fairly large spac for liberty. so far no deal is it tough out there to find an opportunity? >> wait. we're not starting with the braves and mets? i'm kind of surprised. >> i knew you were going to go there. >> given all you have beaten me about, asked me who the infield is, would you like me to go through the whole infield the world series ring. >> spend time on them and your atlanta braves. >> just checking. >> their world championship and clearly you run an incredible organization what can i say >> i will point out we've taken heat from the braves from you

and our guys do a great job. >> granted. >> i lose on that. >> all right >> what about a spac going to figure one out? >> we hope so. it's a tough environment for spacs and i think that plays to our advantage? >> why. >> the speculative nature of the business is being pushed out and people with real capital, we committed $250 million of our own money alongside the spac, the ability to backstop and have kreblts in the marketplace and strong investor base we have the following we would like to think we bring, all those create us an opportunity to find a better investment. >> what are you seeing out there? i would assume you've had your share. it's been a while and why has nothing fit the bill >> it is a competitive market and we went from a speculative in the beginning of the year, we would walk in and make a bid and somebody would examine come in and make a bid 40% higher and sellers have having to adjust

their expectations but that plays to our advantage >> why >> because again, we have credibility with real capital, with a real following. >> right. >> not a fly by not. not playing for the promote. we're playing to build a long-term business, our model from the beginning -- >> i never understand why you were doing a spac. that's what your business model was to begin with. why bother with a spac >> we were looking to find opportunities that fit with our portfolio, live nation, serious and formula 1. the spac freed us up to look at things that gave us more freedom. >> let's move on so many more companies to potentially get to i want to start with sirius. you took your stake above 80%. dividends. some are wonder why no, you. you would kr gotten up to 80% and you gave up the discount when you did the deal with berkshire. why now? >> the way we did it with the

exchange of shares, of lsx shares for sirius xm shares to create an active trader business created additional flexibility for us to be able to spin the tax-free or do different things with the asset and we will have more flexibility and optionality because of the manner in which we did it. modest traded for flexibility. >> optionality and flexibility what does that mean and why now? why couldn't you wait? is there something you want to do soon? >> no planner intent we didn't want go over 80 through a cash buyback we wanted to make the execution through a share exchange which allowed us to make it an active trader business. >> nothing near term at least that you necessarily plan? but if there was an opportunity, given your optionality and flexibility, you can now take advantage of it? >> we would like to think so. >> all right the braves, it's on my list here you see. you know how to get to it first.

>> seemed appropriate. >> there are those that say you're not a natural owner of the team, as great as it's been and the stadium, this is not a bad time to consider selling would you? >> we are not sellers. starting with the structure while it sits in a tracker it would be unattractive from a tax perspective, unlikely to do that could we somewhere down the road do things to create optional i.t. around that surely we've had a heck of a run. improved tv deal, new facility down there the battery around it. improved onfield performance been a pretty good run. >> it has been a good run. there's some who say the team is under paid by rsn, but as a business these days don't seem to be a good one to be in. >> the rsn model is a challenge, we have a good deal, to the a gr -- not a great deal and that could mean a better future we have the largest broadband

territory of homes, over 12 million broadband homes. to the degree we move to a digital model, a la carte, to the rsn model, we have more flexibility and opportunity than -- >> tell me about that. if the rsn model does as it appears to be break down what is the new emerging local sports world look like? >> you'll see a host of new alternatives, whether it be offerings provided by mlb, whether it be other over-the-top offerings or whether it be a more a la carte model over traditional linear television. those will pro liveliferate >> you own the braves and formula 1. have you ever thought about another content property that could fit well you didn't -- ari bought the ufc. that could have been something you were interested in wwe? >> we look at them all tr, trus

me. >> anything at all that would be interesting? >> the right intersection and the right price, we wait for that moment. >> trip adviser has not been a great story for some period of time the pandemic was a part of that, although some execution issues how do you view that business right now? is it something you would be willing to cut ties with >> i think there's a great opportunity ahead for trip on a bunch of things. first, travel is recovering and leisure travel most of all i think business travel may lag. but trip adviser is focused on leisure and creates opportunity. second, trip adviser plus, the new model we have, trying to build a subscription product offeringdiscounts for our subscription and other benefits for being a subscriber takes advantage of the 500 million monthly active users we have and leverage that. our opportunity and strength around experiences and fourth our opportunity in dining all have upside. >> so you're going to be there for long term even though the long term has not created a great deal of value. >> look. one of the beauties of the

