this market is on fire at the very top >> yeah, all right, robert frank, thanks for bringing this to us. all the major averages lower right now. the s&p down about 0.6 668 is the level there that will do it for "squawk on the street." "techcheck" starts now. good friday morning. welcome to "techcheck. i'm carl quintanilla with john fortt and deidre bosa. we're waiting on the job numbers. when that happens, we'll take you there live tech's wild drive continues. almost 40% of the nasdaq is now cut in half and is now the time to start buying or more pain ahead? we'll discuss it. 2022 and the top picks won't

stop coming and new ones on software, the cloud from wall street to favorite names and finally "techcheck" is welcoming the weekend with a bunch of ceos and "new york times" head later on this hour we'll start this week with this week's tech selloff. the nasdaq is on pace for the worst week since november. roughly four out of ten on the index have been cut in half. spurred by rising yields and our next guest says put on your hard hats, it is going to get ugly. here to discuss 75 and sunny zi zillow co-founder. all right, so how ugly >> well, first, you have to put things in context, right by the way, can you hear me okay or is there an echo? is it all right? okay >> you got me, spencer >> yeah, i got you, carl

sorry, there was some technical difficulties here. last year we had $200 billion invested in start ups last year, which was up from 100 billion the year before. huge boom and huge increase in the adventure of investing to hubs outside of the bay area that's the good news from last year the bad news as we started this year the fed said the party is over 5% to 7% inflationary environment and housing costs are going up way faster. picasso second home markets and zillow is 14% in prime rate market if you include housing costs, the fed will see an uglier inflationary period. the problem with that, of course, is the fed is pulling back and, therefore, companies and investors are moving further in on the risk curve so, what happens is these public market valuations are coming down and that's going to impact my world, the venture world

because private companies public companies off the same rule brick. what's interesting is this time it's changing. so many crossover investors that are investing in public and privates is that it used to take 6 to 12 months to see it move from public valuations to private valuations that time gap is closer than ever because of more crossovers. it will be ugly as the fed raises rates we haven't had a higher rate environment for a long time. great companies get built through downturn we saw this in 2001 because innovation continues and so much innovation happening right now between crypto and so many shifts occurring that is the good news. >> i guess my question would be, we notice the damage as we pointed out at the top of the show is going on a while goldman sachs most shorted basket giving up all the gains going back to thanksgiving of 2020 at what pointdo you think

innovation conversation starts to offset the valuation conversation >> well, there's been a rerating of multiples in a lot of stocks, including cloud, of course i don't know if we found that. the market is also bifurcated where you've got the major indexes at all-time highs and the mega caps at all-time highs or near all-time highs and then small caps and mid caps that are just getting decimated so, you know, i am a start-up founder more than a stock market picker i guess i'd say that the trends that we're supporting, for example, the cloud companies those trends were, you know, huge addressable market, corporations moving their whole tech stack from on premise to cloud and really great margins once you're at scale in the businesses those things haven't changed now, there may be a rerating on the multiples of how investors think about those companies. once we're at the floor of rerating, then the companies grow into the multiples and the

particulars of why they were trading at such high fliers previously those start to rebuild from there i take a very long-term view i'm not a short-term trader. so, i'm still incredibly bullish on technology and incredibly bullish on tech stocks over the long term, they will o outpace the slower growth companies. >> hey, spencer, i want to spend time in the dichotomy i think you were aleluding to if you look at the s&p, even just a one-year chart. looks fine look at the nasdaq okay, little bit more troubling. but we were just talking about the number of stocks that have come down 40, 50% from their highs. there's a big difference between what's happened with certain growth stocks in the nasdaq and then just what's happened with public empccompanies and innovae companies overall. what do you think the overall message is about that, not just what the growth prospects are

for these growth companies going forward, but how far the valuations ran up until this point. >> it's a very difficult time to be a sub 5 or sub 10 billion dollar company it's hard to get attention from hedge funds and it's hard to get research coverage and you see that in a lot of these stocks. you know, companies that i owned that went public at 10 is now at 5. offer pad went public at 10 and now at 5 or 6. these are companies that i think represent great values at these levels but because they're now small caps less than a couple billion in market cap, they have to find their shareholder base and it's difficult because this flight to safety and flight to mid cap and, you know, i think that presents enormous values but for investors willing to step in but there's no question that this flight to safety and flight to large cap has created a separation between multiples of these two types of companies.

