salable personality, and potentially with lots of big things in his future >> it's becoming more common he's doing it, lebron james is doing it, playing so well for so long >> sustainable excellence. that's what the best businesses have i don't care which one it is where it is. it's sustainable excellence. >> "power lunch. >> sustainsustainable. >> thanks for watching "closing bell" starts right now. >> sustainable excellence, tyler mathisen would know about that no doubt about it. welcome to "closing bell," everyone i'm wilfred frost at the new york stock exchange. a decidedly calmer start to february after a wild month of trading. small caps outperforming as we head into the final hour of trade. >> i'm sara eisen. let's look at what's driving the actions. earnings remain top of mind. u.p.s. and xm mobile leisure and travel stocks. cruises and airlines are higher, and casinos, theme parks, and

movie theaters all popping >> the energy sector also surging to start the new month after climbing nearly 20% in january. we have 59 minutes left to go in the session. >> coming up on the show today, we'll talk with former citigroup and time warner chairman dick parsons about his efforts with the equity alliance funds that invest in underrepresented founders and managers. plus, get ready for a barrage of earnings after the bell, including results from alphabet, gm, match, and more. we'll bring you that as soon as they cross plus, an exclusive interview with the cfo of match ahead of his call with analysts >> let's get to the stories we're watching mike santoli tracking the market action on this first trading day, and joining us with her take on where to invest is rebecca patterson from bridgewater. mike, start us off mini rally into the close. what are you watching? >> i would say a digestion day after taking a big bite of upside from the low last monday

and especially the last two days probably not too unwelcome to have a bit of a quiet consolidation day. the market does rush up to its next test point, weigh station we closed yesterday within two points of the lowest close in december, which is from december 1st. two points higher yesterday at the close. you kind of waffled around there. there are more stocks up and down the equal weighted s&p is outperforming the other one. you have apple, microsoft, tesla weighing on a generally more firm tone under the service. you have u.p.s. that's goosing the transports today the dow transports it's worth a look at the transports as well as the broker dealer index they're kind of cyclical bellwethers, kind of both middlemen for the real economy and the financial economy. they have at least maintained their outperformance a one-year chart, against the s&p 500. you can see it's been kind of back and forth in terms of where they were anywhere near their highs, but they have sustained a little bit of sturdiness this move we had rushing lower

into that 10, 11, 12% pullback on an intraday basis was not really a give up on the cyclical trade. that's been kind of rebuilt a little bit here. we have alphabet numbers coming after the close. take a look at how alphabet is now valued relative to the s&p 500 and relative to microsoft. another company with a core business that has a monopoly like attribute also cloud services. you'll see this discount building in alphabet relative to microsoft, and also kind of undemanding relative to the s&p 500 in terms of alphabet's history. we'll see. there's always a little bit of doubt as to whether it's kind of executing all the time in all of its businesses the way that microsoft does but it's worth noting that there aren't enormous expectations built in to the valuation of alphabet relative to similar companies. even though alphabet was up something like 60% last year >> it's crazy that valuation gap still exists after the run-up. thanks >> after a wild january, is the u.s. market still a good bet

or should you be looking elsewhere for opportunities? joining us is rebecca patterson, director of investment research at bridgewater associates. we did see some outperformance in the month of january, which was so painful for u.s. equity investors in places like hong kong or the uk is that the right bet, to go overseas now >> well, i think the u.s. is in a bit of a difficult position because the u.s. markets have gotten more sensitive to liquidity conditions in recent years. now that the fed is signaling that it's going to start pulling back on liquidity, you have got more market weight, if you will, in the u.s. stock market that is going to be pulled down by this pressure so if you look overseas right now, as we have reopening hopefully as omicron passes quickly, you're going to see economies taking off, some cyclical support, but you also have economies overseas at much better valuations with central banks that are alot less pressure to remove the liquidity or remove it more slowly than the fed. if you're looking at places like

japan, much more geared toward the cyclical recovery, not much pressure on the bank of japan right now to do anything but stay where they are. places like europe, the valuations aren't quite as attractive, but the ecb moving more slowly than the fed, and fiscal support still there, as a contrast to the u.s. i think there's a good chance this year we'll see non-u.s. markets generally speaking doing better than the u.s. not to say the u.s. is going down it's just going to have a harder time if we get five fed hikes, say that five times fast, and possibly our view is inflation that's going to be significantly higher than what's discounted. >> so that's what i was going to ask, whether you believe all of that is sort of a dangerous recipe for bulls in the u.s. this year. that it will be continue to be driven by liquidity coming off and higher interest rates and worries about inflation. >> yeah, we're in this really

interesting place. this cycle is so different than anything else we have lived through in our generation. you have this incredibly strong nominal demand, nominal economy, and that's supportive for earnings at the same time, you have this very high inflation, and that's pushing the federal reserve to pull back. the fed is going to be careful how it pulls back. it saw what happened in 2018 when it took a step too far, 20% fall in the s&p. it's going to be nervous about how the pandemic continues to evolve from here it can't have a lot of uncertainty about its data and of course, as i mentioned, the fiscal going from a net support to a net drag. so if the fed lags, the strong economic conditions, you're going to have higher inflation then what companies can pass that through to their end user and keep margins high? if the fed goes what it needs to do, it's going to tighten faster than what's priced in. i think that will be a continuing downward pressure on some of the growth longer duration names, which is a large chunk of the overall market today. >> what about international

equities, rebecca? a lot of people come on and talk about the valuation gap and that part of it is obviously clear. that said, similar themes of going from loose policy to tight policy apply there, too. in fact, the delta of the change could be more pronounced when you look at where rates have been in europe, on top of that, without the same base of growth. >> well, i think you mentioned europe let's just drill down on that for a second you know, the ecb, we have a meeting this thursday. they have to recognize that inflation there today relative to their history is extremely high it's pushing them to tighten we're already getting, i believe, two hikes priced in for this year for the ecb, so it is getting discounted into market valuations i think the big difference there, though, is that the ecb is going significantly slower than the fed remember, it just has an inflation mandate. it still believes a lot of that inflation pressure is transitory they're not seeing the same pressure on wages that we are in the u.s. the big, big deal in europe is

fiscal so historically, europe has traded as a discount to the u.s. in part because they have these fiscal rules that basically put in austerity straight jacket around the member states, and slow down growth and that gets priced in to expectations they're debating those rules this year. by mid-year, they're going to come out and announce what they're doing. there's a decent probability they relax those rules it doesn't mean the austerity goes away completely, but improves, gives them more flexibility. that could support growth and i don't think that's priced into expectations for european stocks going forward. that could be a material difference we'll see if that happens i think by around midyear. >> when we look, whether it's european equities or the u.s., energy stocks have started the year incredibly well, make up a big part of the indices over there compared to here up 3.6% today. how much of a geopolitical premium is built into that part of the market versus the

fundamentals justifying the moves? >> i think there probably is some russia, ukraine geopolitical priced in. given what everyone is reading every day, but there's a more fundamental story here you're seeing demand for commodities rising quickly along with this nominal growth story when you look at the supply of commodities, a lot of these companies have underinvested in recent years in energy in particular, they're trying to return capital toshareholders rather than putting money in capx. where we are right now is a place where supply is not even close to meeting demand, and that's not something they can fix overnight. so even if you take out the geopolitical risk premium, our bias would be that energy prices and commodity prices generally are going to keep going higher this year. and we also like them as an inflation hedge. again, the market is discounting that inflation in the u.s. goes back to prepandemic levels by the end of 2023. with things like rent, things

like wages, in our view being quite a bit stickier, we think people will continue to look for assets to protect them against inflation, so commodity equities, commodities are going to continue to be a part of that >> rebecca, great to see you, as always thanks for joining us. >> thanks. >> after the break, equity and opportunity in the fund management industry. we'll speak with dick parsons, former chairman of citigroup and time warner about his group with the equity alliance to bring funding to underrepresented communities. >> you're watching "closing bell" on cnbc.