liberty model i would like to think we're patient capital, we have a portfolio, like having a lot of kids, somebody is alwaysing to something right, may be lagging, the long-term performance has been excellent and we're believers in the model. >> finally on a somber note, the live nation concert in texas is that going to impact that business at all in terms of a liability or cost perspective? >> it's a distressing event, the loss of ten lives, something disheartening, ensure the safety of our crews is paramount to liberty. >> an zillow, i got to ask since i noted you're on the board it's been a tough road there as well. >> absolutely. hard to imagine a more impressive executive than rich

they made an investment bet being in the i buy market and we cannot cannot manage sufficiently and the risk is too high fort core business we have. unlike some of the other players zillow has a great core model and so threatening it with the i buying business was at some point too much of a risk and management made a courageous decision. >> all right greg, it's been nice to see you. >> good to see you. >> i would give you a hearty congratulations on your world championship >> thank you that must have been fun. >> it was. >> ceo of liberty media, back to you. >> thanks so much. we did take a leg lower, dow down 230, back to 4677 couple headlines, one senator manchin not committing to vote on the white house social spending bill and they're seeing broad-based signs of inflation, 10-year below 158, vix above 18 and s&p down0. ckn mite. 1

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is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go! welcome back it's time for our etf spotlight and we are looking at the

industrial select sector spider fund, xli, up almost 20% year to date it's down a little bit right now along with the broader averages. top holdings include union pacific, ups, raytheon, but today in particular, we are watching deere, as 10,000 workers approved finally a new six-year contract last night ending a month-long strike and three rounds of offers that stock is up almost 2% right now. it's up more than 30% year to date after the break we've got more of david's exclusive with liberty media's john malone. we are back in two.

♪ welcome back to "squawk on the street." i'm leslie picker. your cnbc news update at this hour belarus has cleared a migrant encampment at the border crossing with poland many who had been trying to force their way into the eu are taking shelter from freezing temperatures in a government warehouse. the move is reducing tensions, but western leaders are skeptical with no indication of where the migrants will go, fears remain that belarus president lukashenko will use them as leverage to pressure the west into dropping sanctions against his government. today russia, which has sided with belarus, released a video of a successful test of a hypersonic cruise missile. president vladimir putin is saying today relations with the u.s. are unsatisfactory and britain's top military officer says there's more risk of an accidental military conflict than at any time since the cold war. eastern europe may come up

in today's north american summit hosted by president biden. justin trudeau and andres manuel lopez obrador will join biden at the white house but they're expected to focus on trade, covid vaccines and reducing methane remissions back over to you, david. >> okay. leslie, thank you. we're here at the liberty investor day, of course, and even though discovery is not one of the participants here because, of course, it wassed only personally by john malone, it's on the minds of the many of the attendees here the deal which discovery will combine with warner is moving along. many expect that perhaps it will close sooner than had been anticipated, said to be the first half of next year. i think we're going to get a proxy on the deal soon as well but, discovery shares and at&t shares have not been good performers since the deal was announced. that's where i began a conversation with john malone,

who was key to helping this deal along, giving up his super voting shares for no premium, started on asking about the deal itself and investor concerns >> there's a lot of investors, though, concerned when it comes to warner brothers discovery about being five times levered and having a lot of cash flow from the tv business how do you reassure them >> my understanding is, first of all, that it has been indicated that right out of the box, well first of all, the deal may happen sooner than people think. number two, is right out of the box, the leverage, the initial leverage, is going to be lower than people think. number threeis, the free cash flow chart statistics of this combined business and then enhanced by sinner in fwis operating synergies generated quickly will take that leverage down quite fast and number four,

this is investment-grade debt. long term, cheaper interest rates, right. >> yeah. >> higher cash flow through synergy and a rapid pay down of anything that is regarded as excess leverage. i think it's -- that shouldn't really be the focus. i think the focus should be the creativity, whether or not these engines of creativity can make stuff that's unique, that the public really wants to see >> you know, they've stated cost synergies around $3 billion. we talked about this previously, but you certainly seem to think they're going to be some significant revenue synergies there and i wonder why that is and where you see those coming from >> well, i think just the ability to bolster service offerings with library that

