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 ad-supported companies in freefall plus, can you spot the

pattern? investors not believing this growth story, spotify slumps as more artists pull their music, down more than 14% and interesting report just got a lot more interesting amazon is coming up after the bell, will it pull up paypal, metaand netflix or are investors missing a giant q4 under the surface, like microsoft, and alphabet that plays out today carl >> john, we'll start squarely with meta, as you said a rerating of the company, the company posts rare earnings miss only the third time ever, market cap now below $700 billion disappointing guidance, stalling user metrics weighing on the stock. also taking a hit from macro challenges, too, inflation, supply chain affecting advertisers. apple's privacy changes, the other big hurdle interestingly alphabet didn't feel the pain there. that divide becomes a big area of focus for investors

facebook had the lowest forward pe ratio going into earnings, now sitting at 18, 18 times forward earnings compared to 27 over at alphabet john, that's not even talking about the level of investment they are making on metaverse in the coming years >> this is something bothering me for a while, i think i mentioned it on tc, comparing one stock to just a bunch of other stocks to decide whether it's cheap or not. we have to stop doing that the market s&p was up better than 27%, can you justify facebook is cheap compared to alphabet do we really need to compare it to alphabet, everything seems to be bouncing around i think one of the key core issues here is the impact of the privacy changes that apple has made in ios. it affects different digital advertising companies

differently, clearly al pa bet's google less than may ta's facebook and instagram, et cetera we're definitely going to parse through that today >> let's be clear, alphabet did not feel a change, the privacy change benefited because it has access and relies on that first party data, different business model than the one metahas and the team said as much on the call a few big numbers i want to look at, guys, carl mentioned and john mentioned valuation, both metaand alphabet have been relatively cheap compared to the other mega caps, perhaps because most companies get their revenues from advertising. they're the least diversified and apple's privacy changes push advertisers toward google, away from meta, and that played out in those changing market caps this week. google gaining $184 million and meta has lost nearly $160

billion and that chart those the dive divergingare tunes when you look at the number it's astonishing. it's important to remember both these companies rely on advertising still while some of the other mega caps have perhaps done a better job diversifying >> yes, well said. the least diversified string in cap tech we bring in laura martin, doesn't have a target and you write "the economic power of the model less certain today than at any time since going public we believe. you see a lot of the the spending is reactive rather than proactive. >> yep, i do >> can you expand on that. what exactly is, what is wrong with the spending strategy at this point >> okay, so we have two problems here we have revenue slowing, first quarter guidance is for 3% to 11% revenue growth which is 800 basis points below consensus

estimates of is a15% growth. we're modeling 15% growth for a year of revenue, that's a big problem, coupled with the ceo came on the call and talked about seven areas of investment and essentially they're trying to catch up to youtube, tiktok by expanding into types of content that have nothing to do with your friends. this is like an existential pivot from you just talking to your friends via text and you suddenly consuming like video, mostly video, but video and other types of content that have nothing to do with your friends and other people got there first and they're sort of late to the party. and then meta is a huge expense with no near term return on capital and they went through seven, seven different commerce, have to redo their privacy, investing in their ad tech stack, so there's seven areas of spending at a time so we took our margins down by a thousand basis points to 30% for this year, and they have a slowdown in the revenue. so like the whole business model

has been up-ended as of last night. >> i wonder, laura, it's gotten cheaper. the balance sheet is very strong, buying back a ton of shares, the ad market at large is durable and in the past they have shown creativity in managing to either outmaneuver their budding rivals or new technologies, snap's a good example of that. why do you think that won't happen now >> so i think the reason that alphabet, it's becoming clear to me the reason apple and al alphabet's earnings are so strong it has do with apple's privacy gates becoming more strict and google as you know pays apple about $10 billion a year so google still has all of the targeting capability on apple's devices, which is about 40% of u.s. users, and so there is a bi binary, if you're not in bed with apple, your numbers are horrible, you're being negatively affected by the privacy changes.

