software this idea of a software driven future so, don't miss some of the next interviews we have we have the c oh of lockheed martin and chairman jim taiclet coming up on "power lunch" at 2:00 p.m. eastern, david >> morgan, have a great weekend, as well. great stuff from out there thank you. that's going to do it for us on "squawk on the street." with the nasdaq down almost 2%, let's send it over to "techcheck." good friday morning. welcome to "techcheck" i'm carl quint quintanilla. stocks are selling off again the nasdaq was down a couple percent a moment ago the high-growth semis versus high growth software

the ftc twisting nvidia's arm and where should investors put their money to work. plus on that theme, two big movers today the ceos of marvell and docusign heading in different directions after reporting results. why one wall street firm sees 80% upside from here. the stock is now reversing some early gains. julia. and amid today's selloff in the nasdaq, two sectors stick out. semis versus software. the soxx outpacing and two of the biggest movers in the past 24 hours docusigns and marvell. the chipmaker jumping more than 10% after ceo matt murphy told investors they can expect 9% revenue growth for the fourth quarter and 30% growth in fiscal 2023 meanwhile, docusign seeing a complete drawdown plummets 40%

as the company lowers its revenue guidance the report spurring a flood of downgrades and price cuts with citi's tyler calling the results one of the biggest in recent memory both ceos will join us later this hour. john, just wondering what you see here as we see this divergence between the different pieces of tech >> well, julia, i mean, partly i think we're seeing a shift, a realignment in expectations. like yesterday we had on frank from snowflake and we had from opta both of those stocks had sold off and then they turned in these results and they pop up. by contrast, you take a look at what happened in a lot of the hardware names, the expectations hadn't been so hot and so, carl, now that people are understanding particularly when it comes to marvell, we've been talking to marvell a lot more this year. matt murphy has been saying that

they've got a lot of gas in the tank that people aren't accounting for and this is the quarter, this is a breakout quarter they just had an analyst day and after this quarter they're taking their projections up even above what they said at analyst day. this a quarter when people will pay a different attention to marvell from here on out, i think. >> john, absolutely. you can't ignore what is going on with the fed right now, julia. but you have to pay attention to what b of a points out is that normalization in their words will feel bearish for tmt names. conditions during covid were incredibly friendly to digital, software, ecommerce and distorted everything and that is being unwound and along with that models are being reset and valuations are being reset >> yeah, i think that b of a comment really sums it all up. it says a lot of what happened with valuations. but i think it's worth noting that as we talk about how the software stocks have been struggling and compared to the

chip stocks, you know, you mentioned snowflake. we're seeing some of these stocks can be outliars snowflake is a perfect example i think there is going it be a big question here especially as we talk to companies like docusign and how much of the growth they have seen has been a pull forward and how much that growth is just simply unsustainable, even if the pandemic does continue in a more sort of hybrid work from home phase going forward with omicron and some of these other things, john >> true. and you look at docusign two year-year chart still trading around the levels from mid last year even a 40% drop from what levels turning now to nvidia. shares down more than 4% just about 5% at this point this morning after the ftc suing to block chip platform company arm and that deal worth $40,000. the acquisition would limit giving nvidia control over key

tech used by rivals. nvidia pushing back saying the combination of our companies can enhance competition in the industry as we work together on further building the world of ai carl, this one, you know, the analyst notes that i'm seeing, it seems like people are saying now chances are this doesn't go through. all of these acquisitions of arm, carl, never quite made a lot of sense to me the softbank thing i mean, arm is a platform company and in my mind, none of these acquisitions has done anything to make arm any better. so, you know, it's -- nvidia still going to make its case and we'll see how the regulatory environment plays out. but, you know, strange in a way for me to see this going and qualcomm still, qualcomm still fighting nvidia on this one. >> yes, yep. there's the uk and now the ftc, julia. and i ink think in time we've sn