>> spencer, good morning, it's deidre you talked about sort of the effect of these public tech stock revaluations and the effect on the private markets. you said that that time that you're seeing that effect is becoming short as you see more crossover funds and announcing it raised $9 billion across three funds and looking more to the public markets are you seeing that now in terms of start-up valuations i haven't seen that so much. companies that were thinking about going public might hesitate to do so because there is still so much cash and you're seeing higher valuations in the private market still >> well, i think you have to ask yourself why companies go public because a lot of reasons and benefits for being public. you have permanent access to capital and raise the company's new profile and hareholders help the company become a better version of itself because of increased accountable. the ipo event itself is where you're selling a small portion of the company

nobody knows and remembers what multiple the s&p was trading at when apple went public in the '80s or zillow went public in the mid teens. those companies would have never accomplished what they accomplished if they stayed private. the comps were lower as a result, that's okay. or i guess to give more recent example, i'm pretty sure the 2021 ipos that have broken issue. companies like robinhood, coinbase, offerpad i bet if you ask those ceos are they happy they went public, the answer is yes. even though stocks are way down. even though day to day it stinks to be the ceo of a private company. i have been there, believe me, it's unpleasant. but they are happy they went public very valuable for companies to go public. i encourage companies that i'm involved in to go public i think it makes companies better and stronger and i think that, you know, waiting five or ten years longer than you need to to stay private is a mistake

for most companies >> finally, spencer, you mentioned just in passing the projections on the value of housing and i wonder what impact do you think that will have on households on spending i mean given the idea that we're going to be underhoused for years to come, it looks like >> well, the most interesting thing in this space which i think is underreported is that i just read the other day in l.a. something like, i forget if it is one-third or two-thirds of rents are capped landlords have not raised rents because of emergency order and once those lift and i am assuming that applies to other cities, as well. big increases in rental prices, also this artificial tamping down of a huge basket of goods, which is our housing costs on the rental side just from a regulatory standpoint that went unleashed will drive overall inflation you know, what's happening in housing is fascinating because everybody is changing the way they live and work that means people are moving

further out from cities and finding good values there because they don't have to be close to their office any more people are moving from cities to mountain destinations because they can work remotely permanently. more people are buying second homes than ever before because permanent step change in how much we're able to use second homes. huge changes to housing as a result of this shift to hybrid work >> and we know what shelter is a huge component of cpi and we'll see what that brings later in the year nice way to start the hour with you, spencer thanks let's turn to software another area having a rough start to the year. the igv down 90% next guest is bullish calling microsoft, salesforce, adobe, servicenow some of his top picks. cash, good morning to you. i know that you're looking at the sort of value, right these multiples that haven't been as inflated over the pandemic when you look at the

space. even the high-quality names that i just mentioned like crm, microsoft, datadog, also among some of the best performing names over the last 12 months. >> right first of all, thanks for having me on the show a couple points. first of all, the cloud as we know it today is strikingly small percentage of gdp, 30 gdp. so this is nothing cloud is going to be 6x, 7x. we can think of a situation where cloud is easily 7x from current levels when we see these big selloffs and we'll live through 13 or 14 selloffs in software in the last 11, 12 years coming out of the great financial crisis and every one of the selloffs tests your conviction is software

but it's not dead. it's far from being dead i think it's very much alive and i'm very bullish on software i just feel bullish. i have to tell you that we just concluded an amazing virtual field trip we met with 12 or 13 software companies ceos and cfos literally just yesterday the universal, unanimous conclusion and not from me but software management and know the pause and they are every bit as bullish as they could possibly be some of them see potentially accelerating business conditions so, given what's going on, the growth segment of software has been hammered because of concerns with rising but they look very solid. >> yeah, cash, we hear a similar thing and certainly those spending plans accelerated over the pandemic but the question is here on

