oversold and hit the 200-day average on the s&p day isn't over yet we'll see how it goes from here. >> well off the lows disney shares have been down as much as 7% on that and netflix missed on guidance back a bit morgan, over to you. >> dow turning positive, still poised for a down week that will do it for "stock on the street." "techcheck" starts now. >> good friday morning and welcome to "techcheck. i'm deiidre bosa with john fortt. netflix investors don't look up. the nasdaq is on pace for its

worst week since march of 2020 plus, more from intel ceo this hour with the president set to make an announcement on chip production any minute. that's coming up, too. peloton halting production as demand disappears is it possible buyout ahead? we'll discuss all of that, john. >> yes, indeed let's start with netflix the streamer 24% lower at the moment after reporting q4 results. epsb revenue was in line but competition is weighing on growth for the full year netflix saw 18 million net ads compared to 37 million a year ago guidance the big miss. analysts had been looking for subscriber growth of 7 million and expect a number closer to 2.5. more than eight wall street firms downgrading the stock and a key question has the growth story shifted for netflix. with us now to discuss editor in chief eli patel.

i'm thinking about this in context. of course, i want to talk about netflix. peloton is down, zoom, doordash all of those kind of at or below where they were at the beginning of the pandemic. the world was supposed to have changed with the narrative that we were hearing. not only were these pandemic stocks, but they had all the growth potential going forward what do you think is going on here >> i think it's a combination of two things, actually one the bigger picture the pandemic returned to something that feels like normal although maybe not is happening the big bets that come in like peloton made or inestvestors in netflix made, movie theaters closed forever and gyms are not coming back those bets not paying off as anyone expected. that is the bigger picture some trends did not stay permanent. the more specific picture for a company like netflix the streaming wars are ongoing at just a furious clip

so, consumers now when they set up a smart device or smartv infinite options and lots of free options and ad supporting video on demand and lots of places for consumer attention to go that default position for netflix is not as assured as it once was as they look for growth, their cost of content acquisition continues to sky rocket because everyone else is looking for inventory, too two things happening at once >> so short term yes, we knew that there could be some rockiness in the subs overall, but if people really believe that there is this ongoing shift towards streaming overall and towards entertainment itself being digital, then netflix is subscriber base and its track record for creating original content should put it in a good strategic position going forward. so, having it sell all the way down to levels, you know, prepandemic or beginning of the pandemic, that seems to be

saying something different maybe. >> yeah. i'm not going to tell you i think there is a tremendously rational connection between the movement and a stock today and netflix returns, its results sub growth is going up they just raised prices. revenue is up in a lot of their territories. they have a gaming division just getting off the ground in android phones there is a good story there. excellent leadership and good content. they just had the two biggest movies ever. not sure there is a rational connection between where the company is and where the stock is at this second and netflix has to execute in a much more pressure packed environment than it has ever faced in the past five years >> yeah, but as we look at the stock selloff the bigger question of whether netflix is more of a tech company or media company and which valuation it should be trading at one thing that was interesting on the call last night was reid hastings talked about the three

potential growth drivers for the future he talked about gaming which you just mentioned, consumer products and experiences i'm wondering what you think about at what point those three things will actually start to impact subscriber numbers, could draw subscribers or have a meaningful impact. >> i think the tech company versus content company they have a tech ceo and content ceo. they want to be perceived as both the way to think about it on the distribution side the software provides in a way that few companies have before and now other companies want they can put that app anywhere they want and they have done a good job on the media side. all the media economics. when you go to games and you say, okay, now the games are commerce engines and we can sell things inside of the games that's a great business to be in software economies and software margins. that has to pay off. i don't think we're going to see it pay off until they can figure out how to get on apple devices, which is a big sticky wicket