exists, you know, in the deep, in the time warner vaults, is going to be an interesting revenue synergy opportunity. i would guess that you put the two together and you start launching these direct consumer offerings outside the u.s., where you already have discovery in place in language and on tv screens, you've got a major benefit there in terms of lower marketing costs and higher probability of consumer acceptance. >> how about news? is there any place for news in a streaming world? obviously cnn is going to be a part of this company i don't know how to view that. i would assume there's any number of potential suitors for that property should mr. zaz love and the board decide it

doesn't fit. >> i would like to see cnn evolve back to the kind of journalism it started with and, you know, actually have journalists, which would be unique and refreshing. i think the way out would be to sell it or spin it off and then sell it, do it in some tax efficient way. there isn't a lot of tax basis in cnn, so a straight sale would probably be a little bit leaky, let's call it, but doable. i do believe that good journalism could have a role in this future portfolio that discovery/time warner will represent. but, you know, i'm just one voice here. >> i get this question sometimes, and obviously you know i'm personally fond of david zaz love and you have great respect for him, you paid him a lot of money and over a

ten yooerd period and discovery stock has not done that much km. how do you answer those critics who say he's done well, but we haven't? >> i mean, he's the kind of guy that can deliver a skrips merger or a time warner deal. without the scripps deal discovery would be in a third tier today okay what if you hadn't had david there delivering the scripps deal, okay what would discovery be worth today if you hadn't had that so i always look at the glass as at least half full >> i do want to take a minute to ask you about the performance, you mentioned earlier long-term investor, have certainly your history shows that, the five-year performance of a lot of liberty entities, other than

liberty broadband, i don't think any of the others have outperformed the s&p and i wonder, are you disappointed by some of that performance at this point? or -- >> you know, you got to look at -- yeah, look at the pieces, david. look at formula 1 and live nation, look at sirius, liberty sirius with the recent transaction with berkshire hathaway. >> yep take it above 80%. >> some of these structural discount are starting to go away, which we knew they would with time, but patience in order to be able to structure things properly, you know, some of these things have taken a period of time. if you took the big techs out of the indexes, i don't think you would see the indexes have

performed all that well. you should be asking me, john, why didn't you invest more heavily in google or facebook or amazon why did you say with these old businesses you were in i plead guilty to that i tried to buy netflix from reed hastings when the stock was 8 bucks but he wouldn't sell it to me darn that bad luck the other thing you have to ask when you're looking at the index is how did you miss the massive ollie gop listic tech companies? i mean, there is the challenge >> yeah. >> they are big, they are highly profitability, they're getting bigger, their market powers are growing, not shrinking, and if you compare anything to that, it's not going to look good.

>> my old libertarian friend here, what do you want do you want them to get regulated somehow? >> i think they are natural monopolies and need to be regulated in some way. i'm not sure that i understand the right way that they should be regulated, but they shouldn't use their market power to prevent competition. there's no -- look, jeff bezos is a genius with what he's created. steve jobs and tim cook have been masterful these have been brilliant reed hastings, brilliant businessmen who have seized an opportunity, seeing the power of global scale and have exploited it. >> quite a thing to hear john

malone talk about potential regulation when it comes to some of the big tech companies. he's not sure how, but again, i kidded with him, as my libertarian friend but that's where liberty comes from and the way he views the world somewhat unusual to hear something out of his mouth along those lines. >> yeah. i mean it was fascinating. also netflix hit $8. the stock trading at $683 a share now. to his point there i also thought the comments about cnn were kind of riveting. and basically saying that the sale would be the coward's way out, and he wants to see a return to journalistic roots he brought the fire in his conversation with you. >> he did. there's actually a lot more there as well as you might imagine. we talked for almost an hour we do make it available i think -- not even behind the pay wall at cnbc.com b but, yeah, i thought the comments on cnn were interesting and it is a key question, how do you integrate news in a streaming platform is there a way people want to

pay for it because obviously it is -- by the way we know many journalists at cnn who would disagree with his characterization, but it is going to be a part of this new company and it will be interesting to see just how it is integrated. >> yes and how you can make the model work for profitability that's going to be interesting to see as well. great stuff with john malone. >> this leg lower and whether it's pinned to the comments from the new york fed's williams. let's get to steve liesman. >> hey, carl john williams, the new york fed president, making some comments on inflation in the conference this morning he's saying i think what was evident in last week's cpi report saying that we are seeing broader-based increases in inflation and maybe the market not liking that very much when the new york fed president says it even after taking account for what are called base effects, the idea it was lower before so