if you're part of the apple ecosystem and party to their first party data and all the great data, you are singing in the rain it's fantastic for you so i think that's what's going on here, the binary outcome is that facebook is on the outside of those apple changes and it's really hurting their ability to target and measure on ios devices, whereas alphabet pays apple a lot of money every year to get access to all of their data and not just now, it's been for a decade >> laura, i don't think that google alphabet is in bed with apple or getting access to that data i think that was a nice line that facebook gave out in the earnings call to sort of point over there and say hey, there's a business relationship, that's why they're not affected, but google, people are logging in at certain places and showing their intent through search. google through search and youtube and other things doesn't have to follow people around the web quite the way facebook's ecosystem is set up, but all of

that being said, there are only so many places where you can go for digital targeted advertising. facebook has a ton of inventory, a lot of different cohorts they can sell at what point is this sell-off overdone, because yes, even if it is $10 billion worth of revenue impact for the full year, though something tells me facebook was sandbagging there, there's still plenty more revenue to go around, right? >> no. >> no? >> i think the business model here is broken revenue declines coupled with very large cost advances, if this was a ceo that was a professional ceo, which is, you know, mark zuckerberg can't be fired, in my opinion, he would be with these kinds of pressures on your revenue line, he should be saving money. he should not be spending on metaverse, which is ten years away you can't fire him, so that's why he'll hold onto his job but these results are really abysmal. >> laura, i want to go back to that point, the idea of google

being in bed with apple. john said he doesn't think so. i wonder, do you think that that is the case? google still pays apple $15 billion to remain the default search engine and so far as that evident evidence, does it shift the regulatory focus away from meta, which is hurting so much and played into that in the call versus an apple that continues to be the largest company in the world, and firing on all s cyl cylinders? >> right, so i mean, i do think a lot of the verbiage coming out of meta, facebook meta right now is about regulators, focussed at regulators, the big, bad bully called apple ti tiktok, we compete with tiktok because washington, d.c., says facebook doesn't have a competitor i think a lot of the verbiage, a lot of the words that meta uses are targeted at regulator. in fairness, these guys should, they have a lot of e-commerce on that facebook platform, if you used your facebook.com app l

lately and instagram and should be taking a share of e-commerce. they need to not have all of their eggs in one basket and advertising that requires privacy spotlight from washington, d.c., they need alternate revenue streams here >> laura, meantime, as far as tonight goes, you've got a buy on amazon, target's above 4k, are we going to hear about cost pressures and labor pressures and investing cycles again >> you know, sort of always at amazon, but so yes, the answer is completely yes. some might call it karma they really don't usually get marked down for high costs, as you know their margin is 4% a year we think their real margin is 12% and they spend 5 billion a quarter on structurally things shipping and logistics, building a business under the covers and going to sort of birth it full grown and start charging third parties for it later like they did on cloud, like they've done

on advertising they build these businesses under the sheets where no one can see them and when they announce them to the world they offer that assistants. historically cost pressure hasn't really hurt amazon, so the answer is yes, we're going to see supply chain, negative supply chain issues facing them and higher costs for labor for sure >> laura, might we see positive supply chain as well the reason why i ask that is, i think what surprised a lot of people in alphabet's quarter was the core strength of google itself, which reflects demand during the holiday quarter, and where else might you see demand in the holiday quarter well, amazon i would think especially because you knew that you could get things delivered, you know, pretty reliably within a short period of time, when that was difficult and also, amazon took all kinds of pains to have stuff in its logistics operation closer to people sooner so might they have outperformed on the e-commerce side and the

core business for similar reasons to why alphabet saw google do the same >> maybe except i'm sure you read the alphabet transcript all theytalked about was strength in retail, the single vertical which outdreef ive the words. bricks and mortar alphabet grew its search revenue and that's owe not going to affect e-commerce giant amazon. so yes, you might be right, they might have overdelivered sounded like facebook's words last night they had a lot of problems with feedback and shopping was earlier in the quarter of the fourth quarter, and then people weren't advertising closer to holidays because they couldn't get information out of apple very quickly. so that benefits amazon if they were all shopping earlier on a commerce engine. we may get revenue overdelivery but i think costs will be higher i don't know if it will affect the stock. >> law camera, the flipside of diversification is not enough focus, and amazon seemingly is

