area it bought fairx and call that a huge opportunity square also offering crypto. for robinhood, it still makes up about 40% of trading revenue >> quick check on markets. ty, shall we >> go ahead. >> dare we look. the nasdaq was near session lows a moment ago >> we'll see you tomorrow. thanks for watching. "closing bell" right now . welcome to "closing bell," everyone i'm will frd frost meta's meltdown having ripple effects across the entire market today. the nasdaq at session lows and the communications services sector down 6% as we head to the close. >> i'm sara eisen. let's look at what's driving the action as wilfred mentioned, it's all about meta the facebook parent losing a quarter of its volume. worst day ever, pulling down the whole social media complex other faang names also falling in sympathy. also big moves including a sharp

pullback for spotify, and on the ma ma macro front, a bank of england raised interest rates. 59 minute to go in the trading session. >> we'll be all over the meta mess throughout the show, and also get ready for another blockbuster afternoon of earnings which wile be even more closely watched in light of meta's move. results from amazon, pinterest, snap, ford, and more all moving sharply lower ahead of their results plus, we'll speak with the ceo of hershey about her quarter and how she's navigating inflation, the labor market, the supply chain, and much more >> staples are the only sector higher right now in the s&p. let's focus on the big stories we're watching mike santoli tracking the market action, and alex from big technology mike, though, start us off in the 6.4% drop in communications services, the sector meta is in. >> that's the downside leadership but overall, a little bit of a steftest for the dip buyers for this bounce we have gotten over

the last several days. mentioned two days ago, that was the easy part. that was taking back that vertical piece of the decline into last week's lows when the market was super oversold and can vd this relief rally now it has to chop around. we're about 1%, 2% above those areas where you would start to say maybe the overall bounce is in jeopardy. i'm not saying the market knew something like the facebook loss and miss was going to come along, but it was primed to actually have this type of a reaction, a little bit of a gut check. take a look over two years at this convergence of tech and energy in many different respects the equal weighted technology, amazon, and equal waited energy and the 500. amazon, the big leader to the upside it's faltered recently, but really on a two-year basis has not underperformed which is fascinating because it feels like the stock hasn't been able

to get out of its own way for a long time. energy making up a lot of room quickly. it's an interesting spot in terms of we had this massive rotation you definitely had money retreating out of big growth stocks amazon getting hit in advance because people are gun shy if you can see a $700, $800 billion company like facebook, meta, go down 25% in a day, you have to widen out your idea of what can happen on a reaction, positive and negative. we're talking about central bank tightening this is what's happened in prior fed tightening cycles to the s&p 500. this is from fidelity. this is the current cycle. we had that pullback this is the bounce, we're probably about there in '94, the 2018 example was a continuation of the 2015 tightening cycle the lesson is lots of chop, not necessarily straight down or significant new downside, but in general, the market has had to kind of waiver around and make its peace with the new interest

rate landscape >> mike, if you see the ripple effect, it's far and wide, from meta's big fall. twitter, snap, some in the immediate cross hairs. names like etsy selling off again. amazon, you mentioned. does it make sense to you or what did you get as far as the read through from facebook, for other growth type names? or is it facebook specific >> i don't think it's facebook specific it makes sense on a couple different levels not to say it's a perfectly appropriate calibrated response. it makes sense for anything digital ad supported, because i do think a lot of the issues facebook is dealing with is going toee mean that others dependent on the ad eco system may face similar pressures because facebook of course is a leader in that area. if you're snap, if you're twitter, if you're pinterest, you might actually have already been having the struggles, and amazon's ad business as well more broadly, i think we keep getting these waves or oh, i guess there was more front loading of activity in the pandemic i guess the digital businesses,

we did give them too much credit it's wave after wave of recognition of that. doesn't mean it keeps going down, but that's why investors are hesitant to say it's all priced in. i showed a chart yesterday showing how facebook's valuation looked modest compared to alphabet that didn't help you today >> mike, thanks so much. extraordinary day, down 3.6% on the nasdaq 100 of course, facebook parent meta is a big contributor to that tanking 25% following its earnings last night. 27% now on facebook's biggest one-day drop ever. the company missed on eps as well as daily and monthly active user meta also issued weaker guidance and impact from a number of headwinds including privacy changes to apple's ios as the company shifts its focus to the metaverse let's bring in alex, founder of big tech knowledge my first kind of big picture question is to what extent do we

now have to ask the question whether social media is more of a zero sum game going forward, that it's somewhat x-growth when it comes to that just everyone in the space can enjoy growth no matter what's happening. >> social media has always been a zero sum game. i think that we have seen their growth take place why people move from places like tv and movies to the internet and want to be entertained. and so we have had this period where everybody seems to be able to grow infinitely, but no doubt about it, that is going to come to an end. >> and in terms of that question we just discussed with mike, who is most likely to be affected in a similar way as opposed to being a beneficiary of this, what names are you thinking about? one question was put out earlier, if tiktok was a listed company today, would it be up or down >> i think tiktok would be up. i think that you hear the way that mark zuckerberg talked about tiktok as a competitor yesterday in earnings. and i have never heard the man

speak about another competitor that way he said facebook was growing fast with reels, but tiktok was growing faster and sort of gave you the indication there wasn't going to be a chance for facebook to catch up anytime soon i do think that the reals v. tiktok competition is going to be a lot more fierce than people imagined facebook is still getting its legs under it. it has 3.59 billion people using the family of apps across the globe. that grew 9% in the past year. nothing to shake your head at, but i think like mark zuckerberg yesterday made clear that tiktok is eating facebook's lunch, at least right now, and until it catches up, it's going to be tiktok's market to win over. there are still some challenges for tiktok it's banned in india, for instance that's not going to help its ability to grow. >> what do you think it means for the big plans and perhaps more importantly, the big spending and losses in the metaverse when the legacy business here is slowing >> yeah, absolutely crucial question i think over the past couple days, if not weeks, we have

