from year earlier on strong demand for cannabis products as we get earnings season kicking off this week, david. >> yeah. we're going to start getting the banks really soon. here we are again, morgan, thank you. that will do it for us on "squawk on the street. "techcheck" starts now ♪ good monday morning. welcome to "techcheck" i'm carl quintanilla with jon fortt and deirdre bosa today, tech investors, the nasdaq is down 2.5%. tech's rocky start continues touching a three-month low going back to october. we'll break down the action in just a moment. one trade that is working,

l longzynga. finally, with so many names getting swept up in the selloff, is now the time to buy some megacaps at a discount we'll talk tactics with dan niles, jon. >> yeah, before we get to all of that, the nasdaq selling off now down 8% since the end of '21 let's get to mike santoli with a look at tech. >> jon, the selling has turned indiscriminate it's a purge than an orderly rotation the nasdaq composite actually touching its 200-day average on the downside for the first time since the covid crisis extraordinarily long time above that here are dynamics that really show the violence of this kind of what was a rotation and now just a general stepback with some of the largest stocks not immune it might be a good sign. here you have nasdaq 100 against s&p banks. it just couldn't be more dramatic, right? vertical moves in both directions and now outperformance by a lot

on a one-year basis. so folks thinking that cyclicals and higher yield plays are the way to go. that very well might be plausible, but we're kind of part of the way there, if not longer let's take a look at a couple essential commodities. one year we're lapping the fourth quarter of 2020, meltup in lots of tech stocks and here you have the same exact dynamics right here so i think it's time to say we get what's going on, the fact that higher yields are cat lysing this move back from high valuation growth stocks. it's been under way. people feel like it makes a lot of sense now the question is the market doing a lot of the anticipated tightening for the fed already and how will this play as yields really aren't doing all that much today even though they're not falling, guys. >> yeah. it's a great setup, mike we have the perfect guest to talk about what is happening further in the market and opportunities as well for 2022

joining us now, lo tony. you're seeing i ing the carnage are. the megacaps are falling, they're masking what is going on underneath and you're seeing brutal selling across semi, software, fintech, losses of 5 to 10% is what i'm seeing on my charts >> yeah. look, this is something that i think we're seeing exacerbated a little bit by the anticipation we're seeing that we've left '21 where we had the major indexes at all-time highs or near all-time highs and large tech continued to outperform but look, we have some big head winds that are heading our way and we know that there are macro concerns with inflationary concerns, the fed tightening and the potential for growth decline and couple in some of the things we're seeing with covid, this new variant. look, historically when rates go higher, valuations compress, particularly on those growth stocks now, i do think there are some

interesting trends that we'll see that will continue to allow the best of the large tech to continue to outperform, because there's no slowing these companies down however, i do believe that some of the more speculative tech names that had smaller margins will continue to suffer near-term. >> a lot of these high momentum names have been focussing on becoming more than just features, becoming platforms, whether they use their stock price or cash they had but the current market environment is making that tougher. is there opportunity or does the stock price hurt their business prospects, what they were planning to do >> yeah. i think, look, the stock price is an indication of where the market believes the company's performance is relative to the potential. and these companies have to continue to execute on their business plans and we see some major opportunities coming this year look, we're going to see continued growth in the 5g

technology we think that's going to benefit qualcomm in particular in two ways they have the ability to be able to benefit not only from selling chips but also in the licensing of 5g technology that's not just for hand sets, that's also for areas like automotive, iot, infrastructure, et cetera. and you know, speaking of platform, we believe that apple is doing an amazing job of creating a platform. they're benefitting -- apple is benefitting from the growth in 5g they have a third of the hand sets that are being sold and we also see the potential for apple to move down market this year with some new hand sets that can more effectively compete with the lower end android minutes from manufacturers like samsung there's the potential for a billion users to come over with these lower priced hand sets and if apple continues to be able to launch more services, particularly in ar and vr, we think that could be a killer app for 5g. >> lo, good morning.