the analyst community throw in the towel and say whether it's valuation or strategic and make less and less sense as we go on. today citi takes it from 30% down to 5. >> yeah, look, i think the analysts did not expect this deal to go through i do think there is still a question of whether nvidia will fight it and may just result in legal fees and this whole thing dragging out and we'll see what happens there. but i don't think analysts think it needs to happen at this point, carl. >> let's dive into the software names that we mentioned earlier amid the broader selloff today our next guests emerging cloud index down 15% from the all-time high last month. joining us this morning byron. wow, what a change in tone and sentiment and valuation. is this really about sort of year-on-year comparisons or the fear of higher rates or what do you think is the overriding dynamic? >> it's been a wild one, carl. great to be back

and, yes, you wake up this morning and docusign down 40% and basically pulled the entire sector down with it. i go through my screen and the only green i see is smart sheet out of the 58 cloud names. it's been brutal this is a roller coaster week where we had, you know, aws reinvent and many of us out there with adam and team this week big hopes for the future you're flying home, salesforce boots their projections and takes the entire industry down with them. yesterday snowflake crushing their numbers and then you have a handful of c3i and elastic and, you know, a couple others get pounded 10% plus and then docusign last night. so, you can look at four causes and look at omicron and inflation and interest rates and look at profit taking and i have strong views but i don't buy the omicron or inflation elements in this case. >> you don't believe the fed will be aggressive or why not?

>> omicron is a counter indicator. as a reminder, working from home is good for cloud stocks and this idea that the distributed economy is a net negative. i don't buy. in fact, you saw the index was the number one performing index on the entire nasdaq last year because of this cloud accelerant now, inflation indirectly or directly isn't a cause because tech is naturally deflationary at its core given supply benefits and however the link wj down stream to inflation certainly could cause a rotation to value stocks and cash generative stocks over time. and i think that's what we're looking at however the biggest cost here is simply profit taking when people have been looking at the multiples and getting anxious and rotate from fear to greed very quickly and back to fear again last night overnight. people are looking at their books and looking at multiples and say optimize for short term versus long term no doubt long term are going to

be growers and leading the new economy and over the next few weeks, buckle up, folks. it's going to be bumpy >> so, byron, looking at some of the valuations and also the recent results from companies like snowflake, which of these companies is best positioned going into next year >> so i think the shocking think about this, no obvious correlation. we've seen infrastructure in apps and large and small and horizontal and vertical really separate with the haves and have nots so the short-term trades i think you're probably seeing overreaction both ways i'm excited that you're going to have docusign on later today they're down 40% i strongly suspect that is an overreaction but let's hear what he has to say. i think right now people go to the long-term view and look for pricing power with lock in incumbents and long-term margin leverage and look for the bold teams that will give you a multi-year horizon if you're looking for short-term trades, frankly, this may not be

your sector because this volatility is likely to remain for the coming weeks >> byron, you mentioned c3 and elastic getting clobbered yesterday. both of them have pretty good quarters and then i look more broadly at some of these names that have transformation sort of at the root of the thesis stitch fix, for example, it's down to 22 bucks a share and it's not like anything fundamentally has changed with that company's execution so, to what degree is this really a sentiment thing around some of these names and is there bargain hunting to be done for people who believe in the transformative power of at least some of these company's technology >> i think that's the key insight for folks who are willing to take some risk and be aggressive right now which is you're seeing these massive reactions and i think in many cases overreactions probably both ways is docusign 40% worse than it was yesterday? of course not. what people are reacting to are

the forward projections as they did with salesforce. the numbers and this belief that the rich multiples were partly justified because an embedded beaten raise yet to come when people pull off that a little bit, you get this aggressive reaction. however, the entire index is now down to trading to 18 times revenue, which by historical standards doesn't look that crazy especially when you overlay the businesses are growing in the high 30% and generating meaningful free cash flow there is a potential to do some cherry picking off this volatility right now and go for high-quality names and certainly if you're willing to put these stocks in a drawer, wake up in a few quarters and see how you did, i think people will be rewarded for it. >> byron, i wonder how you think of semis versus software one of the views out of b of a today is that there's simply not enough semi names to rotate into and that might drive valuations higher than we've seen in quite a while. does that explain some of the

