earlier in the session with the s&p now fractionally higher, both the nasdaq 100 and nasdaq composite higher as well the dow is underperforming down about one third of 1%, 130 points right now, being led lower by ibm, also goldman after a downgrade over b of a. that will do it for us here at "squawk on the street. "techcheck" starts now ♪ ♪ good thursday morning. welcome to "techcheck" i'm carl quintanilla with jon fortt and deirdre bosa today, tech's big tumble is a hawkish fed the biggest risk to your portfolio this year do not a break down with dan niles. then fintech's fumble. why today's selloff might not be a bad thing when it comes to

risk. finally, crypto crumbling as bitcoin nears 40k. what's driving the action there. if you ask some, nothing we will discuss that first up for today's feed, we'll start with the selloff the nasdaq is coming off the worst day since february after the hawkish notes from the fed sent yields higher and growth names plunging is more volatility ahead as we said, here to discuss, dan niles is with us dan, we know you've been waiting for an environment like this i imagine this is exactly what you had thought was coming and i'm going to guess that you think it's not done by any means. >> well, unless you think inflation is done, and unless you think the fed is done, it's hard to imagine that this is done because you've had -- if you look at the dividends included, the s&p is up 100% over three years it's up 47% since the beginning of a global pandemic and so, my belief is that's driven by, you know, five stimulus packages in the u.s.,

over 5 trillion in that, and then you have the fed expanding their balance sheet. all that stuff is reversing this year with multiples at all-time record highs by several different measures so you have to believe multiples are going to compress unless you think inflation is done and the fed is done. >> right where does that leave you, though, on names, for example, in megacap tech that have pretty strong business models, lots of cash, corporate capx boom, households with still some money to spend, although maybe draining from excess cash last year and then the multiple compression that you mentioned when is a bargain a bargain? >> well, i think it depends on how you look at it in a name like facebook or google, we put out our top five picks. i think december 29th or so on your show. and we picked facebook and google as ones that would with stand a downturn of 20% in the s&p better than the rest because of everything you just cited they're trading at multiples that are 1 to 2 points above the

s&p. they've got massive cash flow, really good profit margins, really strong growth and you know, the multiples are depressed because of all this regulatory risk, et cetera, going on and the apple tracking issues et cetera so those are good. but we've got almost as many shorts on as we do longs right now. we're very comfortable with that and quite honestly we generally like to have more shorts on than longs given what we're seeing in the environment. our best long ideas, though, are in energy and in financials because that's kind of the flip side of the coin if you will we think oil will go a lot higher this year and we think interest rates will go higher so you want to own energy and banks. that's the flip side which will put pressure on names like google or facebook >> dan, good morning it's deirdre. when you talk about having wanting to have more shorts than longs, i know in the past that you have been short apple. and i wonder what do you think is going to be driving that? are you shorting apple

currently? and what are the differences between how the macro environment might affect apple versus the metta and alphabet? >> well, i mean, if you step back more broadly what you saw last year was names that benefitted from the pandemic they started to miss so, you had amazon miss two quarters you had netflix miss two quarters but both those stocks were up because you had the fed still expanding their balance sheet by a lot as you got towards the end of the year, you started to see the misses starting to broaden out where you saw high growth software starting to miss as well docusign was supposed to get through this fine and they reported and the stock went down 42% the next day so i think, you know, when you look at pcs or smart phones, clearly pc demand benefitted from my kids being stuck at home and having to buy stuff to get them online or ipads or iphones, et cetera. and so you saw massive surges in

demand for all of those products and i think this year coming up i plan on going on vacation next christmas. we cancelled our plans but you're going to see a lot of spending move from things, smart phones, ipads, big screen tvs which we also bought, to going on vacation, eating out at restaurants, going to concerts and i think that's bad for that space. >> right but dan, at the same time, you know, many people were expecting to be doing that at this moment and omicron had other plans. when we look at the fed minutes and the move in yields, a lot of that didn't take into account at least the last fed minutes omicron was just beginning so, do you think that it could change once again before the next fed meeting is this too much of a knee jerk reaction what does that mean for this macro environment? >> no, absolutely not. i think the fed made a policy mistake already. which is they didn't deal with inflation much earlier and so now they've got inflation sitting at 40-year highs