good to see you. >> good morning. >> i look at the s&p, because, yes, the nasdaq is hurting look at the s&p, and it's hard for me to cry too many tears right now, just because, yeah, it's back where it was in the fall it had an amazing run in '21, up 27%. for those who had everything they own in growth stocks, thinking that fundamentals don't matter anymore and it's different this time, you know, maybe the cathy wood crowd, they might be feeling quite queasy right now, but for those who hold that, the old rules sometimes still apply, was this entirely unexpected? how big of a deal is this drop really >> yeah. look, i think we're seeing something that is going to be a little more shorter term, to your point again, going back to what happens when macro moves make -- in particular macro moves around inflation this is where we always see the growth stocks hurt there's a drive towards those

stocks that investors on the institutional side in particular, feel that there's going to be an opportunity to take advantage of the rate movements and have higher yield in stocks and their portfolios perform better than growth stocks i think there's a few things number one, we do see continued momentum i don't believe anything is going to slow down the best of the big tech companies because the momentum is just moving in their favor. even looking at the digital transformation, you know, we believe that companies like microsoft, amazon, with their cloud business, with their enterprise sales, they will continue to benefit because these transformations will happen both at the enterprise level for businesses as well as consumers integrating tech more into their lives, whether they realize it or not. realizing it and using an iphone or not realizing it with all the chips that are powering everything necessary for things like cars and even tvs to refrigerators. so we don't believe there's a slowdown however that said, your point

about some of these other stocks, again, i go back to taking a look at the margins, the earnings for the stocks that have thinner earnings or excuse me thinner margins leading to not the big earnings that we see from some of the larger tech companies, i believe that those will suffer we've got some news to work through this week. we've got some key indicators around inflation we have the confirmation of the fed chairman we're also going to start earning season soon. and i believe that we'll continue to see the record earnings that we saw last year it's going to be a tough comp to lap. '21 was an amazing year, but i believe we'll see continued growth >> hey, lo, curious to know what you make of some of the stay at home names peloton is down 9% today docusign, zoom, they're acting like we're never going to use these things again at what point do we reach a valuation that reflects the hybrid way of living that many people anticipate? >> yeah, we still need to play out more around these new

variants you know, what we believe is that your point around this is a new work environment this is a new living environment. people don't want to go back to the way that we lived before i think number one because of some of the fears around covid but also, we've just seen an increased benefit to this new hybrid lifestyle we've seen a benefit to employers being able to hire some of the best people independent of talent and have a distributive team. i think what is going to happen long-term is we'll settle down once we understand what this new normal is going to look like and i think covid has a lot to do with that our belief is that just like we've had to learn how to understand which strain of the flu is going to be the dominant strain and prepare a vaccine to be able to move forward, something similar is going to have to happen with covid. our belief is that we have to figure out which of these variants need to be addressed, go in and get a flu shot or covid shot if one is able to for their medical history and then

just learn how to deal with this but that said, we don't believe that we will go back to especially what we saw pre-covid around work environments look, 250 million users are on microsoft teams. and those folks are not going to go back and start communicating in the office. not all of them. >> yeah. but are they going to use teams or zoom, right i guess that's the question. part of what the market is trying to figure out, lo stay with us i want to mention one stock that is in the green today, one of the few, is zynga surging as much as 45% that take 2 will acquire the company. there's a lot to discuss here. the opportunity for growth and revenue in gaming and apps, software and the larger m & a story names see valuations get cut in half as we have been talking about. could they become takeover targets this year and for who? here is take 2 ceo taking the math behind the deal just this morning. >> the math is the math. and i think if you solely focus

on the stock component and the premium paid, you can understand the trading pattern. however, we're building this company for the long-term. that's always been our approach. and while one would never want to be cavalier about one's stock performance because real investors trading, we are trying to build a business over a very long period of time. >> jon, the math is the math also have to note that today is the 15-year anniversary of the iphone for this deal to even happen, we had to have this whole app ecosystem that apple and potentially others created and zynga has this great advertising business that it's been working on and building that's going to be very valuable in terms of its data to take 2. >> one of those moments when i think tech history is important for investors to think about here zynga itself is about 15 years old and first started rising to prominence as a facebook app facebook gaming phenomenon facebook's rise was really just happening in 2007 because