in everything from logistics to grocery to physical stores, to streaming, advertising, et cetera is it too much, does amazon need to maybe pull back's especially in areas like grocery where it poured so much money into but still isn't gaining much market share? >> the grocery is tough. here's what i would say. so the cloud business and as you saw alphabet's clogged business lost money, negative margin of 16%, i expect amazon to report a massive cloud number and immersion 30%. when they build a business it's really profitable, similarly advertising. they have a $20 billion ad business, the margins there is 70%. you're right, they dabble, they lose money on things call grocery a what do you want to call it failed experiment or you know, still building the business, but they do successfully build businesses. i think logistics is fantastic not only benefit their core

business but i think you'll see them leasing those services to other people and them having new profit stream they're going to build. i'd like to see them break out the data for, they already do cloud for advertising and then continue to build what could be a massive business in logistics underneath and start charging third parties for it which will swamp the grocery experiment i think. >> we also loved your call on a youtube valuation stripped out from alphabet, save that for another time good to see you again. thanks so much >> my pleasure tough day across much of tech, after the break, spotify shares falling after investors remain spectacle of growth, still down a little more than 13%. we'll talk to a bear plus the broader nasdaq is down sharply. much more on the sell-off off % 1.75%. tc just getting started.

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this downside surprise from meta hit the nasdaq 100 at a tricky spot. we talked about the strength of this snap-back rally we got from a week ago monday the 4th. it's been 10% through yesterday's close. really not doing that badly to give back 2% of it but you know, this is about where the excuse me, the 200-day average comes in here it spent one day above it after this rebound and now we're kind of falling below the intraday low for the qqq was around 334, right at the high from february. january 24th you got that low

intraday so trying to defend this entire range of the breakout we got. we are off the lows, for meta, the nasdaq itself and overall market you see a decent amount of rotation happening and of course just yesterday, alphabet had the great quarter. you have company-by-company reactions. it's not necessarily the broad liquidation but it's unclear if you have the nasdaq 100 as a group that's going to act like this asset class in favor leading the market again as we got used to it the last couple of years >> within that 100, different groups as well and we've been so focused on the mega caps with all of their reports but in the weeks ahead we'll get into some of those high growth momentum names and i wonder how do you think this sets them up? amazon is key to that. how will that affect sentiment for the docusigns and zooms. >> we thought multiple times we

fully zoubted and downscaled expectations how much of a pull forward of demand in the pandemic, how much of the digital adoption was inflating numbers and enthusiasm and the valuations we're braced for not so great news we would have thought that before we got the facebook results yesterday. amazon numbers scrutinized in light of what happened with meta top line by the consensus, top line for amazon year over year less than 10% growth we're not talking about the old days when it was this open-ended massive growth it's on a humongous pace >> it is, see if they can surprise there have been a lot of surprises in both directions, so you know, i'm sure people would like it depending whether they're long or short. >> expect to be surprised. >> there you go, which way speaking of surprises,

turning now to spotify, shares sinking post earnings, down 13.5 ceo daniel eck addressed the controversies. >> the big balancing act as a company that's 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 and that's probably on our half something we should have done earlier and that's on me we have them out there so everyone can look at the policies and understand what goes on our platform >> our next guest downgraded spotify to a sell over the summer, arguing at the time that spotify's unable to take away listening from radio, unable to take margin if it did, unable to

grow joining us nick delfas, welcome. you downgraded at 240, now at 165. good job is there, are we getting into value territory any time soon, and say more about this argument that i guess spotify is not the netflix of music in the sense that it can't raise prices without consequence, and pandora is actually doing a bit better on the digital radio side? >> thanks very much for having me on. suddenly it's not netflix. it's a better business model they didn't have to buy any content or episode in episodes of "the crown" at $10 million a pop. all of the content is put onto their platform by musicians and labels and spotify doesn't need to make any investments. the flipside they have to pay nearly 70% of the revenues to those creators and that doesn't leave them with a lot of margin to play with under that 30%, they have to pay