you've got oil prices probably the demand rebounding at the same time you don't have, you know, any appetite for more drilling permits, et cetera, because of environmental concerns so that's going to keep pressure on that. average hourly wages are 4.8% year over year you've got 3 million more job openings than you have unemployed people out there. so, you put all of that together, the feds way behind the curve. that's why they're going to have to act more aggressively because the people watching your show own stocks there's 45% of the population in the u.s. that does not so, they're not benefitting from inflation driving their home prices up, the stock prices up they're dealing with how to put food on the table, heating their homes, gas for their cars. that's a big concern for that other 45% of the population which the fed hasn't dealt with because they let inflation get out of control so i think the fed is going to have to do what it needs to do and should have started doing a long time ago last year. >> so dan, a couple minutes ago

you were talking about comfortable shorts and last january there were a lot of investors wearing uncomfortable shorts when new stock mania took off. >> me, too. >> hey, what has changed that you're not afraid to put on those shorts which got pretty tight a year ago do you think that the retail investors who at least kick started that move last year are sort of out of ammo? what shifted >> the big thing that's shifted is monetary and fiscal policy. so, you had five stimulus packages from the government over $5 trillion came into the market the fed after the global financial crisis increased their balance sheet by about 3.2 trillion over 11.5 years that went up by 4.5 trillion in just a year and a half so ten times the daily amount of stimulus so, some people took that money and bought homes others cars. others crypto.

others means stocks. others nfts. now that money is going away the build back better seems like it's stalled for now all that stuff is backing off and rates are going higher because of inflation and the fed is getting more aggressive that's what makes me feel more comfortable having shorts on things like, you know, the new electric vehicle companies that have come public that don't have any earnings for a very long time in terms of profits and saying, okay, you know what, we can stay in there because now you don't have all this money sloshing around. >> well, if you're short rivian, that one was down i think about 12% earlier in the day now down almost 8% but you know, taking a step back because we can get very excited when we see a drop like 3.3% in the nasdaq yesterday you know, i keep looking back, the s&p was up 27% in 2021 that's traditionally the safest bet out there for equity

investors. is all this movement a message about growth in tech or just a message to investors about not having a properly structuraled and balanced portfolio, do you think? >> last year was all about show me the story and buy that. this year it's about show me the money. and so i think last year you were able to buy pretty much anything and it went up. i think this year you're going to have to be a lot more careful, as you said, about structuring your portfolio so you have companies that generate lots of cash flow, lots of profits that are making money today not a decade from now. and you know, that you can feel comfortable with that they don't have their businesses slowing down a ton because they got big pandemic benefit and now all of a sudden it's going to slow down so i think portfolio construction this year is going to be absolutely critical to make sure you don't lose a lot of money because, you know, i think there's very high potential for that, as i've said before, as you go through this

year and the fed starts to get very aggressive in the first half of the year because they were too lax last year >> hey, dan, you know we're just a couple weeks away from earnings season. corporates will try to put a good face on the quarter and the guide forward. we're going to get powell's confirmation, we think there will be some people believe a barn burner of a jobs number tomorrow. would it surprise you if the mood improved even in the short term, the coming month >> markets never go down go back to the tech bubble, when that thing burst you had seven rallies of 15% in the s&p over 2.5 years. seven separate rallies on your way to losing 50% of your money. so, yeah we actually covered more shorts and bought stuff yesterday than the other way around because, you know, some of the technicals we had looked like, yeah, you might see a bounce today but in general, we're still playing for the down 20% in the s&p at some point during the