valuations and with some of that spending pulled forward. when you look at names like zoom and docusign 50 and 60% off their 52-week highs. how much does that affect their ability to expand their business going forward? zoom could have used its stock price to raise its capital and m&a and that acquisition did not go through how does that actually affect their business and what is happening in the markets and their ability what they can do >> there's this one company that they certainly pronounced growth rates during the market and they have come down pretty handily and that's not a stock we're recommending just of yet want to focus the attention on the top picks. microsoft, salesforce.com and servicenow are these stories extended did their demand get pulled forward? we don't believe that to be the case by the way, stocks happen to be on the goldman sachs conviction list we lookt a these companies

digital transformation and the cloud migration existed before the pandemic yes, it accelerated during the pandemic, but it doesn't look like we're out of the pandemic just yet it looks like we have these continuous strains of viruses that the longer these things hang around it reinforces the notion of i.t. departments and even ceos and board of director meetings that this cloud journey is a real one. we just have to get going on this asap. that sense of urgency and being exposed to security risk, et cetera, that we don't believe that this is a one-year thing or just one year thing that would be a sham. but this is a journey. so we think there could have been a bump up in the growth rate a little bit here and there but the overall trajectory is still with salesforce.com or microsoft or servicenow and compiling their business is secular in nature and backdrop of cloud being such a small portion of i.t still, kind have a long way to

go that's why we're so bullish. >> cash, not arguably with the th thesis here but trying to separate company performance from stock performance microsoft over 300 right now and under 200 and in the 170s and 11 180s before the peak of the pandemic reaction. i think a lot of people knew what all that was before, so why is it going to run so much higher and so much further from here similar with adobe. under 400 at the prepandemic peak now it's even having fallen back from around 650. over 500 so, we understood adobe before but why isthe stock going to continue to run higher when it's already run so much even from the levels it's come off >> let's startwith microsoft for a second what's amazing the stock is almost identical to where it was at the start-up calendar in '21. earnings have grown

substantially and the valuation multiple on a 12-month basis is exactly the same it was a year back i would say business conditions and fundamentals of the company are better driven. true, of course, the bigger question is that valuation the right valuation? i tend to not look at valuations because i think software is very unique as a category because it doesn't grow in line with gdp or faster than gdp. so, we look at these stocks where we have high conviction marks and we'll kind of look at earnings five years out. what is the market missing the market is generally right or wrong in the next six months, three months, but we're generally wrong in a pretty big way about these companies. the farther you look out that's why we think they're going to earn $20 in earnings in fiscal '27, calendar '26 so what do you pay for earnings doubling over the next four to five years in fact, this company has quadrupled earnings in the last

seven years. the valuation multiple has not gone and roughly the same software overall across the group next 12-month multiple revenues are about the same as they were trailing for your average. right on part with the beginning of 2021. so, i think just given that, we don't think valuation is bubbly for microsoft, salesforce.com and adobe. to answer your question on adobe, the stock is exactly where it was six months back what happened the last six months a bubble or big rise in software, not a lot of people really understand why adobe and microsoft and salesforce are all up 20, 40% but looking at the business today you have a company growing top line 16% on an average basis adjusted for one week extra sxr possibly ended up being a little bit better and earnings will grow over the next four to five years and 25%. the ceo of adobe wants to double the size of the company. you don't say those kinds of things very lightly.

that ceo has an amazing track record the earnings are going to double in the next five or six years call it. microsoft, salesforce.com and servicenow >> kash, thanks so much for your insights we'll talk to you again soon >> happy friday. thanks for having me happy friday meantime fresh off the keynote don't miss the ceo of abbott a volatile week for technology stocks we have lots more on today's market action. where you should be putting your money after the break. "techcheck" just getting started. ♪ dream, dream that's the thing to do ♪