heard conversations from employees and analysts and journalists that facebook should stop investing as much in these metaverse platforms and virtual reality and augmented reality and focus back on its core because that's its main business and i think that's completely wrong. i think that's short-sighted for me, for meta, it's metaverse or bust right now. we have seen the core business, what it can do it's hitting a ceiling the question is how do you reinvent yourself over again to remain relevant not just for the next year or two but for the next tent or 20 years. we saw microsoft do it with cloud. they had to deprioritize its core business, push cloud forward. everybody thought they were nults. internalty, people couldn't under it they were able to pull off the reinvention. it's the same exact thing for facebook not going to make a lot of sense in the near term, but in the long term, that's the way because if that's what mark zuckerberg is saying this company is headed to in the future, right now, it's make that move or don't even try. it's a time for choosing for

this company >> do you believe they will be successful at making that work as opposed to the alternative which you framed as bust, and is mark zuckerberg the man to deliver it for them? >> yeah, i think if anyone is going to do it, it's going to be mark zuckerberg. i got to be honest, i don't know if this company is going to be able to pull off the metaverse vision i don't use virtual reality, i don't know anyone who does and so to me, it's a big question about whether we're going to get to this place or not. but here's the thing, they set the strategy there they said this is where we're going. and if it wasn't just a cute name change or a way to distract from scandals and was a real business strategy, you have to go all in and give it every chance it can have to succeed because otherwise, what you're going to have is this ancillary business that doesn't do very well and a core business hitting a ceiling and stagnating i think it's very clear right now, facebook wants to usher in this next era of computing that exists between virtual reality,

augmented reality, and our screens. it has to push forward as hard as it can and not get caught in the noise to pull back and focus on what's been the flagship already. microsoft did that with windows. we wouldn't be talking about it, but it changed and facebook needs to do the same thing >> alex, stick with us if you can because we have fresh reporting on meta, which julia is able to bring us now. julia. >> yes, wilf, bloomberg headline saying zuckerberg tells staff to focus on video as stock plunges. headlines coming from a facebook all-hands meeting. zuckerberg holding his regular meeting with his employees and appears many of the thoughts he's communicating are leaking out, and he's telling his employees to focus on building out those video products, and effectively what he's doing in this all-hands meeting was to reiterate what he said on the call last night. so that includes encouraging his

users to focus on video products and reels in particular after last night he said reels is number one priorities and he also said to those employees, according to this report, that the company now faces unprecedented level of competition, that's something he said yesterday both in reference to why the user numbers declined in the u.s. and in terms of the outlook for more headwinds ahead. i know facebook has made efforts to tamp down on leaks out of the company, but this is -- these comments do seem to be coming out of an all-hands meeting. guys >> julia, thank you. and i like this tat bit from the report as well, zuckerberg appeared red eyed and wore glasses. employees were told he might cheer up because he had scratched his eye. interesting color. alex, what do you make of this all-hands meeting? a message to focus on video and what you heard reported. >> makes a lot of sense. i think they're going to try to do what they can to go forward

with the metaverse that being said, it doesn't mean ignore the core product. the core product itself is in the middle of a transformation in taking on tiktok in a big way. and you know, we're right now in the middle of this transformation for facebook where i think it just got over the hump, it got stories working on instagram, and then tiktok came up extremely fast and it needs to attack it there i think we heard on the earnings call yesterday the company knows monetization, making money off ads on reels is going to be slower than the product growth, and you're going city that a few quarters out right now, morale has to be terrible all the stock based compensation that the employees are getting is now worth 75% of what it was worth yesterday so i think it's crucial for zuckerberg to present a vision and a plan and a way to make money in the near term what he's saying to employees makes a lot of sense if the guy is tearing up because of a rough night on stock, just say it, and you know, i would be if i was the ceo of that company, i would be a mess also.

so yeah, interesting tidbit coming out of the thing. >> not sure if that was a confirmed crying, but yes, agree. would be emotional for his own fortune, i think down about $26 million today alex, thank you. >> we have much more on meta and the broader sell-off throughout the show and we're near session lows, especially watching the nasdaq there is the dow right now the high of the day was down 93. lows there down 410. after the break, a sweet spot in a down market. we'll talk to hershey's ceo, michele buck, on how the company is navigating everything from inflation to the supply chain. you're watching "closing bell" on cnbc.

hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone. your doctor gives you a prescription. “let's get you on some antibiotics right away.” we could bring it right to your door. with 1 to 2 day delivery from your local cvs. or same day if you need it sooner.

but aren't you glad you can also just swing by to pick it up, and get your questions answered? because peace of mind is something you just can't get in a cardboard box. that's how healthier happens together with cvs. (swords clashing) -had enough? -no... arthritis. here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

after the candy maker reported strong urnl earnings that beat on the top and bottom lines. the company also forecasting profits to grow between 9% and 11% in 2022. it's helping the entire staples sector outperform. the only sector higher joining us for an exclusive interview, hersheys ceo, michele buck first on the growth, the top line growth you put out which was a surprise for wall street where is that coming from? >> you know, i'm so proud of our employees for how they united together and operated with ajilly to capture this opportunity for double digit sales and earnings

the growth has come from the at-home consumption, from consumers primarily eating more, watching movies, entertaining at home, connecting with families over seasons >> what about margins, michele they were better than expected which is not something we have seen in the food company space this season. but you're still seeing that compression and dealing with all sorts of inflation and input and freight. so tell us a little bit about what you're seeing and how long you expect it to last. >> yeah, so certainly, we're getting hit with inflation, as everybody else in the industry is if we look at our commodity bucket, we saw inflation in sugar, dairy, nuts, logistics, packaging areas. so we're dealing with those same issues and we see those persisting into 2022 obviously, we're trying to take action as much as possible and pricing to cover as much of the comaud commodity increases as we can. >> i had a different district altogether, which is i anyhowio