for all the marketing which funny enough adds up to about 30% so the company makes their money structurally and in order to make some money, they've tried to pivot into podcasts, which is obviously creating some other issues for them as you heard from the clip with daniel ek talking about joe rogan it's not a netflix it's a very different business model. it's a platform and structurally it needs to find a way to make a margin now, the big disappointment last night was really the margin. there was some daisappointment n subscribers. it's the same margin in q1 the last three years there's no expansion and people are worried this year the margin may not go up at all in the full year >> nick, if the company had to choose, would they want to be in the music streaming business or podcast business

seems like in the podcast business, there aren't a million taylor swifts and aerosmiths and bruce springsteens and you get beholden to a joe rogan, just separate from all of the controversy. >> it's a great question the reason why they went into podcasts because they can control the margin if they own the content but it's hard to own the content. they had to license joe rogan and the second problem you have when you try and own the content in podcasts is that you might find the content is controversial and music is rarely controversial so on the one hand you don't like the music business too much because you have to pay out nearly 70% to the labels, and on the other, you've got the podcast business which comes with all the problems of being a platform and distributing information. we see those problems with facebook and youtube and twitter. who do you allow on and take off. we agree some people have to be taken off. you don't want racist behavior or anything like that but where do you draw the line that becomes a big problem >> nick, that whole idea of

spotify owning the content, making it more of a publisher than a platform, is that more relevant for a spotify, whichi spending so much on podcasters versus say a facebook that isn't spending as much on its creator, could this potentially be a bigger problem for spotify than some of the other platforms? >> we think they should stop trying to own any content, actually it was a good idea to do it, to try and kick-start the strategy. the problem is they have very little content actually, despite all the noise about joe rogan, they have well under 10% the podcasts listening on the platform is to their own podcast. the rest is information that is just uploaded by other people, whether it's the new york times, other podcasts spotify does not own. we don't think they can get into building more and more content and having 30%, 40% of podcasts listening owned by them. instead, what they need to do and they are doing is try to get

into ad tech,inserting adverts for the third party podcasters and getting their 30% margin on that each time they do it. but it's a slow process. one of the things we said over the last nine months while we've been seller, the podcast business is not as big as people think it is. it's a good business potentially but it's not as big as people think. >> all right, nick, certainly that call looking prescient this morning. thank you. >> thanks very much. after the break, a facebook boast on why he says investors should be like rocky and get up off the mat and plus we dive into the impact of apple's privacy changes and what they've had on the social sector as a whole. stay with us we're back in two.

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♪♪ 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. today's top story definitely a plunge in meta, that's facebook, questions about business model, other stocks across tech getting dragged

lower in sympathy. julia boorstin has more on what is rattling investors today. hey, julia >> well, jwe're seeing other social stocks following meta down in the plunge today, also subject to the same advertiser and user challenges. meta using a quarter of its value over concerns other ad growth and user contraction for the first time ever, snap shares down 20%, pinterest off 7.5%, those two companies report earnings this afternoon and twitter reports earnings next week, those shares down nearly 6% the factors that hit meta are expected to have a broader effect challenges navigating apple's operating system changes that limit ad targeting, advertisers pulled back on supply chain constraints and inflation and foreign exchange head winds. the other question is how much of these other platforms follow facebook's trend of slowing user

growth which mark zuckerberg said would continue amidst increased competition from tiktok in particular ubs saying we think snap looks most exposed about but pinterest and twitter also likely guide first quarter below consensus. key bank lowering estimates and price targets for snap and pinterest as well as twitter and bank of america sayingthat broadly internet names face concerns that things won't go back to pre-covid levels saying "users are burned out, people overshopped, their usage and shopping levels could dip below pre-covid as they condensed a lot of time-wasting activities in a short period." we'll see how well snap and pinterest navigate the challenges when they report after the bell going into earnings, 38% of analysts have a buy on pin terrorist, 59% a hold, 71% analysts have a buy on snap and 29% have a hold.