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the latest data shows there's still a long way to go in closing the vc funding gap facing women and african american entrepreneurs according to pitchbook, in 2021, women only founders received just 2% of total money invested in vc startup banks in the u.s., the lowest level since 2016. in the first half of 2021, black founders received only 1.2% of the $147 billion invested in u.s. startups during that period one group looking to close that funding gap is equity alliance, the firm closed a $28.6 million fund this week focused on investing in venture funds led by women and minority managers joining us, equity alliance chairman and former time warner seat and citi chairman, dick

parsons. great to have you with us. thank you for joining us >> nice to be here >> some extraordinarily disappointing statistics that we just shared in terms of the state of affairs here. and it's interesting because clearly, there's so much money in private markets at the moment, whether it's private equity or venture capital. so has the problem got worse as there's been more money in those markets? or is it just a general lack of progress >> well, i think there's been a lack of progress i think the problem has gotten worse, but there's been a general lack of progress because there haven't been models that show that you can invest with diverse women and minority fund managers and entrepreneurs and get a return people still think that oh, that's impacting less and we're trying to do something social, and therefore we have to give up some part of the return if we

invest it otherwise. we're out to show that's not the case we're out to show there's just as much money to be made in those communities as anywhere else, maybe more >> and is the problem still much more pronounced in the venture capital world than it is in the publicly listed space? and what lessons can you learn from that gap in order to close it going forward >>well, i think sort of in the capital markets generally, this is a pronounced problem. there are not that many publicly traded companies that are in the hands of minorities. or some ceos now but what we're trying to do, the venture capital space is the the on-ramp for access to private capital. and what we're trying to do is sort of open that funnel up, create opportunities for women and for minorities who are managing funds in particular, with some direct investments

by investing in funds, we'll spread the money around a little bit and hope to show that there's gold in them hills we can generate actually a superior return investing in those fund managers and entrepreneurs who have been historically overlooked. >> what are you finding, dick, on that front? i know you have been at it for more than a year now is the thesis playing out? >> it's early days, i have to say, sara. very early days, but we have got one we're really proud of, we had a recent press release, which is now a unicorn we invested in, oh, i don't know, eight, nine months ago, and it's already sort of almost 15 times the value we put in. growing and growing rapidly, and there will be others it's going to take a little time for the returns to show up because we're primarily

investing in other venture capital funds. but i think we're very optimistic and hope to show the world and particularly what i call the lp community, limited partner, endowments, the pension funds, the large investors who come into these and fund these venture operations that as i said there's gold in them there hills. there's a real opportunity to generate superior returns. >> i read about your story a little bit with this, that the idea came to you after the murder of george floyd when corporate america really tried to step up and say that they want to change. they want to add diversity to their boards and to their employee workforces. have you seen the progress that everyone was talking about then show up in a meaningful way? >> well, i have certainly seen more outreach on the part of corporate america in particular, but everybody.

i mean, the george floyd incident was galvanizing for america. the issue is, i'm an old guy, i have been here a long time we went through this in the early '70s, the great society where everyone was sort of galvanized to do something about what was then the sort of distance between the mainstream american society and minority communities. a lot of money was poured into that area, but in a way, it didn't stick we're back at the same issue it's because i think we try to do things, a bunch of things that were not sustainable. and one of the reasons we started this equity alliance, i was talking to a good friend of mine, kenny, who is also a partner. we both concluded the key is sustainability we have do something this time that sustains itself and that means we have to grow real businesses. and the secret to growing any

business is access to capital. that's the secret to growth. that's why we decided to park ourselves on the on-ramp and start a concept fund to show that probably you can create real businesses in communities that have been overlooked by entrepreneurs and fund managers who live in those communities, who relate to those communities. and who care about those communities. >> dick, while we've got you, if it's all right, i wanted to ask a quick question about some of your former companies, time warner and citi, both going through various pivots to their strategy, i guess a bit of an understatement there, and i wondered what you thought about both of those companies strategic pivots at the moment and which of their current leaders has the tougher job on their hands for the next year or so ahead >> well, interesting that you ask. i think time warner has gone to

more than just a pivot it really, you know, its entities under the umbrella of time warner exist, warner brothers, cnn, et cetera, et cetera, but they exist in a different corporate form and that business, the media business, has really been transformed by something called streaming. i think the time warner assets will do quite well in a new world because they create the content. you know, it's one thing to have a distribution strategy that says we're going to stream, but you still have to have content there's nobody who creates more and better content than warner brothers, turner, hbo, you know, and so they'll do -- i think they'll do just fine in their new corporate incarnations in terms of citi, you know, citi has gone through a tough time because it's such a huge balance sheet that it just has to work through and it's been working through for ten years now.

a series of problems that emanate from different parts of the world and sort of narrowing the focus, but i think the new ceo has her arms around it she's a terrific, terrific young lady and i think she's going to do a terrific job with citi. citi is still in my opinion the most significant financial institution almost in the world in terms of its reach and its reputation on a global basis you really couldn't re-create sitty today if you had to. they're working through it, they're hand in glove with their regulators, which is the only constraint, and citi will be around for a long time >> one more quickie from me, and it's on at&t and time warner because there was news there today that they laid out a little more of financial detail of how they're going to disentangle themselves, at&t and time warner, cut the dividend. what do you think went wrong in that deal?

at&t lost a third of its value since buying it in 2016 in a time when the s&p doubled. do you think it's better off merging with a smaller competitor, discovery, when it comes to competing and streaming? >> i was asked that question when the at&t deal was announced. and you know, i speculated that to some extent, it was reminiscent of the time warner deal that people still believe that there's some magic that happens by connecting distribution with content. and i don't know that that's true i don't know that the synergy people anticipate from that connection materializes. so but putting time warner assets with discovery makes a lot of sense to me at&t will still have some advantages from their distribution platform, but not the ones they anticipated. they would get, because it just

hasn't proven to be magic. one plus one does not equal three because one is content and one is distribution. they're different businesses and the synergies are still, you know, sort of a bit pie in the skyish >> yeah. investors in at&t learned the hard way dick parsons, great to have you here today thank you for joining us >> thank you wilfred, sara, nice to talk to you both >> always nice to have you still ahead, that's the spirit shares of johnnie walker parent diageo up nearly 30% in the last year, and the company just reported half-year earnings. we'll talk to the ceo about the results and some of the supply chain headaches facing the industry check out some of the top searched tickers on cnbc.com ten-year yield right on top there, 1.80%, so it goes higher today. followed by at&t on news of the dividend cut on that time warner deal we just mentioned exxonmobil, blockbuster earnings, the stock up 6.3%.