activity in the past month >> it does and the interesting thing is you're still seeing scarcity in both sectors in the public cloud world. there's only 58 names in a combined market cap of 2.2 trillion right now to put that in perspective, that's actually less than the crypto sector that sits just under 3 trillion so, the entire 20 years of this cloud revolution is now valued below the few years of this wild crypto phenomenon. so you have this dynamic where people are rotating in and out and they're reacting to high vo volatility in a few names. we have ipos next week that are closely watched and there is still this thirst ask demand for these high-quality names and just scarcity across all sectors and people are rotating quickly, given the amplified movements in any single name. >> yeah, let's talk a little bit, what do you expect from that ipo next week >> so, we're investors there so, unfortunately, i can't comment directly

i would say the only top five cloud stock left to go public this year when we published the cloud 100 earlier this year, you know, one of the preeminent names people have been waiting years for. so, a lot of anticipation to see their listing next week. and then we're probably going to roll into early 2022 before we see anything close to that quality and there is a fantastic backlog of ipos coming this volatility will certainly cause folks to rethink a little bit the short term and the shadow pipeline for late q1 and early q2 is fantastic. >> let's talk more broadly then about devops and that segment of software you know, we see taking a little bit of a tumble and doing quite well lately. we've had jen on quite a bit seems to me an expanding group of companies and i guess we can throw that are really giving tools to developers as they do this week.

now, whether you're talking about metaverse or data center cloud developers are key architects and masons in this process. to what extent should inesthavers pay attention to devops >> that is one of the most exciting categories still ahead in the cloud space you highlighted a few of the public names and there are very few. you know, pager duty, and if you look on the private side, stripe is probably the highest value public company on the planet right now and that is one of the b to d or platform service companies that people are waiting to see go public that is a trend that has lagged. you saw application adoption first and then infrastructure service adoption second. really it's this middle layer the api economy that is going to power a lot of the next wave the zero acquisition was driven by that phenomenon and we think

more and more of that trend is going to usher in the next wave of many of the great public cloud companies. >> very interesting, but back to your previous comments about valuation. how do you see valuations for that part of the market and are there any buying opportunities there? >> so, we've been running hot for a while. when i've been on prior shows, there had been this tension between super high quality and yet very rich valuations these multiples were up in the 23, 25 times run rate revenue numbers. that was starting to get hard to justify on a growth adjusted basis, even with these fantastic growth rates as you pull back into the teens, we absolutely believe as growth investors that there's value to be had here in the long-term sense meaning hypergrowth and companies that can scale and can double and double again in the coming years will reregard those patient investors. so, as you look at the names and look at the mega trends such as

the fundamentals under these markets are powerful and they're tailwinds and not headwinds and the segment is massive as more and more of these developers are powered to make purchase decisions. those are trends that will play out over many years and if you hold those names patiently, you'll be rewarded >> fascinating day good to see you. thanks >> thank you much appreciate it and buckle up >> speaking of which, two huge interviews coming up the ceo of marvell and docusign. the nasdaq down 2% rare day where you've got then the s&p down 1 and the dow down just 0.5%. "techcheck" just getting started.

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curve flattening the ten year below 1.4 now for the first time since september, john >> yeah, given that action in the nasdaq, not a lot of tech names in the green here's one shares of marvell surging today. you can see it there up 16%. the stock hitting an all-time high intraday after the company topped estimates for the third quarter. revenue growing 61%. analysts jumping on the positive results with a bunch of price target bumps in upgrades taking the stock to buy calling a quote, water shed moment for a silicon powerhouse and bank of america upping price target to 115 saying marvell is next enterprise semi leader joining us marvell technologies ceo matt murphy. matt, good morning you've been sharing with us your th thesis i think the viewers who have been paying attention aren't completely shocked by this, but it is cloud week and even though

you're a chip company, cloud is at the core of what you got going here so, please start there for those who might just now be paying attention. why is cloud, why are the hyperscalers such an important part of what's reflected here? >> sure, great good morning, john great to see you and carl and julia we had a tremendous performance in the quarter largely driven by our data center business which as you point out was very strong. it basically doubled year over year and we dguided it to be up in the fourth quarter double digits so, the cloud business continues to be very strong for the company. and i think that's largely driven by, you could see it in, you know, published reports in the news, but tremendous cap-x expenditures coming as these large hyperscale companies expand their applications, their services and even futuristic types of things like the metaverse are going to require

