good morning, u.s. stocks on track for the worst week in more than two years, as we saw yesterday. those early morning gains not sustainable. tech stocks continuing to tick lower even though yields backed off a little netflix shareholders may want to ask small children and pets to leave the room the stock plunging overnight, like 20%, after streaming acknowledged that competition is cutting into subscriber growth it's back to 2018 levels and bitcoin tumbling back below 40,000 which is supposed to be an important level with about $147 billion wiped out in the

crypto market in the past 24 hours. below 39,000 now it's friday, january 21st, 2022 and "squawk box" begins right now. good morning, everybody. happy friday, which probably couldn't get here soon enough for anybody long in the markets this week. this is "squawk box" and this is cnbc i'm becky quick along with joe kernen and andrew ross sorkin. and let's check things out if you were hoping for some relief this morning, you're not going to get it, at least not if you are somebody who was looking for the nasdaq to pick up this morning. if you look back at what happened, stocks gave up the early gains in the session there were some big gains yesterday, didn't happen that way at the end of the day so we logged another day of losses talking about the dow under just

1% and the nasdaq down by 1.3%, that means the nasdaq is down about 5% for the week and down nearly 10% for the year-to-date. the nasdaq composite and the nasdaq 100 both in correction market territory at this point if you look this morning, like i said, no relief for the nasdaq, down another 48 points this morning. the s&p futures indicated down just slightly and the dow futures indicated up by about 60 points as we know, what starts at this hour of the morning may not be where the markets end at 4:00 p.m. in germany the markets tumbling overnight germany down by 1.5% the cac this france off by 1.2%. and additional losses from the ftse, the markets in italy and spain. and the treasury market this morning, you see right now, the ten year is yielding 1.792%. so it's lower, below 1.8% which is where we had seen it, even up

to 1.9% in the trading day a couple days ago. and the higher yields on the 2%, i don't know if it's a cause on why we've seen such pressure on the tech stocks or both of those markets moving and recognizing at the same time that rates are going to go up, and that's a significant issue if you are a higher multiple stocks we'll talk about the highest multiple stocks that got crushed in just a little bit but we should look at cryptocurrencies, they've been trading with the high-tech stocks and following the yield as the yield goes up, all the cryptocurrencies have come under pressure too this morning bitcoin down 8.2% we talked about that as a technical level, below 40,000 it kicks in, people pay attention to that. it's been a rough week, start to the year and a rough couple of months for the cryptocurrencies. >> it has, becky

let's stick with the markets because there's a warning from jerami grantham. he says, the s&p 500 could tank 45% once pe mism returns to rule he said, we are in what i think of as the vampire phase of the bull market, where you throw everything you have at it. stab it with covid, shoot it with the end of qe, and you poison it with the unexpected inflation. and still the creature flies that is until you're beginning to think the thing is completely immortal, it finally keels over and dies the sooner the better for everyone so i don't know if -- i don't know if if you think 45% guys is in the cards or not. it is a pretty dire warning.

i can't figure out if this is like we're going to have a correction, a sort of extra extra correction, or this becomes a deep malaise >> you've been following grantham for years, right? >> yes >> we were talking about this already with max i know the producer. but i have a lot of empathy for everything he just said. and we have stated it a dozen -- hundreds of times on this show add it up, nfts, meme stocks, faang stocks, real estate, the nasdaq add it up where everything is, it was insane. the art world, the -- so i have a lot of empathy for what he's saying but my question is, for jerami grantham, if it does go down 45%, are you still above where he started saying it was going to go down 45%, because i think you are. i think he's been saying this for that long. i still don't think it will get him to the point where he's been

singing this to -- sooner or later everyone is going to be -- we're all going to die, i can tell you that. sooner or later he's going to be right. >> let's take grantham out of it. >> right but that's who we're talking about. that's my only point. >> i understand that. >> that's my only point. it's been a long time. if it finally happens, great you're right. >> there's a lot of doomsdayers that eventually become right putting that aside i've been talking to investors the past 24, 48 hours about this, as we move into this sort of correction territory, are we back to 2000 is this 2001 are we having that does it tip over to something worse than that? is it less than that what are we really talking about here >> we have a lot of people who think things are overvalued. >> even worse than the internet tech bubble, because it's everywhere >> that's the question

>> and look at the -- the amount of -- >> so is it 2008. >> the stimulus wasn't the same back then either it was a different dynamic that got us high, it wasn't the fed and central banks around the world that got us there. it's scary when you think the amount of wealth anyone in the stock market that you've accrued in recent years a lot of that can go away and people will feel allot poorer, that could be a rude awakening. >> a lot of liquidity still on the sidelines, so that's different i think in terms of how you think about the dynamics compared to other crises there's a lot of people who still seem with cash ready to go. >> you also have a lot of retail investors who have come into the market who haven't been there before. >> i saw earlier in the week some study taken

investing more on the year but you're in the crowd psychology when you deal with a three-week period like we have, that crowd psychology can change. we know there's been a lot of talk about how it may not matter what the companies are earnings. if you get a change in the multiples that could make a difference we'll talk about stocks that have seen a change in the multiples the market is willing to grant them. it's hard to measure crowd psychology -- >> did you say grant them or grantham i thought you said grant them. just now you said grant them >> oh. no >> maybe -- so here we are, you know, on tv and a lot of times we're just like the business week cover so now we're finally talking about some of these stocks are down so much, we may be talking about after they're down -- many are down 20, 30, 40%.

>> some down 50, 60, 70, 80% >> right or we may be -- it may not be all or nothing like we're talking about right here we may have had a pretty good -- obviously it hasn't been a huge correction but the nasdaq is down more than 10% maybe we're near the end of the intermediate term pullback based on higher interest rates or maybe -- >> there's the trillion dollar question. >> or might be everything is going to hit the fan. >> is this the ottom >> i'm saying that it's -- >> it's 6:09 in the morning -- >> it's never all or nothing i have a lot of empathy for what grantham is saying a lot. i'm nodding with almost every point that he's making but then again someone could come out and say that's enough tepper, someone could come out and say this is enough, we've done enough work on the down side and we could be off to the

races again. we are reopening, things are going to be better some day. so we should be happy, shouldn't we i think one of the weird things is that a lot of these stocks didso well during the pandemic that we're now saying all right, pandemic is over, these high flyers aren't -- peloton or even netflix. was netflix a pandemic pick? >> yeah. >> the expectation we created these wild expectations during the pandemic not just of what was happening in the moment but of what we thought could happen and the profits that were going to come after the pandemic, and what's been proven here is that's not the case. the whole time we were like -- >> it is happening against the backdrop of a strong economy. >> see no evil, hear no evil, that's what it was. >> it is happening against the backdrop of a strong economy, low unemployment, higher wage growth i guess the question becomes as the higher wage growth leads to

additional inflationary pressures. again the stock market is not the economy. >> did the price hikes at netflix that we've talked about earlier -- did they bite sorkin did you cancel -- you sounded like you were going to cancel because of that 85 cents. >> it wasn't cancellations it was not getting enough new subscribers. >> but also they're going to add less if people say hey -- >> look, they've already said. their churn was very low but their issue is simply growth it's not even a u.s. growth story. that's not what we're talking about. it's a global story and it's a question of just how many new subscribers they're going to capture. and we, meaning the collective investment community, analysts, journalists, looking at this had these sort of growth projections that were to the moon and the question is is the last laugh on us not just netflix but every other media company that's trying to do exactly what they're doing.

>> i wonder if other media companies look at this and say this is good news because finally they're not going to get a pass, lose a ton of money and never have to earn anything, spend all of that and still get the pass from the stock market i'm sure the media companies are like welcome back to reality. >> the other streamers, netflix admitted that the competition is out there. i've been on peacock because of yellow -- >> "yellowstone" >> yeah i've been on peacock more than netflix. although i think "ozark" is coming back. >> i've been watching "modern family" again on peacock, too. >> look at us. peacock. pea peacock. good work, kudos but no, there is competition that wasn't there before, i think for netflix, streaming opi one more thing about peacock

i almost like a 60 second commercial. >> you have time to run to the bathroom >> no. i -- got a depends on, i just relax anyway no, i don't. but it's just the right amount of time to where you don't -- do you find it uncomfortable -- i don't like four minute commercials like we're going to run right now. up next -- >> zip it. up next, netflix shareholders look out below the stock plunging after the company said streaming competition was cutting into subscriber growth and we're going to talk tech next plus watching shares of peloton. this is a scoop after the company said they're not going to make as many of these things. they might as well not the stock fell nearly 24%, following below the i.p.o. price wiping out $20 million of the market value and the ceo denying that cnbc report that sparked the sell