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near session highs, up 200on the dow. exxonmobil reporting mixed earnings this morning. the stock is soaring the oil company beating on earnings, missing on revenue, and announcing a $10 billion stock buyback. amc announcing better than expected preliminary results for the fourth quarter the ceo says the company finished the year with its strongest quarter in two years that stock up 3.6% jim cramer talking about amc in his investing club newsletter. you can still sign up. head to cnbc.com/jointheclub or point your phone at the qr code on the screen. >> it's time for a cnbc news update with rahel solomon. hi, rahel. >> yes, it is. we begin just south of minneapolis where police are responding to a shooting outside

of a school. fbi and atf agents are also on the scene there. injuries have been reported but so far, local officials have not confirmed any details. >> virginia meantime, another shooting incident has a college sheltering in place. bridgewater college says someone is in custody but that the situation is ongoing virginia governor youngkin said he's been briefed on the shooting but gave no information on possible injuries or a motive for the shooting >> senator manchin, meantime, says the build back better bill is, quote, dead. it's the strongest language he has used on the infrastructure bill, but manchin also says he remains open to talks. >> and texas governor greg abbott says that the state and its power grid are ready for the big winter storm that's expected later this week. forecasts call for heavy snow and plunging temperatures, but not a repeat of last year's massive freeze nonetheless, abbott warns thousands of miles of roads will become extraordinarily dangerous in the coming days so of course, we here in the northeast have been dealing with our own winter storm, wilf

back to you. >> we certainly have rahel, thank you we have got, what, 31 minutes left of the session. and we're pretty much at the session highs. over 200 points of gains for the dow. up .5% on the s&p. 0.4% on the nasdaq and energy leads the charge, continues to lead the charge up 3.5%. but a few other sectors now joining energy in the top half of the performance table only five sectors now in the red. utilities continues to be the biggest decliner quite a defensive set of sectors that are at the bottom of the pile we're counting down to amousive afternoon of earnings with alphabelt, gm, ea, starbucks, and many more. we'll bring you though as soon as they cross. >> here's a check on bonds yields moving higher the ten-year touching back above 1.8% we'll be right back.

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. diageo, the maker behind all sorts of popular brands like johnnie walker and smirnof reporting its first half results saying net sales growth up 16% as lockdowns eased and bars started restocking more. tequila a big seller with sales jumping 61%. joining us on a first on cnbc interview, diageo's ceo, ivan menez ez tell us what's driving the sales growth is it people staying at home mixing their own cocktails or going out more >> hello, sara it actually is both. so what we have seen in these

numbers, our organic sales grew 20% on the back of 9% volume growth and we grew profit spending 5% and we invested strongly in marketing and capital spending what we're seeing around the world is a trend of people drinking better. every region of the world had double-digit growth, so very consistent growth recovery happening right across the globe. our business is now 25% bigger than it was three years ago, pre-covid levels, so it's more than recovered, and we're seeing excellent growth, driven by market share gains they're holding a gain share in 85% of the world and what i'm really pleased about is our key categories have come back strongly scotch whiskey, and i know - >> that's my favorite. >> really, really well our scotch business was up 27%

johnnie walker, really strong double-digit growth. guinness has come back strongly. also up 27%. the tukeely business, as you pointed out, both don julio and casamigos, real momentum the top end of our portfolio, in fact, the top 27% of our business, the higher price points, that group, 31%. and a brand like johnnie walker blue label grew 66% while johnnie walker overall grew 30%. these trends of people drinking better, people loving premium spirits brands, mixology is alive and well, not just in the bars but at home and we're benefitting from those trends i would say our marketing, our innovation and execution and the investment behind it is all paying off >> single-handedly responsible for the scotch sales, i'm sure ivan, what about the travel sector and duty-free shopping

how far are we to prepandemic levels there in terms of your business >> we're well behind on the travel sector. now, it's only about 4% of the business worldwide, and it dropped 90%, and it's now probably 40%, 50% of the prepandemic levels it's going to be directly linked to passenger travel worldwide. we do expect it to come back it will probably be two or three years. but in the meantime, we're creating the momentum in the domestic markets so travel is the one sector that will take time to return >> ivan, i was fascinated to see that demand outstripped supply when it came to bullet bourbon but not because of the liquor itself >> i know, we have got plenty of beautiful liquids. we have a challenge on the lovely bullet bottle, which is a bespoke bottle that we're having trouble on the glass supply.

we're working closely with our partners and it will be a few months we'll get it back at arm's reach for the loyal following of bullet all around the country. so there, the issue is the bottle and our team and with our strategic suppliers are working through it i'm confident we'll get the supply back soon >> and you mentioned guinness and how that's bounced back. do you think that has been a major shift during the pandemic away from beers towards spirits in a way that is lasting and/or do you think it will present opportunities for you to actually expand your beer set of categories obviously, it's pretty small at the moment, just guinness. >> yeah, so beer is 15%, 16% of the total business, but guinness is a brand that's really on trend. it's more premium. we're doing amazing marketing and innovation in the brand.

just yesterday, we announced the opening of a fabulous microbrewery in london you know, we had one in baltimore. we have announced one in chicago. so we are very happy with our beer business. guinness did very well in these numbers. and it's doing really well in africa, which is a big market for guinness in addition to the uk and ireland and the u.s. so feeling good about the trends on premium beer, and guinness is, you know, it shows up as one of the most loved brands in the beer category, even though, as you point out, it's not one of the major brands in volume terms, but it's got terrific consumer following >> finally, just wanted to ask you about a trend in the beverage world so many of these companies that i cover like coke and pepsi are getting increasingly into alcoholic ready-to-drink drinks, simply lemonade, the latest from

coca-cola. hard seltzer, a fresca, and their partnering with these companies. where are you in the ready-to-drink alcohol category, and is this sort of a missed opportunity with all of the big beverage giants coming in and partnering with some of your competitors? >> well, we do have a ready-to-drink business, and our focus really is on what we call premium convenience offerings. so right now, we have a set of single serve cocktails for crown royal, for ketel one, and for tanqueray, and they're doing really well. they're higher priced because they're premium spirits based. that's going to be our focus we want to drive the premiumization in convenience, in single-serve products, and our spirits give us real strength in being able to serve that market. and we also have smirnoff ice

and smirnoff seltzers. but over time, what we're most excited about is consumers trading up within the single serve ready to drink format. i mean, those crown royal cocktails in a can are absolutely delicious stunning packages, and we can't make enough. >> ivan, thank you so much for joining us great to see you >> great to see you. thank you. >> cheers. >> made us want to drink >> yeah, thirsty his backdrop as well always like those alcohol interviews still to come, a big lineup of earnings set tocross after the bell we'll look at the key metrics to watch in alphabet and paypal's results, and during february, we're celebrating black history and featuring some of our cnbc contributors here is veritas financial's advice for future leaders. >> i like to remind our current

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less than 15 minutes of trading. stocks have picked up steam. the dow near session highs if you want to see what is working right now, boeing adding the most to the dow.

dow, the chemical company, chevron, visa, american express some of the winners. united health care in the red, along with microsoft and j&j energy on top, fueled by exxon's best earnings in years materials, financials, industrials, communication services all strong. >> real estate, utilities suffering at the bottom of the pile just strengthening again as we approach the close coming up, u.p.s. soaring after reporting ruts we'll look at what they delivered in the quarter next. plus, earnings with alphabet, pot bucks, gm, and more seto rert

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welcome back, and get ready for a wild second hour of "closing bell. we will get earnings results from alphabet, we'll break those down with a panel of experts also numbers from paypal as that stock sits around 40% below its highs. the cfo of match will join us and we'll get analyst reaction to reports from starbucks and gm first, we have ten minutes to go until the close. mike santoli here to break down these crucial moments of the trading day, and today, we've also got pivotal adviser ceo, tiffany mcgee back as well welcome. we'll kick it off with the broader market major averages in the green for the third day in a row, and we're tallying a nice three-day gain here. what's notable about today is the cyclical field, the stocks that are most tied to the economy are doing the best

energy, materials, financials, and industrials right on top of the market >> yeah, i mean, the ism number, manufacturing number was decent, better than expected it shows decent growth even the reopening stocks, you look at the leisure and entertainment etfs, been outperforming this month i don't think that the hiccup we had in the market, this correction, was mostly about doubting the path of growth. it was all about the valuations that got into excessive places in some areas of the market. then what the fed was up to. and that low last monday looks like it was a pretty good flush at this point. >> u.p.s., the best performing stock in the s&p 500, a day after reporting strong earnings. frank haul nld has those details for us >> u.p.s. having the best day since april of last year, after some big beats u.p.s. about 50 cents above estimates and a big dividend raise, 49% higher. also some strong guidance. the results show strong pricing power. that indicates u.p.s. believes it will maintain that power for