tremendous amounts of capital spending on data centers and that's good for mavell as, one, we're a key player there and also the largest single part of our business that is over 40% of our revenues is in data center >> moving data around, large amounts of data at high speeds requires new technology that some of what your chips are really responsible for there's an auto play here, too, right. we talked a lot about the edge of the network, the intelligent edge, perhaps. so as that continues to play out, ai in cars, self-driving in cars what is the impact from marvell? >> yeah, i think the long-term opportunity for marvell and automotive is enormous if you think about the next ten years, the biggest growth driver in semi conductor demand inside automotive is going to be for the data centric and the data centric ip to move the data inside the car, to process the

data, to secure the data and to even store the data. and those technology pillars are really marvell's strength and even for the enterprise we've taken those very complex, very high performance data centric technologies and now we're applying them to automotive and we see a ground swell of opportunity here, john, first with our connectivity products where we're one of the leading companies. we said that business was on a $140 million run rate up from prior guidance of about 100 million and doubling every year. but we also see new opportunities in compute, storage and other applications for the cars of the future >> i want to hear more about some of those opportunities, especially in areas around the 5g and even the metaverse. first, i think it's important to talk about supply constraints.

you factor supply constraints into your bullish growth outlooks and i wonder where you see supply constraints impacting you down the line. >> sure, yeah, julia, we were very pleased to deliver the kind of revenue growth that we saw and also the guidance was, obviously, very strong for the fourth quarter and we also gave an indication for next year of the company's ability to grow its revenuesby about 30% that being said, we also mention that we were still not able to make a real meaningful dent in the unfulfilled backlog or the delinquent backlog so while we're growing the company in revenue and we're really barely keeping up with demand as we look out to next year. there are still constraints that are in the system. particularly on the more advanced and cutting edge types of technologies, in particular in packaging technology, you know, complex substrates and then also some different constraints as you get into the

wafer fabrication side interestingly enough on some of the older legacy nodes where there's just been a tremendous amount of demand across the industry for applications like automotive and iot and like industrial so the supply chain partners we have are, obviously, working through that situation and they're investing heavily in capx but in the meantime it's very tactical in terms of our need to really figure out where the demand is, how do we allocate the supply properly to that demand and keep up with growth but really it is a first class problem and we're just heads down focused on supporting our customers through this >> and tell us a little bit about the 5g demand. i'm curious if the fact that at&t verizon had to delay their 5g rollout because of the faa airline concerns or if you see additional demand around the metaverse around 55g. >> sure, julia

the 5g rollout continues to be very strong. it started a few years ago with korea and moved to choina ask no in full force in the united states and europe and india will be big next year just to give an indication, we guided our 5g business at marvell up in the fourth quarter 30%. sequentially so we see strong deployments of 5g in the u.s., i think the carriers are still deploying they're working on the issues, obviously, with the faa. we don't see any impact to our business and remember, as well for the marvell side, very little in 4g a lot of our growth not only driven by the deployments and the market share and content that we have really in all the major players. that's exciting. we expect that not just in the fourth quarter and into next year with respect to the metaverse, i think what's interesting when you start looking at whether it's the metaverse or nvidia

talks about the omni verse and any environments and the infrastructure required to support that is going to be tremendous meaning you're going to have really a significant increase in the amount of computing capability, network bandwidth and also latency which means how fast you can experience the virtual world in the metaverse. and 5g one of the big benefits that it brought was a dramatic improvement in latency and gives you wirelessly real world feel and we think that could be one of the killer apps as you think about 5g in the future as really moving to virtualized environments it is going to be actually a necessity in the wireless world. >> that's incredible i wonder, matt, how you're thinking about that kind of secular growth versus cyclical growth and what you say to those who are arguing that there will be not just inventory naormalizatin

in calendar '22 and in inventory overload >> sure, carl, i've been in the semi conductor industry since 1994 i've seen all kinds of these upcycles and the down cycles and the aftermath. fundamentally there is still sick luicality in the semi conductor market the interesting thing about marvell and we gave color on this yesterday was that despite some of what some of the concerns industry wide our business looks to be incredibly strong because of the secular trends we see our business growing about 30% next year. actually, we did an acquisition of a company called anoviam and add incremental revenue on top of that growth and the reason, carl, is that our biggest, you know, growth drivers are, as we talked about earlier, the cloud, it's 5g and it's automotive. and those businesses are growing in excess of 40% a year.

