10% would be a win we'll see it settles out, liz, thank you very much. >> thank you. >> all right a final check on the futures this morning nasdaq looking down on the back of the meta news dow about .5% now. the s&p off a little over 1.5% thank you to melissa and mike. make sure you join us tomorrow a big show ahead from pebble beach. sq"squawk on the street" begins n now. yields are higher. bank of england hikes again. we think it's good news on jobless claims and q4 productivity vested more than a year road map begins with meta's

reverse. increasing competitive head winds, decreasing daily users for the first time stocks on track for the worst ever one-day performance. >> spotify shares are in the red. disappointing the street amiss the controversy amid joe rogan daniel ek will join us call come the latest to post better than expected quarterly results. that's not helping the semiconductor stocks this morning. it has competitive pressures like tiktok. here is zuckerberg on the call. >> as a result of the competition and the shift, just short term short form video as well as our focus on serving young adults we're going to continue to see some pressure on

impression growth in the near term i'm confident that leaning harder into the trends is the right short term trade-off to make. >> expenses up 38. >> yeah. we've been there 2018 in july and. that was clakt i think people felt down not out. i think a lot of people feelit today this is man who says he has to beat someone, he'll do anything he's a competitive man with unlimited fire power when they buy back any amount of stock they want to, it shows you they have the unlimited fire

power to win the win play not be until q3. >> they bought back $20 billion worth of stock. >> is it ill advised >>t >> it may have been. jim, what is going to happen in the third quarter that is going to reignite at least the hope of those who look to this as a great road stop? right now what we're seeing is a transition at least in the minds of investors of this is not any longer the growth name that had to be a corner stone of my portfolio. >> i'm not going there. >> okay. i believe that, look, there's a lot of moving parts to the call. you either believe that reels is going to be where you are going to do but you currently do them on tiktok. right now you have tiktok. >> why would i believe that? >> it's zuckerberg.

>> okay. i've seen the power of tiktok in my home. >> good for you. >> good for every other teen i don't see them on reels which is not as much as tiktok it's not close to monetizing the levels it could. >> let's say zuckerberg is listening. >> okay. >> what he says is i like david faber. i'm going prove him wrong. there are probably al half dozen people in the world that say that and deliver it. he's one of them so i think that you're getting it now i'm not saying it's a buy today by any means i'm saying if you think he understands the real issue here and the other guys don't, the other social media companies don't. it's tiktok. >> is that really the case or speaking out to the regulators

jamie romando is on this morning. they're continuing the investigation. concerning the privacy concerns around tiktok. obviously, it's owned by a chinese company, bitedance. >> right. >> or about the competition. you believe it was you think -- >> look, i think when we saw that user -- that was in asia. it doesn't mean forget about it. there's a lot of things. we don't need to talk about what's app and messenger and venn moe i'm saying when you speak to the people out there, they understand the challenge of reels. they understood that snap could beat them. they ubd at various times that youtube could beat them. they are people focussed when destroying the competition that gets them in trouble with what i'm not saying that because i happen to know mark zuckerberg

or what he's thinking, i'm saying there are very few people i would say are belichick-like i know he didn't make the super bowl but just as, okay, we'll do what it takes to win. that's what's happening. and at the same time we're going to give you meta verse is meta verse monetized yet? >> no. >> i don't know. you take a look at the super bowl ad. monetized. i spoke with ralph lauren this morning, they are all in meta verse. >> what is that? >> my digital twin >> the digital animation. >> you look good, jim! >> you could not tell whether it was me -- that's -- i don't think -- why not give me a pony tail where is my pony tail? >> i play football and i'm it!

and i see unusual activity, david. >> your point is a good talking point when it comes to regulators maybe that's why he was fierce when talking about tiktok on the call take a listen to this. >> tiktok is a so big as competitor already and also continues to grow and quite a fast rate off a very large mix the question asked before around are we, like, that's around it is there anything that makes it so we it takes longer to get to where we want on this. you know, even compounding extremely quickly, that's, you know, we that is compounding in a quick rate, too.

>> what? >> he knows it he knows what he has to do we're not even talking about the fact that apple truly -- people on. >> yeah. big time. >> not alphabet. that's one of the reasons. >> alphabet intent here it's about the advertiser being able to track you. if you don't allow them to track you, you're not as much -- >> pays apple billions of dollars a year to be the default. let's go out of meta but use meta as the metaphor what is happening here is people are saying the last four weeks of december were miserable for one line miserable except for google. >> i know. i did raise this larger issue yesterday with paypal, which is e commerce growth slowing the way it's going to the amazon earnings tonight >> yes. >> we may get a sense of it tonight. >> it's not slowing -- i don't know what amazon will be but e

commerce sped up for google. >> look at travel. google is a pandemic play coming out of the pandemic. >> all right there's a lot of cross currents here. >> help me navigate them. >> okay. listen to me okay there's some people that are transcend what apple did and zuckerberg will figure it out. it'll take two quarters. it'll take two quarters. but he will figure it out. there are others -- >> you mean to refine the measurement in the wake of ios >> exactly snap we should hear more >> snap had a big interest snap, twitter, that's extension l. >> snap is down to levels it hasn't seen since the ipo. >> i know. it was all the way up. >> it was all the way up

the question is tiktok it's not as if tiktok hasn't been growing suddenly it's this quarter tiktok has been a force for some time i said mark zuckerberg wakes up every morning and said, wow there's reels. all people are doing is posting their tiktoks. i've screwed up before with mobile i'm not going to do that again i had the problem with cambridge. i'm not doing it again know the greatest thing that happened to him? joe rogan. and they have a free speech issue? >> not today we may come back to it at this point. >> no i'm saying the whole discussion could have been and how many people -- how many people could they keep from getting vaccinated >> i know.

you're cutting me no breaks today. >> no. >> i'm saying -- >> i'm not -- >> i'm saying metaverse. i'm not saying it's a buy because having been eviscerated. we have the smallest position of a frank name we had the smallest face.aang ne we had the smallest face even the metaverse is so real for industrial and zuckerberg wants it to be consumer. >> so you would rather as a metaverse play you prefer microsoft to facebook? >> yes right now yes. >> after netflix and paypal and pand pellton and meta would you touch anything related to subs or impressions? if you could come up with a way

to have a sub, yes if you can't monetize the eye balls because apple made it difficult for advertisers to see whether they're working, then you are back in 2001. >> yeah. >> and these companies that are cap losed. >> right. >> but if you can't -- if you can't prove to an advertiser other than google that the ad works, i'm not putting the ad there. i wonder how much of the last quarter given the supply chain disruptions. maybe advertisers pulled back because they didn't have the product or enough of it. >> i don't buy that. >> okay. maybe they don't i'm just trying to think let's come back to the stock at 250. 18 times gap earnings. i see some estimates here. 11 times 23 ebitda estimates. >> that's why i want top buy it. i'm saying not today what happens is as we saw, let's say you want to paypal

yesterday. then metaverse and it's at $129. i want people to understand that i think it's a buy is it a buy today? nope when you have days like today, you see a stock down 75, it means there's someone who doesn't really care what price they get it. >> that's your point on paper. >> i said they don't care. someone right now, david, says sell it with a 1220 level. >> we'll come back to it, obviously. a huge story a busy morning with the central banks with the bank of england and ecb. steve lieberman is lagarde getting -- >> yeah. out of the u.s. on the comments by ecb president where she refused to rule out a 2022 rate