myspace decided, hey, we don't want to allow apps we want to build on our platform ourselves. get out of here dwoevelopers. then we got the iphone, app store and then we got mobile apps and that's when a lot of these companies continued to surge now, zynga has been public for a little over ten years now. it looks like if this dieal goes through on the terms announced, i think the question for investors is what is the platform shift happening now what does take-two zynga fit into that versus app, love and iron source, carl? what does scale mean in this environment? who will have the data who will have the engagement to drive profit in the future >> it does seem to encapsulate so many trends we're going to talk about this year bargain hunting on formerly high valuations, mobile gaming and

obviously consolidation and industries, lo your thoughts on this deal >> yeah. look, i actually used to work for zynga. i ran zynga poker and saw the mobile revolution coming it wasn't rocket science, but i was able to grow that poker business to quarter of a billion dollars a year business. look, what we see is the movement towards the casual gamers the people looking to do things, there's a movement around people that are almost even professional gamers or influencer-type gamers we believe there's a lot of upside in gaming in particular we have a very simple thesis, more people will be playing games in years out more people will be watching people playing games and more people will be playing games together the advertising piece is really interesting because if we look historically at what's happened with these gaming platforms, typically it's been advertising, driving the surfacing of other games that a user might be interested in. right? so advertising for other games

but now what we're seeing is with these massive users on the gaming platforms, whether it's people playing the games themselves individually or together, or people watching folks playing games, there's a massive ad inventory opportunity to be able to advertise other things and the key is how can that be done in not obtrusive way. >> lo, what a difference a year makes. last year we talked about these high-growth companies using their surging stock prices to do deals. now we're looking at their sagging stock prices, perhaps making them takeover targets is consolidation overall in gaming and otherwise a good thing here the littler players being eaten up >> yeah. look the capitalist in me says it's absolutely a good thing the ability to be able to allow larger companies to take these other ideas and insert them into their overall schemes, into their overall platforms, fill in gaps within the product, hire

new talent through acquisition i think those are great things now, the question becomes what do the regulators think about that is this allowing the larger tech companies to continue to increase their level of dominance and decrease the amount of competition? our belief is that acquisition is good for the overall industry because it has allowed a lot of companies to be able to surface and increase scale and provide technology to businesses and consumers in ways they might not have been able to on their own or it might have taken a longer time but again, the regulators don't necessarily always see it that way. >> yeah. big piece of that. lo toney, thank you for being with us on a pretty crucial day for the markets. we'll talk to you again very soon. >> thank you. the ceo of merck is coming up next. "techcheck" is just getting started. ♪

♪ like a lot there, social stocks are getting crushed this morning amid the selloff

it's been a week of the downturn for names like snap and pinterest. julia boorstin has a gut check on the sector for us julia, even meta down 4% yikes. >> that's right, all the social stocks hit very hard amid this broad-based tech selloff metta platforms, those shares are down more than 4% now. twitter is down nearly 3%, down about 2.5% snap 4.5% and pinterest nearly 3.5% now, looking over the past week, the numbers are particularly bad for snap, which is down about 16% and pinterest down some 14%. if we take it back a year, all of these companies are in the red. pinterest down the most since 65%. while snap and twitter are both down about 53% metta platforms looking back 12 months down over 17% now, these stocks have way ward in the past on concerns of apple's limits to ad targeting,

but today's selloff seems to be about the rotation from growth into value guys, over to you. >> julia, let's get over to meg terrel this morning with another big interview from the jp morgan healthcare conference. hi, meg. >> hi, carl. now joining us is the merck ceo rob davis. rob, thanks for being with us around this virtual jp morgan healthcare conference. i want to start off by asking you about your covid-19 anti-viral drug given where we are with the omicron variant, what kind of demand are you seeing from the drug and any early usage? >> first of all, thank you very much for having me i appreciate the opportunity to come back on the show. given what we're seeing with omicron variant, we are shipping product. we actually delivered to the u.s. at the end of december about 900,000 courses and we're going to deliver about another 3 million courses as we get into the end of january so, we are seeing the demand there. we're delivering on it