year and but you want to manage your portfolio because these stocks, as jon pointed out with i think it was rivian, these stocks are incredibly volatile so would it surprise me to see that stock up 10% tomorrow of course not. and so you want to manage around this and we manage our shorts, you know, daily quite honestly, with some of those types of names. so that's what we're thinking but then back to going lower >> dan, show me the story and show me the money. those kind of go hand in hand. so i wonder when does the selloff and some of these high growth unprofitable names affect their actual business trajectory i know we have been talking about rivian, right? and with its selloff, less ability, perhaps, to raise more money in the capital markets, add manufacturing, do m & a, so how does that change the story for these companies, does it, the fundamentals going forward >> i mean, it absolutely does. don't forget, elon musk with one of the greatest companies out there, he had to go through

production hell as he called it to ramp up the model 3 that was in a much better environment for the supply chains, et cetera, without covid. so you have these other companies trying to go through this without those advantages. now, the good news is they have very low cost of capital because they're trading at 20 something times ev to sales. i think tesla is somewhere around 15 or so at this point. but you compare that to a ford or gm at 0.5, you have a massive cost of capital advantage. but if your stock price goes down and people aren't willing to give you money as easily, then you have a different issue on your hands. if you're burning money for the next five to ten years as you're trying to ramp up, much like tesla did. so, yeah it's sort of this circular argument of your stock goes higher, your briz is easier. your stock starts to drop, you get capital constrain and your business becomes harder. tesla doesn't have that problem. some of these other companies certainly do

>> hey, finally, dan, we got to run but i know you talked about cash last time what is a reasonable portion of a portfolio right now to have in cash >> i mean, i think it really depends on your risk tolerance if you're at 30 something years old, you don't need to have a whole lot because you can probably make it back in your life time. if you're sitting at 60 and thinking about etiring, you should have a very, very high portion of your portfolio in cash unless you think, you know, 25% compounded returns over the last three years on the s&p is normal the middle of a global pandemic, which it clearly is not with multiples at record high in that case have tremendous amount of yor portfolio in cash because bonds are quite honestly a good investment here. this is a really difficult period if you're an older person with a lot of net worth and looking forward to retiring, i think. >> yeah. you have to make it last >> yeah. >> dan, hope to check in with you with even more frequency in the coming weeks

thanks so much. >> appreciate it, carl >> dan niles in the meantime, today marks the first anniversary of the deadly january 6th capitol hill attack an event that led many to double down on their calls for social media reform so, has anything changed eamon javers has a look at the space for us eamon? >> jon, one of the big questions in all of this is whether social media companies are doing enough to tamp down on these threats that we're seeing out there. a senior law enforcement official tells nbc news that federal law enforcement and intelligence officials have observed an uptick in calls for unspecified acts of violence associated with the january 6th anniversary today, with some of the threats aimed at members of congress who voted to certify the election last year social media companies and law enforcement officials tell me they're going to be on alert throughout the day today, but none of the agencies that we spoke with said they're seeing anything specific in terms of threats right now. twitter says it's creating a new working group focussed on the

one-year anniversary of january 6th to ensure the service is able to enforce its rules. the company said in a statement, our approach both before and after january 6th has been to take strong enforcement action against accounts and tweets that incite violence or have the potential to lead to offline harm similarly, facebook said, they're going to continue to do their part here is their statement. we are in contact with law enforcement agencies, including those responsible for addressing threats of domestic terrorism. we're continuing to actively monitor threats on our platform and will respond accordingly and the fbi tells me it's not commenting on report yesterday from yahoo news about online flyers encouraging a january 6th reunion, quote unquote, saying simply that the bureau does not currently have any information indicating specific or credible threats regarding the january 6th anniversary, guys. back over to you >> thank you and consumer tech week continues. don't miss the ceo of lodgei

tech talking key trends next plus from fintech, crypto to the cloud. we have lots more market coverage ahead and tech's biggest market movers you should be watching. "techcheck" is just getting started. ♪ don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity.