now it would tend to be higher, even when you take that into account, a pick-up in underlying inflation in the u.s long-run inflation expectations have reversed earlier declines now at levels seen in 2013 and 2014 he's talking about five-year inflation expectations the one-year and three-year are quite a bit higher he does seem still to attribute them mostly to temporary factor, supply xrantss are a factor and supply chain bottlenecks the framework is suited for this because it starts from the point of making sure inflation expectations are anchored at 2% according to headlines and are listening to the speech there. he does see the economy by the way roaring back a quick look at inflation expectations this year we know john williams is familiar with these from the new york fed, the one-year and three-year consumer inflation expectations and what they show is up to really unprecedented

levels we've seen. the five-year back to the 2013, 2014 level some of those numbers -- there you go, up near 4%, 5% on the one year, lower on the three year what was not asked, carl, whether he's going to do anything about it in terms of altering policy. i don't see the fed probability's market moving. i see little movement in the fixed income market which maybe raises the question is the bond market a little bit more prepared for a it more aggressive fed than the stock market is. >> the fed speak for the day and we'll get dilly later on today who has had dovish things to say in the last couple days but his comments did make news and we wanted to check in with you. thanks coming up on "tech check" an interview with the ceo of sonos. stock off the highs today despite delivering an upbeat outlook amid supply challenges the dow does go red for nomb, 'rba ia veerwee ckn minute. to make progress, we must keep taking steps forward.

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with xfinity home, you can keep your home and everything in it more protected. i can wrangle all my deliveries. thanks, hoss! and i help walk the dog from wherever. *door unlocks* ♪ ♪ well, i can bust curfew-breakers in an instant. well, you all have xfinity home, with cameras to home security monitored by the pros. *laughs* learn more about home security or get our self-monitored solution starting at just $10 per month. we're actually getting ready to draw our first large tent within the first few months. we're expecting our license from the faa around the end of this year and so that probably means

a launch in january or perhaps february we intend to complete like the test flight program next year which means that it's probably ready for val ble payloads that are not in the test -- not for testing basically, but actually real payloads in 2023. quite soon it's not like we're launching tomorrow really soon. tomorrow is a ways off >> that was elon musk last night discussing spacex's plans to launch its starship rocket in its maiden orbital flight as soon as january. spacex has been building a testing prototype since it started in texas starship will be fully reusable and the most powerful rocket ever built musk said 2.3 times the thrust of the current most powerful rocket the apollo

saturn v which took plaerns to the moon the goal to carry people to the moon musk estimating 1,000 will need to be produced to make humanity interplenary musk's youngest son, making a guest appearance last night at the virtual board meeting of the national academies of sciences and engineering and medicine space studies which was cute and i feel like is exactly what you would expect to see in a work from home virtual environment. he did seem to get plucked away maybe by a caregiver and didn't seem happy about that. it was a sweet start to the conversation. >> yeah. your note about payloads is key if you're going to start bringing up heavier stuff and a star link is going to be a reality you need better thrusts to get stuff into orbit. >> absolutely. this is the transportation system that ultimately spacex will use to carry people and cargo to mars and also the

system that nasa awarded that lunar contract to, awarded almost $3 billion to build that out to bring americans back to the moon in the next couple years too. musk did say so far it is 90% internally funded and i would note to give you a sense of the magnitude of this thing, like the like the tallest building as someone pointed out to me yesterday in southern texas is actually the launch tower for starship >> he's going to get us there one way or another been very stubborn about it. a fascinating look at how space is changing all of our lives take a look at some of the big laggards on the s&p as we continue to be in the red after a pretty good start. cisco will lead you know with their comments about supply chain and of course chuck robbins on mad money last night. we'll be right back. tv: mount everest, the tallest mountain on the face of the earth. keep dreaming. [coins clinking in jar] ♪ you can get it if you really want it, by jimmy cliff ♪ ♪

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welcome back to "squawk on the street." still here at the media investor day. a little shorter than normal, people filing out from one of the presentations. and our next guest gave a presentation a short while ago, ceo of sirius satellite radio. nice to have you here. >> thanking for having me.