the foreseeable future volumes were down, but revenues were up double digits. customers renegotiating contracts are expected to see rate increases as high as 30%. fedex also trading higher than the s&p in this report, but u.p.s. far outperforming its rival year to date the ceo's better not bigger strategy apparently getting some high marks from investors. back over to you >> frank, thanks for that one. tiffany, you have been a holder of this. are you still a holder >> u.p.s., absolutely. we're really excited about them really beating estimates so you know, at the end of the day, i'm really interested in the information, the data that the u.p.s. earnings result gives us so more deliveries mean more people buying things online. it means higher demand, higher retail sales and so we're really excited to hear it. >> yeah, and execution, too, with the outperformance against

fedex. outlining a huge hour of earnings after the bell. deirdre bosa here with a preview. >> digital ad sales make up the core, but cloud, youtube, that will all be interesting. google a distant third in terms of cloud market share, but the market as a whole is so much bigger than it is now, so they can all continue to grow at these levels 45% expected growth for google youtube continues to be this juggernaut that is rivaling the size of netflix in terms of revenue and competing with tiktok in short video. watch capital allocation as well remember, alphabet has a $160 billion plus cash pile one analyst floated the idea of a dividend as a good way to put its cash to work and also, to win some goodwill with shareholders as it faces more regulatory scrutiny in the year ahead back to you. >> interesting concept deirdre, thank you >> tiffany, are you a shareholder of alphabet, and if so, what do you think is the most important thing to see

here >> yeah, so first of all, i think if growth is a component of your portfolio, you have to be in google digital ad spend of the amount of digital ad spend for 2021 is expected to increase 64% for 2021 and google, i think it's important to note that google has almost 87% of that share so they have really owned the market when it comes to digital ad spend as the recovery continues, ad budgets are going to increase and they're going to get more of that also, we have some important events this year we have the olympics, the world cup, so those events tend to really kind of increase profit margins -- i'm sorry, increase pricing, so google can charge more and then also tends to increase ad spend as well so i think, you know, i'm expecting good things from google, but of course, because they really own the market >> mike, you mentioned earlier about how its valuation with

microsoft remains and is quite significant. that said, over a 12-month period or since the start of last year, the share price performance has been remarkably strong >> it has. it's been one of the stronger of the big faang stocks it was a catch-up move to some degree the stocks have kind of traded off leadership but it shows you how fast the earnings continue to grow. for alphabet right now, a company of its size growing as fast as it is is really not something we have seen before. i find the idea of initiating a dividend interesting, but i would question whether this management might be geared in that direction or not. a lot of times, i remember back when microsoft did it, it was after the bloom was off the growth rate and the valuation had been compressed and it seemed like something, they needed to get cash out of the company, did a special dividend and then a regular dividend. right now, what the street is looking for them is to be more aggressive on the buy' back side >> we also have paypal reporting after hours. let's get kate rooney for a preview. >> hi, wilf.

paypal is shaking off some of the headwinds it dealt with from the ebay spin-off last year. the stock down 23% since the last report back in november growth slowed last year, but wall street is optimistic on payment volume after visa and mastercard both had strong quarters 2022 outlook is key for paypal it lowered its tpv and revenue guidance back in november. ebay is still focused -- is still the focus, excuse me, of today's report analyst said are expecting modest margin compression in part due to the spin-off from ebay any commentary around that, when it will be fully flushed out, is key to watch progress on paypal becoming the super app that dan schulman has described. that would include any color on the crypto business, venmo, and the buy now pay later products >> thanks so much for that mike santoli, i want to come to you on the broader markets because we're rallying as we approach the close session highs up over 300 moments ago.

slightly different tilt to the market as it was yesterday, which was those that had been hit hardest bouncing back. cyclical names, energy, which have already outperformed year to date. >> volatility coming in, investors basically seeing that the ground is a little firmer under their feet last three days, you did have some late buying that shows you that there were people who were holding back or had been essentially purged from the market in the sell-off and they felt like they needed to chase it back in and get equity exposures up around month end. we still have a day or two on the strong seasonal period, and there's clearance above the s&p right now before you even get to those points where you say is this more than just a bounce off the lows you probably have another 1% or 2% higher before that becomes the question i do think you have this bit of an urgency to make sure the market doesn't leave you behind. by the way, earnings have held up find, even though the individual stocks aren't trading brilliantly off earnings reports. the overall aggregate estimates are hanging in there and so that hasn't been the issue with this market

>> beyond some of the cyclical groups, the ark innovation etf is having a good day a lot of names in there beaten up the hardest are working, like draftkings up 7% coinbase up, palantir, shopify in there just about two minutes to go here in the trading day. we have a dow up 300 points. this feels very different. what are we at now up more than 5% gains in the last three sessions. it's been a stunning comeback. >> oh, yeah, the s&p is up more than 7%, i think, from the intraday lows last monday. you have really taken it back in a hurry. that kind of happens when you're in that intense stressed sell-off mode, but the internals look good. it's a broad rally it even was before when the s&p was more or less flat. better than 3.5-1. that's fairly solid. look at the two-year note yield. it did sort of peak in the morning on friday, about 1.22%, and it has settled back.

it's obviously not given back a lot of the massive six-month gains. people still expect a few fed rate hikes it's calmed itself down and kept wall street from sort of getting ahead of itself in anticipating even more hikes than have been handicapped so far voltill hae has been crushed it's now a pretty good spike on the chart, down in the low 20s for the vix. the vix futures curve has also kind of settled down a more favorable, benign setup it looks like the spike we got in december, in early december, when did clear the way for further upside in the s&p, which of course, did not hang around very long, but we got more, wilf >> under one minute left energy leads the charge, up nearly 4%. the best performing sector on the s&p today. eight of the 11 sectors in the green. utilities, the defensive sector, utilities, at the bottom of the pile the only bun down 1% we're close to those session highs as we approach the close the dow is up 0.8% nasdaq up .5%.

russell leads the charge at 1.1% and both the russell and innasdaq now up over 4% for the week over just two trading sessions as the bell goes, we're not far from the session highs up 0.7% or 0.8%. all three of the major averages with a small cap russell up more than 1%. three in a row strong closes. welcome back to "closing bell. i'm sara eisen here with wilfred frost and mike santoli, cnbc senior markets commentator do not go anywhere we have a huge hour of earnings for you ahead. alphabet, paypal, amd, electronic arts moments away from releasing results wait, there's more we'll also have instant analysis and numbers from general motors, starbucks, gilead, and match group. we have a perfect summation of the economy coming with all these earnings then match's cfo will break down

its company's results in an exclusive interview. tiffany is still with us paul hickey, bespoke investment group cofounder joins us paul, you were giving us grief for weeks at the final hour of trade was the one where everything fell apart. guess what, after a day of searching for direction, all day long, it was a decisive rally into the close we have turned the corner on that pattern >> yeah, not only that, i have been able to leave my helmet at home because the last four days have been seen positive returns in the last hour of trading. you have to go back to late october to find the last time you saw four days in a row of last-hour gains. so the two of you are back together and the markets are rejoicing. >> there you go. that must be it. no, but what does it tell you, paul, about the market's potential ability to reclaim the highs and recover the lost ground we saw in january, on angst of fed policy changes?