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♪ spotify announcing new ad duals. julia boorstin joins us with the details. julia? >> spotify is addressing just now a new interactive ad tool to make its ads more effective and therefore more valuable. so as the music platform whose stock has suffered in the past looks to grow the advertising side of its business and compete more with the likes of facebook, meta and google for ad dollars, there are these new call to action cards they will start to roll out today on select podcasts spotify says this new format drives double the increase in site visits as standard nonclick-ads do. this invites listeners to click shop now buttons or click to learn more about advertisers products when the ad plays spotify says these ads are successful because they eliminate the need for consumers to remember promo codes or sale details and the like and they facilitate more engagement with

brands spotify has been doubling down on podcasting in its third quarter report they talked about the engagement with podcasts accelerating as it rolled out the likes of interactive polls and q&as for podcasters and as podcasts advertising rose to 13% spotify's total ad revenue we'll hear more about spotify's ad business and growth when the company reports those earnings on february 2nd. jon, this is clearly a priority for them >> yeah. looking forward to seeing how other companies are trying to innovate on ad formats, too. thanks and now consumer tech week rolls on logitech stock a big beneficiary of hybrid work trend shares doubling in 2020. the stock closed 2021 lower by 15%. it'sed in red a bit today. here to talk some key trends and exclusive interview logitech ceo. great to see you i want to start off talking about the expansion in demand for gaming equipment

because you guys make a lot of that and i'm not sure investors are understanding it correctly i've got the sense that maybe equipment that was for hard core gamers five years ago has sort of moved into the mainstream my boys put on gaming headsets because they talk to friends while gaming like i used to talk to friends on the phone while watching tv or with music in the background is that what you see happening and are you shifting the way you design or plan products based on the shifts we're seeing culturally now >> jon, you always impress me. you opened with a direct bullseye on what's happening in the gaming market. it's gone from being for gamers to being for everybody you know, the gaming is now the new playground and so when you want to get together with your friends and talk, they're doing it in the context of video games and that's real hard for most parents to understand and for a lot of us who don't play video games regularly, but that's

basically taken this from being a niche in the basement in the dark category to wide open everybody is in. every gender, everything, everybody is on all the time having a discussion, talking, laughing, playing, giving each other a hard time. it's just the way it is. so, yes, absolutely. we've changed the way we think about designing products and we're now designing for lifestyle, not just for competitive gaming. >> so i'll watch them take a headset from an ipad to a pc to a playstation. what do you do differently to make sure that the momentum that logitech saw during 2020 in the pandemic product wise, not only continues from here but also margin continues because you have the right kind of innovation that differentiates you. >> the most important thing we can do, there is no substitute for staying very, very close to the customer in our gaming group has grown from being, you know, largely almost completely male in the

classic view of what you thought of as gamer, 10 or 15 years ago, to very, very diverse and much more broader group and they're very close to the customers. i think we're evolving, your team is evolving just as your products are evolving. so i'm super excited about what we've got going there and the people we have working on it i think you're going to see us come out with cool stuff some of the latest stuff we've done in gaming they have been so much more fun and some of the latest advertising we're doing is a lot more fun, a lot more diverse, too >> braken, good morning. i'm looking further into the future what happens to gaming equipment if people are experiencing games in a more immersive environment through a headset. is there still room for the accessories you make or how are you looking at that shift and how urgent is it do you think that is a long ways off when most people are gaming through headsets >> i think the whole idea of metaverse and where is it going, whether it's gaming or work or play is -- we've done a lot of

work in vr and ar over the last five or six years. we can't seem to find something better than the mouse and keyboard for a lot of the applications people are using and will use everyday. so, i think they're going to be very mainstream and grow right through all of that change as it happens. i don't know how long it will take you know, things seem to take longer than you think when you're thinking long-term, but it's going to happen we're prepared for it. we're also in there experimenting with new forms and new things we can do there, too. i'm of the view the metaverse and the opportunity there as one of the biggest opportunities in the company's history. it's going to create another big growth spurt for us. >> finally, bracken, i'm seeing startups making web cams which is not something i would have predicted i would be seeing this decade but thinking that they see through the pandemic, some room to do web cams that have dslr-type quality, specifically for those who want to use that format and it's more and more of