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netflix shares plunging the company beat earnings expectations, revenue in line with forecast. but current quarter guidance was disappointing and netflix admitted for the first time that streaming competition is hurting subscriber growth. so far this year the faang stocks have been battered and bruised falling between 6% and 32%. let's bring in julian and gujen,

markets reporter i was actually referencing some of the stuff in your premarket notes, a lot of stocks are not just down 10%. some of the most well known high flyers that we've seen are down 20, 30, even more than 40% so i don't know what that means. i don't know if it was an early crack in the market or whether a lot of the work that needs to be done moving things from weekends to strong -- it's already been done >> that's right. i mean, the nasdaq is already in a correction, but under the surface it's so much worse than it looks there are many stocks across the market with market caps of $10 million that are in a bear market, that includes disney, netflix, twitter, salesforce

people are trying to figure out what does the world look like. they've dumped from netflix. something you've seen in a penny stock or meme stock we're seeing in netflix because people are saying growth forward are not what we thought it would. >> julian, we put in a lot of articles to try to give us unsight of what's going on one of them i saw from barrens i like the earnings season for technology might be just what the doctor ordered for these ailing stocks. i think that might have been written before netflix is that going to be the case or is it going toe be a confirmatin of why they're down already? >> we have to back away and get two things straight. number one, a 10% correction in an average year is very, very normal so people probably need to take a breath here, because 2021 was

not normal, not having that kind of correction. the other thing is, what this shows you is that this earnings season is much more stock specific, okay and what you're going to see next week are great earnings what you saw today, overnight, is a company that's telling you that its growth trajectory is not what the market expects. and in an economy where you're going to grow north of 4% this year a company that tells you it can't grow to what the market expects is going to get punished >> there will be a disparity and a disparity among the high flyers julian, some of these tech stocks benefitted from stay at home other tech stock -- and they're going to be hurt when we go back to work. other tech stocks are going to benefit from reopening so no way to look at it in the same way what did you say it's alpha versus -- i don't know

we're using the greek alphabets for covid variants i don't think we should use it for the stock market. >> the phrase is stock picking this is a stock picking environment. and the higher volatility and what is likely to be unfriendly monetary policy getting into gear next week is going to sort out the winners from the losers. and frankly what you've seen is the selloff for the most part in what we would call profitless tech and the reason it's spilling over into some of these larger names which again are going to have great earnings next week and probably are not going to talk, for the most part, about having challenges to their margin capabilities, is just this idea that investors are rotating their preferences in a stronger economy from high multiple growth to value >> we were talking about jerami grantham a lot literally i can go back five

years and i remember similar comments but i also said i understand and i -- i think that it's possible this was a super duper, super bowl cycle that does unwind but do you think we're at a point looking at a possible 45% pullback in the s&p? >> i think that's what everyone is trying to figure out right now. but as you mentioned, there have been so, so many calls for hey, this bubble is about to burst. didn't we hear that at the same time last year when value was outperforming by the biggest margin in decades. people were looking at lumber prices, meme stocks saying this thing is going to crash. i think we had the calls for so long and the market has been way more resilient than many people expected. >> how much of a shakeout would you need to make a really good bottom these are just -- these just seem like intermediate term bottoms that dips are bought rates are headed the other way,

is there a major multiyear bottom going to be put in down a lot more than 10% on the nasdaq? that's what everyone wants to know and nobody knows. >> that shakeout has already happened at the stock level when you look under the surface, a lot of stocks are down as you mentioned 20, 30, 40, 50%, netflix some of the biggest companies out there are down so much so a lot of that shakeout has happened you're seeing spacs tumble i.p.o.s trading below debut prices cryptocurrency tumble. so a lot of the speculative portions of the market people have bailed on them. >> julian, 45%, things like that do happen but they get predicted probably nine out of -- it happens once out of the nine out of ten times that you predicted something like that. >> right look the bottom line is we have seen

20% pullbacks a number of times since the bottom of the financial crisis we saw a 34% pullback in march of 2020. the fact is that you don't get major bear market moves without a recession. and from what we can see, we don't see a recession on the horizon here >> very good julian, thank you. gunjen thank you we live in interesting times that's all we can ask for andrew that we do such interesting times we'll have more interesting times here on squawk in a moment when we come back we'll talk about big raises for high profile ceos the executive edge is next as we head to the break, look at the crypto selloff, bitcoin down about 9%, either down about 11%. solana down about 12%. we'll dig into all of that back after this.

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it is time now for the executive edge and a look at some big compensation moves j.p. morgan's ceo jamie dimon getting a raise, making $3 million more than the previous two years bringing his pay package to $34.5 million he saw a record breaking year in 2021 including an increase by 66% in net income. he was awarded a special bonus earlier last year outside of his annual pay to intice him to stay at the bank for at least five more years i wonder whether those extra payments is actually what entices somebody at that point in the ball game to stay or not. disney paid ceo bob chapek more than $35 million in to

2021 more than half was in the form of a cash bonus. he took a pay cut in 2020 as the pandemic forced theme parks and movie theatres to close. some good news from them, though i imagine there will be controversy from those who think executive comp is still too high becks. >> without a doubt. when we come back, retail investors surged into the markets last year, but that means a new generation of investors are going to be facing tax bills for their investments for the first time we'll tell you what you need to know right after this. as we head to a break, we'll look at yesterday's s&p 500 winners and losers

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welcome back to "squawk box. checking the futures out right now. we didn't have to wait for the end of the day, did we we were in the nasdaq, which is i think if we're going to talk the stock market that's what we're talking about really for the beginning of this year but now everything is down dow jones is now down as well. and the s&p adding to recent losses news breaking in the last hour, chip giant intel making a big bet on ohio. that's nice. that's good. i agree with that. announcing plans to build two new factories outside of columbus the company will spend at least 20 billion to build the plants which will employ about 3,000 unbelievably great people. it marks the largest private sector investment in huohio's history. production is expected to come online in 2025 and pat gel

singer is going to join us earlier this morning he's going -- >> this is not -- >> this is huge, this is something we've been waiting for for a long time to see u.s. production of chips here in the united states. we realized it was a serious problem during the pandemic when chips got shutdown, production got shutdown and there was not much we could do about it because we didn't have any production here in the united states so seeing something like this is the first step toward fixing our supply chain and our -- you know, even security issues to some extent because we are so reliant on these chips at this point. >> i was going to say, becky, the key is what you said, it has to be the first step the question is what do the other companies maybe need to be incentivized to get into this business when you look at the calendar and the clock, at least in my mind it's going to take them two years they say to build this

thing. we need to be able to manufacture chips in this country maybe within that time frame but, you know, at multitudes more. because i don't know what you think is going to happen in 2025 or 2026 when it comes to taiwan and china and everything else and how complicated that situation could very well put us in i think the chips are going to be -- >> i think we know the concerns. >> it's going to be like pfizer concern, we won't have enough of them. >> i think we know the concerns, the down side, that's why this is such a big deal to see progress being made. this is going to happen. the plans putting out. and you can't flip a switch and make it happen overnight it's great to see the investmentment and, of course, the united states government has been incentivizing this along the way, too so we can talk about that too. >> a lot of room you don't need a lot of like land leveling like construction equipment. the no hills -- >> in ohio because it's flat is

that what you're saying? >> oh, yeah. andrew, i was thinking about that one of these days if you ever have time, maybe in the future instead of just flying over all these places on your way to san francisco or l.a. or wherever. you have to stop in one of these states. >> i've spent a lot of time in columbus, ohio i'm very happy for ohio. >> you've been to columbus, ohio >> i will send you pictures. >> the town formerly known as columbus, i guess. >> that was the last trip i made before the pandemic, i was in columbus and then surcincinnati that was february of 2020 before things shutdown. it's not flat everywhere people used to say oklahoma is flat -- >> cincinnati has several hills. beautiful. >> because you're on your way into the rolling hills of bluegrass, kentucky. but columbus is pretty flat. big school there

big, big, big. >> i'm not flying over, joe. >> ohio state. that's why i was there, i was there for a game >> that was a quick stop. >> i know we got to go just so you know, because we were counting with my kids last week there's only about four states that i'm missing to have actually been in this every state in this country. it's not that i'm -- >> north dakota, south dakota. >> it's not that i'm going coast-to-coast i'm missing the dakotas. >> i'm missing north and south dakota >> i have not been there i want to go there >> the badlands. >> and go where what's her face went in the movie. >> the great actress, they're yelling in our ears because we're wasting time. >> you know her, francis -- >> francis mcdormant yes, i do. we're going to move on because they're yelling at me. the 2022 tax filing season

beginning on monday and new younger investors may be in for a surprise last year's trading frenzy over amc, gamestop and meme stock could have an impact on their tax returns. sharon epperson joins us with more on that what do they need to know? >> a new top 100 list finds amc entertainment is no longer the top stock holding among gen z, but it's close it was unranked on the list before 2021 when the rise and fall made it a meme stock of the moment and it became number one holding among investors even as the price tumbled. by the end of 2021 amc was in third place behind tesla and apple on the list for top holdings for investors 24 and younger. >> most cases it was a buy and hold i think in some cases they actually added to the position,

really smart as this thing was climbing p and then in some cases, some folks took profits before the end of the year. >> now new investors who took profits or had losses in amc or other meme stocks will get a close look at the taxes on their investments. short gains are subject to ordinary income rates. long term gains will be taxed at 0, 15 or 20% while some capital gains can be offset with losses, a net capital gain is considered income and an increase in income could reduce certain tax breaks. >> student loan interest, child tax credits, you know, deduction for medical expenses these things are all tied to your adjusted gross income and the higher your adjusted gross income goes, typically the less tax benefits that you're going to qualify for

>> now if your income increases too much, you also may miss out on the opportunity to contribute to a roth ira. becky. >> can you still contribute to a roth ira for 2021? the calendar says 2022 >> exactly but you still have until april 18th until the tax filing deadline to make the contribution you can do up to $6,000 and have it count but your income has to be under $140,000 if you're single and under $208,000, if you're married and filing jointly. >> sharon, thanks so much. i know we're going to need more of you as we get closer to the tax season so we'll see you soon. >> i'll be here. >> in the meantime if you want to read more, go to cnbc.com/investinyou nbc universal and comcast are both investors in acorns

crypto prices have been tumbling all morning and we'll look at the retail trading world next the ceo of fin tech start up stash and a reminder you can watch or listen live any time. onhenbapght now t cc p. we're back after this.