that basket for marvell annually that's going to accelerate even beyond that next year. so, we have our own unique growth drivers which are going to continue not even next year, but we even have a step up really we see the year after and beyond so, i think there's some unique things going at marvell. it didn't happen overnight we've been at this for five years and i just want to thank the team we've got at marvell for what we've been able to accomplish it's nothing short of fantastic. >> it's quite a journey that you've started and continue to be on. before we let you go, i got to touch on something we touched on before but that's customization because there are a lot of people who might think existing chipmakers who have their own ip that are dealing with hyperscalers, large companies that these companies want their own designs in some cases, they want customization, but i want to make sure that the viewers understand your answer and

explanation to how marvell plays into that customization environment. >> yeah, thanks for asking that, john customization is a critical aspect, actually, of all these high-volume markets that we talk about. the hyperscale is certainly one. this is where marvell excels when you see any of these companies announcing that they've hired a new silicon team or hiring their own there is a chance marvell is involved behind the scenes. think of us as a design partner and we have tremendously important and unique ip across networking, across high-performance computing and inner connect and security and what we do really is we partner with our customers in 5g, in automotive and in the cloud to really enable them to make the chip that they want for their specific application so, typically, that's done in a partnership model where their

silicon team contributes their special thing that they need for their application to do specialized processing let's say in 5g but behind the scenes it's marvell that is helping to stitch the entire chip together and providing the fundamental ip and the manufacturing support and the yields and we're happy to do that to be behind the scenes and, you know, let our customers put their own logo on their chip but what we do basically is do that for a living and increasingly, john, i think that's an industry trend and we've got one of the most differentiated business models and kind of company set up to be able to take all of the best of marvell and go into the high-volume applications and partner deeply with our customers and there's really, really very few other companies in the world that are able to do that at our scale. >> indeed. yeah a lot of analysts calling this a breakout quarter the stock right now up 17.5% matt murphy, ceo of marvell,

thank you. >> great to see you guys meanwhile, nasdaq saw the intraday low and still the worst-three-day start. half past the hour, let's get a news update with rahel solomon hi, rahel. >> hi, carl. good morning here's what's happening at this hour america service sector posting record growth last month key index hitting an all-time high supply chain issues that make it harder to meet increased demand. october factory orders also jumped far more than expected. the november jobs report painting a mixed market. the retail industry lost jobs but the unemployment rate fell to a pandemic low. president biden emphasizing wage gains by american workers. >> even after accounting for the rising prices, the typical american family has more money in their pockets than they did last year.

in fact, we are the only leading economy in the world where household income and the economy as a whole are stronger than they were before the pandemic. ulta falling despite comparable store sales the stock had 7% in after-hours trading. ulta shares still up 30% this year you're now up to date. carl, i'll send it back to you >> all right not a great start to december for at least the nasdaq. volatile week. nasdaq now down nearly 5% in the last month our senior markets commentator mike santoli looking at key parts, tech, ipos and big draw down for cathie woods. >> those are the areas that has been the most aggressive, high stress, surrender of early gains that we saw built up into the early part of this year. that's why i wanted a two-year chart showing the nasdaq 100 and the ark innovation flagship and

the ito and amazing amount of convergence and how people got nuts with the secular growth sector back in the early part of this year. now, obviously, this is mostly about loss of price momentum initially, loss of fundamental momentum in expensive stocks that is what you see in docusign and zoom and peloton and then becomes portfolio stress people who are taking big losses in those names also own other stuff. they also own other bigger tech stocks and that's why i do think you have the pressure that is spilling away. even though and can we finally put to bed that when yields go lower tech rallies story because it doesn't always happen we've seen that in the last couple of weeks. i do think on a relative basis the isis not necessarily a new game it's more of the same year end mechanical dynamics. and essentially risk aversion starts to rise when you have a vix at 30 and some of your biggest, more aggressive holdings are losing in a big way on the other side of things.