once they figure that out and i'm sure they will, big powerful company, lots of money, i think we'll see some of the game stuff pay off because that is the future of all games and the entire market is headed there. >> there was a moment on the call last night, john. i thought of you reid hastings was asked about a metaverse question, gaming, and he answered and said, we'll definitely crawl, walk, run and let's nail the thing saying they're moving into the space and maybe come back when they have more to talk about. so some of that skepticism there. but i wonder, you know, to be a tech company versus a media company to your point, julia you have to have the other businesses and you have to have game and cloud and services and a higher margin business john, jim cramer brought up the idea maybe it was netflix that acquired activision-blizzard to get a bigger footprint in gaming or metaverse or whatever you want to call it. >> that would be a big bite to

swallow when you think about the $70 billion market cap that netflix has. i wonder nilay strategically is netflix in a difficult spot or is kind of overall market and possible valuation reset making it look like something it might not be do you worry about netflix in terms of how it's executing technologically the experience and the competence of the company or not >> i think the big question for n netflix is can they execute the gaming strategy. on the media side, i think the question is, can they be perceived as delivering quality on par with disney, right? that's the big question for almost every company in streaming and, you know, they're working their way up there on the tech side, they're just way ahead of the game. every other streaming app is kind of bad. like it's the truth. using hbo max is not a great experience for a lot of people i think on the tech and design

side netflix remains far ahead as a company that operates like a tech company that believes in software to make the company more efficient the real thing is they can they execute their way into a market like gaming that is notoriously difficult and in the middle of a paradigm shift to game streaming where netflix should have a lot of expertise but no one has pulled it off yet. >> not yet also want to get your take on peloton. yesterday cnbc reported the company is going to pause production of key bikes and treadmills the stock plummeting more than 20%. we've seen production pauses in other sectors, too, as companies grapple with shortages but the supply chain isn't t blame here it's a lack of demand that's the issue for peloton. peloton co-founder and ceo john foley responded in a letter to employees saying rumors that we're halting all production of bikes and treads are false notice that word all he added that the company is resetting our production levels

for sustainable growth nevertheless, investors not showing a lot of demand for the stock. well, let me see is it up 8% right now? we'll see. current levels overall, though, if you look at the trend, will take it below that 2019 ipo price of $29 does this make it a vulnerable target for acquisition information flooding apple as an obvious buyer. nilay, apple doesn't buy stuff this big beats was like a huge buy for them at $3 billion or something. not to say that they wouldn't do it, but it would be highly unusual, right >> yeah, you know, they could buy this with pocket change. but then what would you have bought you bought a company and some amount of turmoil that completely misforecasted demand. that's the big pandemic. not that demand is vezero they bought precore and they

can't meet whatever demand return to normal and then there's no tech there that apple can't build itself they already have fitness plus i don't know why they would buy that >> nilay, we talk about apple turning itself into a health company and the health capabilities on the watch which already does integrate with the bike isn't this an opportunity for them to leap frog where they are in the health space without having to build all this tech itself if not apple, is there another company you think should look at peloton? >> i don't think apple is the sort of company that buys something it can so easily build itself the biggest asset peloton has is instructors which apple can just hire it doesn't feel right for a company like apple i do see a lot of consolidation in this space. there is hydro and tonal people love tonals you can see peloton trying to execute some kind of roll-up strategy with an infusion of

cash and stake out that diversified product. peloton's revenue is not bikes it is subscriptions to those bikes. they need to start leaning on that almost anybody can subscribe ask distribution across multiple kinds of products to get the revenue we need. i think they have to get the idea of what they sell is bikes. >> nilay, i'm totally with you what is the proprietary technology they have, the subscription revenue and the talent is apple going to shell out, i'm not sure. perhaps the better question and the better suitor could be a nike or a lululemon, right unlike an apple doesn't really have tight control in the same way of their supply chains we know that lululemon is interested in this space they bought mirror is it done there could peloton be part of a more complete offering? perhaps those are better names to look at >> yeah, i think almost any of those companies that wants a