welcome back to "squawk box," cryptocurrencies are

tumbling bitcoin below the 40,000 mark. joining us to discuss the state of retail investing is stash ceo brandon craig. on thursday stash started offering crypto on its platform for investing. brandon, it's great to have you on the program we can talk about the timing of introducing this given what's happening i want to talk about stash itself, but give us a sort of lay of the land of what you see happening with the retail community around crypto, especially now that we're st starting to see some of the prices creep down and whether, you know, in previous dips we've seen retail come in and obviously pick it up and the question is, do we think that these levels, 38,000, 40,000 are sort of a floor or not? >> it's really nice to be here it's a great question. i mean, we are not a day trading firm, so our perspective is going to be different. we are long-term investing the entire focus and mission is

to help everyday americans grow. yesterday we announced we are giving our customers exposure or allowing our customers to get exposure to bitcoin and ethereum through our fully managed account. so we're not market timers if crypto is moving down or up, our customers are investing small amounts of money on a regular basis and thinking about the long term. so i think there is definitely, for traders, it's hard, right. no one can predict the market. no one has a crystal ball nobody knows what the market is going to do today, tomorrow, next year, five years from now. so crypto exposure for our customers we think it's the perfect time for retail investors to get exposure to some cryptocurrency especially because it's something that most people don't understand and we want to give it to people in an easy and simple way. >> but it does seem that irsaying that you believe -- you

are a long-term believer in bitcoin, for example, and ethereum. >> yes >> so i'm assuming you're saying at $38,000, that's still a buy if you're looking at this world two, three years out >> we do we have an investment thesis that plays out for the long term and in the fully managed account, smart portfolio, we believe it should be a core part of the portfolio but part of a diversified portfolio not the only thing in a portfolio. >> when you say core, i don't know what a pie chart looks like for your investors, how big a chunk do you think crypto should represent? >> maybe core was a bit of a bigger word. but we are giving exposure in the smart portfolio between 4 and 6%, based on the risk profile of our customer. >> how correlated do you think crypto really is to the rest of the market for so long we would talk on the

broadcast how it was supposed to be this fabulously uncorrelated asset. that doesn't seem to be the case at least from the outside, but i don't know if you have a different perspective. >> we wrote an investment thesis around which, which is on our website at stash.com we decided to reduce bond exposure and fixed income exposure and put some bitcoi and ethereum exposure in the portfolio. that's kind of our view and the position we took. >> so you think this is just correlated effectively with the bond market in a different way, maybe? >> yeah. as part of -- if you're thinking long term, it's definitely anti-inflationary. and it's a better long term holding or, you know -- the customer should have a position to crypto, if they're thinking out long term. >> and finally, since you're spending time with retail investors, historically, retail investors have often got in on the train, unfortunately, you

know, at the end of the line, and then the end of the line comes and they've gotten off the train just when they should have stayed on the train or maybe even gotten back on the train. do you think it's going to be -- you know, we're in this sort of correction territory here. i don't know what you think is about to happen next i'd love to know but you how you think retail investors are going to handle it or manage through it, perhaps differently or not >> there's a big distinction between a retail investor and trader for retail investors, especially on stash, our customers are investing very small amounts of money on a regular basis and thinking long term one of the things i'm really proud of for stash we have almost $3.5 billion on the platform but the average deposit is $31 at a time so our customers are out thinking long term i think if you are a retailer trader, i think it's hard because we really haven't seen

the market go down for long periods of time and, you know, we -- most people lack, you know, a lot of financial education. and so, i think, you know, going into the market and buying and selling and buying and selling a hundred times a day is hard. focussing on the long term investing is much, much easier so you don't think about the minutia of the market or the daily ups and downs. >> brandon, thank you for joining us wish you lots of luck with stash and introducing crypto we'll see where crypto goes the next several weeks and months and hopefully years. thanks again. >> thanks for having me. when we come back, shares of peloton on the move this morning after the stock fell nearly 24% yesterday. this morning it's up by about llay7 but that price yesterd we below the i.p.o we'll talk to an analyst about all of this right after this break. 15 walks... gets a little old.

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. welcome back, everybody. peloton shares are rebounding slightly after taking a big tumble yesterday last night the ceo, john foley, warned of possible layoffs and denied in a cnbc report that they were halting spikes in tread mills because of falling depan. it called the report incomplete, out of on the text and not reflective of peloton's strategy a senior analyst, sydney, you have been thinking demand was cooling. what did you think first of the report that said they might be slowing production because of demand and second what did the

company have to say last night >> good morning, thank you for having me. i think they have been putting out news left and right. i think what's important when we reflect on what the company said, they're very good with their words. they said they're not halting all product. so i think the reality here is clearly this hit on something that is ham, to what extent they're shutting down all factories or a lot or some we have no idea. but that was the reputation. so i think that that is important. so that's a nuance that we do know or you can imply that the cnbc report had something to it. i think ultimately taking a step back, though, peloton had a supply and demand mismatched unfortunately, we've invertd which side is offsides, tremendous demand, not enough supply, now we're seeing the invs. >> when you see the inverse and the stock, it's kind of cratered as a result. i think the question is, has the damage been reflective of all of

the demand issues that we've seen is there life for this company >> listen, i have been compelled, i have more than one statement on the record saying i love the product i think the question is right now they're in the process of a strategic reset. they're vocal on whether it's mackenzie or focused on margins. the problem is they're starting to shift to a variable structure. it's hard to cut costs when so many of your expenses are tied to sales r&d, marketing, pulling that back at the same the competition is growing, that makes it very hard to grow so i think the question we have, does peloton stop 2.5 members and focus on the prescriptions and have higher margins, not get more, make sure it doesn't grow, probably not f. they don't, it will be hard to figure out where this profitability comes from.

>> sydney this problem of a stock that took off because of demand during covid as people were shuttered at home we're not alone with this, netflix, they're having a hard time figuring out how much subscriber growth was pulled forward and how much people didn't want to do it, what the growth expectations can be from here so they're not alone in struggling with that it's a problem that any team will be facing at this point but your question is a good one, if they focus on the existing pace, what itself value of the company? if they go ahead and continue to grow and have a huge mark share in this category, what itself the expectation then what do you say about the stock right here $26 >> we still have an under performer. the point you brip bring up is goodp i would prophecise, maybe this is wrong, the problem or

the issue is they invested like the future was going to be like the cash they put down a capital spend, it's not hard to turn it off and focus on those subscribers right now. so i think that had they, we're talking now about the pandemic turned into probably the worst thing for this company, we would be talking about a hyper growth, that didn't scale, didn't have a protracted growth, therefore, it didn't have to get this collapse what they sort of did is they ended up letting the pandemic dwindle their own cash and spotlighted the fitness. this is not a stature going away now 23 find out there is more corners. >> citizen my, thsydney, thank o being with us. >> stock is plunging down 20%. in the 8:00 hour an hour from now. we will talk to intel ceo pat

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it's all red right now netflix plunging overnight as well after the company ac knowledgeed that streaming competition is cutting into subscriber growth. the price is all the way back to 2018 levels, wiping out four years of gains and bringing valuations way back to earth intech announcing plans to build two new factories in the state. we have details straight ahead and a first ceo interview with pat gelsinger. the second hour of "squawk box" begins right now ♪ . >> good morning, welcome back to "squawk box. right here on cnbc i'm andrew ross sorkin along with becky quick and joe concerning u.s. equity futures, let's show you, it has been a brutal week, where things stand, the dow off

24 points, nasdaq down 92 points, s&p 500 off close to 15 points the nasdaq down at least 10% year-to-date the u.s. markets promised to sell off in the u.s. yesterday i will show you treasury yields as well and show you where cryptocurrencies land. we are seeing sell-offs. 10-year know 1.794 bitcoin is at about the 38,000 range, a little higher, almost 39,000, off 8 or close to 9% so, there is -- i don't know if we say blood in the streets yet. we're in correct territory across the board here's some of the other headlines making news, impacting all this, one is netflix shares, they have been plunging, they expected better than expected earnings, focusing on a

disappointed subscribing growth they said they were going to add 2.5 million, analysts had been expecting 7 million new subscribers. bitcoin taking a beating it has fallen below the $40,000 level touching the lowest since august other cryptocurrencies taking a hit. solana off 12% we will see what investors will be perceiveing these as ricky or not. finally, intel planning to invest $20 billion of a new chip manufacturing site near columbus, ohio they will build two plants, semi conductors are struggling to come up with growing demand. the time it takes to get those factories up and running could be a couple of years, so there is some work to do here and intel, hopefully, is the first ceo pat gelsinger will be

joining us right here live on "squawk. a conversation you don't want to miss, joe. >> yep i mean, crypto has made a lot of strides, andrew, since it went 23r 20 from 20 back down to 3 tom lee used to say we're going town 20. we'd say, you're out of your mind, 73 iswhat is that 70% of something? it's made strides, institutionally, it has. i think of intel, i think of bitcoin when i finally i thought wow, this is real, it was like at 8,000 8,000, that's when i remember it that's when i started buying it at 8,000 so it went to 68 what's a 50% retracement of 60 that's 30. so 30 minus 68 is 38

so this is like, to me, i'm looking at it like a 50% retracement. i don't know if we get an 80% retracement, then i think things are real don't retrace 80% do they? 50 i could see and still be real. and still be something that -- >> the entry point is always how you measure the game so if are you in at 8:00, this is all house money >> it's great, believe me. >> 68,000, this is a whole different story. >> terrible. but if you are a toller or a stacker, this would be, i mean, the poor guy in el salvador said i called the low at 48,000, remember, he bought a bunch, now it's 38,000. even for him it's painful. if you are a true believer, 38 is a lot better than 68. >> sure. but what i don't -- look we haven't had those on there were a lot of folks north

of 38,000 who were saying, you know, they might have been stacking at lower numbers and kept stacking at much higher numbers, too, we tell people to stack. so >> i can, you know, i'm not a fanatic. i'm a believer but i'm not a fanatic. i remember we have santoli on it was at 28,000 on the way up. they were saying still is 28,000 geeze, i don't know if i'd buy it at 28 it seemed so high at 28,000 from 8,000, so it's all relative. >> if you play it out five years from now, that's the real question what are we talking five years from now in. >> i don't know, what is the fed going to do with the digital coin let's go to dom chu in. >> by the way, i have been talking about this forever i always thought if the fed has a digital currency, a digital dollar, it's a binary thing.