>> so, any time you see last-hour strength in the market, it's more of a willingness on the part of investors to hold overnight, and that's a positive signal overall, but i think this market, especially between now and march, i think we're going to see a lot of moves up and down you know, when the market gets too high, people worry about the headwinds of the fed fiscal and monetary headwinds and valuations but then when you get these pullbacks like we have seen in the last several weeks, not everything is bad. you have to realize that the economy is still expanding major averages have held up pretty well considering the carnage you saw in the meme stocks and some of these really high growth zero earnings companies. earnings results have come in pretty positive. the real key the last week, though, was sentiment. sentiment hit levels we hadn't seen since the covid crash, whether you look at the put

volumes, which were off the charts, and last week, everyone was talking about the fed put and how the fed put is gone. here's an interesting headline i read last week said don't count on the fed saving stocks again. well, the funny thing about that headline was that it was from late november 2018 rather than now. so people have been talking about the fed not being there for the markets for years now. and i think that whole fed put is a little bit overstated the fed is certainly more hawkish now than it has been in prior years, but that's not the only thing that the market has to worry about i think between now and march, we'll see some oscillations until we find out what the fed is going to do and get more clarity. >> tiffopy, doyou feel that we have had a short term bottom put in the market or even a medium to long term one >> so first of all, really good to see this rally. for most of january, i don't think that the market has been

rewarding good behavior in terms of good earnings but it's kind of always leading up to a fed rate hike cycle, it's always volatile so i really do expect a little more volatility going forward, but we're really in this adjustment period where markets were trying to figure out, trying to price in the fed rate hikes, but i think it's also interesting because it feels a little bit -- a little bit more amplified to us right now because we're coming off of three years of the s&p 500 of double-digit returns and with really low volatility. this feels a little bit different. but i think another thing, too, is i think we really have, you know, kind of this stay-at-home versus reopen ptsdf you will, where we were buying stocks because it was a stay-at-home stock. but if your thesis is based completely around a name in which everyone is staying at home, that benefits from

everyone staying at home, what happens to your conviction when we reopen? i think what we have to do is get back to looking at balance sheets and business models >> all right, let's get this earnings party started ea just out, julia with those numbers. julia. >> reporting revenues that fell short of expectations. 2.58 billion in revenue versus the 2.66 billion that analysts had expected those are adjusted revenues. otherwise known as bookings. guidance for the fourth quarter also coming in lighter than expected at $1.76 billion versus $1.81 billion estimated, and that gap earnings per share is 23 cents that's not comparable, but those earnings coming in at 23 cents a share. the stock down 5% on this news one interesting note, the company announces the player network has grown to more than 540 million unique active accounts the last number they reported, i believe it was back in may of 2021, was 500 million. so showing growth in those active accounts.

but the stock down on the lower than expected revenue and revenue guidance guy guys, back over to you >> down 5% google moving higher by 4% a big beat for the quarter just past for them coming in with $75.3 billion in revenue the forecast was $72.2 platteville. an eps of $30.69 a share the forecast, $27.34 if we go down the individual line items, google search has the biggest beat on that revenue line $43.3 billion. the forecast was for $41 billion. most of the other lines are very slight misses, offset by the big beat in search but really in line a very strong quarter overall. youtube, $8.6 billion. google network members, that was a slight beat. google other, $8.1, and google cloud, $5.5 billion, in line with forecasts there but unsurprising to see a nice move higher in the shares, up 4%, because it's a comfortable

beat on both lines >> and a quarterly sales report for pixel phones which is not a big chunk of it, but they note it in the line despite supply constraints. cloud business continuing to grow strongly. mike, the reaction, up almost 5% after hours. don't think they were expecting these big of numbers from search >> probably not, although it's very consistent with how the run rate has been going across all those lines for alphabet much more about the fact that we came into this report with the stock still 8%, 9% below its record high. it had taken a little bit of a stutter step with the rest of the market it's just rebuilding back to those highs. it was at 3,000, let's not forget, or a little beyond that, at its all-time high >> tiffany, what's your view on alphabet >> again, you definitely have to be in alphabet we like the top line beat. with the little misses, really not concerned about those. again, we really feel like, you

know, clearly, search is doing well and i really want to kind of pay attention to the earnings call and see whether they're talking about increasing spending in cloud. they also have an autonomous driving unit i want to see how much they're allocating to that the other thing, too, i want to see if they're going to be talking about launching anything with like the metaverse, because we see companies like microsoft, with their acquisition of activision blizzard kind of getting into the metaverse and web 3, so i'm really interested to see what google says about that >> just want to mention as well, stock split, 20 for 1 approved by the board mike, what's the significance of that superficial, but it's helped some stocks rally into those announcements. >> it has. it obviously makes -- it used to be considered to be you had to do it for retail because there was a higher cost of buying fewer than 100 shares. that's not been the case in a very long time

but when it gets unwieldy, multi-thousand dollar share prices, i think there's benefit in terms of options. it makes it much more expensive. you'll hear people say maybe it will make them part of the pool that can go into the dow jones industrial average the folks who run alphabet don't strike me as the types who care much about that. but i think it's sort of a nod in the direction of individual shareholders who might care about such things and treat it as more of a catalyst than it actually is when it's pretty much purely cosmetic >> it may be helping alphabet reach new heights in the after hours. just announcing the 20 for 1 stock split on top of a revenue beat gm also out with numbers >> gm reporting better than expected results for the fourth quarter, at least in terms of earnings earning $1.35 a share, better than the expectitation of $1.19. revenue light of estimates, coming in at $33.58 billion.

the street wasectspathing $34 billion, but it's the guidance people are focused on. for 2022, general motors expects to earn between $13 and $15 billion. by the way, they made $14.3 billion in 2021. increased ev spending this year. that's not a surprise. they're assuming continued steady demand and that the chip supply and the supply chain both steadily improve throughout the year in terms of ev reservations, this is what so many people are focused on, silverado ev reservations top 110,000 they also have 25,000 reservations for their ev bright drop cargo vans, and don'tfer get, they have the cadillac lyric, ev suv it's debuting in march. they made progress in that regard don't forget, tomorrow morning, "squawk on the street," you don't want to miss hearing from mary barra, ceo of general motors she'll be talking about all of this, and guys, there's no mention in this earnings report about adding back the dividend, which was suspended early on in

the pandemic i'll send it back to you analyst call starting in about 15 minutes back to you. >> phil lebeau, thank you so much general motors moving all around down just slightly in the after market alphabet up 7% let's get to starbucks kate rogers has those numbers for us >> hey, wilf a mixed q1 for starbucks due to both covid and higher costs due to inflationary pressures. revenue up 19% to $8.1 billion that's a beat versus $7.95 billion analysts were looking for. eps, 72 cents adjusted that's a miss compared to the 80 cents analysts were looking for. that was due to greater than expected costs related to covid, staffing, and the impacts of the cost same-store sales are mixed up 13% globally. that's a miss compared to the 13.5% analysts were looking for, but in the u.s., up 18%. that's a beat. with 12% two-year growth that's a beat versus the 17.3%

analysts were looking for. international same-sale stores miss china also down 14%. that's important because china is starbucks' second home market that's due to omicron and travel restrictions the company has 1500 stores in china. starbucks rewards members up 21% to 26.4 million active members in the united states the stock down 10% in the last three months and down 3% here. back over to you >> thanks so much. down 3% in after hours don't miss first on cnbc interview with starbucks ceo kevin johnson tomorrow on "squawk on the street. mover to the downside. general motors down 2% paul hickey, coming to you on google up 7%. and we were discussing earlier the way in which it still enjoyed relatively speaking a cheap multiple compared to some of the mega cap tech names i guess that's playing out right now with this jump, when you do beat >> yeah, the stock trades

relatively cheap they took pains in the last quarter to report their lower expectations going forward, saying they had faced tough comps. so by setting the bar low, it helped them exceed the bar here, and the fact that i think you said that it's either the details of the report, but i think i heard you say cloud was basically in line, which they had trouble meeting estimates in prior quarters so just in line when you have already lowered expectations can sometimes be enough to add some positive sentiment to the stock here so it sounds like a good report from what you all have been saying again, stock split, too, doesn't mean anything fundamentally, but it makes it easier for people to buy a single share rather than, you know, $3,000 a share >> positive sentiment for the stock, and for technology as a group. you have now microsoft, apple, and google all reporting really strong numbers and getting a very positive reception to wall street that's when we started to see the floor in the tech sell-off start to happen.