presence in your home and a deep recurring revenue stream has good reason to look at peloton i think the real question is can peloton turn that recurring revenue stream into growth to do that they have to get away from the idea that all they sell is a 1,500 bike. they have to get into other devices to make that, to make that subscription more valuable to existing customers who are all die hards. not like people stop loving their pelotons you have to grow the base by making the onramp to that subscription revenue easier and peloton totally misjudged the pandemic and thought what people want are $1,500 bicycles >> it's tough to have a lot of inventory of something that big, that heavy and that expensive. we'll see how they work it out nilay, thank you >> thanks. and peloton shares may be up today, but netflix shares are

still down 23% weighing down the market the nasdaq is lower now 1.no, 13% off its high in november, excuse me. mike santolli is more on this selloff getting deeper mike, what are you seeing right now? >> what started, of course, with some of the smaller and high momentum stocks has reached the upper nasdaq 100 if you had $100 a year ago and spread it equally among the 100 stocks in the nasdaq 100 and you now have $100 because that's basically dead flat with the equal weighted nasdaq 100. now, what accounts for the plus 10% for the market cap, well, of course, apple, microsoft and alphabet for the most part have carried it there, as well as tesla on a 12-month basis. that's where we are right now. this spread is getting pretty wide and i think you're seeing interested action in the market today. of course, netflix is a massive negative impact on the subsector here, on streaming, on video

it's not inecessarily causing people to say it's game over for larger faang netflix a little bit of an outliar to faang, but i do think that you can sort of look right now to see if we're seeing kind of green chutes in some of the larger stocks that end up getting some kind of attraction as the overall s&p 500 hit its 200-day moving average in a year and a half or more those things are the kind of back and forth where we're trying to figure out if people sold enough of the risky winners of 2021 and 2020 >> yeah. the question we all want to know, mike, thanks so much great perspective. coming up on the show still, airbnb ceo brian chesky. and matt gelsinger and everybody on wall street turns b bearish. a big hour of "techcheck" is

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time now for a gut check

citi slashing prices microsoft down 10% in 2022 citi cutting price target from 407 to 376 to reflect lower commercial pc numbers and overall value. still rating the stock a buy expecting strength in the enterprise sector. similar story for service now. multiple compression leaving citi to lower price target from 770 and projecting sustained topline growth and margin expansion. citi still calls the software from one large cap pick. shares down 20% year to date, john >> yes meanwhile, intel announcing it will invest at least $20 billion to build a pair of new chip plants outside columbus, ohio saying it could grow that location into the largest location on the planet

i spoke with pat gelsinger and what plan to speed chip to specifically autos that have historically used older technology take a listen. >> if you think about the car. today a premium car 4% semiconductors and by 2030, it will be about 20% semi conductor. a 5x increase and most of that expansion is in areas like autonomous driving and advanced i infotainment and 5 and 6g capabilities much of that 5x growth is actually the car becoming more modern as i've described it, the car is becoming a computer with tires. >> i also asked him how this announcement fits into intel's broader strategy and other variables like this pending $52 billion in funding for the chips app, which congress has not yet approved >> we need this capacity,

period and even if it's just for the intel products, you know, we would be announcing the site today. we believe there is simply so much demand for our products but when we look at our foundry business, we're going to run away first for our products, as well as our foundry customers at the islocation so, we need it for that reason, as well. we also, as we said, with the chip, we're going to build the site, period but bigger and faster with the support of the chip. we're, again, putting our chips on the table we need their support to go bigger and faster to restore this industry on american soil >> 3,000 intel jobs initially. 7,000 construction jobs, julia that's why he's in d.c president biden, of course, wants to talk about this and wrap himself in some of this >> and i think we will hear from