it either credentializing all this you see on the screen or crowds it out. and it's specifically around bitcoin. etherium, doesn't necessarily get crowded out. bitcoin is a different story. >> well, you need etherium, watch, the you need etherium to buy your sneaky vampires >> that is true. >> i just do that. i do that to get the twitter going. let's go to dom chu who has some other stocks to watch this morning. this morning, domino, what's going on >> so to the point you guys were making ability, the entry point, right, for the trade being the key component here and the relative value you are getting given certain retracements and pullbacks, we have been talking about the peloton, this notion the cnbc says they will halt

production the company denies the report, saying it was taken out of context, they're trying to right size their posture i will throw a positive out there. we were talking entry points given that massive pullback we saw yesterday and the 84% drop, the shares are up 6.5. partly due to the pre-announcement of results peloton put out yesterday largely in line with certain expectations and the denial of the cnbc report and certain analysts might say this is an attractive entry point given the massive pullback analysts at jeffreys are saying that it was a hold before it becomes a buy at jefferies albeit at the target price 56 before goes to 40 given the $25 price we are seeing right now. by the way $40 bucks in comparison to yesterday's closing price implies a 65% upside for peloton, the entry

point discussion you and andrew were having, joe, is a discussion with peloton this morning. also watching a couple earnings movers from yesterday's closing bell csx revenue is better than expected it is seeing growth, you can see after a 13% run over this past year, near-term weakness in some of these have taken it down 1 or 2% in the pre-market trade then to top it all off, the company we don't often top it off. a big name if chemicals, ppg off 3% the company says again it came out with better than expected earnings and profits it will also look to raise prices to help offset inflationary pressures it will see in the coming months, so ppg industries off 3%. joe, three names to talk about in addition to netflix and crypto by the way, crypto caught my attention this morning as well because i was going to show you

coin base and microstrategy because of that move in crypto across the board you see there a lot of ripple effects. >> it's a different world. it's starting already, dom, with the peloton story. people are back at the gyms, they're going back to the gayms. i got to go to the gym, i need someone telling me what i got to do it remind me of this dredge report, it says a quarter of adults, seriously, only a quarter that would be over. >> i am, too. >> i am right if there i had a couple of people to that quarter him i'm good for at least two or three people as being lazy i can't do at this time. that pell loton sits in the basement when i go over, that's the only reason to go to the gym. >> so the call to action is a

huge part of that jim conversation, this idea if you motivate yourself, you go and do something you haven't. there is also a social aspect for the peloton kind of situation where you are kind of interacting with instructors or you feel you are a part of a class that's online. i would say a lot of the social aspect is going to gyms when i used to go before i had some ultimate chase around. >> are you probably one of the lazy people. >> i am part of the 24 people that is lazy, which is why people give me a lot of grief, especially becky i need golf season to start. >> i was going to stay you use your time on golf. that's exercise as long as you are walking. >> by the way, if you walk 18 holes, i asked joe, it's like four-to-five miles especially was financial to say, you are right arm from that steering wheel and your right leg, it's all built up >> joe, i know where you play your golf. there is not a lot of driving on your golf course

>> you need a health condition to get a cart. you need a flag. you got to walk. i love caddies, the whole, you know, that's a lot of camaraderie, too, being with them i need them. >> carry my bag. >> i need them to find my balls. i'm going to say it. i'm not going to worry about saying things anymore. because you know what i mean i can hit it all over the place, so much further into the woods with this new equipment. thank you, dom >> you got it, guys. speculation swirling in china about tougher investment deals, eunice euan joins us moe it's surreal, isn't it >> reporter: it's lovely, i love hearing about it it transports me to another side of the world >> there you go. >> reporter: that's right. so one of the updates for today the transport ministry had four

ride hailing apps, including didi telling them they need to address driver complaints. it's the later 69 beijing's scrutiny of big tech is far from over you mentioned the rumors swirling around. i am currently in a the part of beijing that is known for its start-ups. and this week, the tech community was really rattled by that what was a draft that was circulating online that was purported to be a draft of possible investment regulations that would essentially make it much more difficult for big tech firms such as ali baba, bike dance, 10 cent, to fund startups so this story got so much attention online that the cyber security regulator actually put out a statement saying that the content was false but at the same time bite dance had

confirmed that it dissolved its investment arm so that has been fueling speculation that, one, the investment regulations might be coming and also that the tech sector might be in for a whole lot of layups. so, in addition to all of that this week, the -- it looks more and more likely that what we have been calling regulatory crackdown could be a part of a larger agenda of president x jen ping to reshape the economy. it looks as though there is more of an intense anti-corruption drive that's going on that is targeting the links between local governments and major private enterprise this week, state media has been airing an entire documentary series that has been showing concession after confession after confession of officials who are supposedly corrupt and then also this week there is a

huge anti-corruption meeting of the leadership one of the highlights of it is there is an important need to separate capital and power and so i think, joe, it really goes to show that, you know, the leadership here wants to make sure that the private sector doesn't get too big for its britches we talked about this for a lot of times. >> yeah. i this i the leadership does pretty well over there in general. do what i say, not what i do, in a lot of respects. req can i ask you a question the olympics are coming. i know china wants things to go well are they aware of, i don't know how many superpowers are there is china, is, are i don't know, but there is a lot happening with russia and ukraine. i'm wondering if that's on the radar screen over there with the olympics coming up i don't know if it's imminent. i have no idea but we're talking about a lot over here. sit on the radar over there?

>> reporter: it's definitely on the radar. in the context of the olympics, it's on the radar in that president putin was supposed to be here, is supposed to attend . there is speculation on whether there is a move by the russians that could potentially disruption the start and overshadow the opening ceremony of the olympics and how that can affect the relationship with president xi jinping and president putin when president xi jinping wants the olympics to be good and a show stopper around the world >> right remembering, becky, you remember carl, he wasn't allowed to talk

about the olympics in front of that stadium. >> i think those were our rules. >> we don't need real fireworks taking away from the other fireworks. >> i would stick with the olympics fireworks for now it's always a good show. yeah >> that was one of the classic moments on any blooper reel. >> i felt so bad for them. >> things going crazy. they weren't allowed to say it >> not acknowledge anything happening heaped you, but that wasn't china, that was us. >> right. >> and by us, i mean this company, but that was a broadcast issue. hey, when we come back, a subscriber broke slowdown at netflix as the stock down sharply 18.8% a. loss of almost $100 a big deal we will talk streaming wars next and talk about what future growth could be expected for netflix and any of the rest.

before we get to break, let's get a check on the markets the nasdaq had a heck of a week and year-to-date down by 115 'lts wel see what happens it's friday. "squawk box" will be right back. i may be close to retirement, but i'm as busy as ever. careful now. nice! you got it. and thanks to voya, i'm confident about my future. oh dad, the twins are now... ...vegan. i know, i got 'em some of those plant burgers. - nice! - yeah. voya provides guidance for the right investments and helps me be prepared for unexpected events. they make me feel like i've got it all under control. [crowd] yeah! because i do. ok, that was awesome. voya. be confident to and through retirement.

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the two titans tex microsoft and apple combined market cap close to 6 million they weathered the storm and look at the tech sell-off as dan ives managing director at web bush securities. so we've already seen quite a bit of damage to a lot of names, maybe not these two as much. i mentioned this article earlier. it's from behrens, tech stocks need a life raft earnings season could be it. i'm not sure whether that's the case, it's probably happened with netflix will apple and microsoft and other tech stocks be a part of that life raft when earnings finally come, dan? >> yeah, look, we think the life raft attack is going to be microsoft, apple, software and netflix obviously work from home

pandemic play, but what could lead tech higher is video transformationings, software, chips. i look at microsoft and apple and these are rock of gibraltar names that ultimately are going to start to change the tide and this rickoff in buying, in fact. >> -- riskoff in buying, in fact. >> it's a bifurcated tech arena to some extent, i guess. maybe these two are not even as much new tech when we think of what new tech is, dan. i mean, microsoft is almost legacy tech. it's reinvented itself so many times. as has apple but in general, do you see haves and have nots in technology? >> i think it's a great point. it's clear bifurcation in the cloud names, microsoft the top of the mountain. i think amazon is going to clearly benefit on the aws and you look at cyber security, palo

alto, those names and chips, looking at nvidia, margot and others you look at the winners and losers, the work from home you see multiples continue like with netflix. but that's how i think ultimately we don't view this as the end of the tech rally. we worry the bifurcation i think next week is where the rubber meets the road. i think that's where microsoft and apple are with other faang software names and change the tide as far as the white knuckle period. >> do you see the multiples of microsoft and apple being more reasonable therefore they are interested in interest rates hitting some of the more richly valued tech stocks or are earnings going to be so strong for beth of those that they don't, all they need to do is

maintain a current multiple or maybe it comes down a little but earnings will grow enough to support the stock prices >> yeah, i think they're safety plank et names because of the multiple and the cash and you are starting to see more and more pile into those but i also do believe that their names from a growth perspective by anywhere from 5-to-7% for both microsol soft and apple as they grows over sort of mutualizes, what's happened in valuation. that's why in my opinion apple is the stock over the next year that will be over 3 trillion i believe microsoft is no too far behind that's why this is ultimately what i view as a bifurcation you look at microsoft and apple, that's where it starts to see the change >> if you are an etf guy or

index guy, when would you buy the nasdaq in. >> to us this morning is when we buy it we believe the fear factor is there. netflix put gasoline on the fire everyone is going to say, this is it. i believe the next two weeks we will have a significant rally impact went by faang in terms of when i looked at apple and microsoft and amazon, i look at software and chips i think we look back, this is more of a golden opportunity to own these names rather than to say the tech rally is over >> well, it's really definitive. that's great thank you for going out on a limb there it's down 12% on the nasdaq. thanks okay coming up, when we return, super star singer adele rolling in the deeped with same hurdles as corporations, supply cane disruption, covid's impact on the work force you got to see this video of