hike inflation report she said the decision will be gradual but anonymous concern at the ecb meeting about inflation numbers. she said there was a thorough in-depth discussion. we have to look more in-depth at this, she said, in march and any business will be gradual. definitely a move maybe not toward hawkish but maybe a away from the uber dubbishness of the ecb. they may be thinking wait a second it's time to reconsider how dubbish we'll be for the entire year, carl. >> steve, we'll keep it tight. we'll come back to you that's a big story around the world this morning steve liesman on ecb spotify is down on the premarket. weaker than expected sub forecast company also dealing with controversy, as you know, around the joe rogan podcast, which lead more musicians, david crosby yesterday, to ask to have

their music pulled from the platform daniel ek talked about the issue on the call. >> it's too early to know what the impact may be. usually when we've had controversies in the past, those are measured in months and not days but i feel good about where we are in release to that and, obviously, top line trends looks very healthy still. >> that said, they do discontinue full-year guidance, jim. >> right the quizzical part is how important the first quarter. it's happening because the first quarter is not good or because it's not as important as the back half. the amount or the number of artists who have pulled out, it's not ans a risk. that's how small it is to the core business. they would tell you that why aren't you focussed on india we're an international company we're an incredible number of

markets. if you ask them whether they are prepandemic, you know, a pandemic play, i don't think they answer the question that worries me. >> what is the answer? >> i think we have to find out when we don't know what the first quarter is like. right now we are presuming the first quarter is post omicron. that's where i think we have to get answers. david, you know there's a d dichotomy between companies. it's more stark than i thought it's not pelton. it's a whole way of life i mean, if you look at costco. their numbers were fantastic why? prepandemic, post pandemic, all they do is just gain spotify how much how much is home so it is -- by the way, i think the work from home thing -- no

over. >> over? >> in terms of how much money goes into your place or whatever. >> oh, i see the spend. >> the spend is kind of ending. >> yes. >> people are done -- they have done what nay need do to. >> yeah if they have a home or home office. >> yeah. the multiple has slunk 10 times. i think people felt it was a place you made your second home and first home when you go to spotify, they would tell you, listen, if you look at the hours or listen worldwide, that is -- you shouldn't think about that >> yeah. >> david, i'm thinking about it everywhere i think lives are going back to normal and we almost dislike what our lives were like and we tend to stay away from what our lives were like >>well, that's a conversation maybe not for today. >> did you ever see -- >> did you ever see -- i was going to say -- >> margins are not great. >> they're not great

that's why -- >> long-term. >> but advertising they would tell you is doing okay >> yes. >> they can monetize the advertising. >> yes. >> a lot of more listeners and listeners. >> yeah. ek, i don't know if i want to bet with him. >> really? >> yeah. i'm concerned about trends and changes. >> it's interesting how the conversation among the artists who were initially opposed to rogan on the vaccine level, like neil young, are now mad about the money. they're mad about why are you paying these guys in podcasting so much and so little for musicians. we'll ask daniel whether the model is podcast heavy. >> it's a pandora's box. you'll love that, david! >> i get it. understood pandora because of sirius. >> yes. >> they went to that model because 70% of the revenue go to labels to begin with it's hard to generate operating leverage when you have 70% going out the door.

>> and walk into the publisher versus platform argument if rogan is exclusive, are you a neutral platform or pubbisher. >> saying you own the artist. >> it's a problematic of a problematic cross roads for spotify. honestly and that's one i don't -- i would love to be able to say just buy it. too many question marks. >> we still got 40 minutes left in the hour. you'll stick around maybe a little bit longer this morning >> of course. >> if you can. we'll get cramer's mad dash and count down to the opening bell a busy thursday morning and more on tap tonight with the amazon, snap, ford, and more there's a look at futures. nasdaq will gehiathepet t t on.

esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. - in the last two years, we quadrupled our team

and the pace we're growing, i couldn't keep up without ziprecruiter. they do the legwork and they get my job posting in front of the right candidates. i love invite to apply. i instantly see great candidates and i can invite them to apply. we have hired across all departments, engineering, marketing, hardware, field techs. you can basically tell ziprecruiter who you need, when you need it, and they deliver. - [narrator] ziprecruiter. rated the number one hiring site. try it for free at ziprecruiter.com try it for free at ziprecruiter.com

all right. welcome back we have a mad dash count down the opening bell. we'll take a deep breath honeywell. >> i needed that. >> yes >> i've been talking about the theme i have, which was december was a bad month. now what you're trying to do is find companies that are open stock plays on the openingings using what we learned from google, which i spilled make up on myself. stop it! nobody is perfect. joey brown there's going to be an opening we know from travel. we know people want to the get rid of the testing i mean, testing. people are back through. people in europe are back to normal. >> okay. >> so we want companies levered to travel and aerospace. honeywell. i don't care bad quarter no one was going anywhere. it's a heavy aerospace what you want to do a serious

ceo commercial aerospace he placed organic growth high for 2022 nonresidential up high for 2022. oil and gas up mid single digit for 2022 industrial productivity flat to up okay so that's what i'm looking for okay so you can sell the honeywell all you want i'm a buyer of honeywell it's 2022! i don't care about 2021. i don't. and i want to know who is not hostage and who is hostage to the opening of this world and if we don't think of it like that, we're hopeless. >> okay. the last indoor event we'll have is the super bowl. after that we're going places again. we don't care and we have to travel and every single airline needs more planes. every single one every one. >> listen, i'm looking forward to it. >> and china lockdown ends >> oh! that may never end >> no. xi, no es they law lauder and ralph

lauren have fabulous china numbers. don't give me that president xi -- >> make themselves up in their apartments, i guess. they can't go outside. >> they're going to travel they once said there should be no flies they carried fly swatters. >> did they get them all see the wall building on the border of vietnam? >> that's an old one. >> china and vietnam have hated each other forever remember the dl 79 war >> no. >> i do i can barely remember what happened. luckiest man in the world. 264? >> really? >> yeah. hey, by the way. catch us any time or anywhere. if you forgot what you said and want to listen to it again, "squawk on the street" opening

bell podcast i listen to it every day and say "did i say that? back after this. moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving.

>> announcer: the opening bell is brought to you by new

convene. shares of call com lower sales up 30 year on year the company expects supply to improve in the second half >> the business is doing what they'll do with gnm in the next year for antonymous. it's awesome the internet of things just incredible but what you need to know, david, when you look at these things we have to focus on how much do you think call come was up in the four sessions before the quarter? >> a lot. >> 27 points i was trying to get people in the investment club pivoting to qaualcomm. it's an unbelievable buy. >> don't forget they're the largest supplier to both

apple -- >> right. >> obviously right in the middle of the 5g cycle here without a doubt. >> early in the 5g. >> still early you mentioned internet of things sometimes i think it's important to explain to people i mean, chips go into everything where they can communicate and data is coming off anything and everything. >> yeah. >> and obviously allows for more automation a lot more ability to know exactly what is going on in a particular moment in time. >> yes i know it's an upbeat at the day-to-day if you want one chip other than amd, we think tomorrow you would want it. >> above nvidia? >> yeah. just for now yeah nvidia had a big move, again, they don't report until second week you need data points if you don't have them, you're kind of hung advanced micro didn't have the

best quarter. >> we have a lot to watch in the open here in a few moments we'll get the opening bell on the cnbc big board and the nasdaq celebrating its combination. [ opening bell what happens if streaming is -- bought the $20 million worth, to me that said stay close to streaming. then yesterday we got to go over the streaming numbers. the streaming numbers for youtube. youtube is the biggest thing on earth! we don't even talk about it >>well, we do. i mean, we talk about it it's similar in size in terms of revenues to netflix.