president biden shortly. one thing that is so interesting, john. remembering the timeline for this they start production at the end of this year and not actually be producing chips until 2025 with that in mind, i'm wondering what you think about how this puts them on a timeline to really do the turn around that gelsinger has talked so much about. >> first off 2025, not that far away if they can get this done and actually be in production at that site in '25, amazing. dee, i think this lines up really well with what gelsinger has said the timeline is for them fixing process technology and being in the business of building up foundry. so, if this, in fact, comes online in time, it will be right around the time when they should be ready to have some competitive chips, technologically coming out of that and i believe we have the president who's getting ready to speak in a moment. this is the commerce secretary it looks like who is warming it up, dee. this is, this is the timeline

that gelsinger was talking about. now there is a very clear, physical commitment backing that up >> yeah. and, john, it rests on the assumption that demand is going to stay strong, two, three years, four years when the future i know you often ask chip ceos what the potential of a glut is, but we don't hear that as much any more gelsinger said cars are going to be computers on wheels is there still that risk, though where does that sort of leave intel, which is catching up in the space. >> i think that depends on a number of things that i'm not sure investors would consider and that is how cutting edge is the process technology qualcomm has already said they're interested in what intel has shown them in their plans for their leading edge process that they would have coming out of a fab like this amazon is already also committed to working with them so if intel can produce

high-quality chip design and produce it at volume to that degree, not a ton of competition for the best, right. if they, in fact, can produce the best also, if you think about overall chip industry capacity, there is, you know, lower process technology the stuff that say global foundries tend to focus on right now, julia, that stuff is what the car industry, the auto industry tends to use if as pat is projecting, the silicon high-end silkicon design tends towards the high end going forward that could, again, be inest interesting for them >> certainly something to watch. we'll continue to monitor this event and we'll take you to the president when he starts speaking "techcheck" will be back after a very quick break the i think most adults will start realizing

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i'm john fortt with deirdre bosa and julia boorstin intel ceo pat gelsinger at the lectern right now. we expect to hear from president biden before too long. but before that, a news update rahel solomon has that for us. >> i sure do treasury yields are pulling back sharply from recent highs. the ten-year is down 8 basis points to 1.3% and the two-year note has slipped back below 1% the big gathering of political and business leaders in switzerland will be held in may. it has been postponed due to rising omicron cases housing costs were higher in january. the biggest increase in more than two years austin, texas, saw the biggest

increase with rent up 40% since last december. the average monthly mortgage payment rose 22% in the past year banner year for partners at goldman sachs and other firms. compensation pool rose 40% to 50% this year. partners in tech and healthcare are reportedly making between 12 and $15 million. go to cnbc for more on the surge in pay and bonuses julia, i'll send it back to you. >> thank you, rahel. let's turn back to netflix that stock down 22%. our next guest a bear turning more bearish and cutting his price target on the stock from $460 to $375 post earnings joining us now moffett nathanson founding partner thank you for joining us a fascinating note that you wrote about these numbers and also that earnings call with the executives lay out for us how you see the lower than expected guidance for the first quarter giving you

insight into the rest of the year >> okay. thanks for having me, by the way. it's mystifying because they talk so much in the fourth quarter and there was no carry over, right. it just says to me it's the risk of the model so much new content and then into that also the idea of the price increase perhaps slowing down growth and maybe creating an upper limit on pricing power, right. so, i think that guide on first quarter sub ads and then margin, that was a big shock, obviously. and what we don't know is with the year starting off so slowly on subscriber growth how 2022 will end up, right typically first quarters are a strong quarter and second quarter is a weak quarter. julia just brings doubt on where it will be on subscriber growth and revenues and ultimately long-term margin a lot of risk of what we just

learned and the stock down a lot, probably more risk in the stock than we realize atinteres. you know, it was fascinating to hear ted talk that people will start to realize that netflix is one big movie launching every week and they start to see that as a key part of the value proposition and yet in your note you talk about the rapid decay of the value of content because people are going through it so quickly. how do you see netflix content investment changing? will they have to spend more than they are already planning to spend i saw an estimate of $19 billion this year. >> that's a good question. i think what's happening and why they're pivoting to film is that when you put out a series, those shows get consumed and they get binged in a night. when you put out a series a lot of risk to it. you don't know the next "squid game" or "stranger things. you just don't know. you throw against the wall and if they pop, they pop. for film you can pay up for