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time for a gut check on gamestop surging after the journal reported the retailer plans to create a marketplace for nonfungible tokens and establish crypto partnerships to create games and items for the marketplace. the news comes as crypto continues to selloff bitcoin now trading below 42,000 last i checked, sitting at that 41,000 line right now. ethereum not fairing much better today. john, can't wait to get your take on this

i was looking at gamestop and that 52-week high. 483 bucks at one point we're at around 1.40 but still has the meme stock ability. even though this wasn't surp surprising we knew this was coming. sort of the meme stock crowd had the stocks surging a few hours ago. >> well, the impact and sort of length of the ability for the meme stock crowd, whoever is in it investors and it seems to be waning from where certainly it was at the end of january a year ago. so, my question is, what is moving these stocks? why is it moving them less is it based on some qufundaments or attitudes about growth and the availability of capital, you know, what happens when eventually, who knows whether it's sooner or later economic conditions themselves change significantly not just the tone of the fed

all that important, i think, carl >> indeed, john. a lot of people making note of not just the fact that this was quietly telegraphed about eight months ago so why now, but also this idea as you point out that we're no longer in the environment where you can load a press release with a bunch of buzz words and see shares rocket higher and then sustain themselves higher. that's not happening today >> yeah, that's the thing. sustaining it. so, what happens as that's harder to maintain we'll continue covering it, of course meanwhile, abbott laboratories popular of at-home covid test binax now heading the consumer electronic show in las vegas. the first for a healthcare company. they have big plans to ramp up production of their tests, which we'll get to in a moment but, first, some product news. i got a chance to talk to abbott's chairman and ceo robert ford after his keynote on stage yesterday. the company is developing a new

category biowearables. the name is lingo. designed to attract key signals in the body for people to better understand their health and take action take a listen. >> we started our sensor journey here with freestyle libra for diabetes and right now the most used sensor around the globe and we always knew that it would be a platform and use what we built on our manufacturing and technology and look at that and say are there other things that we can measure that would provide insight to the consumer and allow them to live healthier lives? and about two years ago we tucked away a team to start working on that and today at cs was kind of our announcement of at least the first phase of the work of this team. they've actually come up with four great new products that were still finalizing their

development, but a specific sensor for gluicose outside of diabetes, a keto sensor. this is great for people who like keto diets and following keto diets and weight loss and a lactose sensor for athletic performance and recovery and also were able to develop an alcohol sensor that measures alcohol and we're looking at connect to a car and what are the the other things we can do with it so, super exciting phase one. we come out of the gates and announced that it will depend, obviously, on different countries. i think we'll see the lingo portfolio first outside the united states. and then we'll be bringing it here to the united states as we forward our discussions with the fda and the kind of data that they're going to want to see to prove it here in the u.s >> regulators always a challenge. he also said he's interested in working with google, apple,

amazon another topic of conversation the binax now covid tests. i asked how abbott plans to ramp up distributions as omicron and holiday season led to a surge in demand and in some places anyway a squeeze in supply. >> our team has found a way to get 70 million cdone in the mont of january and i'm pushing my team and say what do we need to do to get to 100 million a month. we'll see continuing ramp up from our side as it relates to distribution, listen, we shipped twice as much tests in the second half of 2021 than we did in the first half and we're seeing a much more diverse supply of those tests. if you look at the first half, about 75% of our shipments were either to the federal government or to the states 75%. that number in the second half has come down to about 35% and what's grown has been

pharmacies, workplace, schools so it's become a lot more diverse in terms of where you can find tests now, obviously, we had unprecedented demand with omicron and then a lot of travel, a lot of travel and with a lot of travel comes, you know, the need for people to want to get tested looks like we're going to have demand for a while finally, ford tells me that abbott's approach to tech really philosophically centers on data and trust. >> how do you make sure that we take our scientific knowledge, our healthcare credibility that we have, we package it and talk to our consumers in a way that is easily understood for them. not get bogged down with a lot of the technicals but make sure it's understandable to the consumer i think that's our philosophy. >> so, d, interesting move for a health company into tech we'll see when the products