had a vaccine update i wanted an update on whether they did ultimately leave to anyone leaving the company, and if six months from now, if the virus disappeared, if you would consider rehiring those people >> we certainly always look first and foremost for how we protect the safety and wellbeing of our employees and we believe we have a responsibility as well to our communities, to make sure we have a safe environment so we did put in place a vaccine mandate in august that took effect in october. and we are continuing to operate the business very effectively under those conditions we think that this is the best way to keep our employees safe >> thinking about vaccines and just the labor shortages, michele, is that issue getting better are you having trouble staffing the front lines in the fakt face s sfwh. >> there are certainly shortages in labor

we improved our hiring practices and have been hiring pretty significantly for our manufacturing facilities so that we can operate more production but also so that we can take some of the pressure off many of our employees who have been working overtime to really support the high demand that we have seen from consumers >> you mentioned the price increases that helped offset some of the inflation cost you're dealing with. how much longer do you think consumers can put up and pay up for that, and is there a point at which they push back? >> it's certainly something that we keep our eye on we know that inflation has really been out there across the board. we also know that there's some pressure on consumers for some consumers, with the pullback of government stimulus and also reductions in s.n.a.p. it's something we watch very carefully, and we make sure that we affordable options for consumers at many different price points so everyone can participate in our great products >> and finally, i know everyone thinks of the sweets, but very

quickly, salty snacks, skinny pop rising 25% pirate's booty up 63%. why are these numbers happening for salty snacks >> with consumers at home more, they are snacking more these are great brands that consumers love really high repeat for pirate's booty in particular, we saw an increase as many students returned to school after having been homeschooled during the first year of the pandemic so that drove some of the pirate's increase, but it's really ineqthe quality of the products, the love consumers have for the skinny pop brand as well >> michele buck, thank you for joining us >> thank you so much >> ceo of hershey. my house, we do pack the kids with pirate's booty for lunch. that's a thing i guess other people do too. >> the skinny pop, reese's, good stuff there. >> we have 40 minutes, just under 40 minutes left of the session, and we're off the session lows only just, though we're still sharply in the red

across the board the nasdaq comp down 2.8%. up next, congress vets the fed president biden's nominees getting their turn in the hot seat today appearing before the senate banking committee. we'll bring you the highlights >> as we head to break, check out some of today's top searched tickers. not surprising, meta is drawing the most interest by far >> takes a lot to displace the ten-year yield >> amazing, the ten-year is still second when amazon is down sharply, paypaanl d alphabet have had the recent days they had. we'll be right back. this is the planning effect.

♪♪ 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.

if you wake up thinking about the market and want to make the right moves fast... get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity.

lots of central bank news today from europe and england, to president biden's nominees to the fed. testifying before the senate banking committee. steve liesman has the highlights for us hi steve. >> hey, wilf president biden's fed governor nominees, lisa cook and philip jefferson had a relatively smooth nomination hearing. mostly agreed with the fed of tightening policy, but sarah bloom raskin, she had a tough

time defending her prior opposition to using emergency lending programs at the fed to support oil and gas companies. >> i have been clear on my views the whole point of the op-ed was that the fed should not pick winners and losers >> except for oil and gas. they ought to be allowed to go broke. >> the fed should not pick or favor any sector at all. >> then why did you say it >> that was just a little bit of it raskin, a former cnbc contributor, repeatedly said she does not believe fed allocation should be a tool to get capital. meanwhile, after the central bank of england raised rates, christine lagarde, she surprised markets by opening the door to possible rate hikes this year. among the things she said the situation has indeed changed, unanimous concern at the ecb with inflation, and it would be

gradual. they'll re-evaluate at the march meeting. the euro, it strengthened why government bond yields rose with the government leaving open the door to a possible rate hike later this year. >> a big move, up 1% on the euro those odds went way up, 40 basis points priced in for the year. i wanted to ask about the hearings and the nominees and whether you gleaned anything about monetary policy. they are likely to go through, and what did you get in terms of their words on inflation and how hawkish they were feeling as some of the rest of the fed has been lately. >> yes, and for the record, i had no expectation you would have missed a single move in the euro today that's an abiding concern. >> not a 1% move >> i have been looking at the pond as well i hope you have both covered >> of course, wilf everybody that their own favorite currency. i like the dollar myself, but

that's another story let me answer sara's question. i think lisa cook is more dovish than philip jefferson. he seemed to be in the hawkish realm. they seem to be onboard with some tightening. as i said before, you have this conflict between the midwestern hawks, the bullard and wallereds and the mesterts and the georges out there, and they may come up against the new nominees from president biden. but i don't think that conflict happens until the second half of the year i think lift-off and balance sheet reduction are all kind of baked in i don't think you get to the door of being a central bank governor nominee without agreeing some tightening is needed the question becomes later this year when i think there might be some disagreements on the board. >> steve, thank you. >> your favorite currency is the yen, though. >> yen, more of a litmus test. a 1% move in the euro will get your attention by the way, major stock averages are near session lows.