and you know, we feel very good that we've added another weapon in the arsenal against covid-19. this is something that we feel proud about as a company and i'm proud about what my team has been able to deliver >> how do you look at -- we haven't gotten to talk since the final data came out, but we saw that change in the interim look where you had 50% reduction in the risk of hospitalization and death, down to 30% with the interim look and then the fda clearance really was for this drug to be used when folks can't access other drugs or they're not appropriate for them because of various reasons with the other medicines. how do you look at that change in the data? and how we should be thinking about how well this drug works and how important a tool it is >> yeah. well, it's important to focus on what the drug does obviously there's a lot of things that happen when you're looking at a interim read versus a final read but an important fact that we always have to come back to is

if you look at reduction in death, which is a very hard end point, reduction in risk of death, our drug delivers about 90% reduction. so it is meaningful. if you're someone in a high risk category who can't use the other drugs that are available to you, this anti-viral treatment is a great option and i think as you look at what this drug is, there are a lot of people who will benefit from this not only in the united states but globally. and as i see this, this is about what all of us can bring together this isn't about one versus the other. so, i feel good about it and as we think about what is the potential, we indicated last year that we expected to see about 5 to $7 billion in revenue in 2022. and i can tell you based on the orders we have in hand, we are going to deliver in that expectation. so the demand continues to be meaningful on a global basis and i'm just -- feel privileged

that we're able to hopefully do a small part to help in this fight. >> is there any expectation that you could combine this drug or look at testing along with other anti-virals either pfizer's pax la vid or other anti-viral drugs? we understand it's very strongly active and isn't as sus ceptible to variants. are you looking at combining at all? >> well, couple important things if you look at our drug has a high barrier of resistance and also in pre-clinical testing we've actually been able to look and see that we do not believe there's any issue with the omicron variant. so it does work against the omicron variant. and by the nature of the mechanism that this drug operates in, that's what you would expect and in fact, you know, as we think about down the road and we hope it's not the case, but we also have to be, i think, sober to realize there is a

possibility we're going to see future coronaviruses, future viruses and pandemics and the nature of this molecule is such that it is -- should be effective regardless of the type of coronavirus it sand in fact, even shows that some activity across broader rna virus, like rsv and the flu and cold that gives us confidence that this drug has a strong platform to work. we are open to continuing to consider combinations. we don't have active studies under way in that area ourselves right now. but i wouldn't be surprised over time if you do see people start to look at combinations of the various drugs. >> well, in other anti-viral work, of course, you have hiv drugs as well. and one has had a safety setback getting put on clinical hold what's your expectation for how that gets worked through and what the future of that drug might be >> yeah. well, you know, i think this

just shows that science is tough. and this drug was a drug that has so many great characteristics. it's highly potent it also is highly resistant, plays well with others, very durable drug, so it had so many attributes that we felt would make it a great drug to the arsenal in the fight against hiv. it's based on a new mechanism nrtti, that class, that approach, we continue to think there's value in it so we're doing the work to understand what potentially did cause the drop we saw and is it something we can address as we think about dosing, as we think about other things and so, that work is under way and you know, i'm hopeful that we will see that continue to bear fruit because there's still a big unmet need in hiv but we have to do the work so more to come whether or not we'll be able to brings that drug back, but the work is happening as we

speak. >> absolutely. rob davis, that's all the time we have. we had a whole merck interview we didn't talk about keytruda once you have to come back. thank you for being with us this morning. >> thank you thank you for having us. it's a privilege thanks >> carl, back to you >> all right, meg. and our thanks to you. by the way, don't miss meg's next interview coming up at 12:30 p.m. eastern time, the chairman and bristol myers squib, jon. >> tesla is down 16% first few days of this year. will it turn around and have another big year goldman sachs says, yes. price target to $1,200 per share. that would be about 20% higher for the year you can catch the full call at cnbc.com stay with us ♪