movie stars and the things that work when they call out have all big name stars i think what they realize without saying it is the only way we can actually create sticky content that doesn't decay in a night is hang up for big names, julia to me, that's kind of the story here is that the fade on new content is so high and it seems like almost a random walk what works and what doesn't work that film is a safer but more expensive way to build a model, right. but the movies have to be good, right? even though you have the big names, they have to be good. film business, as you know, is also hit and miss. >> here's what i don't get at this point how netflix should be valued when does leverage come to this model? do they have to spend less on content and reap a benefit like disney style mickey mouse you don't is have to reinvent mickey mouse every

quarter. mickey is just mickey and people come to the parks and wear the ears and he's printing cash. when does netflix's mickey mouse happen >> john, the question is does streaming allow for the next mickey mouse is "squid game" so third quarter that there is no collectibles for "squid game. that's my concern all along. i just think that the streaming model doesn't allow for those franchises to be built, right. there's just a quick, quick de decay. if i was a media company, to your point y would lean in as disney has to marvel, pixar because those franchises have already been built i think your question goes to the heart of this transition and whether streaming is a good model versus the linear model. that has always been my concern. if you start slowing down content, spending when everyone else is raising content spending, by nature is that you'll have less hits. so when people say they'll spend less on content and drive higher prices, well how is that

possible right. when everyone else is spending more money on content. >> it's kind of like a catch 22, right, michael if streaming is fundamentally not a good business, then what is what should netflix's next act be whether that be gaming, merchandise or experiences how does it get there organically or does it need to do more m&a. >> we thought they would go after activision the cfo at netflix and the cfo at activision that stock in our world was very cheap we had a buy on it we thought m&a into things like gaming because there is ip there and a whole new user base and transition to mobile we thought that was a potential path for netflix that's not the path, they can't buy activision you would think, look, add advertising and live sports. the definition of their content

and monetization has been too narr row and they said, no, no, no you run an ad here and add sports and expand that looks like it's hitting a ceiling roit right now. >> all that content is very expensive, michael see if all the trend are reflected in other streamers as they report their earnings thanks so much for joining us. now as we mentioned the president taking the lectern a moment ago at the white house making remarks on american chip manufacturing. let's listen in. >> historic investment for ohio on the largest investment in semi conductor manufacturing in american history a brand-new $20 billion campus outside of columbus, ohio. 7,000 construction jobs. 3,000 full-time jobs i was kidding pat earlier and i said, i may need a job he said, well, it's not bad start with 100,000 bucks but i

have to get some training. look, at the singular -- look, to be able to say made in ohio, made in america. we always used to be able to say 25, 30 years ago that's what this is about. but folks at home might be wondering why such a big deal for manufacturing something so small the size of a postage stamp. why is that so important well, semi conductors are a small computer chips that power virtually everything in our lives. your phone, your car, your refrigerator, your washing machine, hospital equipment, the internet, the electric grid and so much more and here's the deal, america invented these chips america invented these chips and federal research and development led to the creation of these chips taxpayer dollars these chips sell power nasa to

the moon and bring down the cost of making chips to builda,market and entire industry. as a result over 30 years ago america and about 40% of global production but since that time, something happened american manufacturing, the backbone of our economy got hollowed out companies moved jobs and production overseas, especially from the industrial midwest. ways to invest 2% of our gross domestic product in research and development. let me say that again. we invested 2% decades ago of our gross domestic product in pure research and development. today it's less than 1%. we were ranked number one in the world in rnd, but guess what, we now rank number nine china was number eight in the world three decades ago. now they're number two and other countries are closing