>> when you look at the other stocks on the half screen, say it's only mega cap tech that's performing all of the others, starbucks, general motors, match group, ea moving lower lots more to discuss as we continue this second hour of "closing bell. to tiffany and paul, thanks so much for joining us. we appreciate it we're just getting started on "closing bell. up next, much more reaction to alphabet's earnings when we're joined by an analyst who thinks the stock can double from current levels lots more upside in their view plus, match group shares under pressure after announcing a loss of 60 cents a share on revenue, off $800 million, which missed estimates. cfo gary swidler will join us to break down the results across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. at vanguard, you're more than just an investor, you're an owner

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the earnings hour continues. gilead just out. meg tirrell with those numbers meg. >> hey, sara a beat for gilead on the revenue line coming in at $7.24 billion,

compared with $6.44 billion. earnings 69 cents per share on an adjusted basis. that's not comparable to what analysts were looking for because of a legal charge just announced with vive health care of $1.25 billion, related to some hiv drugs that making the eps number not comparable in terms of what the stock is doing, down 3.6% here. looking a little light on the adjusted eps guidance for the year coming in shy of estimates for the quarter, it looks like the covid-19 drug remdesivir driving a lot of the beat, $up with.4 billion, versus $900 million that analysts were looking for. hiv drugs coming in ahead. you're seeing gilead down 3.5% back to you. >> meg, thanks so much down 3.6% now. >> alphabet, though, rallying following its earnings moments ago. the company beat on the top and

bottom line and approved a 20-1 stock split. joining us to break down the numbers, very good afternoon to you both brent, clearly a big after-hours move to the upside is that too big of a move in the short term until we get on the call and hear about the outlook for the year ahead >> i don't think it's too big of a move the stock trades in the low teens on an ebitda basis, and they're going to grow ebitda mid-teens. we think it's a good cheap story that continues to perform well i think the key here is google is not necessarily considered to be shareholder friendly story. when you think about the buyback that ruth is putting in, she just bought the most stock she has ever bought in a quarter at $13.5 billion. so she's stepping up and doing a phenomenal job of supporting shareholders with good numbers and a good buyback and ultimately i think the stock

is cheap relative to its growth. >> we are just going to hit pause on the discussion about alphabet and its big move higher just quickly to get paypal earnings that have crossed, and kate rooney has those for us >> hey, wilf paypal with a mixed quarter. feeling the pressure from that ebay spin-off. also significantly lower guidance than expected let's start with the bottom line that was a slight miss here, adjusted eps coming in at $1.11. that was a penny short of wall street consensus estimates that was 4% growth year over year paypal says they saw a 25 cent headwind per share revenue at $6.9 billion. that was 13% growth year over year total payment volume meanwhile for the quarter coming in at $340 billion we also have full year numbers paypal's tpv last year topping a trillion dollars last year for the first time that came in at $1.25 trillion

eps looking to be well below what wall street was looking for for q1 revenue expected to grow at 6%, but looks to be slightly better than expected. full year eps and revenue guidance also below consensus estimates. we expect to hear more about the ebay transition on the call and what the cause of the lower guidance is. the stock down more than 9% after hours. back to you. >> kate rooney, thank you for that one mike, i guess with gilead as well, it adds to the point it's really only the mega cap names this evening that has beaten estimates, and that mauve on paypal will take it back toward its lows of last week if it opens like that tomorrow, thin volume and early reaction. for a stock that had already pulled back an awful lot from its highs 18 months ago. >> absolutely. the market share in e-commerce has been the big shadow hanging over the fundamental part of the story. in addition to just really if valuation having gotten to moonshot status at the highs last summer, it was getting

caught up in the other fintech enthusiasm and it's still high 30s forward multiple on earnings for kind of a mid-teens grower even before the lowered guidance i think all of that is about mostly valuation adjustment. and then the leaked or floated news they were interested in buying pinterest is also when the downside pressure accelerated to some degree, some people feeling like it represented a need to do something kind of risky strategically and outside of its lane i think all that stuff coming to bear mostly, i think it's valuation compression, which is what is hounding a lot of larger story growth stocks. >> now down 11.7%. there's that snapshot for you in terms of earnings reports. starbucks, ea, general motors, paypal, gilead, all moving lower. though the standout winner, of course, is alphabet, as we have been discussing. let's pivot back to discuss this, as it is the most important of all those names i'll come to you for your take on the google numbers.

what will you be listening out for on the call, and is the call more important than the quarter just pass or is the quarter rightly being loudly applauded >> i think the quarter is rightly being loudly applauded the call, i think, for google, tends to be less specific in terms of forward looking guidance than others we may not get much that really changes the narrative. but i think the narrative at google is incredibly powerful. you have a company that is incredibly well positioned for what's working right now in internet nobody in large cap kind of internet media is more insulated from privacy moves than google, which has been the big fear. these guys are a player in viral video with youtube they're very prominent obviously in cloud computing they have great kind of new bets in things like waymo so for a company that trades right now at a 27 pe against this year, with the type of growth in the next year or two, they could be at a market multiple but with much better

than market secular opportunity. i expect the call to re-enforce that but not to give us a lot that would be terrifically incremental. >> how are these companies doing on the cost side of things and margins? as we have seen a more competitive labor market and higher wage inflation across the board. are they feeling it, are they handling it? the cost can sometimes be a bagaboo when it comes to the mega caps. >> they're doing great amy hood and microsoft said margins are going higher clearly, as the world turns back on, and we start to do conferences and travel, you're going to have expenses go back up i think, you know, we probably hit the height of some of the big margin improvement because we have all been stuck at home and using these technologies to help run our life. but that's going to change as the virus subsides and we can throw these covid tests away and give them to someone else. so yeah, i think ultimately, i

feel like the cost structure is going to get a little more bloated as it relates to some of the companies we cover that's more enterprise software than internet. i think google is in a unique spot with the margin profile right now. so don't anticipate any big change >> working from home, in the hoodie with a covid test that's so 2020 and 2021. >> usually he's in his dining room nice to see your office, brent >> thanks. >> barton, thanks to you as well we have more earnings. amd just out christinkristina partsinevelos . >> 11 straight quarters of beating estimates. we see revenue at $4.83 billion. that's a 49% increase year over year you had adjusted eps earnings at 92 cents big beat there, vurshs the 76 cents the street was anticipating we also got a strong q1 and full year revenue guidance.

and if we break down the sectors because that's what a lot of people focused on, the revenue, data center revenue doubled year over year. enterprise embedded and semicustomed chip grew 17% to $2.2 billion we have thue earnings call at 5:00 p.m., and the ceo, which i think you're going to mention, coming on cnbc tomorrow, but the stock is popping almost 9% in after hours trading on the strong earnings report back over to you guys. >> another wow wow, almost 9% thank you, kristina. >> match group cfo on the company's disappointing quarterly revenue and the outlook for subscriber growth. plus, instant analysis to results from paypal, gm, and starbucks as we count down to those earnings calls at the top of the hour. 'lbeig bk. don't settle for silver. #1 for diabetic dry skin #1 for psoriasis symptom relief and #1 for eczema symptom relief. gold bond.