the dow down more than 400 points the nasdaq down 3%, 443 points some individual market movers to hit. shares of ralph lauren jumping today after posting an earnings beat they also raised their annual forecast, seeing strength in europe and the u.s i talked to the ceo, he point today the turnaround in north america growing 16% and better margins which he says from higher prices and more elevated products, which more than offsets the higher freight costs and other costs they're dealing with he says there are three pillars that investors need to understand for growth for ralph lauren now that he repositioned the business they're expanding into home and outerwear in different categories channel, digital grew 40%, direct to consumer business as well is about a third of the business they're opening new stores, and geography, 30 cities ralph lauren is focused on primarily for instance, in china, there's

a ton of runway where they're growing nicely and it's really only mid-single digits in terms of the overall business. bottom line right now, and some of these stocks move with the styles ralph lauren is resonating globally and with younger consumers which is keeping sales and margins strong in a somewhat challenging environment. they're also driving brand awareness in the metaverse seriously, where they have partnered with roblox and are selling stuff, and he told me that what they sell gets resold in three days for three times the price on roblox. >> so not all metaverse related companies are down today >> correct exactly. i wouldn't call them a metaverse related but they're playing there and they're actually making some money. >> all the more impressive to see ralph lauren up a few percent today. >> another big mover, of course, today, is spotify. that stock dropping after issuing a weaker than expected subscriber forecast. here's spotify's ceo talking about the business >> we don't try to manage this

business quarter by quarter. we're trying to manage it across really the multihp year opportunity we see we're still very early in that opportunity. this is going to be a gigantic business we're talking 50 million creators and over a billion users. there are very few of those platforms on the internet, and that's what we're investing behind >> shares of spotify down 15%, 16%. jim cramer, by the way, talking about it in his investing club newsletter, to sign up, point your phone at the qr code. after netflix, we should have knew this was coming it's been volatile even coming into that, but broken below recent support levels. >> meta down 27% amazon down more than 7% time for a news update with rahel solomon. >> hi. here's what's happening at this hour new details on a deadly shooting on a greyhound bus in northern california on wednesday. officials say a 21-year-old man

was acting erratically before opening fire and killing a 43-year-old woman and injuring four other people. authorities say the suspect was lating arrested naked inside a walmart after getting into a fight. >> american express telling u.s. workers to start coming back to the office in march. the company is calling for a soft launch of a new hybrid schedule with some workers going to the office at least once a week winter storms have knocked out power to a quarter million homes from texas to ohio icy or downed power lines blamed for many of the outenings. texas governor abbott said the conditions are extreme >> we are dealing with one of the most significant icing events that we have had in the state of texas in at least several decades. >> near chicago, some are feeling right at home in the snow storm at the brookfield zoo, hudson the polar bear was seen having a good roll in the fresh powder.

it was quite a bit of powder because they got about a foot of snow there i mean, adorbs >> like a dog. rahel, thank you cincinnati is paralyzed. it's covered in ice right now. >> but celebrating >> not yet soon to be celebrating come off the high. yes. >> cold but happy. >> amazon shares down 7% 7.5% right now, actually, in sympathy with meta will it pull an alphabet or a meta we'll find out when the company headlines another jam-packed afternoon of results as we head to break, a check for you on bonds yields are a bit higher today. the ten-year back up to 1.82%. some selling in yields despite the fact we have a sell-off in stocks as well we'll be right back.

(inspiring music) - [narrator] at southern new hampshire university, you can finish your degree faster, and for less money. transfer up to 90 college credits toward your bachelor's degree. - i was able to transfer a lot of my credits and it made it easier for me knowing that i don't have to start all over again. - definitely lowered the cost by being able to transfer those credits in. - [narrator] get more transfer credits, pay less tuition. now that's something to celebrate. apply free at snhu.edu

at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.

session lows as we head into the final half hour of trading the dow down more than 400 points the nasdaq is the hardest hit yet again today, thanks to meta, of course, down 3.4% those losses accelerating in the final hour take a look at the dow heat map. the biggest dow is honeywell after earnings and guidance particularly disappointing it's taking 100 points off the dow. salesforce, merck, home depot, all lower. some bright spots in the defensive world. united health care, ibm, and walmart. >> interesting to see alphabet and microsoft down 3% as well. everybody slipping into the close. the nasdaq 100 down 3.9% up next, bob doll weighs in on

the markets and the three stocks on his radar to buy. plus, amazon highlighting a big hour of earnings >> and during february, we'll celebrating black history. here is cnbc contributor helima croft sharing her gratitude for the trail blazers that came before her >> it's a time of solemn reflection as i think about the individuals that risked so much to help us achieve the rights and freedoms that we have today. individuals like rosa parks but also the countless foot soldiers who risk sode much in pursuit of racial justice i think of my father, howard croft, who was a civil rights leader who went to jail on multiple occasions i think of all of these individuals who risk sode much to help us get to where we are today. you alright? [loud exhale] [ding]

never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. [ding] get e*trade and start trading today. when traders tell us how to make thinkorswim® even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim® web. because platforms this innovative aren't just made for traders -they're made by them. thinkorswim® by td ameritrade

municipal bonds don't usually get the media coverage aren't just made for traders -they're made by them. the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 1-800-376-4376. we'll send you our exclusive bond guide, free. with details about how bonds can be

an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years, and offers high-quality municipal bonds from across the country. they provide the potential for regular income...are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-376-4376. that's 1-800-376-4376 staying up half the night searching for savings on your prescriptions? just ask your cvs pharmacist. we search for savings for you. from coupons to lower costs options. plus, earn up to $50 extra bucks rewards each year just for filling at cvs pharmacy.

welcome back a very ugly session here on wall street the nasdaq getting wrecked as meta sheds more than a quarter of its market value. let's bring in bob doll. great to see you, as always. we have some specific stock picks from you, and we want to get to those my first broad question is, does something like the nasdaq 100 start to look cheap now? >> not just yet, wilf. look, we have question marks about what the discount rate is. when interest rates go up, long duration stocks get hit the hardest, just like long bonds. that's exactly what's going on here so it went up the most, the nasdaq 100 it's come down the most. then youadd to that earnings question marks, and that's why we have had such a hard time you have to be very selective in that part of the market in my estimation >> but you do like one tech play i guess it would be a value tech

play, intel, which didn't have a great quarter, bob why? >> correct they did not have ai great quarter. we like it, we think the long term story there with a new ceo is promising we find what they're doing with their cash wiser than what they have done in the past. the stock is reasonably cheap, and to your first point, our list of tech stocks that we own tend to be more of the old stories, the more value stocks, given the interest rate comment i made earlier, and less of the high p.e. newer stocks they were the ones to own, thankfully we did, but we switched in large measure. >> let's get your buy call on lowe's as well >> lowe's, you know, do it yourselfer, competition is home depot. they have more to go to raise their profit margins they have been doing that now for several years. there's same-store sales, 2%, 3% in this environment, that's pretty good. recent management change