but more profitability. >> how much do they pay for the content? >> not a lot not a lot. >> when i started to stream -- >> generated and a good way to go, it would seem. >> >> when i started to stream it was paying me $2 million for content. it's like great. and at the end it said i pay him $2 million this page says instead of you paying me $2 million, i pay you $2 million he said yeah i thought it was fair that's youtube. >> right. >> netflix is the cramer. >> all right let's step back for a moment, though you mention alphabet, of course, which did benefit. >> yeah. paypal reporting disappointing numbers yesterday. it's not that long ago that

netflix also -- it's down 30% for the year even with that bounce you talked about. reed hastings bought the stock and here we are with facebook losing roughly a quarter of its value >> so the earnings season is not shaping up that well you look at emmerson they make things okay that are valuable. they charge people they make money. can we please see a chart? >> well, your point about making stuff profitably you made it a few times. honeywell guiding below. supply chain not good >>well, okay those are buys. >> really? >> yeah. they're buys because they're derisk. >> you said honeywell was a buy. >> yeah. do you think there's not going to be a return to aviation honeywell is aviation, it's oil, it's climate okay those are things that were hurt during the decline and what people spooefr as a decline in the economy. if you're levered to travel,

you're levered to industrial consumption, you'll be fine! >> jim coming into the week, there was a question of the rally we had last week and the nasdaq even with the high multiple names and the hypergrowth but no real earnings names. >> yes. >> is that sustainable since then we've gotten paypal and facebook. >> yes. >> and it certainly doesn't feel given the performance we're seeing at the nasdaq that rally was sustainable. >> okay. so if you look at what ralph lauren would say, and i don't know what ralph lauren stock is now. my computer broke. that's always fun. if you look at are a what ralph lauren would say the fourth quarter was a december story where people left their house. they left their house and they shopped at the mall. carl, the mall did really well. >> i was going to say, it's not all doom and gloom today ralph guides higher. el guides higher hersheys guides higher. >> i like mars better.

direct to consumer did well. if you had something where you went out and bought or traveled you want to be levered to that david, user growth no longer is doing it this is very hard to monetize on advertising. when apple has pretty much made itself its large advertise. >> yeah. and the numbers are stark when you look at the fact that facebook lost users. that's not -- >> they would tell you -- >> i know you don't care where it is. am i a defender of it? yes. i'm okay in multiple. >> i guess to sum up you're a believer in zuckerberg. >>well, so far that's been pretty good call. >> without a duty! without a doubt. >> must buy back stock at $100 million a year rate. >> one thing they is what i call unlimited fire power and if they want to win against tiktok, they are the only one other than maybe alphabet wants

to win against tiktok. apple has done some things that made it so your life has changed on the web if you put app in apps, the app, david, apple's privacy policy benefitted alphabet and hurt the other companies. it makes it hard to value. >> the other point made is meta is the least diversified revenue stream in megacap tech it's all 'tissing. there's no enterprise. >> right it's none of that. >> that's a great point. when you look at the cloud business but still lost a lot of money for alphabet, it's coming in hot waymo, i believe, i think, you know, i think we're eight quarters away from when we're going to see self-driving in most cities? >> okay. that's still two years. >> it's going by like this. >> your kids will grow up. >> they are. they are growing up. really, you're going down that

road you're happy you're going to try to bring me down in the whole thing you got going on this morning? >> why not >> productivity the last quarter up 66, jim self-driving will feed that. >> when you talk to drivers, uber drivers, everyone knows it's temporary it's temporary they know that we would rather, if given our druthers, have a machine drive us. >> wouldn't you? >> yeah. i can't wait to sit in the back of my apple car and be surrounded by screens. >> yeah. >>yeah.

>> i like bananas. all of us wear underwear. >> i'm doctor. >> doctor. doctor, doctor let me finish. here is the choice -- >> yes. >> you and a significant other get in the cab. >> yes. >> you want to have a conversation would you prefer a driver listening to your every word or prefer a self-driving car that does not have any -- who doesn't hear anything unless, of course, it's alphabet. >> yeah. unless tiktok is in the car. then they're hearing everything. >> maybe the apple car will not. >> i remember the year before uber tcb a friend of mine woody said, listen, jim, one day you won't hail cabs. you'll do this that's the most ridiculous thing i've heard you hail cabs. it's new york. you'll do this. >> and it's true. >> eight months later i did this i'm telling you self-driving cars. >> i believe you now we've been sitting here at this desk for many years talking

about it i thought by 2022 they would be racing around. travis call neck told me they would be rationing around the streets by now. >> he didn't get the timing right. >> no. >> it's happening. >> we'll start with t-mobile add subscribers over the year. this year that is encouraging investors and these things trade at what many would argue is low multiples to ebola data. and you can see real positive response from that stock this morning. some guidance benefits from the company. plan 100,000 sprint phones. >> i'm reading here from a jpmorgan note but, again, it gets a little too in the weeds a lot better 2022 subscriber

growth guidance. >> oh, yeah. >> and at&t because you're closer. >> yeah. tomorrow they've got stank stanky. >> yeah. >> at&t is right in there. look i mean, these are -- for the quarter. >> that's why verizon even when chance vest berg came on "mad money" i thought he had a good growth story. >> you look and the companies will add together. verizon and charter would never get together it was contemplated as i well know and reported.

>> i would say you want to do -- you want to move here on intel go you go to tim cook you say i don't want to give people a thumb i want to give people a phone. i want to give them a watch. and i want to give them a subscription to everything and then you crush t-mobile! that's what you do if you want the formula, that's what you do. >> speaking of things that apple is crush, it's not just facebook in part because, obviously, the privacy settings that are causing them to potentially advertising dollars. pinterest, twitter, snap, here is a look at apple take a look at the stocks. down 8%. twitter, as well snap all downsharply, carl because of concerns about what the same thing we saw, of course, reflected in facebook's business will mean for them. >> yeah. >> 18%. >> you could argue it extends to disney back to $140 today >> i know. i was hoping it didn't

i thought we were out of the woods. even some of these defenses sigma the outlook out of sigma the -- well they had a decent quarter. up 30. people were no longer worried about medicare advantage i think they'll get a bid probably in the 90s. unh i think was extraordinary story. take a look at that one, david it's going higher. that's what people are clustered. what is happening is they have lives. so to speak. they have lives that actually pay. pinterest users pinterest user versus united health user. the united health user is worth a lot more. >> nod because you agree. >> yes facebook taking a huge dent out of the nasdaq 100 this morning by the way, you might have heard us mention it yesterday.

tomorrow at 12:30 p.m. eastern time, amd's lisa su will join jim for the second cnbc club monthly meeting. sign up at cnbc.com/jointheclub. how do you take a toing from 2 to 121 and competitive how do you beat other people in a game that you have been written off? >> very nice before we go to break, a look at the bond market, as well 10 year getting closer to 184 than 183 that's notable two-year 118 all though the vix we're watching closely just above 23. back in a minute i am here because they revolutionized immunotherapy. i am here because they saw how cancer

adapts to different oxygen levels and starved it. i am here because they switched off egfr gene mutation and stopped the growth of tumor cells. there's a place that's making one advanced cancer discovery after another for 75 years. i am here... i am here.... because of dana-farber. what we do here changes lives everywhere. i am here. when you're looking for answers, it's good to have help. because the right information, at the right time, may make all the difference. at humana, we know that's especially true when you're looking for a medicare supplement insurance plan. that's why we're offering "seven things every medicare supplement should have". it's yours free, just for calling the number on your screen. and when you call, a knowledgeable licensed agent-producer can answer any questions you have, and help you choose the plan that's right for you. the call is free, and there's no obligation. you see, medicare covers only about 80%