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what year was gasoline below $2 a gallon? the answer, 2020 in april and may of that year, the average price per gallon was between $1.93 and $1.96 still to come, netflix shares tanking overnight after the company had disappointing subscriber growth we'll have more after this stock down about 19.5%. and in the 8:00 hour, we'll be

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welcome back to "squawk box. superstar singer adele grappling with the same hurdles as other

companies, supply disruptions and covid's impact on the work force. she was supposed to open the los vegas residency tonight. but the show won't be going on, contessa brewer comes on with more >> good morning, andrew, yeah, adele was scheduled to kick off a 24 concert, last fight a tearful adele tweeted a video announcing the launch has to be postponed. >> my show ain't ready we tried absolutely everything that we can to put it together in time and for it to be good enough for you, but we have been absolutely destroyed by deliveries late and covid, half my crew, half my team have covid. they still hare. it's been impossible to finish the show and i can't give you what i have right now. >> it has to be especially disappointing because industry experts say this was set to be the biggest show in recent los

vegas history with fans shelling out a reported $50 million for tickets as soon as they went on sale adele would reportedly rake in $2 million per show according to billboard, more than lady gaga, more than brittany and adele is not the only one in tears about the postponement a 24 concert run at ceasars draws in high value big spending clients who boost gaming revenue, food and beverage and amenties, fought just at caesars, mgm, wynn, venetian even with these rescheduled shows there is likely to be a short-term hit it stinks as you imagine for the ticket holders who travel to los vegas, they had to have negative covid tests to attend the concert that and proof of vaccination, andrew. >> so, contessa, the question, not just in dollars and cents, that video will tear you apart do they have insurance tore this i know they will change the

tickets or give people their money being or reschedule them, but for i assume they're not giving you your flights back, if you flew there >> yeah, the cancellation policy as it stands, if have you to have a three-day cancellation for the hotel, that's what it is, if you have to have a day cancellation, that's what it is, that's what trip insurance is for and travel insurance and now there are special policies for tourists that if you go and your plans are disrupted by covid, you can actually recoup some of your costs in terms of the show, itself, pause they're rescheduling it, i don't exactly know how that works. it's adele's people who are responsible for disseminateing all the information about this so far all they're saying is it will be rescheduled. >> contessa, thanks for the report i saw your tweet about it last night and watched that video and i fell for her, i also felt, of course, for everybody dun on a

plane to go see her. thanks. >> 2 million a show, andrew, i am feeling bad, i do, but do we feed to call -- do you still have an act? do we feed to call our agents? 2 million a show, soaringen, 2 million. coming up, netflix share, is it three hours rich greenfield will join us and they will invest in a new manufacturing site near columbus, ohio, awesome. so it takes less fuel to bring people together... ...and make faraway places feel a little closer... ...with engines that power planes more efficiently. because seeing a better-connected world isn't far in the future. we're building it... now. ge. building a world that works.

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>> welcome back. fet flicks warned of subscriber growth, life jet part first, rich, you have been a long-time netflix bull the question is, has the run come to an end >> i think the question is even bigger than that, andrew, right now it's not just netflix under pressure it's the whole category. did the streaming orders hit a wall is there a ceiling that's a lot lower than everyone expected netflix, obviously, broke through 200 million subscribers

put up 8 plus million subscribers. it was actually a solid number the question is 200 million now the top? or is this sector where there is 600, 800, a billion subscribers? we believe there are. >> i agree with the question what is the answer >> the answer is of course there is hundreds of millions of subscribers to go. think about asia andrew, outside of coin, which is not available to any company right now, at least non-chinese company, i think netflix has 33 million subscribers across all of asia, exchina. that number is clearly disney in hot star has something like 44 million subscribers, there will be hundreds of millions for both companies in asia long term. is it financial to be a straight line >> no. i remember, you probably remember, andrew, when fet flicks blamed ships and credit

cards why they were missing numbers in a quarter, seeing slower growth. we seen multiple confidences over the years i'm not dismissing this, saying there is questions on visibility we seen visibility issues many teams in netflix' past the long term doesn't seem changed at all the pace they will fet there in 2022 may look a little different. certainly, the year is starting off slower they also started off slower in 2021 tan people expected and had a big end of the 84. no one saw squid games coming. >> but what does this say about the growth trajectory of this entire space as you said up at the very top there, clearly, a lot of companies have moved aggressively to this space all in the name of casing netflix and chasing that type of revenue growth whether it be disney, apple trying to build something out. look, comcast is trying to build something up they probably have done it slower by the way, some companies i

imagine are looking at this saying, you know what, maybe this doesn't work the way we thought and may actually be happy if they were slower about this, too. >> look, i think there is many companies that have sort of thrown their future and bet on streaming. what i would say, though, is just step back for a second. in q4 nelttflix added 8 million subscribers, with the contents back rate they will add 2.5 million. in two quarters 11 million subs, so 20-million subscriber run rate everyone is focused in the short term q1 is well below expectations, it's below my expectations it's not a good number on the flipside, the reality is their growing revenues at a healthy clip all signs point to the ability to react sell rate revenue growth as grow et if asia and

parts of europe react sell rate. i don't think they totally know where growth has been slower in certain parts of the world i think they got to that that's sort of the lack of understanding as to why thing to is as weak as it is, i have a lot of conviction, i remain convinced the upside here is 6, 7, 800 million subskreebers. that's why you want to buy the stock down almost 1 h. points, when you see the complete crisis of confidence and conviction and every analyst is throwing in the towel because it didn't make the q1 number. that's when you can step in and make incredible amounts of money. this stock was at an all-time high not that long ago there is the ability to swing violently. i think certain people will take advantage of today. >> would you take it just in netflix or do you think this is a buying opportunity in some of the other media companies off of this in. >> i think it will be

interesting to see what happens with disney, it's got a lot of decisions. they are clearly investing in orange streaming i think disney, just like netflix, they will have a pretty decent calendar q4 their fiscal q1, hulu live, they had tail winds at disney plus and talked about the contents back-end weighted if 20 two. so i wouldn't be surprised to see disney echo a lot of what you heard from net flicks. so, look, if you are looking long term, there will probably be a lot of interesting opportunities today that are create by this confident in streaming. this is not over the streaming wars is not over nobody is giving up. >> rich, what about the margin picture and this idea, the $20 on the high end of netflix is there a top in terms of how many of these subscriptions either americans are more broadly given. these are global businesses will

accept >> let me think, i guess i would flip it around and go look at how all of these surfaces have grown, you know, you've add apple tv plus, you've added disney plus, you've added hulu or star overseas i this i the reality is that if you think about it, the multi-channel bundle, the cable bundle in the u.s. you can look around the world, that's what's disaperiodic the thing that you are spending $80 to $100 a month for, there are a lot of dollars reallocated as people strip their spending from linear to streaming tv there is still growth. they added a million subs in the u.s. and canada despite incredibly high penetration rates that dwarf where they are overseas so i guess your question, andrew, do they ever get to where they are in the u.s., in asia maybe not. i don't think they have to for the stock to be as tremendous growth company from where we are today in terms of the stock. there is still a lot of subscribers, even if penetration

is much lower because as you point out, the penetration of tv looks very different all around the world. i think the reality is you think about india, they just cut price in india to basically make the surface more appealing they're telling you publicly that price versus volume, they're making up for the price cut by adding more subscribers that's a good sign for 2022 not being reflected in the stock today. >> rich greenfield, thanks for your insights. we'll see what happens to this stock over the next several days, weeks and months, appreciate it. >> thank you for having me coming up, students, schools and parents all struggling to keep schools opened amid the omicron wave we will be hearing from the founderir ght after this "squawk box" will be right back.

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president biden is doubling down, the cdc is currently recommending third vaccine doses for immunoages 5 and up and boosters for ages 12 and up. there are no vaccines for those under five the debate is an important one, he is the founder of con academy, i know you have news, we'll get to that in a moment. first i want to ask you about

schooling in the latest covid wave you are seeing places like chicago and the governor of california, gavin newsom taking a strong stand where they didn't in the past. before they were okay with circles going remote we know a lot more about that remote learning and what it meant. >> yeah. at this point what we're trying to hospital mize for is make sure kids under 5-years-old are getting sick we are seeing increased rates, all the it's still probable. we want to make sure your local hospitals aren't getting overwhelmed. if terms of risks, i am not an ep epidemiologist, the risk to a fully vaccinated adult or especially a child who is between ages 5 and 18, it does not look like a significant risk right now. the symptoms are very low the negative consequences of missing school, we seen over the last

almost two years are significant in a lot of urban school districts, you are seeing five, ten, 15% of students that have fallen out of the system, another chunk who disengaged, lost 10, 15% of the learning they have. it's a bad situation, the schools are trying to do what they can there is a large amount of fatigue in the system. i don't think the kids or the system can handle many more months of this uncertainty and closures off and on. >> it's interesting coming from you, you have been a huge promoter of learning online, not as a replacement in school kind of as a supplement to what you learn in the classroom. >> yeah, our ideal at con academy as a not for profit, obviously, students don't having a says, if you are a child to some place in india or if there is a global pandemic and schools are shut down, we want to be the safety net for the global education system our ideal use