we think lowe's is a good catch-up to home depot play. >> do you like any of the value sectors or is it just stock specific for you at this point >> yes, or two favorite sectors and our ten predictions for this year, financials and energy. financials do well when the economy is doing okay, when interest rates go up, they're reasonably cheap, balance sheets are okay, and the energy story, they're our two favorite sectors and they're value weighted as well >> they also both have done very well the only two positive sectors in the s&p. bob, thanks. >> we're gearing up for a big hour of earnings we'll look at the key metrics to watch in snap, pinterest, and amazon, which is falling 7.5% into earnings. in the market zone, dow down 466. we'll be right back.

you're a one-man stitchwork master. but your staffing plan needs to go up a size. 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

this winter, comcast business is helping ma team usa and businessesion. across america stay ahead. keep yours ahead too with reliable connectivity and secure solutions on the network that can deliver gig speeds to the most businesses. and get access to over 20 million wifi hotspots from coast to coast. so no matter what big event comes up, your team can be ready for what's next. get started with fast and reliable internet and voice for just $64.99 a month.

or, ask how to get a visa prepaid card with a qualifying bundle. power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools, and interactive charts to give you an edge, 24/7 support when you need it the most. plus, zero-dollar commissions for online u.s. listed stocks. [ding] get e*trade and start trading today. never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contracts prices around.

[ding] get e*trade and start trading today. welcome back we have a great lineup coming for you in the second hour of "closing bell. amazon will round out the faang earnings and will be closely watched following the disastrous performance of meta. amazon is down more than 7%. also earnings from pinterest and snap, two names also down sharply in sympathy with meta today as well. plus, ford's quarterly report with an analyst who riceantly hiked his price target on that stock, and a closer look at why fewer companies are offering guidance this earnings season. we have under 12 minutes to go, we're in the closing bell market zone mike santoli here to break down the crucial moments of the trading day, and today, we have

hightower chief investment strategist stephanie link back as well. we'll kick it off with the broader market, not pretty dow on track for -- the s&p on track for its worst day of 2022. nasdaq 100, stephanie, down 4% the nasdaq down 3.5% reaction to meta are you making any moves in this market today >> i'm not doing anything. good to see you, sara. not doing anything today i'm letting the dust settle. there's a lot under the surface that's happening so markets are down, as you mentioned, but a lot of that is because communication services and technology, which are 38% of the s&p 500. they're getting killed because of meta, but also because of qualcomm. also paypal. so that's happening. and if you add on discretionary, that's another 12 percentage points to the s&p. that's 40% under enormous pressure i think discretion is getting

hit because of rates, and rates are going higher because i think the economic data was pretty good it's been pretty good all week long, and it shows us post-omicron, we can grow again and grow faster than the 2% we'll probably see in the first quarter, and we got the ecb, the boe, being more hawkish. you have global rates, that story for 2022, going higher and that's why you're seeing a defensive tone in terms of staples and health care outperforming but financials clearly because of higher rates. the biggest surprise to me is the russell 1,000 values out performing the russell 1,000 growth by over 200 basis points. i don't think i have ever seen that in one day's time it clearly shows you people are more nervous about the higher interest rate environment and that's putting more pressure on technologynition to the poor earnings we're seeing. >> mike, the nasdaq is down 4% as we stand. clearly, a very ugly day that said, is it a positive that we're still a little way from

those intraday lows of last week and even if today's incredibly violent moves, as long as we stay in that range over the next couple weeks, does that mean we really haven't had a kind of more incremental negative. >> it's better than rushing right back to the lows, for sure a bit of a delicate situation. the nasdaq 100 is really the weakest of the big indexes out there. it was up 10%, but it was much more in a deeper hole than the rest of the market so it's down 4% from being up 10%, from being down 15% it's bottoming is a process, and we don't know if we're really there yet. in terms of the broader market t is somewhat rotational, as steph said we have outperformance by the average stock. it's still, you know, not that unusual to give back a little bit of a reflex bounce like we have had, but we don't have too much of a cushion underneath, so we have to be sensitive to the idea that, yeah, last monday seemed like a pretty decent plausible place for the market to have a low for some time, but

the earnings picture has been so disproportionately punitive to companies missing versus for those that beat that it keeps people from really putting more money at risk as they might otherwise. >> the stock of the day, and that's weighing on the entire nasdaq, is meta, on track for its worst day ever the plunge could hurt institutional and retail investors alike. as data shows the stock is widely held in both hedge funds and mutual funds lori found that hedge fund heavily invest in meta the total dollar amount invested in meta by hedge fund is only surpassed by microsoft, alphabet, and amazon, according to the most recent filings for q32021 rbc also tracking mutual funds finding meta is the fourth most frequently owned stock in all large cap funds. steph, want to get your take on meta because i know you own it, unfortunately, today but mike, first on this retail data and how that's playing in, i also saw a stat from fidelity that retail investors are buying

the dip in a big way today on facebook it's not like any stock being down 26% it's one of the biggest stocks in the market and one of the most widely held >> yeah, look, a 2% position in the s&p 500. it's always going to be a core position for a lot of portfolios i think it also had a little bit of crossover appeal between growth and value investors so it made its way into more funds than maybe it otherwise would have to me, the big takeaway is all of the mega caps are pretty concentrated in terms of active managers except for apple. apple is chronically underowned because almost no active manager is going to say put 7% of my portfolio is one stock because that's what it would take to overweight apple on the other hand, microsoft and alphabet as widely owned, paid off this week. >> what's your fake, steph, on this move in meta? what have you done with your position >> i haven't done anything, and yes, i do own it