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match shares are falling here after hours down more than 5% after the company posted a loss of 60 cents on $806 million in revenue. joining us for an exclusive interview is match cfo and c.o.o., gary swidler it looks like your forecast for revenue growth, 15% to 20%, was lower than where you were anticipating in november

what's happening overall is this pandemic related >> yeah, i think there's really two things that have happened. as we look at 2022 one is just the strengthening of the dollar against a number of other currencies including the yen and the euro you have seen this in a lot of other companies that have already reported it's something nobody is able to outrun so it's a fact of life we're dealing with, a significant move in the currencies and then omicron effect. we saw a little bit of effect from omicron at the end of last year, and we're seeing it early in the year. but my strong hope is it's going to dissipate and we'll have a much more normal second half of the year, a much stronger second half of the year for our business people can get back out there and date again and socialize again. i know we're all looking forward to that and that's going to help drive our business i think it's a temporary impact and we should bounce back strongly >> the stock has underperformed over the last year or so on these pandemic disruptions, all over the world how has the pandemic changed the

dating game for you and what you can expect in years to come? do you know yet? >> well, i think it's kind o what you would expect from your own life or my own life. just people are socializing a bit less they're being more cautious. they're going out a little less than they used to. everyone is really excited to get back to normal as soon as possible and so i think once people feel like the risk is lower, i think we'll see people get out there and they'll be excited to date and meet people again, probably even more so than they were before the pandemic. because people have realized being with other people is so important and valuable to them, and we're all eager to do it you have to look at our business as a global business the u.s. is shaking some of this off, getting past it, especially in a market like new york. but asia is still going through it japan is an important market for us, and japan is still feeling some of the effects. i think as we make the turn to the warmer months of spring and summer, i think we'll see a different picture if all goes well >> long term question for you, gary how much are you thinking about and planning for dating in the

metaverse and what on earth that's going to look like? >> we're thinking about it a tremendous amount. it's actually really exciting and really interesting there's lots of different kinds of engaging experiences that we're experimenting with we bought a company in korea called hyperconnect, which is really advanced in its thinking around this and developing some really cool experience for people so i know people initially think about like headsets when they hear metaverse this is stuff you can do on your phone like you do with our other dating apps and you can have a fun experience we think especially young users are going to love what we're going to bring out on that front. >> so how are the individual properties performing? hinge and tinder, for instance, and what makes people go to one of them over the other and how can you help certain businesses grow? because it's getting really competitive with bumble and everyone else. >> yeah, our businesses are performing incredibly well overall. tinder continues to grow its users strongly in all parts of

the world. and the payer growth has been very strong as well. they're experimenting with a lot of new exciting features there's a lot of momentum in that business. our hinge business has been a total standout it's now the second most downloaded app in a number of important english speaking markets. it grew revenue from nearly $100 to $200 million last year and on pace to do $300 million or over that we think it's going international now. we're looking at a number of european markets and we'll expand through those markets, through the course of 2022 so hinge is a great product. people really enjoy using the product. and it's in a very, very strong position we feel great about our portfolio. >> guerra, thanks so much for joining us we appreciate it >> thank you we have more details now on alphabet's results deirdre bosa has those extra details for us >> i just got off the phone with alphabet's cfo first we chatted about the 20 for 1 stock split.

she said she was hearing feedback the stock should be more accessible to investors so that's what they did, eve wn the rise of fractional trading she said it's helpful for some investors. also asked about her capital allocation plan, especially given the rate of inflation. she said they have not changed their strategy the primary use of cash is to support organic growth and then they look at m&a in terms of strategic areas. she flagged hardware and cloud i asked about metaverse, and she said nothing to comment on now we talked about the youtub miss she said the key driver was lapping a strong result in q4 of last year, and she indicated back then that it benefitted in part from delay spending at the pandemic onset in terms of regulatory pressure, she says what she usually does, which is they're working with regulators all over the world. back to you. >> great move in after hours for alphabet, up 6.7%.

time now for a cnbc news update with shepard smith >> thanks. from the news on cnbc, here's what's happening shots for the kids just moments ago, pfizer asked the fda to authorize its vaccine for kids 6 months to five years old. that means they could be getting a covid vaccination by the end of this month. according to multiple reports, u.s. health regulators want to start reviewing data on two doses for that age group, as pfizer continues to research how well three doses might work. china is the biggest threat to america. the biggest one we face right now. that according to the fbi director christopher wray. he's calling out beijing for stealing what he calls a staggering amount of information. in an exclusive interview with pete williams, wray says it happens literally every day. >> we are investigating opening a new china-related counterintelligence investigation typically it involves theft of american intellectual property or secrets, about every 12 hours.

we probably have over 2,000 of those investigations >> those under way right now wray says the chinese government hackers steal more personal and corporate data than all other countries combined >> and now we know what will happen to the international space station once it's done it's going to the spacecraft graveyard. it's an incredibly remote area of the south pacific where other spacecraft have been sent as a sort of final resting place. nasa announced today it plans to crash the iss there in the year 2030 tonight, more than 80 million americans from new mexico all the way up to vermont are under winter storm watches and warnings the forecast on the news right after jim cramer, 7:00 eastern, news time, on cnbc back to you. >> why not just leave it in space? >> well, because then it becomes space junk and a target >> yeah, but -- but there's much more space up there than even in the space graveyard here on

earth. >> i plan to call a meeting and you can be the futured speaker >> i need the answer i don't think i can be the speaker, but i'll tune in later. maybe the answer will be discovered at 7:00 p.m we look forward to it as always. >> paypal shares plummeting after posting earnings moments ago. they beat on revenue and missed on e perx s. also gave weaker than expected guidance shares down 14%. let's bring in darren from wolf research darren, a big miss clearly the share price reacting accordingly so what stands out for you? >> well, look, i think more important than the current quarter, which actually was more or less in line. it's really the outlook that the company gave for 2022, being somewhere around 200 basis points lower revenue growth than what i think the street was looking for. the street was looking for 17% to 18% they end up talking about 16% to 17% now, and when you consider the new active users growth,

they're really just talking about 15 million to 20 million adds next year where i think a lot of the market would look to see over 50 million. definitely shows there's a much bigger pull forward given the pandemic than a lot of analysts may have appreciated >> you still have an outperform rating on the stock, $230? would you be a buyer on this dip or is it just more bad news that's justified >> well, i think we're going to have to see how things trade in the next couple days the reality is you have to keep in mind despite the nuances coming out of unusual times in the pandemic, this is a compounder growing 20% plus in a more normal time, and frankly, there's probably still going to be that consistency to their growth longer term it's not that easy to find stocks trading at the multiples they're trading at with good free cash and that kind of growth we're going to keep an eye on how the stock trades the next couple days. but certainly, everything has a price, and i think if this dips to the levels it's looking after

market, it would be an opportunity. >> what sort of multiple >> well, right now, it used to trade at somewhere around 30 times prepandemic. it had reached 40-plus times earnings during the height of the pandemic and then it's come back down to 30 again now it looks like after market, it's trading somewhere in the mid-20s, which is lower than its historic norm by about two to three turns. which does look like it's attractive however, we really have to understand what's happening from their conference call, why they're guiding net new actives is a level that's about half what the street expected >> so what do you want to hear from them on that? >> well, i think we want to see if they're really going to underscore engagement growth rates and they're going to offer a lot more offerings and revenue opportunities such that number one, even despite 15 to 20 million users they're going to be able to confidently achieve their growth second of all, i think there's going to be a perception the targets they're giving are very

conservative investors feel like they missed their numbers this quarter, they missed in 2021 now they want to see an opportunity for them to set the bar low and raise consistently that's what we're going to watch to see lastly, we want to know if they can show accelerated growth beyond '22 versus what the nonrecurring one-time headwinds they're seeing this year that's what we're looking for, the '23 and beyond trajectory. >> a ruf ride for investors in this stock and not a pretty after hours session. down almost 14%. thank you for joining us still ahead, we have analyst reaction to disappointing results from starbucks and gm. find out whether these pullbacks are a buying opportunity when "closing bell" coming back starbucks down 4.6%.