of your part b medical expenses. the rest is up to you! that's why so many people purchase medicare supplement insurance plans like those offered by humana. they're designed to help you save money and pay some of the costs medicare doesn't. depending on the medicare supplement plan you select, you could have no deductibles or copayments for doctor visits, hospital stays, emergency care and more! you can keep the doctors you have now, ones you know and trust, with no referrals needed. plus you can get medical care anywhere in the country, even when you're traveling. with humana, you get a competitive monthly premium and personalized service from a healthcare partner working to make healthcare simpler and easier for you. you can choose from a wide range of standardized plans. each one is designed to work seamlessly with medicare, and help save you money. so how do you find the plan that's right for you? one that fits your needs and your budget? call humana now at the number on your screen for this free guide! it's just one of the

ways that humana is making healthcare simpler. and when you call, a knowledgeable licensed agent-producer can answer any questions you have, and help you choose the plan that's right for you. the call is free and there's no obligation. you know medicare won't cover all your medical costs. so call now, and see why a medicare supplement plan from a company like humana just might be the answer. welcome back to "squawk on the street." rick santelli here with breaking nudes. our january final read on markit services and composite pmi we take the mid month read and

toss it. 50.9 on services now turns into 51.2! that is the final read squishlly following december, which was 57.6 this is the softest read since july of 2020 on the composite side, 51.1. versus a final read last month of 57.0. the 50.8 mid month read gets tossed and like the services pmi, this is the lowest level since july of 2020 with respect to the ism numbers, they would be out in 15 minutes. we can do a comparison remember, "squawk on the street" remember, "squawk on the street" will return in two minesut what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi.

okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq ♪♪ the chewy box comes today! calm down lenny.

we just ordered it yesterday. (gasp) oven baked apple biscuits! hold me leroy! biscuits!! get fast free 1-3 day shipping when they just can't wait. chewy. much president biden heads to new york city to

>> what we think is the overall impact of the cumulative ios changes to where 2022 or 2022 revenue forecast is. so kind of aggregate the changes we're seeing across ios that's sort of the order of magnitude we can't be precise on this. it's an estimate you know, it ranges on the impact to our business we think it's a substantial, you

know, head wind to work our way through and, obviously, we're working hard to mitigate those impacts and continue to make apps relevant and effective for users. >> that's the cfo talking about the head winds from ios and by significant, jim, he means about $10 billion this about $10 bill year. >> right that caused me to shudder. i went over with the company, i didn't get comfort that was an underpromised, so to speak, that's just out there. the 10 billion is going to happen david will tell you, and david's is conservative, he would say tough comp, tough comp, tough comp then you see what alphabet is having and you don't sew the tough comp that is the reason why this stock should be down a good deal but not 82 points. >> and you are comfortable with the continued spend on the metaverse? >> absolutely shlts reality labs, as they call it, 3.3 billion. they didn't point to a

particular number, right, for this we just know it's going to be a lot. >> educational it's going to be retail, obviously, again, they don't have enterprise, which i think guys hit on the big issue. go to the coors bar for the super bowl. >> in the metaverse? >> yes why would you want to? now that i have my avatar, i don't think he leaves this desk, my person. i stay right where i am. >> are we going to look at that in ten years and be embarrassed? >> i think -- >> whoever you are in the metaverse because you're a tough guy. >> if you are going to teach people and build this democracy the way it should be, i think you have to teach them in the metaverse because i think right now schools are broken we all know that in this yankee country. i think the metaverse is the answer do i think zuckerberg will do it i would. i think it's very important. no, i mean, you made the case

it's an industrial tool, educational tool and will be a consumer tool over the long term >> i spent a lot of time with the nvidia omni verse and i think it's extraordinary may not be personal enough for people yet i believe. >> guys, we are holding on here to 4,500 by about 20 points. bob pisani. >> love that animation, by the way. so this is the big cap we are seeing alphabet helped the s&p out on a down day today is the pposite today we are seeing facebook hurting the s&p 500. it's dramatically underperforming, the dow, for example, because it's so big out there. so let's look at the sectors here there is banks holding up pretty well they are stabilized. industrials a little bit of unfortunate news on the supply chain issues from some of them energy down a little bit remember oil is holding up very well, $88.89

paypal down. so take a look the big industrials continuing to talk about the supply chain issues and still trying to hash out how long it's going to be existing honeywell's numbers i thought were amazing very clear that the demand is strong across the board. that was one of the things we got from the earnings release. sales down 3% due to sflain issues operating margins a little bit weaker but they talked about the ability to raise prices and the guidance is a little bit on the lower side this is the same situation with a lot of these companies now cummins was a another example. really high demand they emphasized possibly with the exception of china the ceo saying our industry continues to experience significant supply chain constraints resulting in elevated manufacturing logistics material costs, margins below expectations, particularly in q4 what's not clear is how long this is going on that's part of the problem the earnings mixed honeywell and cummins down

parker-hannifin, these are global industrials, why i follow them, they know what's going on. their numbers were excellent and their demand was also excellent. they talked about supply chain constraints but not hit nearly as much. i want to bring out conocophillips these oil companies are just killing it they are raking in oceans of cash you saw this with marathon petroleum yesterday. biggest refiner out there. most of these companies are talking about returning more capital to shareholders either in the form of more buybacks or increasing the dividends overall. but we're just seeing oceans of cash flow from these companies that's going on in general in corporate america. we are halfway through, 260 companies in the s&p 500 have reported record high revenues i'm talking about $3.5 trillion. is that a little or a lot? we hit 3 trillion fourth quarter of 2022. 3.5 trillion we are talking oceans of money coming in. that's why the dividends are hitting record igh, the

payouts, buybacks are going to hit record highs this quarter as well that seems clear profit margins are slightly weaker we were at 13%, 13.5% a year ago, but down to 12.7 this is a slip, but not that dramatic it's because the pricing power is still there earnings beats are smaller carl. >> we are looking at 3% earnings beats. we were looking at 15% earnings beats last year. 20%. and the estimates for 2022, carl, this is my greatest concern, the lifebloodov the stock market is either earnings estimates go up or the multiples go up and right now neither one of them are moving that makes it harder to move forward on the market. carl, back to you. >> with that, dow down 350 thanks so much bob pisani. let's get to jim and "stop trading." >> the next oil that you will be hearing about, ctra, the merger with capital oil tom jordan runs it more natural gas than oil. that's important because of how

short europe is of natural gas and now exported they are unhedged. you get the numbers and say what the neck they are unhedged. cabot, simerix, buy. you are going to stick around? >> absolutely. >> after the top of the hour for daniel, spotify. meanwhile, on top of all of the weak guidance from corporates. >> a lot of things wrong right now. not a great time >> yes when they don't like it, it doesn't just have a one day. paypal tells you what's going to happen with metaverse tomorrow. >> the nasdaq down more than 2%. 1% decline in the dow. we'll watch the markets and of mes.ng spotify in the comi mont don't go away.