i owned it because i liked the risk/reward at 20 times forward estimates for a company growing about 20%. i have to like it now even more because it's trading now at 17 times forward earnings, and oh, by the way, no one is talking about the positives in the quarter like total revenue growth grew 20% year over year they're doing daily active users of about 2 billion and monthly active users of about 3 billion. this company is down but it's not down and out the arpu is negative the negative is the guidance and the operating income miss in the quarter. that was disappointing you add it all up and i think the stock should be down on the guidance, but not nearly down 25%. i kind of step back and i say, this company has had to go through transitions before they have pivoted to other parts of the businesses, like mobile feed, like stories, and stories actually took six to nine months to monetize. so they're now going to focus on

reels. the good news is they have reels and people are gravitating towards it, the bad news is it's still very small and on the monetization, it's much smaller. they're going to build that up over time, and i think that's a smart thing do if i'm tiktok, i would be nevrvs as all get out i look at the advertisers the company has, 10 million, i don't think you'll see a halving of the advertisers, and last but not least, roi is still compelling they're right in the thick of it i say, you know, clearly it's going to take some time to get through all this and the volatility will continue, but i believe if you're long-term investor, wait a couple days and you can nibble on this name and some of the other large cap tech names as well. >> at the moment, the nasdaq is down 3.8%. nasdaq 100 more than % investors geing set for another huge hour of earnings after the bell including results from snap and pinterest. julia boorstin has a preview

>> well, wilf, snap and pinterest shares both plummeting today on those concerns raised by meta's earnings for snap, revenue growth will be very much in the spotlight after revenue fell short of expectations last quarter. the company is now projected to grow revenue 32% to $1.2 billion. and after snap's users beat expectations last quarter, the question is whether that momentum continues analysts are targeting 317 million daily users. for pinterest, it's a different story because its users not only fell short of expectations last quarter, they declined by 10 million last quarter so now analysts are projecting the addition of 5 million monthly active users to end the quarter with 449 million maus, and the company is projected to grow its revenue by 17%. so listening for the outlook for the year and how apple's operating system change is having a negative impact not only now but what they expect for quarters to come just take a look at those

shares, snap shares down nearly 24%. pinterest off over 10% guys >> crazy, crazy moves given they haven't even reported yet. julia, thank you >> amazon's highly anticipated results also set to be released right at the close nearly every analyst who covers it has a buy rating on the stock. deirdre bosa joins us for akey look at -- a look at the key numbers we should be focused on. >> yeah, wilf, speaking of action before even reporting, amazon shares are down some 7.5% before those results we are expecting quarterly revenue above $100 billion they have been doing that for a few quarters so that's expected again. less certain is the bottom line. it is the least profitable mega cap, and andy jassy has warned labor shortages and supply chain disruptions will further weigh on profits higher margin businesses, they could help off set, but key question is by how much? will it be enough for investors. amazon guides revenue and operating profit for only the quarter ahead and it's usually a

very wide range as it is for this quarter that's key also. shareerize down more than 7%, so perhaps signaling low expectations, countdown is on. >> absolutely. deirdre, thank you stay close we have just about two minutes to go in the trading day mike, what are you seeing in the market internals as see the tech sell-off getting deeper? >> skews to the downside, as you might expect in terms of the volume breakdown mostly the losses in the agruicate going driven by the mega cap growth names. you see about 80% of the volume all day at the new york stock exchange and innasdaq have been to the down side it's not as if even though the average stock is outperforming it's been that much of a benefit to the volume, although look at the equal weighted s&p compared to the s&p 500 on an intraday basis and most of the day it's been out performing by 1 percentage point that's the impact of the heavyweights having the outsized influence. the volatility index, we had this nice spike on the chart from the upper 20s down into the

low 20s, picking back up again, right above 25 jobs number tomorrow may not be that big of a market mover but the fact you have this much instability in the largest stocks in the market, the overall index just can't absorb that that in itself, it can't be off set by gains somewhere else. that's going to have a natural filter into people hedging and what they're considering to be a likely path for volatility in the next couple weeks, wilf. >> just under one minute left of the session. sharply lower across the board ten of the 11 sectors are lower. staples just eats back into the green, but only fractionally communication services at the bottom of the pile, down 7%. tech and consumer discretionary both down more than 3% what does that mean for the overall averages the s&p 500 is down 2.4% dow down 1.5%. the nasdaq is down 3.7% as we have been saying, the nasdaq 100 down more than 4%. of course, all eyes on meta

platform, formerly facebook, down 26% snap down 23%, huge, huge declines here, and amazon as well, as we have been saying, sharply lower ahead of its results. microsoft and alphabet, who have been strong of late, both down more than 3% by the close. let's see, the nasdaq 100 down more than 4% >> worst day for the nasdaq since october 2020 welcome back to "closing bell. i'm sara eisen along with wilfred frost. and mike santoli, cnbc senior cg ready for a huge hour of earnings, amazon, pinterest, ford, clorox set to report results and we'll have instant analysis of all the numbers. first on the close, stephanie link with us, ed lee joins the conversation mike, though, i'll start with you on this. s&p diving 2.5% into the close and nasdaq closing lower by

3.75%. what do you make of the action after what was a strong -- we're still frup the week, just barely here on the major averages, strong four-day run. >> up for the week, although we have kind of gone back to before, you know, we closed january out, that sort of strong four to five day seasonal period started last thursday has run its course market had been nicely oversold. we got the snapback, so some backsliding is to be expected. this is more aggressive than you might anticipate because of meta and amazon propelling the downside in the nasdaq 100 and s&p. it's 5% of the s&p it's not going to go unnoticed all that being said, we're still kind of in this sort of chop zone the s&p never got the escape velocity from that low that really would have given you comfort that we were on the mend, but we'll see how it chops sideways from here with any luck >> steph, you mentioned it was a good opportunity to buy.