jon? >> julia, i have a quick question you have great intelligence on the ios changes and headwinds for meta, at the end of the day they were announced, talked about it the first time facebook mentioned them as a problem and the first time they said they could work around it how is that going and how do you think advertisers are feeling about it >> well, this is something facebook in particular, fa facebook, not meta, this is a particular problem for the facebook app, something they've been working on and sounds line the first quarter will be the worst quarter in ermz it of the impact of those ios changes versus a year ago and those hadn't hit yet so i think this is something that they're working on and i think it's something that analysts anticipated they'd be faster at addressing advertisers but it is taking them some time to get advertisers used to this new way of targeting and measuring their ad impact as well as sort of figuring out new

tools to help have this same effect as they could before people could opt out of targeting. so this is going to be a key thing to watch for snap. facebook has been broadcasting for a long time that this was going to be an issue and i think the hope was they'd have gotten a hold of it by now but for snap, it's a more recent issue that we've been aware of it wasn't until last quarter that investors god concerned about that >> yes, when we spoke to the ceo, when this was going on he sounded confident. we'll see what happens tonight thanks for the overview. we just talked to laura martin who was very bearish on meta arguing the business model is broken, shares continue to plunge our next guest callings the earnings report a gut punch cocktail but is maintaining his buy arguing investors should "be like rocky" and get up off the mat. joining us is mark shmilik cut his price tag to $350. you write when the news is bad it's better to lay it out at once and move on what indication are you getting that this is it, that this is all of the bad news and that

perhaps it can recover from here >> yes, thanks for having me do we know this is all the bad news no but we've got a lot of it and so you look at it across even the idefa and the callout it's going to drag revenues by $10 billion but '22, leans conservative and probably captures the worst of it and calling out tiktok, the most we've heard the name tiktok show up on the earnings chat at the same time making this pivot towards driving more young adults to use short form video which is much less monetizable on the platform than the news feed and stories so you have all these things effectively happening at once and on top of it, you have a little bit of the drag as we're kind of getting in to effectively the lowered guidance and at the same time lower engagement levels as we reopen which affected the user numbers and so i hate to say it like can we really see it get worse but my answer at the

moment is no, i think this is it i think we grow from here. there's so much bad news, feels like this is the bottom for me >> it feels, mark, like they were very eager to make the bad news sound bad i'm not trying to say why they were doing that in particular, some people are saying regulators, some people are saying this or that, but the specific callout of tick tock was interesting. for the investors looking at the fundamentals here, how do you value the business at this point and what levels do you think they're able to pull to either increase time spent or to increase their ability add load ability to monetize the users on the various platforms. >> yes, absolutely i think to answer the first part, the fourth quarter revenues weren't bad and if we look at it on a two-year basis it's growing at a 25% kind of two-year keager, right where it

was pre-pandemic it's a reasonably good growth rate they guided down in the first quarter. a lot of moving pieces in there that are effectively dragging on it so how do they grow from here? i think there's thatplaybook i place as they drive more engagement toward short form video and we saw instagram effectively top the charts surpassed 2 billion users and they don't disclose the report instagram separately but we're seeing positive momentum behind it and over time they'll start monetizing that the same way they started monetizing stories as it was effectively displacing time from the news feed. so what we've taken a look at is tiktok, whether it's a commentary to kind of show regulators there's competition or not, we took a look at the top ten most followed people on tiktok and believe it or not on average, there's a higher engagement for the top ten creators on reels. they're doing something right. how do we value it we've taken a look and said what happens if this business doesn't