arrive to what degree they're done in collaboration with existing tech names to what degree they're becoming a consumer tech company, as well but certainly an interesting move from abbott >> yeah, carl, you think about even for my family a few months ago not so good at testing and now it's sort of, you know exactly what to do we're so adept in this space and to turn the business and look into consumer by wearables such an interesting move to expand the business at a time when people are getting more comfortable. >> that conversation was amazing, especially i mean when they started talking about blood alcohol, john, and cars, you can imagine the use cases coming into play if that eventually happens. good stuff. meantime shares of sonos on the move today after google infringed on some of their audio patents. google plans to appeal. meanwhile, do not miss more of today's biggest movers after the break. dow has recovered come of its

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welcome back to "techcheck." resetting at the bottom of the hour we're moments away from the president talking about the jobs number when that happens, we'll take you there. in the meantime, tech stocks are selling off. the dow is flirting with a flat line and the nasdaq is flirting with another 1% loss in some early trade. julie is going to join us with ceo of "new york times" on the heels of the big deal for athletic in just a minute. first update with morgan brennan. >> hey, carl so, good morning job growth was much slower than expected in december as the omicron surge hit the u.s. nonfarm payrolls increased by 1 199,000 and economists expecting 222,000. the unemployment rate did fall afterficially declining to

participate, the state of georgia now joining the settlement of lawsuits accusing three big drug distributors plus johnson & johnson of fueling the nation's opioid epidemic and the fda now says people who received two doses of moderna vaccine can get a booster after five months. that's instead of six. that matches the waiting period for pfizer's shot. john, i'll send it back to you >> morgan, thank you. now, let's turn back to the market those crazy cloud software valuations you saw last year, some of them are over. at least according to our next guest. joining us now to discuss that and more of his tech predictions for 2022 is former chief operating officer and zoom board adviser sanjay s sanjay, always great to see you and get your thoughts. i especially want to zero in on one trend you see.

apps being where the value is. talking about data platforms and whether it's snowflake, a lot of them what in particular do you think holds the value here and of the public ones, how should they be valued >> well, thank you, happy new year, john, to you, carl, deidre and in the spirit of ces, i wanted to let you know this is the real but coming to your question, listen, if you look at the data and analytics market it is a 200 million market and to put that in context the infrastructure where the cloud is about $120 billion market today of course, those are both growing. the data and analytics market is bigger they were oracle and terrdata and in the new world of cloud, some of those companies have moved to the cloud many haven't that created this advent for a

whole new platform of companies. companies like snowflake, mdata bricks and these companies are using either open source technologies or just building a cloud data stack and they're just coming into that market and taking enormous amount of share. the way to look at this blood bath that has happened since november 19th or so and seeing chutes and ladders types of game is to search through the q3 earnings and look at the last two, three earnings and look at where many of these folks overachieved that was very evident. go back to see if they're category leaders and invest. you can say that about data platforms like snowflake and i like a few others in that category like shopify and all of this >> we'll get the president any moment now, i want to prepare you in case we have to cut this

really short but bottom line, what in particular trend wise can consumer demand, when i say consumer, customer demand wise in the enterprise are you seeing that has particular power where data platforms are concerned >> data analytics and quite frankly ai and driven by ai and both our family life as well as what we do but if you lookt a applications, the value of infrastructure is going to start to-- >> sanjay, i apologize for the interruption here is the president. >> shortly you're going to hear a helicopter landing outside the window here. i'm supposed to be in colorado looking at the damage with the governor of the god awful firestorm that rolled through and then i'm heading off to do

harry reid's funeral so, this morning i want to talk about i think it's a historic day for our economic recovery. today's national unemployment rate fell below 4% to 3.9% the sharpest one-year drop in unemployment in united states history. and the first time the unemployment rate has been under 4% in the first year of a presidential term in 50 years. 3.9% unemployment rate experts said we would be able to do it and we have added 6.4 million new jobs since january of last year in one year. that's one of the most, that's the most jobs in any calendar year by any president in history. how? how? how did that happen? well, the american rescue plan got the economy off its back and