in fast. as a result, today, we barely produce 10% of the computer chips despite being the leader in chip design and research. we don't have the ability to make the most advanced chips right now. but today 75% of the production takes part in east asia. 90% of the most advanced chips are made in taiwan china's doing everything it can to take over the global market so they can try to outcompete the rest of us and have a lot of applications, including military applications folks, look, during this pandemic your pocketbook felt the consequences inflation, higher prices whenever a factory shuts down in one part of the world and production and shipments of goods to shops and homes and business all over the world gets disrupted. covid-19 has compounded that problem. many times over especially with these computer chips as a result, everything from cars to dishwashers are delayed getting to show rooms and

customers just as demand for them is up because the economy is growing and because supply is low, because supply is low, we find ourselves in a position that we're really behind the curve. prices are going up. in fact, one-third of the recent price increases have been seen nationally are due to car prices, as we mentioned earlier. you know, i'm going to turn to the boss here. what percentage of chips are needed to build a car today and what is going to happen in the next five to ten years >> 4% today. 20% by 2030. >> 20% by 2030. is going to be required to, that's what the car is made of 20% of it from the computer chips. as historic as today's announcement is, this is just the beginning. this is an important part of today's message. right now there's a bill in front of the united states congress because the two men behind me are pushing it u.s. innovation and competition

act, which includes several of the ideas i proposed last year that would accelerate the progress in a big way. the bill calls for authorizing nearly $90 billion for research and development manufacturing and supply chain look, including empowering the national science foundation to bring together local communities, universities, community college, private companies and more and more partnerships like this by the way, speaking of community colleges, you all know this, the washington press corps does at least. my wife is a community college professor. she said it is the best kept secret in america. this is a community college graduate who skipped his senior year in high school and went to local community college and then went on. look, this includes a $52 billion incentive for more companies to build or manufacture here in the united states of america. i want other cities and states

to be able to make announcement like the one being made here today. and that's why i want to see congress pass this bill right away and get it to my desk let's get another historic part of bipartisan legislation done let's do it for the sake of our economic competitiveness and our national security. let's do it for the cities and towns all across america working to get their piece of the global economic package and let's do it for the dignity and pride of this country and the american worker. i made clear while i was running for president and from day one of this administration we're going to invest in america. we're investing in american workers. we're going to stamp everything we can made in america especially these computer chips. vice president harris and i along with secretary mondo and our entire team have met with members of congress in both parties because this is a bipartisan issue we brought business and labor together to see where we can ramp up production and help

resolve bottlenecks. soon after i was sworn in i signed an executive order to revitalize american manufacturing and making our supply chains more resilient to disruptions whether it's a pandemic, climate change or cyberattacks in some cases, building resilience will mean increasing our production here at home. and others will mean working more closely with our trusted friends and partners nations that share our values so the supply chains do not get used against us as leverage. in fact, i made this clear to president xi of china. we need not to have conf confro confrontation, but we have a stiff economic and technological competition and we'rer are going to insist everyone, including china, play by the same rules. we will invest in whatever it takes in america -- >> the president there talking about bringing more chip manufacturing back to american soil with intel. we will continue to monitor that meanwhile, up next on "techcheck" air bnb ceo brian

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amid the recent selloff in growth names resilient shares negative on the year but outperforming the nasdaq and certainly some of the other high-growth names. now ceo and co-founder brian chesky is living the bold case announcing on twitter he will be

living and working from airbnbs for the coming weeks as of last quarter about 20% of nights booked were for stays of a month or longer. let's bring in brian chesky who joins us from atlanta from his first airbnb i'm digging the posters and music vibe in the background, brian. let me ask you very generally. the market seems to be signaling that the story for high growth stay at home stocks that story is over. decentralized living will keep pandemic trends in place for a long time to come? what kind of technology are you using and expect to use on this journey sph. >> great question, deirdre i'm in an airbnb in atlanta. these are street posters behind me the world is never going back to the way it was before the