us in the zoom era are you seeing that? is that something that you're sort of attuned to are you going to change the range and function of the web cams that logitech offers to address that challenge >> jon, i think one of the real markers for us when we know we're in a hot category is if there are a lot of startups operating in it. and there are. you know, it's really exciting and i think that favors us just because you can imagine that we have a lot of innovation horsepower so we can put against things like that. we don't usually disclose in advance, as you know, jon, exactly what we're working on, but we have a lot of cool things coming not just in web cams but everywhere so, i'm very optimistic about the future and i think it does tell you, we've got four big megatrends we're focussed on, video going everywhere, it is. people working from everywhere, they are the rise of esports as the biggest participant in spectator sport as you said is even now more about play.

and then just the continued growth of people streaming, creating content on their own. which will be bigger than all of those. those are our four areas we work in we're in these high growth areas and we're going to innovate across all of them. >> give me a heads up as that innovation comes down the highway. we'll be excited to have you back here on "techcheck" then and before then, bracken good to have you. >> thank you great to be here. amazon the worst performing faang name of 2021 could 22 be a turn >> catch that call and a great breakdown of the stock at cnbc.com/pro we're back in a couple of we're back in a couple of minutes. feel stuck and need a loan? move to sofi and feel what it's like to get your money right. ♪

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julia boorstin markets are mixed off the low. moderate chop following the bruising yesterday worst s&p day since about mid november it's been cloudy returns for investors in the cloud julia's got a breakdown in a moment of that in just a little bit. but first the news update with rahel solomon. >> carl, good morning. here is what's happening at this hour service sector growth slowed more than expected in december although the ism nonmanufacturing index was above 60 for the tenth straight month. supply chain issues impact growth prospects u.s. trade deficit grew 19% in november as imports of goods jumped to a record high. overall exports barely rose. they were held back by drops in exports of capital goods and industrial splice. shares of bed bath & bonds, whip the stock sank 11% after they posted a sizable loss in weak comp sales then the stock soared perhaps of good consumer demand and strong margins in the report shares shot up more than 22% before cutting gains

they're now up closer to 7%. and potato processer lam westin big on its quarter results. profits blew past estimates margins were strong. shares up 10% today and more than 35% from their december low. you're now up to date, carl. i'll send it back to you. >> thank you. if you're counting the tech sectors that are trading at a discount, be sure to include fintech. >> so you got the ten-year treasury spiking 1.75% today as investors are assessing the federal reserves faster than expected policy tightening the prospect of higher rates and less liquidity doesn't seem to bode well for high growth fintech stocks in the payment space. names like robinhood, lemonade, toast or paypal, they were darling of the pandemic, but demand for these firms is cooling off. especially over the last three months which is what you're seeing on your screen right now,

that downward trend for all of those stocks then you have buy now, pay later lender affirm, down over 20% this week alone. investors aren't only spooked by higher rates of course lead to higher defaults on loans but also by credit quality the consumer financial protection bureau recently requested data from several large buy now pay later firms including affirm which now is trending to the upside today but down over the week. shares in block formerly known as square down almost -- turned around. flat to the negative right now unchanged. but down on the week over 10%. and that's its worst week since early december, which really doesn't sound like much but december was its second-straight monthly decline. and that two-month losing streak its longest since 2019 block also closed at a 52-week low yesterday. the stock is not only linked to federal policy but crypto as well block's cash app allows users to buy and sell bitcoin with bitcoin representing nearly 50%