grow anymore let's look at it like a cable company and apply a cable valuation and even on those bases, it looks cheap to us so even if you don't want to look at this as a growth company but you want to look at it as a value company, we still think the risk/reward is extremely attractive at these prices >> mark, when you think about consumer spending and the potential for it to come under pressure and look at corporate spending and the potential for it to come under pressure because of labor and supply chain and all that, is the ad market in aggregate at risk? could this become eventually not about execution, not about competition but about aggregate demand >> i don't think so. i think where we are on digital advertising and the overall kind of digital economy relative to the physical economy is still so small. e-commerce is still in the mid to high teens as a percentage of total retail there's' long way to g cloud migration so sure, macro might put near-term pressure on it but i don't think it changes the

long-term trajectory of growth in the digital businesses and underneath it digital advertising in particular. what we've seen from facebook is recall the start of the pandemic a lot of advertisers budgets for the same different, but same type of macro concerns there's always sop consumer intent or some enterprise intent and the beauty of the permeable nature of facebook's ad inventory is whatever's hot at the moment, that's the ad you're going to see so they're a little bit more flexible in navigating some macro head winds >> it's fascinating we've been talking about advertising in the segment and for most of the show haven't touched metaverse. could that be the bad news has a head we'll save that conversation for another time thank you for being with us. >> thank you after the break we'll unpack all the names and look into qua qualcomm's quarter, stocks down 4% despite a beat and good guidance we'll discuss it don't gowa ay.

welcome back let's talk about callsome. the stock down 4%. sales up 30% guide was stronger than expected i talked to the ceo before the analyst call yesterday he said demand for chips outpacing supply and this time qualcomm allocated a lot of

available supply to handsets where oems wanted premium chip sets, nice margins, holiday season and lunar new year makes sense, accounted for more than half of revenue. callsome diversifying into iot and automotive those areas will get more supply as the year goes on. why is the stock down? who knows. keep in mind it's still up 12.5% for the week it's cheaper than some peers dee, it's tempting to look at the stock within the context of 4 hours. we have to do more with the runup into qualcomm. last week spotify investors are shrugging off the struggles. >> we show this move relative to the last weeks and months. i wonder if it tells us

something about expectations this earnings season has been much about guidance and kind of "show me" stories and i wonder if you think this raises the bar for other chipmakers in that the street is anticipating more than perhaps they'll be showing us this quarter >> i don't know. we have to see where this goes tomorrow if you look at the past few days, expectations were high headed into earnings and the stock is pretty much stayed up in that high expectations arena, maybe not as high as it was yesterday but carl i'm not sure that's all that counts >> you know, any print that gives you revenue up 30 and margins ahead of consensus is going to get applauded you would think in this market and regarding phones, t-mobile continues to lead the s&p up almost 11% got a choppy session for the nasdaq we're going to talk about that we're going to talk about that after thiseekend trip. fifteen minutes until we board. oh yeah, we gotta take off.

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let's get a gut check on t-mobile this morning. shares are surging after posting results that saw record service revenue and customer growth in 2021 q4 eps more than doubles the street's expectations despite falling from 60 cents to 34 year an year. telecom provider blames it on the merge we are sprint and

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welcome back especially in the early stages of a business, access to cash is critical it can mean the difference between making payroll or not and a lack of cash can kill even smart businesses with good ideas. recent stanford study looks at the state of black-owned businesses in the u.s. and found a lack of access to capital not

only made it tough for black business owners to scale to profits, it made them more likely to have to close shop entirely here is one of the researchers and founder of startups sugar and forethought on the challenge of raising money. behind sugar and forethought on the challenge of raising money. >> fatima, founder and co-founder of sugar and co-founder of business researchers. >> for many black-owned business owners our mind is on survival so much is on capital. >> that first fund raise was intense for me i want a start-up. if i don't have funding there's no way i can do this >> black-owned businesses are three times more likely to say capital is the reason. >> i was getting no movement in the early days even with a stanford mba >> building a business is

insanely difficult i learned how to tell my story and eventually landed an investor in k9 ventures. >> one of the top reasons why they avoided funding was to not accrue debt and fear of not being approved by lenders. >> having capital, every decision you make is make or break. almost every black entrepreneur i know is working at least one other side job in order to bring in additional income >> after being beat down, 80, 90, times, it's the 99th time that you get back up and do it >> joining us now, harlem capital managing partner jared tingle jared, good to see you just start off and take a step back in the shifting market and inflation, salaries are rising what do you see early stage entrepreneurs doing when it comes to cash burn, when having that capital