pandemic and i don't think most people are going back to an office five days a week. if they're not going back to an office five days a week then i think what we're going to see is permanent flexibility. that means that millions of people, not everyone, but a large chunk of people can now go anywhere anytime and the reason why is because they can do what i can do. i'm running a pretty large company off of a laptop with another person's wifi in their home if i can do my job from my house in atlanta, that means people can travel all over the world and live in airbnb i think this is just the beginning and the only other thing i'll say is that there is a huge boom coming to airbnb before the pandemic, half our business was cross border. as borders do reopen, that will be another tailwind for us >> so, brian, what kind of future services get built into or on to this new way of traveling and living obviously, tax implications of what you're doing and what you hope others will continue to do. that is living out of state or

overseas does airbnb think about attack service or perhaps an acquisition in this space? what are some of the other businesses that you might be thinking about to expand on this theme? >> yeah, it's a great question i mean, as you said, a fifth of our business by nights in q3 were monthly stays nearly half our business is for stays of longer than a week. and people are now going to thousands of communities all over the world so, we are focused on this year we want to make the experience of living on airbnb, whether it's a family going away for the summer and people taking long weekends or people living on airbnb full time we want to make that experience much better. part of that is me living on airbnb so we can really understand i think you'll see some really big strides for us coming out this summer in time for the travel season. i can't disclose what it is going to be but big improvements and upgrades >> can you give us any hints what are you thinking about as

you travel taxes and short-term lease >> i think we want to make it significantly easier for people to be able to understand what communities they can go to and live and make the experience as smooth, as frictionless, as easy as possible and provide incredible service each step of the way. we're thinking about an entire end to end solution to really make living on airbnb easier living could be months at a time or just a week which really falls beyond what classic travel is. typical travel a few nights in another dest naination. we want to help you live in a community. >> yeah, so interesting. you're talking so much about living airbnb and i wonder what that means for the more traditional going on vacation with airbnb and taking a trip with airbnb. we've seen a surge in bookings for the traditional hotels and we've seen the stocks go in line with that. i wonder if you don't see them as much as your competition. are they taking back share from

maybe some of the business you had during the pandemic or where does that give and take go from here >> i mean, we're still goegto have hundreds of millions of people in the coming years traveling on airbnb. that's still our bread and butter that whole new segment that is completely additive. wait until borders reopen. the vast majority of our business before the pandemic was people crossing borders traveling to cities. that business has been suppressed when people get comfortable traveling and crossing borders that is a huge boom for our business pe peep because people have more flexible and live anywhere and travel anywhere, travel is still our bread and butter and still very focused on it and bullish about it >> hey, brian, just a couple of quick super practical questions. one, do the airbnb hosts know that the brian that they are leasing to is brian chesky do they find that out at any point? and then you're running the company off of airbnb wifi, how

are you making sure that wifi is secure >> yeah, so, my host found out who i was because i called her a couple nights ago and said, you know, i'm going to be on cbs show with be on the cbs show with gayle king, and how do you feel your living room being shown to people i don't want to be a secret shopper and the only experience curated for me because i'm the founder and ceo. half the time they discover who i am and half the time they don't. i have a team that does a lot of thorough checks and i do think that for the vast majority of people being able to book a home with airbnb and logging on to a local wi-fi, and we have security protocols to be working through. >> brian, i hope you warned them

about a cnbc interview this is still your first one so you're making this airbnb famous brian, there's this idea, too, that i know during the pandemic you guys scaled back on your marketing budget, and i think you said it will never get as high as it was pre-pandemic and some of the operational efficiency that we've seen a lot of companies do over the pandemic this seems to be part of it. you are sort of promoting the airbnb lifestyle and you have other ways of doing that such as the home alone house or the "sex and the city" apartment and is it as effective as some of the more traditional ways of marketing? >> oh, absolutely. deirdre, we built our brand off of brand and word of mouth it was before we even had a market one of the things the pandemic showed is our brand is a noun and a verb and used all over the world.