moving again back on its feet getting over 200 million americans fully vaccinated, got people out of their homes and back to work even in the face of wave after wave of covid we got schools open. we got booster shots we brought down the poverty rate and went from 20 million people on unemployment rolls a year ago to under 2 million people on unemployment rolls today america's back to work and there are more historical accomplishments. the increase in america's joint in the labor force was the fastest this year of any year since 1996 and among prime age workers ages 25 to 54, their increase in labor force participation was the biggest in 43 years. record job creation, record unemployment declines, record

increases in the people in the labor force. i would argue the biden economic plan is working. and it's getting america back to work, back on its feet but the record doesn't stop there. today's report also tells us that record wage gains especially for workers in some of america's toughest jobs, women and men who work in the front line jobs and restaurants, hotels, travel, tourism, desk clerks, line cooks, wait staff, bellmen, they all saw their wages at a historic high, the highest in history their pay went up almost 16% this year. far ahead of inflation, which is still a concern. overall, wage gains for all workers who are not supervisors went up more in 2021 than any year in four decades there's been a lot of press coverage about people quitting their jobs well, today's report tells you

why. americans are moving up to better jobs, with better pay, with better benefits that's why they're quitting their jobs this isn't about workers walking away and refusing to work. it's about workers able to take a step up to provide for themselves and their families. this is the kind of recovery i promised and hope for for the american people. where the biggest benefits go to the people who work the hardest and more often left behind the people who have been ignored before the people who just want a decent chance to build a decent life for their family. just give it a clear shot. for them, wages are up job opportunities are up layoffs are down to the lowest levels in decades and more chances than ever to get ahead no wonder one leading economic, excuse me, analyst described what we've accomplished in 2021

as the strongest first year economic track record of any president in the last 50 years today, america's the only leading economy in the world where the economy as a whole is stronger than before the pandemic now, i hear republicans say today that talking about this strong record shows that i don't understand, i don't understand a lot of people are still suffering, they say. well, they are or that i'm not focused on inflation. malarkey they want to talk down the recovery because they voted against the legislation that made it happen they voted against the tax cuts for middle class families. they voted against the funds we needed to reopen our schools to keep police officers and firefighters on the job. to lower healthcare premiums they voted against the funds we're now using to buy covid

booster shots. the more antiviral pills i refuse to let them stand in the way of this recovery and now my focus is on keeping this recovery strong and durable. not withstanding republican obstructionism because, you know, i know that even as jobs and families income have recovered, families are still feeling the pinch of prices and cost. so, we're taking that on, as well and that's, the way to do that is not to step back from the economic progress we made, but to build on it i've laid out a three-part plan to address costs families are facing one, first part of that plan, fixing the supply chain. two, protecting consumers and promoting competition. three, lowering kitchen table costs including with my build back better act. first, the supply chain. couple of months ago we heard a

lot of dire warnings about supply chain problems leading to a crisis around the holidays thanksgiving and christmas we acted we brought together business and labor to solve the problems. the much predicted crisis didn't occur. the grinch did not steal christmas. nor any votes. look, the number of containers sitting on docks for more than eight days is now down by nearly 40%. the number of packages delivered on time is nearly 99%. workers stayed on the job. and did the job to bring goods to consumers we're continuing to work to speed up every step of this process. the ports, trains, trucking. my bipartisan infrastructure plan, law, included significant investments in each of these areas. i want to thank the 19

republicans in the senate and the 13 in the house who stepped in to help pass it so we didn't have to face another filibuster and lose a very badly needed plan the second area protecting american consumers in the last few decades in too many industries, a handful of giant companies dominate the market in meat processing, railroads, shipping too often they use their power to squeeze out smaller competitors and stifle new entrepreneurs and raise the prices reducing options for consumers and exploiting workers to keep wages fairly low you see that in your own life. just look at your grocery bill and the cost of meat it's not because of cattle farmers getting rich matter of fact, it's the exact opp opposite because fewer processors can charge grocery stores much more money for their ground beef, for example.