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♪ welcome back to "techcheck." we are resetting here at the bottom of the hour i'm carl quintanilla with

deirdre bosa, jon fortt and julia boorstin stocks are continuing their volatile ride this morning, although we are off the earlier lows of the session. dow is down less than 400, got a bunch of growth names under pressure peloton, crowdstrike we talked the gaming mna landscape. what about media first, a news update with rahel solomon. >> good morning. here is what's happening at this hour tech stocks may be among the biggest losers today but all s&p 500 sectors are down consumer discretionary is hit harder than tech with big losses from retailers and casino stocks goldman sachs among those e expeex expecting four fed rate 00 hikes and july start lululemon hit after lowering guidance for the quarter the company citing the omicron variant for creating capacity constraints and worker shortages. shares are down about 6% today and also down 15% so far this

year and tilray shares popping. revenues were still well below forecasts despite these gains, still down 35% since last january. you're now up to date. jon, back to you. >> thank you. major indexes continuing to sell off this morning, nasdaq at a three-month low. high valuation stocks arc stocks particularly hard hit. joining us now to break things down dan niles dan, i mean, it's all playing out the way you expect it would, at least so far in '22 what are you learning from this early action anything in particular that's adding texture to your thesis? >> well, i think the big thing was on friday when you had the 3.9% unemployment figure hit and if you compare that to history, the 70-year average is 5.8 and this is in the bottom

5%, i think, of all readings you had. so it's kind of funny, quite honestly, that we're sitting here talking about when will the fed raise and work down their balance sheet. if you go back to the last period of time we sort of were in a similar situation, the fed had been raising rates already for two years and already started running off their balance sheet. so just speaks to the fact the fed is so unbelievably behind the curve and made a massive policy error last year in not dealing with inflation that it becomes a lot harder and so they have to be more aggressive and that's why you're seeing the ten-year treasuries now at 1.8% and bonds are selling off today, wild stocks are selling off. that's a major issue for most people because most people have bonds in there as an offset to their stocks because what's worked is stocks go down, bonds go up and you're okay. but that's a situation you're in and that's what's adding texture

as you put it to my houghts. >> yeah. i went to college in indiana there was this one kid, brad, who would wear shorts in the winter, no matter what the weather. it could be snowing and brad would have on shorts and it's shorts weather you were talking about your short positions a few days ago. >> oh. >> i think most investors at home are not going to wear shorts necessarily in winter what do you do how do you position yourself in you're -- maybe you didn't rebalance after 2021 and you want to be in a healthy place. what do you think your average investor should do >> yeah. i mean, it's -- i love the lead-in. but yeah no, it's a great question. most people aren't comfortable shorting stocks. and they shouldn't be because shorts are incredibly dangerous, as you brought up in our interview last week with the meme stocks. but cash is a pretty -- it's a holding that, as you talked about before, it's a dirty word, right? but in certain environments like

the one you're in today where you're getting crushed on your bond holdings, crushed on your stock holdings and those two things are interrelated because inflation is the common bond in the fed, cash is not a bad thing to be in i mean, if you look at the s&p 500, it's up 100% over the last three calendar years including dividends the middle of a global pandemic that's been going on for two years. i mean, you got incredibly lucky with how much multiples went up because the fed was unbelievably aggressive and every other central bank around the world and the government gave you 5.5 trillion in stimulus over five packages and so that's why the stock market did well. if you're in the mindset of don't fight the fed, just step to the sidelines, take some of that cash, you know, the massive gains you've made, put it in cash for a while until it becomes a little clearer because if the fed is a big reason that the market went up this much, they're going to be a big problem this next year because they don't have the backdrop of

low inflation to let them do whatever they want and get away with it. and so i think for the average viewer out there who is not comfortable with shorts for very good reason, by the way, you know, cash is not a bad holding which is why i think i said it was my favorite holding or stock pick out of my top five coming into this year >> although, dan, you know, you make it sound like there's no downside, danger to yields there are still people who think this could be transitory has become a loaded word but inflation settles, we get better labor supply, supply chains loosen up, even a downturn in demand as people don't go out and maybe softens some of the pricing pressure i mean, you make it sound like it's all in the bag. and i remember a few years ago when goldman was forecasting four hikes like they are today and that didn't happen >> well, you bring up a really good point, jon. i think there are a couple things to remember some things are temporary and some that aren't so you're right with the supply chains getting better, that should help with some of the things like shipping costs, et