of overall revenues. bitcoin falls dramatically seeing on your screen in just previously, then you also have the same type of movement with block. and we're also seeing similar movements with personal finance firm sofi and crypto currency exchange coin base as we slowly exit the pandemic, we're optimistic about that, demand for digital apps is cooling down and pair that with a broader retreat from tech stocks ahead of interest rate increases and you have yourself a selloff in some of the markets best-performing name which is we just went through. back over to you >> yeah, we're seeing the nasdaq as well flip between positive and negative territory in realtime that sets us up well for our next guest says now is the time to buy this sector valuations head lower and derisk into 202 wolf research analyst darrin peller joins us with his top picks. darren, you say that they have been derisked but regulators seem to only be getting started in this space when it comes to crypto and especially buy now pay later.

what does that bode for the industry this year or does that actually make it more appealing more regulation >> yeah. look, i mean, thanks for having me, first of all but when you look at the space, regulation comes every year. and the industry generally manage through it very well in the past cycles. and i really don't see any exception to this. there may be more disclosures required in and credit quality checks on the npl. the fintech industry is broad and we have names like visa and mastercard that really participate in various aspects, well above and beyond the npl. merchant processors like fis and b to b payments and others the most important point i'll tell you is that it's very rare you see two years in a row of underperformance in fintech stocks the last two times was 2010 and 2016 there were aspects underperformed the very next year there was outperformance by visa mastercard, 55% up in 2011 45% up in 2017

with most other years outperformance as well regulation is always going to come, but we don't think that's going to stem the opportunity to follow up and outperform a tough year for fintech last year. >> darrin, part of the reason that some of these new names come to the market the last little bit like coin base and sofi, robinhood have been able to grow so quickly is because they can move fast and break things that old silicon valley adage. >> yeah. look, at the end of the day, first of all, a lot of the larger fintech companies are participating in the same trends what you're seeing from coin baseand digital wallets. you brought up square earlier. square was a covid beneficiary in some regards given its cash app business but has the other side of the business that seller right now estimates are still pricing in a bit too much from the pandemic extrapolating too far. we think that it checks all the boxes on the other side.

has buy now pay later, it has crypto as a theme, digital wallets and the cash app side and convergence with software and payments will differentiate long-term. it's rare you get these valuations and stock square or block being one of those examples >> i wonder if you expect any legacy financials to make a major move either organically or through acquisition this year, just try make -- plant a real flag in the space. >> look, i absolutely think m & a will pick up some steam this year versus what we have seen the last couple years and valuations coming down is a part of the reason for that, right? when you think about the last couple of years, we talk about this in our report we published this morning, the magnitude of ipos and spacs that came to the market was really off the charts for fintech. in fact, we had $200 billion of more capital that's publicly traded in the market now for fintech from just new publicly traded names, ipos and spacs the

last two years alone and so the scarcity value questions was coming and valuations were hard made it hard for m & a reset lower on valuations i absolutely think not only will you see some banks look to acquire into some of these fintech offerings to help accelerate growth but some of the compounders the legacy fintech stocks that used to be very good acquirers will probably do more today and more this year. thinking fis will buy assets, paypal, visa, mastercard will all be on the hunt >> interesting something you said a couple minutes ago, you said it's been rare to see fintech underperform repeatedly 2010 and 2016 being exceptions. >> yeah. >> hasn't everything sort of outperformed over the past 12 years. how do you determine what the baseline is for what might happen in the future >> well, first of all, i'm looking at our space relative to the s&p, the market. i'm talking about literally every year other than 2010 and