so, all those things i think complicating a picture where you also don't have the typical rotations you would with strong economic data into cyclicals just because of the covid threat that we're now facing. that's the pinch that i think the momearket is at the moment >> when you compare this to february when we're talking about growth, we're talking about tech the signs you would look for to see if this is a dip down where they're perhaps going to come back up versus this is a dip down that then drags other things down with it over the longer term. what are the sort of either time periods or markers you would look for >> first of all, you want to start looking at the fund flows. you know, obviously, the big kind of very loud message you are getting in the early part of this year was $6 billion in six weeks going into the ark innovation fund. i believe that was the number from the start of this year into mid february

massive, massive stampede and we'll we see it on the down side and that will pressure things on that part of the market down the road technology etfs in general actually have had a big inflow people keep going back to that thinking while it is going to be a performance sector so, those are the, you know, the clues you want to see is fresh money sweeping in or sweeping out. which tends to be more an exacerbating factor rather than the underlying driver of what happens. it creates big swings up and down >> mike, i know we've talked about this before, the pain underneath the index level but this stat out of b of a 32 off less than the index. i thought that was astounding. >> that is amazing on a median basis the median s&p stock is down 12% off its highs and the s&p down around 5 at the max. so, it does show you an amount of just calling that has been going on constantly in waves

and, again, in the last couple of weeks, the big change from earlier parts of the year and this is the third 5% pull back in the s&p we had this year. not anything extraordinary on that level but the difference here is you've kind of interrupted the normal rotation between growth defenses and cyclical reflation trades because of the introduction of the covid threat at the same time the fed wants to seem intentative at the same time i think that's why we're in a limbo on a friday not knowing two days worth of headlines. but, still, kind of respecting yesterday's lows in the s&p so far. >> in limbo on a friday, mike, thanks so much for breaking it all down for us. now, let's stick with today's selloff and drill into the stay-at-home trade covid winners like zoom and door dash and another pandemic darling getting hit hard today docusign all missed estimates.

take a look at those shares today. down more than 40% with us now to discuss the quarters docusign ceo dan springer dan, thanks for joining us break it down for us what is behind the dramatic slow down not just for this quarter but lower than expected guidance >> step back and think about what we have been saying since the pandemic took our strong and high-growth company and accelerated it dramatically at the higher growth rates. we knew that would come down at some point and beginning of this year we thought it would come down more evenly across the year our first half ended up being much stronger. the last time we spoke was after q2 and we were a little bit surprised that it was still so strong in terms of the growth. but it hit us much harder in q3. so much so that we actually missed our billing guidance. we never had any of our metrics and that's when you see the strong market reaction we think it's an overly strong reaction but we're bound to be in that position >> analysts are saying that this is a thesis changing print

i'm wondering if this quarter's result and the guidance indicate that what you saw in the past say six quarters is really just a pull forward and if you see other factors at play such as uncertainty around interest rates, et cetera, that it is going to be keeping your customers from wanting to invest in more different services >> yeah, yeah, i would love to be able to personally tell you, i think, some of the macro impacts forced out there and everyone is feeling or a primary driver i don't think that's the case. this is docusign execution we did know that we would see that come down from the big pandemic push and we did prefer to land it a little more evenly than we did with having such a strong h1 and then a much weeker h2 but we've seen that the demand for our products is still strong we don't have customers leaving us high retention rate and we see incredible customer success in what we do

the piece that docusign missed we got to a place over the last year, year and a half where we were fulfilling demand what we've always done in the past is demand and finding new use cases. to go to market organization, we just pulled back from that and we shouldn't have. that is sort of my responsibility to quickly get back on track as we will and you'll see us return to the strong growth we had prepandemic. >> dan, i want to go a layer deeper into exactly what you just said. because first of all, i'm wondering, can you give us some color on your customers buying patterns and tempering and then this move that you've made to take the sales and marketing or organization under the coo and more intentionally go to generate demand how long is that going to take, do you think, to show a change in the results and how are you going to measure how well that is happening >> yeah.