do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or

call the number on your screen. coventry direct, redefining insurance. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire ♪ good thursday morning. another hour of "squawk on the street." i'm carl quintanilla with morgan brennan, david faber and jim cramer is sticking around for a

special guest, spotify's founder and ceo daniel ek. the meta effect. meta a huge influence as users decline for the first time on pace for the worst day ever as a public company going back to 2012 yields are up a bit as the b of e hikes first back-to-back hike since 2004 data crossing in a couple of moments, factory orders. hey, rick santelli >> well, carl, yes, we are expecting factory orders and durable goods, ism services is now out. 59.9 it is a beat we're expecting a number around 59.5 that follows an upwardly revised last month from 62 to 62.3 62.0 its current read. well, it isn't that it's the highest in any near-term-fashion. november was the highest at 68.4 but it is a beat nonetheless dose factory orders, minus 0.4

is expected if you look at factory order cord ex-transportation there is improvement. so you can see transportation like in many other metrics aircraft, cars is a bit of a drag so it popped up to up 0.10 of 1%, 0.3 light to expectations. now, let's get to dushls these are final numbers, which means he toss out the mid-month read expecting 0.9. that was the mid-month read. now minus 0.7. 0.2 of improvement the core ex-transportation, same effect it pops up to up 0.6 if we look at capital good orders nondefense ex-aircraft a proxy for business spending, it is up 0.3. so we take that zero and it now becomes 0.3. quite an improvement for mid-month. if you go to shipments versus order, remained at our last look

up 1p.3%. interest rates are going up. amazing how much the market demands that was in the past not locking to give. "squawk box" -- "squawk on the street," gang, morgan, back to you. >> rick santelli, thank you. we have a lot of squawks here "squawk on the street. we are 30 minutes into the trading session. three big mofrgs, eli lilly beating estimates on the top lines thanks to a jump in sales of diabetes drug trulicity and covid therapies. stock is lower now, down 2.5% because their antibiotic treatments are unlikely to tackle omicron infections and that is casting a shadow on demand there carl mentioned spotify's daniel ek, ad revenue surging for the quarter. ex-spotify the stock is down 18% right now after the audio streaming company's forecasted monthly active user growth in q1 just barely met projections and, finally, check out shares of meta, melting down after the

company called facebook recorded a decline in active users from the previous quarter this is the first time as a public company here is ceo mark zuckerburg talking about just one of the many headwinds. >> when apple ios changes and new regulation in europe, there is a clear trend where less data is available to deliver personalized ads but people still want to see relevant ads and businesses still want to reach the right customers. so we are rebuilding a lot of our ad infrastructure to continue to grow and deliver high-quality personalized ads. >> all right and we know that that is the story of the day another one under a lot of pressure is spotify following president fourth quarter results weak streaming forecasts are what people are worried about. the founder and ceo in a cnbc exclusive. daniel, you know we are in a

market where it's not what have y done for me lately but what are you going to do for me lately. can you explain why you think the first quarter is not nearly as important as wall street thinks it is >> thank you, jim, so much for having me on let's just start with our q4 40 # million users, 180 million subs the biggest quarter when it came to growth and we pretty much beat on every metrics. incredibly proud of that that said, q1, just, frankly, matters a lot less to our business overall than the other three quarters so i think maybe investors are reacting to that but i feel really, really confident in our overall growth trajectory. >> one of the things that bothered me, in the premium subscriber growth, grew 16%, 180 million up from 172. what i am looking at increasing is that we are trying to figure out how much a user is worth we used to be excited about a user, maybe they will gravitate to premium

can that number go higher if you add new content? >> yeah, absolutely. i mean, we're looking at the sort of value ratio of per hour of listening if we can increase the hours that our customers are listening, then, obviously, we feel that the value that they are getting of the service increases. and that gives us leverage to over time increase our prices. but we shouldn't forget that spotify is not a one sort of revenue stream company any more. we are two revenue streams you saw in q4 that advertising hits over 15% of our revenue, up from less than 10 at the beginning of 2021. so we feel really good that over time our rpu will increase whether it's with both advertising and subscription >> and then let's just briefly touch on joe rogan co-hosts have a lot to say, too. but, obviously, a firestorm.

looks to be addressed. people were complaining. the medical field seem to be satisfied with what you are doing. if you look at who is thinking about withdrawing from your system, what percentage of that might be of your entire mosaic and how upset are people about royalties versus actual censorship >> yeah. look, i mean, obviously, there is a lot of conversations out there about spotify and that's certainly true but if you look overall, i like to point that out, spotify now has 11 million creators and when you look the music industry 2021 that number was $7 billion. this is the first time we are actually talking about that number so we are -- we paid out more than $30 billion to the music industry and it's over a quarter of the entire music business globally overall i feel really good about where

we are and, you know, that we are material income source for many artists around the world. >> one other question i think people don't understand the mosaic of your business. the monthly average users by region, north america is not as significant nearly then you have other countries that i remember, your previous cfo telling me about lookout if i were to look at india, would i see a monthly average user that would send north america below 20% a year from now? >> yeah. it's a great point that you are mentioning india india is reallya rocketship fo us you certainly saw that in q4, too. we feel really good about where we are we entered the market just shy of three years ago, and are now one of the biggest music services in the entire country but looking at the whole region, if you think about india, pakistan, bangladesh, 2 billion users. in the coming years, i can't speak to next year, the coming years, next five to ten years,

that region is going to be massive. i like to think about, we used to talk about china, 10, 20 years ago as this kind of, yeah, it's a big opportunity, but does it matter for the business i think every business now realized that there is an enormous amount of consumer demand and dollars that chinese customers are spending on goods. and the same will happen in the southeast asia region, too. >> daniel, it's david. i want to go back to gross margins or talk about them for a moment your analyst day, i think back in stef, i know a number of investors have been with you a long period of time, you pointed to targets and they were years out of 30% plus margins. you are still around 26 and i just wonder is that day ever going to come that you are going to be able to deliver on the long-term targets you talked about in 2017? >> yeah, absolutely. so the investor day was actually in 2018. but i think it's important to

point out that back then we were a music company, and when i look at this, we've really expanded the opportunity also on the top line for the company so we're now talking publicly about getting to over 50 million creators of this company and over 1 billion user opportunities. i feel more confident than ever with the audio first strategy that we will get there when you look at that business long term, that business will be substantially bigger than the one that we were talking about in 2018. and that's where we are investing. that means that sometimes gross margins may be quarter to quarter impacted by that growth. but i think it'simportant to say also that in 2021 the growth target that we set out on the promise of investing in content and podcasts, we have far exceeded those estimates and that guidance that we gave out and i think that was evident as well in our q4 >> i want to go back to the

rogue situation for a minute because cultivation of content creator is so key to the long-term growth of spotify which you have been talking about. are you concerned you run the risk of alienating talent that is crucial to the long-term goals of more than duoubling active users and growing those gross margins? i don't just mean musicians that haven't until recently brought in that much of the revenue. i mean those very valuable podcasters like a rogan as well. >> yeah, absolutely. overall, i think the big balancing act of where we're trying to do as a company that's just critical is balancing creative expression with, of course, the one about the safety of our users and that's also why we published this weekend our policies. and really for the first time did that that's probably something we should have done earlier and that's on me but we have them out there now so everyone can look at the

policies and understand what goes on our platform and our goal, obviously, is to have as much content as we can and we will try to do everything we can to build the best possible experience for creators where they can interact and engage with their fans and monetize those relationships >> again, you understand that i think there are many people who are trying to figure out whether you are a pandemic stock, so to speak. peloton a good example a lot of companies people were cooped up, they moved to a house and as they did work they took spotify and now they are -- that group of people is no longer growing. when you look at how many users you have or are getting, you understand that people are concerned that the first quarter represents an opening quarter in the worldwide economy and that what you might be thinking is that spotify won't do as well and it's not just business as usual. how do you address that concern? >> i totally understand that, jim.