it's hard to get and having it is so important. >> that's a great question and thank you for having me. founders are more prudent with the equity markets dropping folks may anticipate having a tougher time raising money, but ultimately things are still pretty good for early-stage founders because they raised so much money in the last few years and there's a capital overhang and they want to invest and the picture has been improving for black entrepreneurs while still challenging. overall, they're getting close to the parody. >> give me an update on that i think it was a year ago we had you on when apple announced that they were putting $10 million to work with you to support your goal of investing in a thousand companies with diverse founders over the next 20 years has that capital been put to

work and what's your strategy? >> thanks for asking things have gone pretty well with harlem capital and the company invested in august we sent 11 investments and a good chunk had been to black and brown founders which has been awesome. we are pretty excited about e-commerce and thintech, software and we will continue to deploy over the next two years and change >> hey, jarrid, something that many ceos are talking a ton about and you can say whether it's buzz or not, of course, is the metaverse, and i wonder how you're looking at it and how does a new technology and new space, and something expected to be as big as metaverse expect the pitfalls that other technologies have seen like artificial intelligence? >> that's a great question we are bullish on the metaverse. we believe people's digital personas are becoming more important than real-life person as and particularly, i think covid accelerated it and now you see the rise in nfts and people

being increasingly excited about the atlas sales have been up tremendous sales in 2021 we think they're all good trends it will not be without bumps and there will be pitfalls and ultimately the macro trends are in the right direction as people have demand for it we are more bullish in web3 and think of blockchain and cryptocurrency and the amount of opportunity there is to disrupt the financial system to make more centralized kind of software and the connections work and allow people to have privacy rights for the first time you can actually own the piece of the internet and not be beholden to the institutions that have been taking a lot of fees, frankly, from their users >> jarrid, just qualitatively, perhaps, not expecting hard numbers here, what's your sense of the impact of the pandemic and distancing on underrepresented founders who are trying to raise support, et

cetera, because the pitch process is different happening remotely, perhaps geography less important in some cases. is that an advantage or disadvantage >> it's been an advantage for black or brown founders for sure so to your point about geography, now that people aren't living in silicon valley and new york, now they went to texas and florida, they are more open-minded about finding entrepreneurs wherever they are and you've seen latin america and africa for good investment people are conducting more business virtually and as a result it's easier to get on people's calendars to take on more meetings per day and more open mindedness and availability, they're giving us a shot and unless they get in a room with us they get compelled and more likely to write a check and you see a net increase for black founders that is good news.

jarrid tingle, managing partner at harlem capital. thank you. thank you. we'll be right back. built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? get a free demo at thryv.com.

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a.m. eastern is it a rally or is there another shoe to drop that's going to be a big one, carl. >> meantime, d, the judiciary committee just advanced, with im implications >> this passed with almost unanimous support from republicans and democrats and it would force apple and goog tle open up app stores and both can erode privacy and try to shift the blame to other companies apple said large social media platforms have security protections and google pointed out that gaming consoles aren't covered by this proposal amy klobuchar wasn't buying it >> companies' claims about risk to privacy and security are both false and disingenuous we have let these largest app stores owned and run by digital giants act anti-competitively for far too long

>> while tech took a beating in the senate they could get a boost over in the house. that chamber is debating the america competes act which includes $52 billion for the industry, and $45 billion for the supply chain so washington could be an enemy or an ally >> thank you for that. busy night with amazon and snap and let's get to the domino and the half. >> thanks very much, carl. welcome to the halftime report i am dominic chu in for scott wapner today tech earnings and guidance, as well is this as good as it gets for that stock or is this a golden buying opportunity and what does it mean for tech valuation and growth metrics overall? plus as carl just alluded to, amazon earnings after the closing bell today, will it deliver for investors? could it be more google like or meta like? we'll debate all of that with our investment committee today, you know