so, john, if you think about what julia just said before which was spot on, if you had that pulling forward of demand and that sort of exacerbated the change when we said, hey, people said we've bought a lot of docusign and that's fant-tastic and we'll continue to grow and see across broader aspects of their company. that's really what sort of the missing piece was for us was not getting back to that action of how long it takes. i don't think it takes a long time because it's not a new model we're trying to create we're just going back to the old mode that we did for years where we delivered very consistent high growth. i think that's the same model you'll see from docusign in the future this is an h1, h2 story. we had lower buildings in q3 and guided to lower than our initial goals we had previously for q4 and that's the time frame we think we'll be able to sort of

right that activity and be back to where we were in the prior years. >> dan, i think it's interesting that you're sort of falling on your sword on this execution argument which makes sense but others point out that we've gotten disappointing bookings guidance from giants from microsoft, salesforce, twilio and it does represent a pull forward in aggregate for the industry i don't understand why you're not leaning into that a little bit more >> i understand it is a factor and some of the macro you're talking about, i'm absolutely sure exacerbated the phenomenon i described and the clarity with our customers and even with that macro, we should have performed at a much better level and we should been doing the motion that we recognized weaver are always done. i can see very clearly that we have sort of lost that execution where it needed to be and i think we also see very clearly how we can get back to that mode that's why i say the primary driver for us was in landing the

covid bump, which we're pleased to have you know that extra growth, but we didn't land it properly because we sort of took my eye off of the ball on the execution in the field >> yeah, it's interesting. i think i agree with carl that there does seem to be a broader issue with software right now. but i'm curious specifically about omicron. it seems like a new variant. the extension of the pandemic would be a good thing for your stock. i'm wondering, obviously, very early and us not knowing much about this variant, how that could impact demand for your services >> just like the initial covid burst, to be absolutely clear, we think the pandemic is terrible on virtually every dimension and, of course, trying to run a business without a docusign team not being able to be in the office together has been difficult, as well. but we don't sort of see at least in this point any visibility towards a second boost, if you will you know, covid related.

we think the customers we have and we added 59,000 new ones in the last quarter are saying, we're set up right on docusign and we need to expand those relationships. we'll continue to add many, many new customers and we'll go through that same process of land and expand. i don't think we expect at this point to see some dramatic extra boost even if there were increased lockdowns and more dramatic impact from another strain of coronavirus. if possible that it would, but i think we're focused on saying let's control what we can control and let's execute against the clear opportunity we see with a $50 billion tam and fantastic market leadership position and signature product and this exciting docusign agreement cloud. i feel like we can control our destiny pretty well right there. >> well, docusign shares down more than 40%. we appreciate you coming on to talk to us today, dan. >> thank you very much

we'll get a lot more on today's selloff after the break. nasdaq once again close to session lows down about 2.4% as we are in the sixth straight move for the s&p of 1% or more. that's the longest streak since november of last year. back in two. care. it has the power to change the way we see things. ♪♪ it inspires us to go further. ♪♪ it has our back. and goes out of its way to help. ♪♪ when you start with care, you get a different kind of bank. truist. born to care. there's software. and then there's industrial grade software, forged from decades of industrial experience and insights. meet honeywell forge.

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some of them >> carl, what it comes down to is very much about the nasdaq and specifically the biggest companies in the nasdaq. the nasdaq 100 if you take a look at that a lesser degree the lesser market about the s&p 500 and even lesser degree with regard to the 30 stock dow jones industrial average what i want to point out for the invesco the reason why it's important is today $380.75 represents the 50-day average price on a rolling basis for this particular nasdaq 100 tracking vehicle now, it bounced off there right around session lows right now. and it bounced there, as well. this is the first of the, this is the first time we actually kind of broke to the down side towards that level for the nasdaq 100 over all. we've done it already for the s&p 500 and nasdaq composite and the dow. something to keep an eye on from the index level. within that, if you look at some of the real action within those currents kind of underneath, you