but what i would say is actually it is true, we were impacted by the pandemic, and you saw that in our last year in q1 and q2. if you look at the q3 and q4 numbers, you know, those were really just outstanding numbers. q4 specifically we had our record -- it's the biggest quarter in history when it comes to growing the overall number of users. i think that bodes well for 2022 and all the top line metrics that we're seeing makes me be very confident in our overall growth trajectory. i just want to go back and say, you know, i said in the opening, q1, frankly, matters a lot less than the other three quarters for us so that's how you should look at this >> daniel, i want to get your response to the white house's press secretary's comments yesterday about everything that is going on around the debates about misinformation and how

spotify is handling it >> yeah. well, again, what i would say is that when you look at what the scientific community have asked us to do, it was really around three things and all of those three things we delivered this weekend so if you think about it, step one is, obviously, publishing our policy what is it that you are actually taking action on and the second thing is the covid advisory -- so all content now on spotify has and will have in the coming days a covid advisory tag that talks about how we can push that to a covid hub where there will be a lot more information from experts and health authorities next to all content, no matter who you are, that talks about covid-19 and that's really what the scientific community was asking about as well. so i feel good about that. but, obviously, i think it's important to point out that as platforms goes, this is an evolving safety landscape. obviously, we are going to evolve with that, too.

and that's dialogue that we are constantly having with authorities, with experts, with the medical community as well, of course, with the legal community. so this sanis an important topis i thdon't think it's just spoti. it's all platforms obviously, we take our role very seriously. >> daniel, david again talking about margins, obviously, something that would get them up is raising price you have done it in certain markets at certain times i wonder would you consider raising price again? how should we think about where price something right now, the likes of netflix, for example, have been aggressive lately in raising prices. >> yeah, david i mean, the way we look at this is we provide an excellent value for all of our customers across the world. so over time we definitely think that there is a lot of opportunity to raise prices. we are going to carefully look at the market and when it makes sense there s, obviously, a lo of things that's happening in the economy right now and i

think you can see that not just on spotify, but really across the whole kind of streaming industry if you look at the video business, for instance, i think you can see that there has definitely being a reaction to those type of price increases. so it's something that we are thinking about and i definitely think that there is room for us to raise prices, but we are going to be very careful about doing it so that it really goes against our long-term growth objectives and that's the key we don't try to manage this business quarter-by-quarter. we are trying to manage it across really the multi-year opportunity that we see. and with we are still very early in that opportunity. this is going to be a gigantic business we are talking 50 million creators and over 1 billion users. there are very few of those platforms on the internet and that's what we are investing on. >> thank you daniel ek, founder and ceo and, obviously, a man who didn't necessarily have to go on, the joe rogan status,

some very fine answers always good to see you, daniel thank you. >> thank you for having me on. jim, it's interesting. you asked him about whether or not there were pandemic stock because they have unwound almost all of their pandemic gains. >> they have and i think that we are now in a market where you are guilty until proven guilty. not any possibility of innocence when it comes to something that did well during this period. obviously, dealing with paypal with our club members where i feel awful i have been working very hard about trying to value the stock. i think all of these situations involving trying to value a stock that is either a falling knife or has a credible business and how much you repeal all of the gains. zoom, peloton. that's what we're struggling with i feel awful about it. obviously, don't want to struggle with a situation like that want to help club members. but i have to own it i have made mistakes in my career and this was one of them. >> central banks, policymakers, governments around the world

through a l-- threw a lot of mos out of whack, right? >> he is not as good as i thought. and i don't want to be the guy who threw the ball in the double cover. >> that was quite a play how about tonight? >> i have elf, a company that has done so well it's very good qualcomm we have to know about that definitely and then joe hogan with align. both millennials the baby boomers and teenagers are using invisalign i thought the quarter was god. it's a tough task master tougher than i have seen in a long time. >> a lot of cross currents, as we said earlier. rough waters. >> it's red tide, david, and it's jellyfish in there, man-of-war this is not rough currents. >> i don't like those jellyfish. >> under toe. >> yeah, i need a lifeguard fick quickly on paypal. >> i'll figure it out. that's what i do for a living.

figure it out. >> oh, man those jellyfish. you've got to watch where you step with those. jim, thank you for bringing us that great interview good to start off this hour. >> thank you for letting me on. our roadmap, metaverse looking like a meta reverse for facebook those shares are down double digits we will break down the results and where things could head from here >> plus, rate hikes, nominations and more three new nominees for the fed board try to make the cut. and, finally, can you hear that? pin drop a look at how much 90 degreesers at pinterest havbee en selling great hour still ahead great hour still ahead stay with us ♪ you can't buy love. or peace.

you can't buy security. you can't buy happiness. you can't buy confidence. but you can invest in it. we believe that your investments should work harder for the future you imagine. and that's where our strategic investing approach can help. t. rowe price. invest with confidence.

welcome back to "squawk on the street." we mentioned at the top of the hourp. let's do a deeper dive a buy rating of $400 price target on the name yousef, are you going to stick with that given the fact we are seeing the stock get bludgeoned now and it was a really rough report >> it was a rough report morgan, thank you for having me. we are sticking with it. we have adjusted our estimates and we have lowered our price target to 350. so it's no longer 400. relative to the 240 or 250 where the stock is this morning, we think it's an unbelievable buy and opportunity. clearly you have to be patient because you have to wade through two or three quarters until ios

changes start anniversary'ing which wie think happens in june and you have to see effect from the investments that the company is making to counter the tiktok effect which we think should start being apparent in the second half of this year we are sticking with it. >> do you buy on a day like today if you are a potential investor, or do you hang tight and wait given the fact that this is going to be, i guess, at least medium-term story based on what you are saying that's going to play out. >> that's fair that's fair. it's very hard to kind of print the bottom on these things what we would look at is the valuation today relative to the historical valuation and at nine times cash flow, about 18, 20 times, the stock is literally the cheapest ever even with -- even if you took into account

what happened back in 2012 when they moved to mobile and everybody, you know, called the end of facebook in 2017 when they moved to stories, et cetera, we have never seen the stock drop this much clearly, tiktok is no snap tiktok is a lot larger, a lot more powerful. so we're not, you know, it's not a slam dunk, but we still think that all things considered, meta has the balance sheet, they have the drive and they have the technology to make it work >> yousef, we talked about the expense growth and the metaverse strategy can you explain to viewers what are the first big events in terms of demand that are going to ratify the strategy overall what are the sign posts this is actually going to play out in their favor? >> that's a really good question in fact, i asked that much of zuckerberg yesterday on the call, and it's a work in progress

so the truth is, it's not very clear. that said, you can already start to see them starting to mesh, you know, things like instagram a little bit with some virtual reality. you are starting to see the beginnings of it, but clearly, you know, management i think has to do a much better job, hopefully, between now and the end of the year considering that they are spending over $10 billion on this initiative to put guideposts or buoys for us to kind of judge them on, and they understand that but, unfortunately, there is no, you know, quick answer to the question >> yousef, they continue to spend enormous amounts on the metaverse. they wouldn't tell us quite how much what are your expectations there? is it going to be money well spent? are they really banking the future of the company on this spend? >> they are definitely banking the future of the company on this spend, dave i think, well, last year, so they did give us the