'16 that the median performance of the fintech stocks outperformed the s&p performance. so it's really not just that they went up, it's they went up a lot more than the market i'll take a step forward actually when we think about going forward, we polled investors over the last week about 22 and beyond. 51% of investors that we polled expect fintech to outperform the market by up to 10% this year. and 22% expect them to outperform by more than 10% given we're coming off the year we just had. but for what it's worth, we need a barbell approach, some of the growth stocks that are the best names in that category, you really do need some of the value-century fintech names also >> thank you for being with us your insights, appreciate as always. >> thanks, guys. thanks for having me. well, with etsy down more than 15% in a month, it is sales season naming a top pick into 2022 and forecasting double-digit growth

ahead. price target 325 there catch the full call at cnbc.com. don't go away. don't go away. ♪ ♪ ♪ ♪ ♪

names in the cloud among the many tech stocks that have come down to earth this week, as you know julia has that story for us. julia? >> well, carl, the latest fed move to taper is pushing investors more to rotate away from highly-valued unprofitable

growth stocks. and the cloud sector continues to get hit hard by raising rates. now take a look at a couple of etfs that track the cloud sector the global excloud computing etf down more than 8% over the past week wisdom trees cloud computing etf also falling more than 10% week to date with more than a million shares traded each of the past two days and morgan stanley writing today that software valuations have contracted by 30% compared to an average of 22% decline in prior cycles morgan stanley warning that while investors are more concerned about rates than fundamentals, there are more questions around possible pull guard of digital transformations spent into 2021 that could create a digestion of that growth in 2022 now, they also note that the top five most expensive in the cohort snow flake, data dog, confluent, cloud flare and zs

caller are down. datadog is up over 1%. news of partnership -- actually up 2.5% on partnership with amazon web servicings. that partnership announced last month. salesforce, workday and twilio, today those stocks are bouncing back you see salesforce up 2% workday up over 2% twilio up nearly 3.5%. though zoom video is down about 55% in the past six months, this week trading at its lowest level since may of 2020, that stock is up about 2.5% today. though with these broader moves lower in the past week, the past couple months, many of these stocks are trading well below their average analyst price targets. so, deirdre, still a question about valuation. >> yep, you're seeing some investors wade into names like zoom as you said today. if you're looking for stock taking flight today, morgan stanley says buy allbirds.

overweight, shares continue to hover around the $15 ipo price, 50 cents below it. shares 50% off their 52-week highs. more "techcheck" after this. stay with us at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.

♪ at cs this year, google is taking aim at better connecting user devices both within android's operating system and adding interop ability with

microsoft windows. they can seamlessly connect their headphones and watches and synch files and devices. now in terms of compatibility google is catching up with apple. this might suggest that slowly some of those walled gardens are coming down amid more scrutiny but guys, don't expect that green text bubble on your iphone to go away any time soon i asked the company with integration with apple'si ios would come next? they didn't respond. walled gardens and regulatory risk, you have to wonder if that's factoring into the recent sell off dan niles mentioned as a risk factor at the beginning of the show i don't see it i think it will take more action for investors to factor this in or move the stocks on the back of that regulatory pressure. >> dee, my philosophy is these

walls usually don't come down unless the product itself fails. like blackberry talking about earlier this week. they move, right so, windows 11 building in android, android getting interoperable. microsoft and google are both trying to move the walls to more convenient locations where the margins will follow. and speaking of google, tech investors not the only ones feeling the pain this week billionaires like larry page are down $5 billion each amid the selloff. they're not the only ones, but something tells me they're good for it robert frank, got a look at who could lose even more on paper. robert >> that's right, jon stock volatility means wealth volatility it's been the worst start of the year for tech billionaires in recent history the top ten wealthiest tech leaders losing over 40 billion dollars just yesterday elon musk hit hardest down $14 billion yesterday on the tesla decline. but that stock bounced on monday from the delivery announcement he added over $21 billion to his

wealth on monday so far this year he's still up 7 billion. and he is still the world's richest person with $278 billion. now google founders as you mentioned, brin and page down over $5 billion each on the alphabet decline mark zuckerberg 4.5 billion. and bill gates down 2 billion and larry ellison down over 3 billion on the oracle decline. top ten wealthiest overall in the world. two gainers, little more old school, bernard arnault, up 3 billion for the year, yesterday and up 5 billion for the year so far. warren buffett up nearly $4 billion for the year that's thanks mainly to that stake in apple now, if you look at the past year in total, you have some big losers, zoom ceo seeing his wealth fall by more than half, down $7 billion and vlan tenev

now worth $900 million, guys he is no longer part of the three comma club that stock down a little more today. back to you. >> it's good to keep track of these, robert, thanks. robert frank. rivian shares coming off worst day since november. off t worst day since november, and b of a by now is naming it a top pick along with lucent for 2022. lucent has come off the early morning lows crypto is cratering. a look at what's driving that sell-off in a moment with the dow do 1 wn16 zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year.