you've heard me say it before. capitalism without competition isn't capitalism it's exploitation. i'm determined to end the exploitation later this month, i'll be meeting with my competition council, which includes key economic leaders from across my administration to keep pushing for more broad action and increase competition across our economy because healthy competition produces lower prices, higher wages and more dynamic and innovative economies. that makes everybody better off. third, i'm working to reduce the largest cost burden of household bud budgets. costs that don't need to be such a burden and the biggest weapon in the arsenal is my build back better act which will reduce but fam v famallies have to pay for basic necessities to raise a family prom prescription drugs to healthcare, child care and

families can help cover the cost of raising their children and caring for their loved ones, their older loved ones as we've seen over and over again throughout this pandemic, if people can't find affordable child care, it can't work. right now there are two million extremely qualified men who have not been able to return to work because they can't find or can't afford child care. on health care we made quality coverage through the aca more affordable than ever before with families saving an average of $2,400 on annual premiums and four out of five consumers finding quality coverage for under $10 a month. and the result when you reduce the cost of healthcare, more people can afford to get it. over 4 million people have gained coverage since i became president. you've heard mesay it a millio

times. having healthcare is also about peace of mind. for example, we're going to make it so nobody will pay more than $35 a month for insulin. imagine you're a parent and one of the 200,000 children in this country have type one diabetes insulin can cost on average, average 650 bucks a month, but cannot cost as muchas $1,000 a month. >> that is the president talking about the unemployment rate this morning. biggest one-year drop in history. lot of things returning to pre-covid levels unemployment, the ten-year yield, the five-year yield and also with a good bit of discussion there, john, about inflation. saying it is still a concern and his administration not taking it seriously malarkey >> a favorite term of this president, indeed. major indices holding steady during that speech. meantime, curious about how much money tim cook made last

year short answer, a lot. plus ceo of "new york times" is next. stay wh ituseate so you can enjoy more of...this. this is the planning effect.

♪ ♪ time for a gut check on some ridesharing names and the economy and mizuho and needham calling it a top pick. while analysts have a buy rating on uber it continues to underperform the broader

markets. it is down 25% in a year and still below the inppo price the market is shifting to growth versus value when it comes to the big economy stocks and uber on a price to sales basis. uber is up 10% while doordash, the name with the higher multiple is lower by nearly 20% even though doordash is still winning more market share and more profitable and also worth noting there are a few bear calls on the space jefferies downgrading lyft and forecasting a longer re-opening than most expect ahead carl >> meantime, the new york times announcing that blockbuster deal to buy the athletic for $550 million. our julia boorstin joins us now with a very special guest. hi, julia. >> thanks, carl. i'm very happy to be joined now for an exclusive interview with new york times ceo meredith

coppian, your first interview since you became ceo of the company. some very big news here. i want to get a sense with the stock trading lower trading down on this news, why did this deal make sense for the new york times" and specifically at this price at $550 million. >> well, first, thanks so much for having me, julia it's nice to see you we believe this deal, the combination of news and sports which is a classic one we believe it's going to make "the new york times a more valuable company we wouldn't have done it if we didn't see real growth potential both for the athletic and also for "the new york times. we are incredibly optimistic of the athletic as a propellent to our long-term strategy which i would describe simply making journalism worth paying for for

the first direct to consumer digital subscriptions. >> talk to me about how it fits into your subscription goals and the athletic is 1.2 million. so what will this do to those goals and how do you see these two subscriptions fitting together >> all good questions. we are now in pursuit of a goal, meaningfully larger than the 10 million subscription target. we put that out in 2019. i think the athletic helps us do that in a number of ways it makes the target audience for subscriptions to "the new york times" larger and to talk about it in technical terms, it widens the t.m. or total addressable market it helps us penetrate the market we already have. we long talked about a market of at least 100 million people who will ultimately pay for news in the english language and having the combination of the times in