case is to be used in a cool context. half of the 13 billion learning units we get a year are done through teacher direction. teachers see the value to learn at their own pace, get as much practice as they need, et cetera that support is crucial for students to engage in a platform like khan academy. it's much more than con academy to get the social connections, the human mentorship you get in in-person school you can't replace online. >> con academy is supported entirely by plan the philanthropy you have a new nft you will be the beneficiary. do you want to tell us a little about it >> yeah, this is one of those interesting things that show up on our table every now and then. this group biological which makes science fiction nft trading cards, they reached out to us several weeks ago and said, haip, we auction off these masterpiece nfts we'd like to donate all the

proceeds to con academy. when we see something like this, what itself the catch here there have been genuine. in the past, the worst is a picture of it over here, inspiring teacher. we're flattered they made an nft connected to con academy in this way. in the past, these have auctioned off for several hundreds of thousands over a million dollars. there is nine hours left in the auction. it looks like it is already approaching there were 150,000 so, it's obviously valuable to support us as a not for profit and i tell people, we're the budget of a large high school. our aim is to search much of humanity, we are offering free learning to around the world so this do nation is both going to serve a lot of folks, but at the same time, it's a really interesting experiment to see how the nft world and the check charitable world can intersect. >> it's not the first time you are doing something new and out there. you have been getting crypto currency for a long time for

part of your philanthropic do nations, right >> yeah, we have been accepting them for a very, very long time. i remember it was near the beginning of the whole bitcoin interest that one of our engineers allowed us to accept it i kick myself, i remember we got a million in bitcoin and prudently turned that to cash immediately. so, we would have had a larger endowment had we had that. we want to innovate when it comes to education, when it comes to learning, also if you ways to be a not for profit and new ways for people to contribute to what we need to do. >> i know you expanded the academy a lot during the pandemic to help people out, help countries out, villages, students who weren't if school at that point. what did it mean in terms of the strains on your budget what were you able do? how much was able to come from people volunteering and where do things stand right now do you have enough to help everybody who needs it >> yeah, when the pandemic hit,

you can imagine a lot more people were relying on ckahn we went to about 30 million a month, to about 30 million learning minutes a day at the peak on the platform when the school started closing physically to almost 80/90 minute learning units per day. and this has been a moment where we had to step up. this is the world to some degree has been depending on us, you can imagine that also affects our budget just our server costs, the remained are to support the platform, with practice exercises, covering all of the k through 14 academic material and exploring ways for students to get it for free. we are continuing to add science content and other content. this cost real resources, we are the budget of a large high school, the total am budget is $60 million a year it's philanthropy we have the college board

revenue. so it's critical for do fors of all levels, corps partners, whatever they can do to help keep us going. i always make the argument in the physical arena, have you institutions like physical libraries, physical parks, physical museums and that's a part of civil society. in the online world we all see, sometimes the wild west, it's important we believe to have institutions like khan academy there to help educate folks. >> folks, not familiar, he's a regular with us. he started this because he was tutoring his cousin at one point. other kids wanted involved other family members, so it was a way to teach everybody he was approached by a lot of venture capitalists as a way of profiting from this. he chose to keep it a non-profit i think that's hugely important. so we want to thank you for all work you have been doing for the pandemic and beyond. i think it's super important. >> i appreciate it we have a long way to go

our aim is to serve civilians. >> wait, very quickly, sam, where do you get the auction coming up quickly are you there? >> it's on openseed io it's mat el masterpiece inspiring teachers >> excellent thanks a lost. we'll talk to you soon when we come back, intel ceo pat gelsinger will join us to talk about his company's plans for new factories in ohio. plus, dr. scott gottlieb will join us with the latest headlines. stay tuned "squawk box" we'll be right back

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>> good morning, the fax and s&p 500 are on pace for their worst weeks in over a year we are looking at another drop at the open this morning new this morning as well, intel making a very big bet on the future of u.s. computer chip production announcing an $11 billion investment in central ohio in just moments with le have a live interview with intel's ceo. netflix shares plunging on weak first quarter subscriber guidance the final hour of "squawk box" begins right now

>> good morning, welcome back to "squawk box" here on cnbc live from the nasdaq market site in time's square. i'm joe kernon along with becky quick and u.s. equity futures are now participating if another weak session just like the rest of this week. it's been rough and the nasdaq which was already down 11% in correction mode almost 12 is now succumbing to selling pressure down 128 or some you see the s&p and dow jones both lower we'll look at treasury yields which have actually didn't continue through 19 and up 2% on the ten year, they've come down to 1.77. then bitcoin is back above

tlangt,000 but a couple minutes ago, i saw it up over 11 at 37 and change, it is down a few thousand dollars just on today's session so we're seeing the air come out of a lot of different parts of the market, the speculative some would say of the financial marks, i don't mean bit don't, all over the place, seeing i think a response to what is defacto going to be a different situation as far as the fed goes it simply just is. there is no way around it. >> it is watching all of this play out, interesting start to the year but there are a lot of stories investors will be focused if on. not all of it bad news intel announcing plans of $20 million of new manufacturing facilities outside columbus, ohio chip

makers world wide trying to aksel race efforts to meet rising demand. it's something happening here in the united states is important not only for chip production and security making sure we can maintain the supply chain him coming up, a first on cnbc interview with ceo pat gelsinger. let's move on to netflix deep in the red. reported better-than-expected profit and matched estimates for revenue. they are focusing on the underwelming subscriber guidance for the first quarter. they expect 2.5 million new accounts, far below the street's forecast of 7 million. how much of a demand was pulled forward during the pandemic. how much do you hit a ceiling in terms of how fast you can grow we will talk about netflix with media maven tom rogers and

peloton shares are up following their home plunge yesterday. the company says it is reviewing production levels on the side of its work force in response to a cnbc reports it was halting breaks and tread mills because of waning demand, stocks up 35%. after hours yesterday, peloton said total fitness subscribers will fall below a previously forecasted range, revenue will be in line with its provider estimates. joe. >> let's get back up an crew drew. >> on pell lo on the, there was speculation of the takeover target, apple talked about connected fitness. we talk about ap to him get in there wake a deal at a probably a significant premium again

maybe they don't feed peloton. at these price maybe there will be a transaction to be had. >> it's real i want to work out in the metaverse is what i am thinking. >> i was playing with gym classes over the weekend, it's unbelievable it really s. >> i want my avenue tarp to do all the stuff. treadmill. >> it will blowure mind. but you might want to have a combination of these things, have the treadmill, the bike and the glasses going at the same time that's where i think an apple, a google in the end, you can see the consolidation. >> rick moranis. he was on a bike head set on it. >> i don't know. >> disrupt the kids or

something. >> i am telling you, you spend time with this new oculus not just by yourself but with other people in the room, it will open up your eyes it changes your whole imagination what happens with nfts, crypto, what can that whole world be it's fought here it's almost impossible to not think it wouldn't be >> i don't know why my mind goes into the gutter. let's get a move on it you know everything my greats a.president. the 'em people with those glasses on, the whole thing makes me uncomfortable let's get back to the markets. we get ready to wrap up a short senior markets commentator we need you today. we've done some specific work on the downside and maybe some significant damage is it another 45% to go with

grantham or are we at a point now where a lot of stocks already reflect current reality? what do you think? >> it's never a great odds on projection, we're going down 40%, crashes are rare. we have done a lot of work the interesting thing we turn over a few year, usually there is a lot of continuity, this year, we never had as much as a 7% pull back this is the s&p 500 index fund it's more of a selling the rallies node e mode as opposed to buying dips to your point, the medium stock i locked is down 13% off its highs. you got stocks down 15%, you go back in time, not down if price.

we are now at levels first reached in august of last year, significant lows this is when the kind of attention turns to all that folk lore and how bottoms are made, what to do we want a down open, not a rally. the past two days, rallies in the morning. maybe you want it mixed together they're just true enough and often enough for them in the to be discarded they also are not perfectly reliable that's where we are right now. that ache look at the consumer staples, it shows you the market is downscaling for consumer, a hangover now a lot of times the consumer etf is driven by tesla, amazon autos, the home builders, the retailers are weak by the way, that's text book

anticipation you sold sick cals -- secondly c cyclical's a lot of the sentiment stuff looks negative that's help. it's been the zone 27 is above the futures. that's a start of showing there is clinching up of anything sielt. we were at 30 in early december, guys >> so, mike. as a perk do you get a u.s. subscription for life? no, there was a time when i did. but i think the password

expired. true or false. tech stocks need a life raft earningsseason could be it what do you think? >> well, it could be >> it's not about earnings, right, if rates come down, i don't know >> yeah, the question is how much we think they could come down, i pointed out the nasdaq 100 went from 22 before the pandemic up to 31 it's probably in the 25. the overall s&p is 20 if earnings hold up as projected. i think the market is almost now overshooting the likeliest fed message and activity for this area because it's sort of

pricing in the sector the fed said we would do the more time we have they will fill it with fears the fed has done nothing but talk rates have responded we've already done some of that work as you said earlier >> there will be reports remember and net flex reports. i don't know what to get you christmas except a jelly of the month club. >> you discovered that >> all year around >> okay. thank you, andrew. >> coming up the interview of the morning fresh off the big news this morning of a $20 billion investment in central ohio on the stock front it's been

tracking for the worst week in two years. don't go anywhere. that big interview straight ahead. ahead. >>nts. they make me feel like i've got it all under control. voya. be confident to and through retirement.