airbnb is synonymous with the category of travel and we got the experience that every marketer wish they could do. you turn 100% of the marketing off. it came to 95% of the levels when we were fully marketing and advertising. i think it just showed how strong our brand is and our brand is strong because we have something unique that you really can't get anywhere else. we're never going to forget those lessons. we don't intend to spend the same marketing as a percentage of revenue, and we still will market because we want to invest in our brand and there are new products and new offerings and not just raising awareness and our brand and they have a deep emotional connection to it and things like, we do promotions like we have the home alone house that you can stay in on airbnb it's not just doing ads about airbnb and highlighting what makes them special >> speaking of other offerings, tell us what's going on with your experiences business, if

there is a rebound as people feel more comfortable interacting with other people and how important do you see the experiences being in the summer and at some point you'll start to break out those revenues. >> yeah. it is really important to our future i thought it would be a huge breakout product before the pandemic and before the pandemic we have to put it on pause we're seeing a lot of growth in the business and a lot of people are realizing you can only stay home and watch so many shows on netflix. eventually, you have to be out of the house and have a real experience >> we're seeing people do experiences in their own city and it's a great way to meet people and have a great activity and i think that the summer, a lot of summer a lot of people will be choosing airbnb, and when you go to a new community, a smaller community they might not have big museums to go to and so it will be a big part of our future. >> hey, brian. you asked the twitter verse a

few weeks ago for ideas as to what airbnb could launch in the coming year and the top suggestion was crypto payments how are you thinking about that? are you any closer. >> i always ask you about this the last time we talked? >> we are absolutely looking into it and it's the most commonly requested feature certainly on twitter i'm very interested in the space, certainly i think there are a lot of commonalities between what people are excited about with cryptocurrency and why people are excited about airbnb and this idea of distributed ownership and the idea that people can build wealth and i think airbnb is a great way to do that so i think it is a very interesting opportunity for us and we're certainly looking into, i don't have anything to announce, but we are absolutely investigating it >> at the same time, brian, you've expressed a bit of skepticism on the idea of web3 and the ethos there being decentralization how do you balance that and what

exactly are you skeptical about. >> i'm generally very open minded about the technology and it's very, very exciting and i think we should be careful that everything will change all at once i think that ultimately everything we do we have to remember we have to -- every one of us has to provide a great service at a great value and regardless of technology we cannot forget those core principles so that's the key thing to me is just to make sure that whatever new technology we're using, it's our job to build practical utilities that add value to people that's the name of the game. whatever technology we're using. >> okay. brian, thank you being looking forward to seeing where your next stop is. brian chesky, co-fonder of airbnb and it is a cnbc disruptor 50 company and cnbc is accepting nominations for the disruptor list

to nominate your company scan the qr code on the screen. john >> when i stay at an airbnb i don't tell people who i am people don't care who i am people don't care who i am big tech fightin you're more thg through, l ulatory numbers. we'll have more after the quick we'll have more after the quick break. we'll have more after the quick break.

one more thing newly released q4 lobbying disclosures has big tech spending in washington the top spender, what you'd expect meta, facebook, outpacing amazon, microsoft, alphabet and ap apple spending $21 million and amazon behind with $19.3 million and microsoft as well. those totals come after the senate judiciary committee and the biden administration and ftc chair lina khan saying it would push for more regulation as well, julia. >> one thing that's interesting

while the push for more regulation and one thing they're lobbying for is that there shouldn't be as much regulation because of the one thing president biden was talking about because of the china competition. we'll hear more of that. >> we have more earnings on tap so listen to comments on there microsoft on deck next week. have a good weekend. the nasdaq down 1% halftime starts now. all right, d., thank you so much welcome to the halftime report i'm scott wapner the stocks and your money following another turbulent week in the markets so where do we go from here as the earnings season starts to heat up? is a viable bottom in tech getting closer we debate all of that as always with the investment committee. joining me for the hour today, jenny harrington, kari firestone, steve weiss and pete jon najarian co-founder of market