the athletic with news and sports will help us penetrate that market and it helps us engage the subscribers we already have as of the last time we reported publicly we've got over 8 million paid subscriptions to the times, and this is good for the subscribers we already have. so it helps us all with those directions >> so does that mean you'll be bundling this content together that i'll get it for free or you will be offering it as two things you will get together as a discount what does it mean as you try to grow the overall subscriber number >> sure. so first we will continue to sell the athletic as an independent subscription they've already had a lot of success in six years they've gotten to just over a million subscriptions which is impressive and we think there's real growth potential for the athletic as a stand alone

subscription, particularly when you have the whole engine of "the new york times" and the things we've gotten to help promote them, but in addition to that, ultimately i do think there's real promise of a multi-product bundle from "the new york times." we've already begun to see some of that promise to be realized and we have a recipe app in "the new york times" cooking and the games and whether it is just in the -- at the end of last year, each just crossed a million subscriptions in their own right with "the new york times" news report, and we've launched subscription product and our consumer and our consumer product recommendation that has all of those -- i think an unbeatable subscription for a

consumer and ultimately our aim is for "the new york times" overall to be essential to many, many more people's daily lives for anyone who wants to understand and engage with the world. >> meredith, thanks again for being with us. i covet your take on the media world overall and how it shifted in the five years since the athletic emerged and it seems to me like click bait and social-driven sites which play into the hands of a young buzz feed was hot back then, but now there seems to be a lot more focus as you said again and again on subscription and quality content that drives value. what has happened and how has "the new york times" strategy kind of developed along with that >> yeah. we have had a basic thesis for a long time and publicly established a strategy in 2015

called our path forward and if you make journalism worth paying for even in the presence of many, many free alternatives or less expensive alternatives, if that is differentially valuable to people, that can be a sustainable business model for high-quality independent journalism, and i am happy to say that i think at "the new york times" and a number of other places, we are now seeing that play out, and we think there's room for it to continue to play out further, both for the times and other quality journalism organizations the times now is the leading eight-language journalism provider subscriptions we have the largest number of digital subscriptions and in the last check i think it was the fifth in the english language in

terms of subscriptions and we think there's real running room here for the whole market. >> meredith, it's deirdre. it's good to have you. i'm wondering, how do you respond to those who say that this deal at $500 a subscriber could make up for a lack of organic growth, post-trump presidency in the early stages of the pandemic? >> yeah. i would respond by saying it's not been our experience that people are less interested in news and sort of in our poor news report. as of the third quarter of last year which is the last time we publicly reported, we had added i think 900,000 net new subscription additions for the times for our news product and that is a really healthy number in two contexts overall and coming off the historic year that we'd had in 2020 with an

unprecedented news cycle beyond that so that's just my way of saying there is still a really healthy market, we believe, for paid digital subscriptions to news in addition to that, i would say beyond just people subscribing, we have slow news days, had slow news days in 2021, many of them that were much larger from an audience and engagement standpoint than our highest news days in 2019. so i think -- i don't think the world is getting any less interesting or complex, and i think "the new yorkqwest provides a value across the whole range of human experience and that's helped us be resilient to some of the forces you've describing. >> meredith, we appreciate you joining us and we hope that you will be coming back to talk us to about this fast-changing

industry >> a delight to be here. thank you. >> definitely not a slow news day today. dow's session high 120 a lot is coming at us next week with the cpi and earnings with delta and the banks on friday a week from today. let's get to the judge and the half carl, thanks so much welcome to "the halftime report." good to see you this friday. front and center this hour after a tumultuous week, a question after serious rates in that sector and over the next hour we'll debate what's likely to happen next it's also the final day of our stock summit three more committee members making their top picks for 2022. looking forward to that. joining me for the hour this friday shannon saccocia, richard saperstein, jon najarian co-founder of market rebellion.com. the dow is goo