. welcome back you are looking right now at some of those nasdaq laggards. n netflix is off 20% earnings having better-than-expected still lots of concerns about what growth looks like ahead joe. >> andrew, coming up, intel ceo pat gelsinger johns us first on cnb krv. his company announcing a $20 billion investment to build chip factories in ohio. he's a very smart man. then later, the latest on covid, former fda commissioner dr. scott gottlieb is back with us to ouend t the week

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. big news this morning, intel will be investing billions of dollars into a plant for chips in ohio. our jon for the joins us with a special guest. >> becky, good morning, joining us intel ceo pat gelsinger

pat, welcome we'll get to the stock impact maybe some of the political impact but i have to started with the real impact for ohio here. the whole u.s. this site is within a three-hour drive of cincinnati, cleveland, pittsburgh and the borders of west virginia, michigan, kentucky and aindiana. there has never been a kip fab in this region you are calling it silicon heartland. why there? the impact is huge wouldn't it have been easier to do it in california, oregon, places where you already have fabs why there? >> yeah, obviously, jovrn, a pleasure to joan the show, the company that helped the silicon desert, the silicon valley, today a silly can heartland.

we did a site search and looked at 30 to 40 sites around the nation many factors big. this is going to be growth we hold large fabs, energy, water, talent all the of the mid-west schools. this is manufacturing a place with a history the of ohio. they were so ep tuesdayiastic and embraced us to demonstrate to us the extraordinary capacity silicon heartland has for our great nation. >> you and i have been talking about what you are doing to catch up with your manufacturing process. you got the strategy for foundry, making chips for other

companies. how dependent is this ohio site and plan on things we don't know yet, we don't know whether the chips at funding that $52 billion will be available we don't know when technology will be ready you said recently that's on track and we don't know where the foundry business will be in 2025 when production is expected to come online how dependent is this ohio plan on those things? >> well, we need this capacity period even if it's just for the retail products, we will be announcing the site today we believe there is demand for our products we look at our foundry business. we will run it for our foundry commerce at this location. we said with the chips act, we said, we will build this site

period, but it will be bigger and faster with the support of the chips act and obviously todays a announcement is a strong message we are putting it bigger and faster to restore it within this soil. >> within the three states it's an interesting political approach as well have you already reached out to the leaders in those states nearby and how do you follow a chip fab versus even an auto plant, which is what the region is used to getting more excited about >> yeah, you know, as you think about this we are announcing 3,000 jobs for the first two fabs, but we hope it to grow a full eight plus fab over a decade it's immediately building out

7,000 construction jobs. for every one of our jobs, our typical ratios are greater than 10x of total jobs of suppliers, other ecosystems, teachers, you know, police officers, everything coming around because this is building a small city as i describe it. an enormous impact for the entire region. it tends to be a hub as we seen in oregon, santa clara and arizona, other companies come alongside as well, so it becoming a bubbling cauldron of innovation and growth and obviously i have to be more enthusiastic for the buc eyes and the greater engineering schools in the nation. also military bases. we havehuge success with m military coming into a manufacturing environment. so many good things. when we think about the auto industry, you see us have more to say with leaders as they look to us and others to build up and

satisfy their demands, we've seen the economic impact of not having enough chips has been inflationary job impacting. so this is critical to support that industry which is very present now the silicon heartland. >> to what degree would this have an impact on for example the auto industry, which you bring up i think in release i saw you were saying the latest process technologies will be produced out of these fabs. often what the auto industry is looking for is not cutting edge tech knowledge so what processes do you expect to be coming out of these fabs and serving woman in. >> yeah, our expectation is we want to do ground breaking on this fab later this year, by 2025 we want it in production. it will be leading-edge capacity we are building at, at this location but if you think about the car, 4% spy conductors, by

2030, it will be about 20% semi conductors so a 5x increase and most of that expansion is in areas like autonomous driving advanced 5 and 6 g. electric vehicles e vehicle capabilities so much of that 5g growth is the car becoming more modern i've described it the car is becoming a computer with tires as we look to the future much of them will be for leading edge technology. so much of the crisis is trailing mature, especially those. going forward, this capacity will clearly be servicing those emerging needs of the auto industry and many other industries as well, industrial, supply computer, child, metaverse, the full range, this

will be globally supplying out of the silver heartland out of ohio. >> there has been a reason chips weren't done, it was cheaper to do the overseas and import them. has the situation changed with the supply crunch and huge demand for chips at this point or is that a part of it? it requires heavy government incentives to make it worthwhile to build chips here? >> clearly, the crisis we have been has caused a rethinking of cost only mindset versus a resilience and flexibility mindset in the thinking. clearly, there is financial gaps to do this in asia and the u.s. and the chips act and strong support from the state of host is help. h

helpful it's a expensive piece of equipment. we are driving higher degrees and all of these factors together, we believe we can do economic but it is critical to get them in place. this will be supplying global market as a result we have to be globally competitive >> you must take pride in working for the company that where gordon moore actually was a founder and we still talk about moore's law. i haven't been updated is it three years? is 10 nanometers can we get around that are we hitting physical constrains and i want to follow up on that. >> we see ten years of moore's law in front of us, this

troubling the every two years four critical barriers, one is photography. with asml and euv, that's solved a major newark texture ribbon fat, power delivery into the chip and finally 2-and-a-half and 3d packaging these four together now proven in our labs and our development, we believe we have have moore's law true the highest chip we will be producing this year is 100 been tran sifters we will hit the billion tran sifter chip by 2030. moore's law is alive and we. we take great pride of being the stew ards for decades to come. >> there are changes and disadvantages. you knee to get better yields.

that helps margins some say it's also helped other competitors that couldn't catch up before like amd it's given them a little time to catch up maybe there is room for everybody. >> well, i do think this is a big market today semi conductor is half a trillion dollar industry i'm not slowing down we believe that's the right thing for our company and our nation and the right thing for the industry we are well on our way to putting it back in the leadership position that it's always had in the honor of gordon moore, bob noyes, the invent or grove. these are the founders that's a part of the reason i am who i am today. i was mentored at their feet today in their honor, it's my pleasure to lead this iconic

company. >> hey, pat, you just talked about the responsibility i think you have to this country and the issues around national security even to some degree around getting semi conductors back manufacturing in this country. you, of course, manufacture and have relationships in china and i want to bring china up, because you have been criticized over the past month for making some statements that were perhaps in the interest initially of the u.s., but then apologizing and walking them back but then getting a backlash. u.s. senator marco rubio calling those apologies quote humiliating and effectively threatening you around the government funding of projects like this. i am hoping you could respond and explain your position to the extent you can >> yeah, you know, obviously, you know, the u.s.-china relations are very tenuous ones. it's very hard to find a middle ground where a company like us that

satisfies global markets, 25% of my revenue is in china those revenues allow us to invest in r&d and manufacturing, which is centered in the u.s this is good business. it's a large and growing and important market for us as well. but as you've seen, there's points of tension on social and other matters as well as trade issues so we have to navigate carefully. and as a result, you know, we made some adjustments to our policies but we are also very clear, we are a very glin our operations. we support the laws of the countries in all of those that we operate in. you know, we don't use forced labor other things like that, standard palmettoss as a company and we do our absolute best to reenforce those policies at the same time obey the laws and become this national treasure that we think is so critical for the planet, for the spy conductor industry because every aspect of human

existence is becoming more digital. everything digital runs on semi conductors that's the role we play in the global market. >> pat, but i appreciate your weighing those issues, but what do you do when you are doing business in a country where the laws, themselves, don't agree with your own, frankly, philosophy or the national interests potentially of where you are based? and also you are a company i think has talked about having a moral compass, trying to to what your employees and customers want explain how you weigh that because there are some people that look at this and think you should be more outspoken in china. >> yeah, you know, obviously, we need to navigate this carefully. you know, it's not our job to be managing the social environments of the countries we tar miss pate in. it's our job to be delivering the technologies, the products, capabilities, obeying the local

laws, setting global policies, obviously, as the question points out, you know, there is often, you know, not much space between those and it causes, you know, the need for careful considerations and, you know, we do speak out on certain issues that are critical to your our business, generally my advice to us as well as other ceos is that our job is to do a great job for our business, set clear policies for how we're going to participate in the global market and obey the laws of all the market sets that we are participating in and with that, the more that we increase the presence of intel and u.s. products in china or anywhere else in the world, we think that's good policy that's good trade. that maximizes our industry at the same time, you know, that we are working to deliver our products and capabilities on a global basis we are also a company that deeply believes intechnology a a force for good

are we going to be the company that is constantly saying what is that north star you know, how should technologies improve our roads with autonomous vehicles, improve our healthcare in how they're used in the social sphere as well and, yes, we do see that we have a role in playing those on a global basis >> pat, the labor market in this country, in the united states is difficult to try and navigate i would think, with a company like yours and the skill set if n trying to match the skill set with the work force that's available. and i imagine that it's not easy right now in terms of finding the kind of people that you want and you must have to pay them a lot, people always say, you know what, when you're in college, you should take up electric am engineering. kid look at you and say, why done you take up electric am i'd like to have some social life it's hard, it's very difficult, obviously. are you having trouble finding the people for the positions

that are opened? >> yeah. you know, one of the things, is it is generally an inflationary market for this type of skill and we are seeing that fairly globally in the marketplace. but certainly here at home one of the things we're also announcing today is $100 million investment fund in ohio for work force development. you know, the later this morning, on with president biden as well as secretary of commerce romando, one of the elements of the chip act is work force development and ongoing research for leadership in this area. we do like the fact that our new site has us next to ohio state and many of the other mid-west schools and we expect to launch major programs in the area of semi conductors, semi conductor manufacturing to help build that long-term work force and as i would say, i'm a farm boy from pennsylvania i stumbled into electronics, now leading one of the iconic brands of the world

yeah, to all you kid listening out there engineering, computer science, go into these fields. these are the ones that truly will determine the future of this great nation and they don't pay too bad as well. >> pat gelsinger i know you got some people to see at the white house, perhaps. i also know you got earnings coming up. so i look ford to speaking with you then pretty soon pat gelsinger, ceo of intel. >> john, thank you very much up next, folks, we are joined by former fda commissioner dr. scott gottlieb. we will ask him where he sees signs of omicron peaking stay tuned you are watching "squawk box" and this is cnbc and this is cnbc >> like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working.