you're sticking with facebook and meta despite the plunge today. you like some of the parts of the story. you mentioned you would be interested in some other tech names that got sold off hard like what? >> well, i have been adding to nxp whierx had a really great quarter, and they have about 51% of their revenue is auto and markets and the rest is contactless payments and internet of things and industrial and that sort of thing. i like that name very much they also increased their dividend and buyback, and i like the valuation. and i still like ibm it's -- oh >> forgive me, steph wanted to jump in because amazon is up 12% in after hours trading. a massive beat on the bottom line in the quarter just past. revenue is almost exactly in line with expectations, $137.4 billion. the forecast was there abouts. the eps is $27 a share the forecast was $3.50 a share

operating income coming in at $14.3 billion. the forecast was for $2.5 billion. a massive bottom line beat i have not gone through much more than that just want today come to those headline numbers because clearly it explains why the stock is jaumping >> even better reaction than what we got from alphabet. amazon shares up 14.5% after hours. what's your initial take >> yeah, look, it was down 7% today and down 16% year to date and a lag fgard for the last 18 months i pexthed the last quarter to be fine it was better than fine. the big question is where is their guidance going where is 1q going? the buy side is a total revenue of about $110 billion. the sell side is at about $121 billion. but we all care about operating income, and that is anywhere between $3 to $4 billion we have to get guidance out of the way. they have tough comps and then it gets easier in the second half of the year

you can see why it's a favorite for many people. i'm not involved, but i would be looking into after the first quarter, and let's get the guide going forward. >> so i'm just going to weigh in here a bit on trying to work out where this has come from aws has a much higher bottom line beat than expected. net sales revenues for aws, of course, cloud computing business, coming in at $17.8 billion. the forecast $17.4 billion the expectation for operating income, bottom line on aws, was $4.8 billion and that has come out significantly higher than that at -- not significantly higher, $5.3 billion that's a bit of a beat rather than a massive beat. it's a very nice bottom line beat overall, deirdre bosa is able to join us with more color leading to the stock up 15%. >> yeah, i'm still digging through this as i'm sure a lot of wall street is. let me give you some comments from the c.o.o., andy jassy.

we saw higher costs driven by labor shortages and inflationary pressures. these issues persisted into the first quarter due to omicron also, i want to say, pick out that they are increasing the price of prime increasing the price of a prime membership in the u.s. monthly fee will go to $14.99 from $12.99. annual membership from $119 to $139 interesting to see if they have the pricing power. also, aws, i just saw this number, this was a slight beat this is important for the street because this is a higher margin business that helps offset some of those higher costs given the pandemic and supply chain disruptions. that a came in at $17.8 billion versus $17.4 expected. i'll continue to dig through this and raise my hand if there's more >> likes like a 40% growth rate for aws in the quarter from last year which is a big beat. international is down a percent, and north american sales growth did take a step back, ed lee, 9% not the -- not the kind of

growth that they were used to, but they're lapping some pretty tough comps during the pandemic. what stands out to you >> i think aws certainly it's always been their margin business, and they beat big on the bottom line. that seem today have a big effect on it in that way, i was wn't surpris. microsoft 'azure business was huge in the last quarter it's a question of how much are they taking away from amazon's pie or is the pie growing? it's clearly the latter. the prime, the raise in prices for prime was also kind of expected they raise it every four years they did it four years ago, march 2018, i think was the last time so i think the amount they raised it is sort of what you would expect based on the previous raise so whether they have pricing power, i think, will be interesting to see prime comes with video, of course, and that's a huge retention tool but so many people have bought in to the prime lifestyle, if you think about it

prime is a lifestyle in as much as it's sort of this annual fee. i think that will be sort of, again, will go to the upside, for sure >> mike santoli, clearly, the market likes this significantly, up 14% albeit a pullback recently still have to let the analysts dive through the numbers to find out exactly why the bottom line beat was quite such a significant one. and no doubt that will be scrutinized over the next hour or two >> i mean, obviously, it's easy to say now it was prime for some kind of relief you know, coming into today, the implied move based on the options market for amazon was something like 6%. you know, upon the report, and during the day today, down 8%, so yes, a nice relief bounce back up to really the area that it fell off a cliff in mid-january. so takes a little bit of the pressure off i think that the forward guide is fine. i think pricing power, in prime. i think they're lagging with that a little bit if you look at what netflix charges for

streaming alone, obviously, you get that along with prime. i think it makes sense 9% top line year over year sales growth is fine but you know, keep in mind, the u.s. economy nominally grew faster than that last year it does show you it's not as easy as it used to to be rack up the numbers for amazon >> deirdre bosa in with more color on the amazon report what do you see? >> yes, so gains in the share price have been moderating a little bit in the last few minutes. that may have something to do with its revenue guidance. amazon saying between $112 and $117 billion that is well below the $120 billion estimate also operating income between $3 and $6 billion that's pretty good because in the current quarter, they guided on the low end ofzero in terms of operating income. we'll get more color on the call whether they see some of these external forces moderating like labor costs and supply chain disruptions. but that q1 revenue guidance

coming in lighter than expected. >> thanks so much for that as you can see on the right of the screen, we have big after hours earnings pinterest up 20%, snap up 3.6% after a sharp decline earlier today. ford is moving, too, as their numbers have crossed phil lebeau. >> wilf, in the fourth quarter, these numbers, a big miss on the top and bottom line for ford let me give you the revenue number automotive revenue is what people are focused on, $35.3 billion. a tad bit shy of expectations. earnings, 26 cents a share the street was expecting ford to earn 45 cents a share. unclear why the street was off that much. ford did have a sizable number of charges that were announced a week and a half ago. wall sheet should have been well aware of that. numbers within the numbers, the fourth quarter margin, they end the quarter with $36 billion in cash, $52 billion in liquidity for '22, this is what people are focused on, they're expecting to earn between $11.5 and $12.5