cetera but there are other things that are long term have been deflationary for decades that are becoming inflation now for example, used to be you outsource all your manufacturing to china because it's the lowest cost region. guess, with the geopolitical risks people are trying to build more fabs in the united states, which is great but it's a lot more expensive you used to have a lot of population growth in those emerging markets birthrates have really declined a lot. china, in fact, is trying to get people to have more babies at this point, so that becomes inflationary as well and the final thing is, you know, fossil fuels were used for manufacturing, now everybody across the world is trying to go green and that's a lot more expensive. so you've got some of these bigger trends that are gone from being really helpful to inflation to now being really bad for inflation over a long period of time >> okay. then, dan, on the flip side of that, i'll put on my cathy wood hat, not a great hat to wear on a day like today like we see the

arc etfs really selloff. she would argue there's a lot of deflationary areas as well, the shift to the cloud, artificial intelligence, some of the other technological trends that the pandemic sped up >> well, you know, i look at some of those statements and go, they just don't make a lot of sense because this has been stuff that's been going on for decades. i was an analyst on wall street in the 1990s and the internet at that point was supposed to change everything and it did it didn't stop you from having a 2.5 year selloff on the nasdaq that was 79% in size from the peak in 2000 to the bottom in 2002 and so, technological change happens everyday it's been continuing and quite honestly the fact that it got sped up over the last two years is the problem today because if you think about the biggest issues we're having, it's amazon missed two quarters in a row netflix has missed two kwquartes of subs. this one doesn't look that great

either a lot of the pandemic beneficiaries, things got sped up, docusign down 42% the day after they reported earnings people took those -- that speed up, extrapolated it out three or four years in the future and thought, you know, portfolios is going to return another 30% this year and so, i think that's actually part of the problem right now is people stuck a ruler to two data points and said that's going to continue forever there's going to be some normalization. i sure as heck plan on being on vacation a year from now after having cancelled i'm not going to be on a peloton bike watching netflix or ordering on amazon hopefully sitting on a beach in hawaii so there will be a lot of things that i think go wrong with that thesis of that's going to bail us out. >> although there's more pelotons in those hotels, maybe the ones you're staying at, dan. let me ask you, though, you sort of laid out the argument for high-growth names, but we are continuing to see the bifurcation in tech. you see the black intel, oracle,

dell, do you think that legacy tech is a good place to be in the upcoming year? >> yeah, i own one of the three. i'm looking to buy another one of those three that you just mentioned. so, yes, i think -- but here is the thing i just want to be very clear about it, why we're making money today and we'll see what happens by the end of the day, is our shorts are doing way better than our long on average, yes, we own -- we own oracle, to be clear. but a lot of our other longs like facebook or google, they're getting killed thankfully our shorts are getting killed even more and so, that's how we're hopefully able to make money today when the day ends so, the legacy tech names are certainly better to be in because they have real earnings, real cash flow, p.e. multiples below the market, but you know, there's a lot of those names that are also down today so, you hopefully lose less money but maybe you can make some money you know, our favorite positions are oil and financials, those sectors are actually up for the year those were two of our top five

picks coming in. and because higher interest rates, ten year is up today, two-year yields are up, that's good for bank stocks in general. oil prices in general are up strongly to start the year we think that continues. that's, i think, where you want to be even more than legacy tech, which is hanging in better, but it's still going to be under somewhat pressure in an environment where you're selling all of tech. they're going to get caught up in that little bit unfortunately as well. but you're 100% right, deirdre, we like legacy names that people hated for a decade way better than sort of the high-fliers with no earnings and cash flow out 5 to 10 years from now >> i'm glad you brought up your past on the sell side, dan some of us are old enough to have you on to talk about semis. i do wonder, names like nvidia, people argue the fundamentals around semis are better than they are around cloud in some cases. why would a name like nvidia be