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i hope and pray that these cryptocurrencies don't crash because it will mean, it will have an effect on the regular market these cryptocurrencies are going up because more and more people are buying and if they go down fewer people are buying. there's no earnings, no dividends, nothing holding these things up except the market. >> mobius not pulling punches to what he thinks is driving the crypto sell-off with crypto now below 43k. don chu joins us with a gut check. we're watching the september 2021 lows. >> we are watching those because those 40 to 41,000 level is one that many crypto traders are

watching right now for bitcoin prices to hold some sort of level. if you take a look at the overall kind of crypto sphere of those bitcoin and ethereum always get most of the attention. why? because they're the two biggest out there. tokens by far. the market cap of bitcoin is $800 billion+. if you take a look at the pullback that we've seen, ether outperforming for the past year and we are down roughly 30% with regard to ethereum with the all-time highs and bitcoin on this scale, much less dramatic, but still it's a 38-point drop on an intraday basis so something to keep an eye on with a relative move when mark mobius says this is a sell-off, if it's not who will step in. the perspective around this is the thin tech player and some of the stocks that have been caught up in some of the trading

volatility coinbase global is one that gets the attention because it is the biggest u.s. operator for cryptocurrencies and it got relative help today, based on a buy on bank of america and microstrategy down 2.5%, as well, so keep an eye on those, john back over to you guys. >> thanks. microsoft, one of the top big tech performers in 2021. so will 2022 be the same jeffrey said yes calling the top pick for the year forecasting the stock could head as high as 400 bucks a share which would be 25% higher from here more "tech check" still ahead. stay with us ngth? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

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one more thing before we go, while investors continue to rotate out of tech names this week, what about hedge funds leslie picker's got the scoop on some record selling we are% seeing from the whales leslie >> john, it's not just a rotation, but as goldman sachs describes it, a quote, violent rotation hedge funds have been dumping tech stocks at a remarkable pace in 2022. the firm's prime brokerage group said the net selling of this group was the largest on record going back at least ten years

over a four-day basis through january 4th. that doesn't even include yesterday's selling and today's activity, as well. the declines are stemming from the dumping of long positions rather than pressure from additional short selling goldman's prime brokerage group is underweight technology by nearly 5% versus the s&p 500, and also the lowest underrating on record. so lots of records being made with this recent activity. when analyzing on a factor basis, the firm says the rotation out of growth leaves exposure at a five-year low and value at a five-year high. in terms of sub sectors, hedge funds had the largest net selling in software, semiconductors and semiequipment name, but they were scooping up names in the airlines, electronic equipment and containers and packaging industries that kind of explains the value side of this trade as for how this has affected performance, it's clear that the hedge funds have dramatically

underperformed in 2021 we should get updated figures either today or tomorrow for the full year, but according to hfr, technology funds generated 3% gains on average in the year through november compared with the nasdaq which was up 26% over that same period, guys >> maybe more will meet their benchmarks in 2022, l.p., because last year was tough. let's get to the judge and the half all right, carl, thanks so much welcome to "the halftime report." front and center, how much is ahead for your money and which stocks are vulnerable? we'll debate that with of course, the investment committee and we'll continue our stock summit with more top picks and sectors. once again joining me for the hour, sarat sati, steve weiss and josh brown let me take you to the wall. i'll show you the nasdaq's getting a bit of a lift today and the 500-point sell-off and the firs