$10.2 billion in spend that came out of this investment we know that this year is going to be north of that. we are estimating it's going to be in the vicinity of the 13, $14 billion and it's only going to grow from there now, the truth is, these investments are, you know, run the gamut. some of them are in, you know, hiring talent, some are in hardware to kind of create the portal into the metaverse. but going back to carl's question earlier, these investments are only going to be worth it if they start showing some buoys, not necessarily in terms of ry, because i think we are, like, three to five years away from that, but at least from a user engagement, from a, you know, technology standpoint that we have built the foundational elements of the metaverse for the monetization to start i actually don't have a problem believing that facebook, once

the metaverse is built out, will be very successful monetizing. they are sitting on 3 billion and they use their still, you know, they are sitting on 10 plus million businesses. so once you bring the opportunity with the right roi to the businesses, they will take it. it's really they need to build the foundational elements before we get anywhere. >> it's been a roller coaster ride this week for the mega-cap tech names we started strong with alphabet. obviously, we had this ugly print from facebook. both of those situations very interrelated with each other in a number of ways after the bell we get amazon, which you cover, too key things you will be watching there? >> so that'san important one because we have actually been tactically cautious on amazon, in large part we think that on the march they are actually losing share this is the first year where amazon is losing a bit of share to traditional brick and mortars

online who have done a great job with their click online collection store or curb pickup. and so we're, you know, we think you are about probably going to see high single-digit growth for amazon the question for their e-commerce business, for the marketplace, aws is going to do really well. the advertising business is going to do really well. but the marketplace is still the vast majority of the business. that's what we are going to be looking at and the guide. the guide particularly for marketplace, we think it's going to be single digits, which is very unlike amazon, you know, has certainly treated us for the last ten years. >> all right investors need to strap on their seatbelts this afternoon thank you. >> thanks. meantime, keep an eye on shares of t-mobile this morning. that stock actually up rather nicely, over 9% after reported strong results also gave guidance that is being well met, at least 5 million

post-paid net customer ads this year that is exceed most of the peitysts who follow exctations more on today's biggest movers after this don't go anywhere. ♪♪ what do we want delivered every month? clumping litter? salmon pate? love that for me. just choose the frequency and ship it! i feel so accomplished. now you can pet me. get fast free shipping for all your pets' needs. chewy. (doorbell ringing) (slow piano music) (music changes to rapid funk) - [announcer] ensushiastic.

intensely excited over how it looks before discovering how it tastes. ♪ on time, lowest price, or we'll make it right. (chicka-chicka) grubhub.

welcome back to "squawk on the street." it's time for "etf spotlight." we are taking a look at the industrial select sector spdr fund this is ticker xli it's lower right now down almost a percent. also lower the past three months by 2.5%. not far behind the s&p as key names like union pacific and ups continue to see high demands two core holdings on the move today, cummins and honeywell both reporting mixed results due to similar headwinds higher input costs, supply chain issues that the two companies are navigating cummins seeing profit fall for the quarter while honeywell reported better than expected earnings by disappointing sales with guidance light versus street expectations. organic sales for the dow component honeywell are expected to grow 5 to 8% this year as it

navigates the headwinds thanks in part to its software strategies facemasks and now that they are seeing some of that demand ease. you can see both shares are lower. cummins down 1%. honeywell down 6%. the biggest weight on the dow. carl >> meanwhile, guys, markets are off the early morning lows dow down 266, s&p down 253 communication services, which is the group that includes meta, down 4% 1% declines in energy and consumer discretionary financials trying to go green this morning as we got a little bit of steepening in the curve let's get a news update with a rahel. >> president biden just finished speaking to the nation after the leader of the islamic state group died during a raid on his house in syria u.s. official says that he detonated a suicide bomb as u.s. special forces approached after landing a helicopter

member of his family reportedly included four women and six children also died in the explosion. local residents say that there was a two-hour firefight with gunmen in the house. there were no, however, u.s. casualties. and the white house releasing a photograph of president biden and vice president harris monitoring the operation. in a statement biden says he ordered the raid to protect the american people. our allies and to make the world a safer place. and just minutes ago biden praised the u.s. forces involved >> thanks to the bravery of our troops this horrible terrorist leader is no more our forces carried out the operation with their signature preparation and precision and i directed the department of defense to take every precaution possible to minimize civilian casualties and 108 million people now under winter and flood alerts from new mexico to maine as a massive storm moves across the country. 4,200 u.s. flights have been

canceled "squawk on the street" returns in a few minutes in a few minutes don't go anywhere.of polygons h! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions,

get decision tech from fidelity. as a business owner, your bottom line for smarter trading decisions, is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable nationwide network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™

we continue to follow meta and spotify, plummeting double digits on weaker than expected earnings and guidance. facebook investor and elevation partner roger, good morning, good to see you. >> good to see you, carl. >> you and i have literally talked for years about the day in which daily active users might flatten out and then go negative we are now here. why is it happening and is it material to the issues we've talked about in the past >> so, carl, the incredible thing is that i believe that the slowdown is actually by no means the largest issue facebook is facing here. obviously, when but get to 3 billion human beings with a computer system, you are pretty much at the limit of what the

market will give you particu particularly your products are not brand new and people are not embracing them like newer things like tiktok. they have three problems competition, apple, particularly the application tracking transparency tool that apple introduced last year, and virtual reality. and all three of those are a huge drag. i think from an investor perspective the thing that's difficult is it's hard to imagine any of these improves any time soon. >> well, i was going to ask you, on tiktok, is there the possibility that the government might put the squeeze on bytedance the way they have done to smaller chinese names in the energy and tech space, for example? on ios they talked about work around that would satisfied advertisers. are there remedies for those two things >> we'll have to see relative to bytedance, i think there is indeed a very

significant risk from tiktok's point of view that the united states takes a more harsh position relative to chinese-owned companies. the practical problem from a national security perspective is that the u.s. data markets are freely open to anyone, including the chinese. so the chinese can get all the data they want from data brokers or, you know, through advertising on google and facebook so they don't actually need tiktok for any of that stuff but that doesn't mean this isn't going to be a football the real issue for facebook's point of view is that the functionality of tiktok is what young people want. right? products like instagram no longer have the "it" factor that young people want, and that's a huge problem and relative to the apple side, i think we are going to have to see. the issue that apple has put forward is that consumers are being harmed from the data economy, this thing called surveillance capitalism is

allowing corporations and, frankly, bad political actors to manipulate human behavior and could take people's opportunities and choices away that's a big policy issue. so i think it is just as likely that the european action that we saw yesterday where they ruled that the industries consent form was illegal, that is to say not compliant with the general data protection regulation. if that survives appeal, that's going to be far more damaging than what apple did. that would suggest that all the data taken in the last five or six years will have to be expunged from the systems. so i don't think that issue, you know, it may not be application tracking transparency that facebook has to kobori about, but i think it has to worry about changes in the environment that make it more difficult to do the kind of targeted advertising the company has prospered from. >> yeah. well, listen, there is a lot to worry about as well, as you

point out from tiktok, and not just from meta, but for snap or twitter or any number of others. i mean, they are still undermonetizing. they are monetizing low level at tiktok, but i want to get your perspective. do you think that -- what do you see in terms of the growth potential of that platform, the regulatory risk that it still has. give me a feel for tiktok given its become such a power. >> david, i have been coming on cnbc since august of 2017 raising the alarm about the complete absence of regulation of the data economy. and here we are in 2022, and tiktok didn't even exist when i first started talking about this and so tiktok is an extraordinary product and there is an enormous amount of credibly harmful content yet kids embrace this thing like crazy. so tiktok is, obviously, going

to prosper until somebody steps in and does something to control the regulation point of view or until something new comes along that is hotter and cooler. you know, from that perspective, you know, i think tiktok is really, really well positioned in the short term. from facebook's point of view, from snap's point of view, tiktok is a really scary competitor. >> so, roger, to put this in the context of the market, the fact that we see a 23, 24% move to the downside for facebook today, do you think all of this speaks to the action we are seeing and the reaction we are seeing in stocks like meta when we do see misses or equally alphabet, when you see, you know, a bigger than expected beat right now? does this feel like a healthy market to you or does it feel like something more is coming? >> it feels to me as though the need for growth that investors are looking for is running up

against fewer and fewer opportunities to find it and so anybody can fall short. valuations for things that demonstrate growth are huge. you saw this week u.p.s. prorktser and gamble, other people with extraordinarying earnings results and the stocks reflectk that. the pe valuations are so high and, obviously, there were incredibly high on spotify and facebook as well so when you get something that's disappointing, they are now being punished much more harshly than they were and i fear that that is a refri ri flecks of the market rates are rising we have great uncertainty in ukraine, great uncertainty in taiwan we have lots of issues of globalization and politics around the world so i think from an investor point of view the notion that people might begin to look for safety as opposed to growth is not a crazy idea >> finally, roger, all the issues we talked about are getting reflected in prices and