>> let's start off on the auto market obviously still continues to be an important com 30e nents of y component of your overall business when sales are down, it would seem that it would have an impact how do you view things and overlaying that, is there any impact on your business from the chip shortage? >> a couple things there we had a great tail wind in the first half of the year with auto sales. really had record high levels. and that set us up well to deliver on our full year subscriber guidance, first three quarters of the year but auto sales came down in the third quarter and that pressures the fourth quarter for us. but we're still set up to deliver guidance across all of the metrics. and then just going forward from a supply standpoint, we're pretty well positioned it has been really a tremendous amount of work to work with chip suppliers, module manufacturers, tier ones and oems to make sure that we are supplying everything that they need

>> we hear this a lot, a lot of work what does that mean, are you just calling a lot of them in what is the work >> working through allocations, who needs what where we're actually not managing the supply chain in terms of taking inventories, but it is a critical component to be able to have sirius xm in the car. so just our folks across different parts of the business are working directly with the oems or manufacturers to make sure the aloe location is corre. >> so you don't see issues in terms of supply going into next year >> oh, yeah, there will be issues we've seen all the pin coublic comments at least october was a little better than what we thought. but i think as most of the automakers have said, it will continue into next year. >> podcasting is obviously an important component of the streamers and their business and your you have a streaming product as well what is the compelling feature of podcasting that makes it a

good business opportunity? >> there has certainly been a significant increase in consumers' interest in listening to not just music, but nonmusic content and podcasting has done a lot to fuel that so we see a lot of growth in the industry and for sirius xm, nonmusic content has always been a big part of our curated bundle and we have a lot of expertise here and of course we'll want to have podcasts. we're doing deals with prime junky, one of the largest out there, and many of the podcast creators and publishers want broad distribution and so that has been one really attractive part of sirius xm is that we're not necessarily creating exclusive experiences for podcasters if that is what talent wants we'lldistributing . so what do the creators want and what,uld works best for the business but we can monetize in multiple

different ways we're adding value to our s subscriptions, but we're set up well with xm media and advertising sales and tech capabilities to be able to monetize on all platforms. >> although there is not a channel that i can tune in to when i'm in my car it is the app that i need to -- >> we'll have podcasts in the car eventually, but through 360 l because it is interactive, so we need the modem in the car for the ip connection. >> i spent a lot of time a number of years ago covering the potential sale of pandora that eventually happened. how does that fit in in terms of the business proposition again for the overall company? >> so we still have -- it is a very valued platform for tens of millions of listeners. and we've done a number of things with partners and content on pandora we have great collaborations with artists on our takeover modes. so it is a key part of our

advertising strategy which is one of our three pillars and it continues to monetize really well. and advertisers, you know, the growth in audio, advertisers want full solutions. so we have music, we have podcasts, and we have broadcasts so we can sell across platform opportunities for advertisers looking to make sure that they are reaching audiences in audio. >> and obviously you do think of spotify, an age-old question that i'm sure you've gotten for years now. how do you exist in a world where i can go in my car with my phone and stream my spotify on my radio >> you can go in your car and stream us as well. so from a distribution standpoint, we have that parity. but sirius xm has been obviously here for 20 years. we deliver significant value for our subscribers and that is because of the cure cated bundle that we have

and so we have many years of growth, an easy platform to use in the car, we're building up 360 l, penetration rates are increasing there, and that allows us to deliver much more personalized experiences for consumers in the car >> what will that mean for a personalized experience? >> so we'll know better about what you are listening to and what you might want to listen to we can build look alike models to see what other content you might like and serve it up in the car but also in our marketing outside of the car and we know whether it is content or features, we know that when consumers use those features for 360 l, they convert and retain at higher rates and it makes sense every other service is interactive, but sirius xhcm ha been satellite only until now. now a that we can leverage the ip connection we have more interactive capabilities in the car. >> jennifer, appreciate you taking the time. thank you. great stuff, david, thank you. and just a quick check on the markets as we wrap up the hour

s&p down by about 0.1% 4683 is the level there. two sectors in the green, consumer discretionary and the tech stocks led by nvidia and also other chip makers everything else in the red and now over to tech check now happy thursday welcome to tech check. i'm jon fortt. deidre is off. today in-vidnvidia keeps hiding higher, crossing $800 billion in market crap. why kramer thinks that it could be the first $10 trillion company. where it goes from here. and