off 4% today or do you think maybe it's -- is it just an on going supply chain conversation there? >> it's a multiple conversation is what i would say in terms of what it's valued at. the analogy i always like is amazon and you and i were both around the late '90s. and amazon's stock got up to 106 bucks a share in 1999. two years later, their revenues went from about 1.6 billion to about 3.1 billion over two years. stock went from 106 to 6 while the revenues doubled it had nothing to do with their business it had everything to do with what it was valued at. so nvidia they were at ces just recently, they sounded absolutely fantastic demand in gaming is strong hyperscale is strong they've got some automotive wins they're going to be ramping up, but that multiple is very, very high and that's the issue semiconductors in general, they sound terrific i mean, if you were at ces or

watched any of the speeches there, you know, they're talking about demand being strong all the way through this year. but these stocks have had a massive run, the multiples have expanded a lot on an ev to sales basis. so you're going to see some of that give in much like you saw with even fantastic stocks like amazon, 20 years ago, when you and i were doing this during the last big tech selloff. so i think that's the big issue, it's not fundamentals. >> all right i know that you will be tracking this even closer than we are because you have a lot of money riding on it dan niles, thank you. >> thanks, jon. >> dan will actually be joining us for an extended conversation today. a "techcheck" plus on the selloff in growth and tech stocks we'll also talk crypto as bitcoin slipped under 40k and how they're all related at 12:30 p.m. eastern, 9:30 a.m. pacific where i am go to cnbc.com slash techcheck or check out our twitter account and we'll tweet out a link at

cnbc "techcheck. they just upped the name to a buy. plenty of growth levers to pull like cloud security, but that key risks remain including big competitors and rising costs "techcheck" is back in two stay with us

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20221 was a record year for mna. the block buster deals continue with take-two's acquisition plan for zynga. what are some names in the media space that could be ready for an acquisition or a deal. julia boorstin is threading it all together for us. julia? >> well, jon, a number of media stocks have soared in the past couple of trading sessions on m & a potential. this morning, deutsche bank upgrading via come cbs to buy and increasing price target on that stock citing the potential for industry consolidation saying that megacap tech sets its sights on becoming bigger streaming players, and current industry players also potentially look for additional scale opportunities, viacomm cbs is the most digestible this comes after friday spiked along with discovery and amc networks those stocks bolstered by news that cbs and warner media are exploring a sale of their jointly owned cw network

now that potential sell says a lot about what's next for media m & a. the giants with debt burdens are looking to sell the assets that don't support their streaming initiatives and the leftover pieces and independent players such as amc networks could be folded together, bundled together or folded into tech giants and, of course, the question is what you would do with all those little assets now noigs the cw assets that could be targeted or rolled up into one new company are amc networks considered two sub scale to compete lionsgate announced it's pursuing options for its starz network and this morning rich greenfield he predicted that viacomm cbs will buy all of lionsgate not just the starz division and a & e is co-owned by disney and hurst could be seen as not essential for either of those companies. now potential buyers for those assets are both tech giants such as amazon and apple, which are looking for content and then the

media companies that don't like to be reliant on deals with giants such as nextstar or roku. those types of companies own more media assets, they would be less reliant on deals with content companies and less concerns about their screens going dark during standoffs in those negotiations now, the question sources tell me that the media giants are asking right now is what assets are not essential and what will help us compete in the all-important streaming wars carl, over to you. >> fascinating we didn't even get to the golden globes yet, julia, thanks. julia boorstin. amazon is the worst-performing faang name last year they bet on 2022, naming a top pick for the new year thanks to easier growth, some comps ahead and forecasting big upside for those infrastructure investments. a lot more "techcheck" is still ahead, so stay with us ♪