meta is now another name like apple that prints like growth and priced like value. i have to imagine at some point you are sensing value in there in the price >> more in spotify i think, you know, spotify's market is not mature yet and what happened with rogan is an own goal. you know, they made this play to capture exclusivity on products like rogan without thinking through the fact that their two competitors, amazon and apple, have wildly larger cash positions and, therefore, ca easily outcompete for content if they choose to do so so i think spotify, if it refocuses on what it does well, which is music, is going to be fine with meta, i think it's a lot harder to tell remember, they are going to burn $10 billion a year on virtual reality for a product that i

think is going to have regulatory headwinds before it even fully develops. the one thing i will say to their credit, they is manage to convince media to focus all the energy on virtual reality with a name change, which what something they did in desperation. i give them credit for pulling that off so any can-that can change the subject as they did there, you know, obviously, the stock's got an opportunity because, you know, people still want to believe. >> they got the name change and the ticker change will happen sometime in the first half roger, we'll continue to talk about it good to see you. roger macnamara. >> bye-bye. >> breaking news from the hill regarding the raid in syria. >> president biden just speaking moments ago in the roosevelt room at the white house about that raid that took place last night. a significant blow to the

islamic state after a combat involvement with american and syrian forces to oust isis fighters from northern syria a senior administration official says the leader, abu ibrahim al-hashimi al-qurayshi detonated a suicide vest in the raid last night that killed himself and family members when the helicopter raid took place similar to the way his predecessor died 2 1/2 years ago. president biden called him the driving force behind some of isis' recent actions and had this message for others. >> last night's operation took a major terrorist leader off the battlefield and sent a strong message to terrorists around the world, we will come after you. >> president biden and vice president harris and members of the national security team observed the operation from the situation room last night. the president considered a range of options to take out him in

september and this tuesday in the oval office. the president approved an air raid versus an airstrike because of the civilians that were on site and that the casualties that occurred, none of them american, all happened because of abu ibrahim al-hashimi al-qurayshi's own actions. david. >> thank you right back here, keep an eye on shares of qualcomm. it beat on the top and bottom lines, but it's not escaping the broader sell-off this morning overall in tech. keep in mind, though, if you look back a few days, the stock had been up very nicely coming into its earnings announcement. wall street and washington tuning in for what is expected to be an exciting nomination hearing for president biden's latest nominees to the fed former fed governor will join us i know, exciting, right? always

thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts

and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back. ♪♪ giorgio, look! the peanut butter box is here. ralph, that's the chewy pharmacy box with our flea and tick meds. it's not peanut butter. ♪ the peanut butter box is here ♪ i'm out. pet prescriptions delivered to your door. chewy.

we're continuing to monitor the senate banking committee's fed nomination hearing that's jon tester, i think here to discuss, well, that and other things, former federal reserve governor and deputy dean of the university of chicago, randy, good to have you. anything we should be looking out for in the nomination hearings? perhaps are going to bring some diversity to the board >> that's exactly right.

it's pretty obvious and i think these are people who have experienced either on the academic side or the policy side, and have thought about monetary policy and regulatory issues so people with strong backgrounds. >> randy, i wonder how you think climate is going to fare as an issue over the medium term because powell said it is a priority, but yellen said it's too early to adjust capital requirements because of it, in terms of bank risk toomey is not high because of climate. we'll be struggling with this for a while. >> it seems. they've been struggling with this because you want to take into account the risks as bank regulator is supposed to make sure the banks are thinking about risks short term and long-term but how far you want to go in a nudge or something that's more than a nudge to get

to allocate in different locations. they'll try to figure out how much there is going to be wanting to nudge versus direct >> randy, there's a lot of central bank news today. the testimony of these nominees in front of the senate here today in the u.s. and the bank of england raiding its rate, ecb and lagarde refusing to rule out a 2022 rate hike, not hawking but shifting from a dovish stance as well looking across the globe, can we now say we're moving into more of a synchronized tightening cycle, maybe excluding china >> i think you're exactly right. we're starting to see a little bit just a baby step of the ecb pivot. they got to move, just like the fed moved quite significantly over the last three months three months ago transitory and providing support. now they really kind of gotten religion and going to be moving

on inflation bank of england moved up for a second time in two meetings and four of the five members hadn't voted for 50 basis point increase rather than the 25 basity.increase. clear signal they'll be moving faster ecb has been slow and they've said we're not going to rule out an interest rate rise and i think they'll get probably a couple of them or significant degree of tightening beyond what they had said even just a month ago because inflation is very high and going to be persistent in the eurozone. >> finally, randy, jobs number tomorrow the consensus is still positive, but you had 20 million americans who at some point during the month couldn't work and a large percentage of those people were not paid and won't be counted as employed how does the market keep their eye on the long earn-term trend after what could be a tough print? >> exactly right you have to look through this. we had prints that were sort of low, it wasn't because the job

market was weak, it was because it was strong and firms couldn't attract enough workers in. with the variant disrupting things that's not going to change the fed's view. the fed's view the labor market is very strong we see very high quick rates we see wages going up significantly. regardless of what the number s tomorrow they're going to look through that, say that's an omicron thing, and luckily the market is strong they're on the path to raising rates, some form of tightening, the vast majority of the meetings they have the rest of the year >> randy, always appreciate it thank you. >> bye-bye metaleads the charge lower on the nasdaq, a bunch of tech names continue to see pressure don't miss more coverage along with qualcomm, amazon and ogle a t more ten minutes away when "tech check" begins.

pinterest shares down sharply 7% alongside metaand a number of other social media names ahead of some key results for the company tonight, though, with more than 70% off its highs, even insiders bailing on

the stock. robert frank has the story robert >> good morning, pinterest ceo and other insiders cashing out $700 million in stock when it was trading higher ben silverman $240 million in 2020, he sold at prices ranging from about 20 bucks a share to over $86 a share now of course it's trading around $25 so he got out at the right time there almost all the sales for him were part of a pre-scheduled stock selling program and some were sold to pay taxes on options exercises. still owns about 8% of the company, net worth once $4 billion, now down to 1.5 other executives also selling off, the chief financial officer, chief legal officer, other co-founders cashing out $246 million last year and just under 500 million in 2020. we've seen the selling continue this year. the cfo selling $2 million in january and co-founder evan

sharp selling another $3.5 million in stock, just in january. the company did not respond for requests for comment david? >> i'll pick it up, robert thank you. you just mentioned shares of pinterest are down almost 8% right now, a fresh 52-week low for this name, reports after the bell snap is down 20% also reporting julia boorstin despite the competition discussion on the in call yesterday, which of course the names are trading lower, david, in sympathy with meta, that snap was not one of those names that was raised in the way that a tiktok was or obviously the privacy issues around apple, which i think is part of the reason you're seeing those names under pressure worth noting, amazon is down 5%, 6% right now we'll get those results after the bell, too. a lot of expectation we'll see a slowdown in e-commerce and supply chain issues. got to wonder if ups is a read-through in that piece of

the business for amazon. >> obviously a lot of concern about the amazon numbers and snap watching that market cap go away quickly five-year on that, morgan, is not a pretty sight, stock back to levels it's seen after its ipo. >> busy rest of the trading session and then more earnings after the bell as we just mentioned. that does it for "squawk on the street." tc starts now. happy thursday today a metareverse. facebook shares crash more than 25% at one point, dow down on earnings miss. is the stock attractive at this valuation? the other social and