can kind of see software in focus here and adobe and intuit and even zoom video one of those places that if omicron was the bigger concern here, you might see a little bid there zoom video down. advanced and nvidia and that docusign trade may be carrying out into other pandemic plays, as well. also want to keep your eyes focused on what is happening within the nasdaq 100 on the chinese internet side of things. among the biggest decliners so far, jd.com 9%, baidu and similar moves and then netease down 6%, as well that is driving that trade and then, of course, we have to talk about the ones that really matter that's going to be apple that's going to be microsoft and alphabet and amazon and going to be tesla those five stocks represent roughly 40% of the nasdaq 100. you can see apple actually not

doing terribly down 1.5%. microsoft down 3%. alphabet down 1.5% similar declines for amazon and then tesla down 6.5% so far. those are the ones that are really driving a lot of the action, action, carl, so far with us right now >> yeah. we can't count on the giants today, that is clear thanks very much as the nasdaq tries to hang on to 15k by a thread here, stay with us. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire ♪ feel stuck and need a loan? move to sofi and feel what it's like to get your money right. ♪ ♪

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welcome back the nasdaq is now down just over 2.5% it's been a gut check on peloton. it's been a gut check, down from the all-time high. they say although it has been a tough ride in 2021, patience will be rewarded and right now the market is looking at the company as a stay at home play just like the office, they think the hybrid work model extends to fitness, too price target of $76. "tech check" will be back in a few minutes. up would be the operative word there pal. oh, yeah, yeah. sorry, have a good day! if you ride, you get it. - come on in!

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>> it's been a hurricane week for tech stocks. a perfect storm for cloud week here on "tech check. take a look at some of the stock performance, docusign, elastic, sales force hit hard snowflake popped on its results and still down 7% in the last week and box a few names in the green. leaders across the sector this week take a listen. we are kicking off cloud week here on "tech check," perfect

week given the enterprise software names and posting earnings. >> amazon web services holding its annual reinvent conference >> the innovation we have in the cost structure will dwarf any inflationary effect. we will see inflationary demand for new instances powered by new chips with an each better cost performance. we're just getting started. >> i'm making sure i have the right set of solutions from all of the vendors out there in addition to cybersecurity. >> we will turn our data center into a private local zone and migrate our first market to the cloud in 2022. >> whatever comes around, hybrid, remote, back in the office and that's where the strength in enterprise will come from >> joining us now box co-founder and ceo edward levy. >> you have cybersecurity challenges that every large organization is facing when you think of those three challenges content is at the center of how companies will work in the future.

>> enterprise and institutions get their data in the cloud and once they start migrating their databases and all of a sudden all of the friction is gone and the clusters and new warehouses and workloads. >> joining us c3 a.i >> we have a billion dollars in cash in the bank i think everything's going to be fine >> todd mckinnon >> what we're seeing is the companies talk to us and to get that right they have to have a strong, neutral independent identity platform and we're here working hard to provide that for them. >> julia, if valuations were a problem, some of the names are less of a problem now and sometimes when it drops it's a red flag and sometimes it's a bargain and hopefully these insights are helping our viewers decide which is which. >> great stuff this week, john it's interesting to the point of valuations >> salesforce up 10% year to

date and when you look at some of the chip companies that still have it at the center, marvel, up 70% year to date, carl. >> i still think it's memorable what tom segal said about industry baskets that will benefit the most from the cloud. he said life sciences and medicine and solving future diseases pressing issues that weir're al with, and we hope it stays true. >> think about what cristiano aman told us we saw that stock pop and what ned murphy of marvel just said, julia, and we heard about the metaverse. the underlying trends, yes, but overall, maybe not a thing >> well, speaking metaverse, i want to pull up some of those social stocks that are down more than the broader market, meta, pinterest, snap, those stocks

all lower today, carl. >> nasdaq, worst day, guys since september 28th, now down 6% in the last couple of weeks it will be a busy week next week and we'll get cpi a week from today and stitchfix and gme and lulu and a ton of analyst meetings and have a great weekend and let's get to frank holland and the half. >> welcome to "the halftime report i'm frank holland in for scott wapner is the santa claus rally in debt and is the stay-at-home, work out at home trade, is it done? we'll debate that with our investment committee sha shann shannon secoccia, and jon najarian and getting whacked since the worst day since september 28th and on track for the second week of losses.