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♪ let hees get a gut check on cathie wood ark fund. the fund is down, it has plummeted 5% ark is now on pace for its third consecutive negative month the longest streak since its

inception in 2014. all of its holdings, every one, is negative for the year with 24 lower by more than 10% some of the biggest losers in the etf that would be roku, roblox, shopify. lower by 20% this year unity, twilio and bloc dragging it down. after a rough 2021, as well as nd20 was the banner year for the fu more tech check after this, so don't go away.

tech stocks obviously in the red today. our next guest says stick with the winners from 2021. nvidia and tesla, a chip and charge play with strong upside also bullish on apple and microsoft. joining us, rich. >> rocky: i wonder whether you think the nasdaq and the 200-day are an important chart today >> yeah, i think this is very likely to mark the low here for technology and i say that because past tends to be prologue and to your point in term of these moving averages, i don't choose the way the moving averages do and they have defined this trend in megatechnology for almost six years now save the pandemic collapse in 2020 and the rookie mistake in 2018. it's likely to mark the low of

the recent pullback. >> talk to me about this, is it a pair trade of nvidia and tesla together >> no, i think when you think about those two leaders in their respective spaces, you consider those real bellwethers that nvidia has been a real star here and tesla just sneaked into the green just as we come on here today. i think both stocks remain in a very strong position in their respective space >> well, rich, what gives you confidence that this isn't a valuation reset overall? sure, maybe both tesla and nvidia for example continue to do very well in their businesses, but the stocks have had this amazing run you know, the trend is going against growth stocks in general that don't have the fundamentals they do, but why not be concerned about those, too >> well, look, i think clearly there's reason for concern for many investors here.

we've got new information from the fed and of course we were coming off a very defensive december on the back of the omicron. so sort of policy and the pandemic, a one-two punch with positioning off sides prepared almost for the exact on pposites we come into the new year. with that being said, you can't win the year in january, but you can lose it by making a rush to judgment i think that's the wrong move. we've seen choppy starts to the year before. certainly in technology. but as it pertains to the megacap stock, these single digit declines here today are nothing to throw away the playbook for the last 20 years just about >> rich, we talked about this earlier. we had a big deal today announced between take two and zynga. do you think as valuations come down we are going to see more m&a action >> clearly, i'm not here to talk about m&a and i would take that off the table, but when interest rates move up, it changes the

spread sheets for everyone as you know, more students of price and pattern and trend and less about microsoft itself, but i think for my work, i can come here today and tell you those patterns and trends remain in tact and there's a lot of market cap that's still in a very position whether you still from the growth or value side of the aisle. we've seen strength in both defensive, utilities and healthcare, but also on the cyclical side on the back of the strength in crude and yield which continue to drive both energy and financials. >> yep synergy is the new sector. the two together have been the things that have been supporting markets last few days and your point about the start of a new year is a good one tha thank you very much. good to see you. as for today's action, jon, looking at new high, kroger, pepsi, berkshire, that's the kind of environment that will be

awfully familiar to those who have been trading the last couple of years. >> yes, and it's time to wonder whether some of those old traditional rules still apply. things like rebalancing, diversification, the, i mean, there's such a difference between what's happening in the s&p versus the nasdaq. in some of the you know, larger cap megacaps i should say versus even just large cap and what we're calling growth it's time. it's always a good time, but particularly time for investors perhaps who are newer to being active in the markets to take heed >> yeah, you've got to wonder is the sort of meme stock era as investors look for more value over growth and we continue, carl, we talked about this during the show, but even within tech, the different performances you're still seeing those legacy names like dell, ibm has turned black. oracle and intel have had a good start to the year. very good start to the year versus the rest.

>> indeed. yeah dell's been notable. upgraded by bernstein to outperform watching tesla reverse an earlier decline and the week's just getting started with powell and brainerd confirmations let's get to the judge and the half >> carl, thanks so much. welcome to the halftime report front and center this hour, a simple question. if yields continue to rise, can stocks keep from falling our investment committee discusses and debates that question today joining me for the hour -- rob, steve, joe let's check the markets. the up to the moments trade now. rates are higher today touching 180 that's a pre-covid high for the ten-year note yield. dow now down triple fours. 444. s&p off by nearly 1.5% and

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