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welcome back let's have a look at some of those after hours earnings movers two big winners, alphabet and amd. both up close to 10% 7% for alphabet. 9% for amd those are the two only winners and sharp decliners as well. starbucks down nearly 5% electronic arts was down 5%, now only 2.4%. paypal down 14.5%. around about 150 of course, thin volume after hours trade. we haven't had the call yet. last week, its intraday low was 155. it's well below that level as things stand

its highs of last summer and last february were above 300 i think it got to 308, 309, so significant slide both in after hours and over the last gryo so for paypal that call will be absolutely key. >> didn't like the outlook and didn't like the earnings revenue and payments were higher on paypal. shares of gm also trading lower after hours after reporting an earnings beat and revenue miss let's bring in michael who covers the stock he's benchmark senior equity analyst with a buy rating on gm. first reaction, how negative was it for gm? >> i don't think it was negative at all general motors, if you look, to me the most important variable is how much cash did they end with, what did the balance sheet look like? in the quarter, gm ended with $7.7 billion in its auto operations up $6 billion from the end of september. they generated $2 billion a month in surplus there's nothing negative about that >> what are the other things that stand out for you and that

you'll be listening out for on the call >> i think the market is probably reacting to their guidance and gm did give conservative guidance for 2022. that shouldn't be surprising considering some of the uncertainties out there, particularly with chip supply. so i think one of the things we'll hear in the call is just that, we're trying to give a conservative guidance for 2022 given what we know today that could change dramatically in the next three months if chip supply improves. and i would expect it would be in the second half of the year and we'll see strong results from general motors. >> michael, thanks so much for joining us gm had been trading lower. it's now pretty much flat. we await the earnings call there. shares of starbucks, we'll break down that move with an analyst "closing bell"acin cpl bk aoue.

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starbucks sinking after hours, 4.7% lower. let's discuss now with nick who joins us from web bush's restaurants steam. nick, great to see you what's gone wrong here you have a buy rating on the stock. what here surprised you and led to the share price decline >> thanks for having me. the operating margin miss is the

biggest headwind here. really led by all three segments they missed operating margin across all three segments in the u.s., international, and channel development. on top of that, they really missed the international comp, which should have been overly surprising given the choppiness we have seen internationally, particularly around china. >> and so what are the key things on the call could they have off set this with a positive outlook or is this a major negative turning point which is making you consider your buy rating >> i was not surprised i had previewed starbucks, one of the many points about the operating margin estimate for the year essentially it's more of a v valuation play 27 times historical pe forward multiple we need to see what that number is in terms of guidance for operating margin for this year and to what extent they can get close to 18% next year that they had targeted previously.

the stock was already off. i don't think it's that surprising that this is the kind of quarter that we just had. we just didn't get guidance, so once we get guidance, i feel like people will have a foundation on which to build from in terms of whether or not they want the stock. given the valuation, they have that visibility around what the new margin target is, i think people will come back to this name >> what about china, nick? you mentioned that was expected. same store sales there falling 14%. do they have any visibility into when that business could come back given the really strict covid policies in that country >> i think the question is whether it's really due to covid or if there's a broader slowdown in china going on. i think that's one of the key takeaways we need from this call, from the earnings call that's probably one of the major questions we need to address today, is when do they think

china turns around it's supposed to be half of their top line growth going forward. china. and so to what extent is that still realistic. >> nick, we'll leave it there. thanks so much for joining us. >> thanks for having me. >>nick, we'll leave it there thanks so much for joining us. >> thanks for having me. >> up next, we're counting down to the conference calls after what has been a wild after-hours earnings session about to kick off any minute, including alphabet we'll preview what you need to look out for paypal down 17%. don't forget tomorrow exclusive interview t-mobile ceo "closing bell" will be right back

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so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity. welcome back we're getting more on paypal results. kate rooney with the details, hi, kate. >> i just spoke to ceo from paypal about the q4 and guidance weighing on the stock after-hours. he saidthey're staying conservative on guidance taking what he called a measure add approach for guidance on the year talked about the ebay transition that's a big focus, they're still working through that and said the transition is

hiding some of the underlying strength, the 13% in quarter would have been 22% if you strip ebay and also mentioned external factors, exogeous factors like inflation and spending in the segments of their user base, and supply chain and inflation also weighing on paypal looking at ebay did put $1.4 billion of pressure on revenue this year it's looking like $600 million so they're coming out of that in the third quarter of 2022 so the back half of this year. paypal won't have to adjust for ebay, in five months that should be completely flushed out. on to the super app, a bright spot here, saying the those

using the app have average revenue two times that of those who only use it for check out. -- venmo growing 80%. but stock down double digits more than 15% call kicking off in about five minutes here back to you. >> kate, i'm interested in the point you mentioned the exgenous factors on inflation pressuring the guidance going forward, on the cyclical factor of the economy no real reason to differentiate the sentiment on outlook year ahead than all of the big bank ceos who were pretty constructive not sure if there's more color or comments you can add. >> i agree with you, on visa and mastercard and amex saw a strong payment growth and rosie outlook and guidance wall street was optimistic going into the report thinking based

on what the banks said the consumer spending trends would be the same and inflation wouldn't be as much. they do have a small businesses segment that could be hit by things like supply chain issues with cross border payments, may be a reason to see it small businesses small side and wall street very surprising. hear more with the call coming up. >> down 16%. kate rooney thank you. moments away from earnings call from alphabet, amd, starbucks, all making big moves alphabet surging after top and bottom line beat and big winner and strong outlook is amd up almost 10% mike, which one are you going to pay closest attention to

alphabet with that 8% move will be good for the overall market and for technology continuing what microsoft and apple started last week. >> yeah certainly a very good quarter. look at youtube revenue $8.6 billion in a quarter more than net flix made last quarter it's totally different business, ads for youtube but alphabet strategy has side stepped the concerns about pricing power and sub growth going away because it's mostly advertising-supported. amd with a very good quarter in guidance, that stock was pounded after the momentum highs late last year. that's going to be another decent bit of traction for semiconductor which is another element for the market to get back in gear by the way, square trading down 5% or more off paypal number. >> and square rallied up to 120

or so getting close to 100 on the pull back. paypal similar on that point, quite markedly below it's mid-way intra day low last week on paypal is that significant, does it reignite the selling, with square down as well of those type of stocks >> yeah those would be the upper tier of the real hyper growth ark-type stocks. they do own them, certainly square it's more differentiate in fintech because visa and mastercard have reclaimed the investors in this move much more broader plays and more reasonably valued on the overall payment ecosystem, that's been to their benefit i still think it's mostly kind of a valuation, rationalization for paypal at a point when market share issue, the ebay

hang over lasted longer than expected. >> down 16% after a rough go amd, the semiconductor have been a bright spot, a lot of names reporting better results in that grow showing, a, the fundamentals are pretty sound, though they got swept into the selling on the fed noise and tightening fears. >> yeah. >> and whether it says anything about the ongoing chip shortage and keep inflation elevated here >> it's obviously being addressed. there was a big top-line guide higher for amd seeing nvidia trade up $11 after-hours too so people think it means good things for the leaders in semis right now yeah semis never did sur rend that leadership but towards the lows last week everything got hit hard and semis had a ugly bout in the charts. >> and back to the broader markets it was a great end to

the session and great start to the week led by the small caps, the russell and mega cap both up. >> hardest hit came back strong yesterday, still, follow through bounce makes a lot of sense. it's encouraging last week's low looks like it has credibility. this is the easy part. >> up more than 4% this week we're out of time on cloegz. . live from the nasdaq, this is "fast money", i'm melissa lee, tonight's trader lineup danica mcadam, tim seymour, karen and dan nathan we're all over the very busy night of earnings, alphabet, gm, paypal, amd, starbucks on the move, we're breaking down the quarter straight ahead plus, brainstorm volatility a warning from bofa why she's not giving on all-clear to