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. welcome back, everybody. we are seeing signs of a peak in omicron cases in the hard-hit east coast states. as health predictions, they have jumped to 20,000 a day over the last few weeks joining us is dr. scott gottlieb, a cnbc contributor and serves on the boards of pfizer and illumina we kind of expected this would be the case. is there anything we hadn't been expecting or anything we can do about any of it at this point? >> i don't think so at this point. i think trajectory is kind of baked right now. you are seeing cases rapidly de39 in the east coast and

florida and down in california and seeing hospitals flow. the infection is spreading to the mid-west when you look at the national average, the national trends, they those will come down because the big populated areas of the country are coming through and it's spreading to the heartland, which has a small population the heartland will be hard hit, montana, north dakota, they're have an infections go up the one outlier is los angeles, the data is funky. they seem they're through the peak of the omicron wave but they didn't have nearly as many cases on the east coast one may be they had that dense epidemic last winter which had the 44k mutation in it that may have provided some cross immunity to omicron. we saw if south africa, people previously infected with the old south african variant, it seems to be less susceptible to omicron and that mutation is in both of those variants

>> when you say that the mid-west, in particular, is going to get hit hard. what does that mean for hospitals? for schools? because we have seen a beg step to try to keep the schools opened no matter what comes this time around? >> yeah, look, i think they're well into it right now they have maybe another week-to-ten days to go so they're weathering it you are seeing healthcare systems get pressed, especially in more rural parts of the country, where you didn't have a lot of hospital capacity to begin w. so i think there will be challenges in some of those states, have you lower hospital and less infections as well. many arewell into the epidemic right now. look, this has infected about 4.25% of the population. 15 million people have been diagnosed with omicron if you assume we are diagnosing one in five cases, probably upwards of 23, 25% of americans may be infected. we pay get 40-to-50% of

americans infected by mid-february so over eight weeks 40-to-50% of the public will be infected with omicron. there is no modern precedent the facts may be 10 to 15% of the population over a 16-week period this will be over eight weeks infecting almost half of the u.s. population. we don't have any precedent for that so this is going to press healthcare systems >> all right we'll continue to watch and check in with you. scott, thanks very much. >> thanks a lot. this note for folks, a reminder to join us for cnbc's healthy return summit. if you'd like to attend, register at cnbc events.com. andrew coming up, when we return, jim cramer will give us his first take i will hear what he is thinking this morning and netflix, stay tuned. you are tcngwahi "squawk" right here on ncnc don't settle for silver. #1 for diabetic dry skin

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welcome back to "squawk box. let's go down to the new york stock exchange jim cramer joins us now. jim, what are you thinking this morning? a lot of carn annual some would say blood in the streets. we got netflix we got crypto. we can tell the news of intel. tell me what you are telling viewers and yourself >> look, if everybody was selling because the ten year was going back to two and it's back to where it was, we can take that off the table it's not as bad. if we are selling because netflix didn't make it, didn't give you a good forecast, most of the companies aren't netflix. if we are selling because we hear people talking about how the market could go down 45% that's an irresponsible thing to say. there is a lot of stocks to buy. we're putting mo into work for the travel trust if you watch our morning meeting at 10:20 him when you get people

come on air, that interview with someone from an exchange that does bitcoin, he's talking about the long term. see, that's what bothers me is the people who are coming on are often prostheizers, think about a year and now the bubble is coming down, now we're supposed to be worried when the millennial index is awful, the spac index is down 60% i don't know, i'm looking for things to buy. i don't think netflix is analogous than anything other than netflix so i don't mean to be calm that's what you got to be. >> but when you look at the let in flicks situation do you not look at the entire media space and everybody that's been effectively changing their business models to chase netflix? >> i don't know, via com may be a third.

talk about disney, if they just had streaming, it would be bad it has parks, good consumer products and an ability to churn out content in a consistent basis in the second half but when we found out squid games was squid word and the fames have been pointed out, it's hard to keep these people now versus the old days. it is a worrisome thing. i went through a time of all the netflix previews everyone was incredibly bullish. you have to say, all right they got that wrong. but we have a lot of stocks, everything is selling north of 50 times earnings isno good. that's the last 18 months. >> jim, we got to jump give me 30 second. >> this is fun >> this has been reviewed for hours. with the morning meeting, i want to see you all the time. but thank you. >> thank you

i keep thinking of gary gensler, the chairman, they create those coins every day. we don't know how many shares. these are all going to be securities it's not just the russia ban, the coin ban if these are securities, we will find things about them that will get our heads spin we will be like reagan, you know >> and, therefore, you think this is just continuing -- >> i don't know. i saw the theory i took out all my bitcoin, sold that, bought land. that turned out to be a good investment i am willing to lose a huge amount of money in etherium, which, obviously, i think i am going to i don't have nfts because i still believe in assets and i don't know. look, you want nft this is a an herb mezz tie i paid more than i should have paid for it. >> we're in the metaverse you

are wearing your beautiful dim tal tie, millions of people can see you. you might think it's worth it. >> the metaverse is an industrial way to cut back waste. that has nothing to do with us otherwise, it's fun. >> jim, i'd love to do this with you forever. we got to run. go to it click your phone on it he is doing this fabulous morning meeting online as a part of this 10:20 eck chit out online, we are back after this >> to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, > with our commitment to better esg outcomes. join the pursuit of outperformance at pgim.

the investment management business of prudential. i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪ well, would you look at that? jerry, you gotta see this. seen it. trust me, after 15 walks... gets a little old. i really should be retired by now. wish i'd invested when i had the chance... to the moon! ugh. unbelievable.

continues a recent slide with subcribber guidance julia boorstin is here to take us inside the company's late it's results hi, julia. >> good morning, joe netflix dropping about 20% in after-hours trading. earnings were a big beat, but it was the subscriber numbers growth of 8.3 million, a bit below company's own guidance, but fourth quarter subscriber

projections of 8.5 million it was first quarter retch and subscriber guidance that fell far short of expectations. the company says it expects to add just 239.5 million subscribers. those are coming at the end of the first quarter, and the guidance reflects a slate of season 2 of "bridgerton. the co-ceos did acknowledge that acquisition growth can be they attributed to covid overhang and gave more credence to competition than netflix typically does >> there's more competition than there's ever been. so it doesn't feel like a qualitative change there

overall confidence in streaming, lynnian dissipates, very high confidence, because everyone is coming into the industry this morning analysts are starting to weigh in morgan stanley downgrading netflix, saying this guidance implies that the ramp in content is not translating to net additions the way they expected. mark mahaney also downgrading it jpmorgan maintained an outperform rating saying now there's a buying opportunity after the stock sell-off joe? >> julia, good points across the board.

tom rogers is joining us tom, what's your take on what netflix said. >> i think the market is substantially overreacting i don't think this projection for one quarter is an accurate assessment it's tip tale -- so if you project that out they would be doing 8:00 to 9:00 million, well below -- on the

other hand, if you take the 8.3 they just delivered, that's over 10 million for half a year they are on track to deliver the -- i don't put too much against the one quarter. does it mean their business model has been blown up? no these guys are truly in a league of their own they're number one across all ages they had the biggest show on the planet they won more oscars than anybody, more emmys, far more international programming than anybody. against that backdrop it's heart to get bearish on this story. >> the competitors, and i'm talking about multichannel, big media companies just across the board, has streaming gotten to the point where it's not just incremental growth versus the

legacy assets. they should -- their stock should go down based on what netflix just said? >> i think everybody obviously is looking at this affecting the other companies. i boo suggest it will family more companies than netflix. they did acknowledge a competitive vibe, but maybe the most telling number on competition is subs added in the u.s. and north america in the quarter. over the last quarter, competition has certainly gotten most intense, yet it was the best u.s./north american number in several quarters. so you have to put that in context. the other thing i think people are missing, they strongly reiterated they'll be cash flow

positive in 2022 and beyond. the bear story on netflix was it was spending too much money to ever be cash flow positive the fact it's saying that so strongly implies to me they know they have some strong subgrowth ahead. you can't ramp up your program spend and see your sub stagnate and still be confident you will be cash flow positive. in there lies some inherent positive >> so it's not just about content? i'm not waiting to "bridgerton." i'll watch "ozark" tonight, but "yellowstone" is on peacock. so are they always the best at developing content >> i think others will have hit shows also where netflix is ahead is just

how much more money they are spending, having gotten to cash flow positive. others aren't going to hit cash flow positive for years, and they have to really ramp up their program spend beyond initially anticipated. that's where the difference is will netflix always have the best show on television at any given time probably not, but they're producing so many more shows than anybody else, their likely hit rate will belier than others tom, we'll have to leave it there. very interesting, and good perspective. you do love netflix. comcast, we need a little love occasionally that's all right, but a heck of a company. hello? oh, my god, i think we froze did you see that that was scary [ laughter ] >> that's bad timing

>> but it happens on this crazy zoom that's why i don't know about this new world >> think of the worst face you could imagine and now hold it. >> it's friday, but i don't know if that takes some of the sting we're sieve out of these markets. make sure you join us next week. "squawk on the street" is coming up next. 1234 . >> yeah, there's no freezing here we're live, in person, i can reach out and touch him. i'm david faber with jim cramer. carl has the day off we are looking at a lower open, but we'll start with our road map. that starts with the