billion. by the way, that would be up anywhere between 15% and 25% they earned $10 billion for all of 2021. in '22, their margin is expected to be 8% they are, however, expecting to face higher commodity costs. one other note regarding 2022 is they're expecting free cash flow of 5.5 to $6.5 billion they're still sticking by their projection of ev production by '23 of 600,000 electric vehicles again, ford posting numbers that do not meet expectations for the fourth quarter, guys earning 26 cents a share the street was expecting them to earn 45 cents. back to you. >> initially popped a little bit on the news and has given it back and now down over 2%. thank you. >> pinterest is surging on the back of its earnings julia with those numbers >> pinterest beating expectations on the top and bottom line. revenues of $847 million beating

expectations of $827 million adjusted earnings of 49 cents per share. 4 cents better than expected first quarter revenue guidance pretty much in line with expectations notable here that the stock is up about 15% in this despite the fact that monthly active users declined sequentially between the third and fourth quarter the company was expected to add about 5 million monthly active users. instead, they lost about 13 million monthly active users a loss in monthly active users for several quarters in a row now. but we saw the earnings and revenue beating expectations positive commentary here in the outlook, saying the guidance is that for first quarter revenue will grow in the high teens. also saying monthly active users as of february 1st were 436.8 million. so indicating there is growth in the first month of the year.

guys, back over to you >> julia, thank you for that stephanie link, wanted to come back to you with all of these moves. snap moving up over 30%. amazon lost over $100 billion in market cap today it's going to gain more than that tomorrow if things stand. what world are we living in? >> that's a little crazy right now. look, i think that the amazon numbers were a sigh of relief. as i mentioned, it was to me all about the guide. but the quarter itself, the two highlights, aws, that up 40% expectations were 35%. and operating income at $3.5 billion versus 0 to $3 billion guide. so that to the quarter is good on the guide going forward, first quarter, $112 to $117 billion. as i mentioned, i think buy side is at $110 that's better than where analysts are on the sale side at $120 that's going to be viewed favorably, and an operating income of $3 to $6 billion, that truly, that is kind of where the

numbers were, what we were kind of thinking, $3 to $6, we were hoping they have talked about capacity meeting demand they're finally there. so clearly, the demand is there. and they have the product now as well so perhaps maybe going forward, this year, they're going to spend less on the facilities and dcs and more on trying to gain market share, and so with the stock down as much as it was, 16% year to date, and lag for the last 18 months, maybe it does see a catch-up trade in the short term >> we will see but it's up 12% at the moment. ford just slipping 6.5% having held its ground initially. we mentioned snap. it's up 28%. a very busy julia boorstin has the numbers. >> wilf, snap earnings beating across the board, and beating expectations, daily active users of 319 million that's 1 million more than consensus expectations snap adding 13 million daily users in the quarter revenue growth of 42% from the year ago quarter to $1.3

billion, beating expectations of $1.2 billion earnings per share of 22 cents, more than double the 10 cents per share expected and the first quarter of positive net income the company's revenue outlook for between $1.03 and $1.08 billion in the first quarter also ahead of estimates. and in snap's prepared remarks, the company guiding to better than expected user growth. forecasting between 328 and 330 million daily users. that's ahead of the 327.8 million anticipated. snap also saying that macro headwinds related to supply chain and labor disruptions remain unresolved in the new year, but they continue to onboard new advertisers which drove active advertiser count to another all-time high. also saying that the company's direct response ad business began to recover from the impact of apple's ios platform changes quicker than anticipated they did say in terms of outlook

that while they made significant progress in navigating the ios changes, they believe it will take at least a couple more quarters for their advertising partners to build full confidence in their new measurement. solutions we see that stock now up 31%, and guys, i do have to note that i will be joined by snap's ceo, evan spiegel, tomorrow in tech check for an exclusive interview. >> thank you so much we look forward to that. up 32% now ed lee, i mean, stark differences within that compared to facebook. >> compared to facebook, i mean, definitely a tale of two cities. facebook, meta was talking about the headwinds with ios, that's going to cost them $10 billion this year. no such thing with snap. they're very different companies. even though they're both social networks, snap has much more room to grow that's why their daily active user count is such a huge indicator for them facebook is essentially tapped out in north america

they're leveling off in terms of their users, which is really their volume all they can do is go for price increases on ad rates. they can't do that because of the ios changes. snap, however, is increasing volume and they're figuring out some sort of a data solution to get those sort of premium ad rates going despite the apple changes. again, a volume story for snap that's why they're doing well. facebook is just a really different animal as a social network, at least in north america. that's the thing to buy for sure, and clearly investors are doing that >> it makes facebook look even worse with those results and this kind of reception amazon prime increasing its membership fees as well, going from $119 to $139. i want to bring your clorox results. not as exciting as the tech companies. a big miss on eps, 66 cents per share. the estimate was 84 cents. sales were a little bit better but again, still a sales decline, $1.7 billion. the estimate was $1.66 billion looks like health and wellness was the big culprit there.

they're not selling as many wipes as they were earlier in the pandemic, even with the slight omicron boost gross margin coming in worse that's what impacted the profitability. only 33% the estimate was 35% then it looks like guidance is also coming in worse than expected they're now guiding for 1% to 4% decline in sales and earnings key, a big step down from what the street was expecting $425 to $450 on earnings per share for the full year. the street was more in the $5 per share range on earnings. that's why you're seeing the sell-off, 8.6% on chloraush, which has already underperformed because they have been so sensitive around the pandemic to what's been happening. slower sales than what we were seeing this time last year and the year before and dealing with the margin pressures as well freight cost resin has been a big comproblemo this company as well >> staples were the only positive sector today. might have a reversal based on

these moves. mike, final thought for this block on all of these crazy, crazy moves after hours, again >> yes, crazy in their isolated context. i think that's what they're really measuring, just exactly how aggressive the declines have been right now, you have snap at $33.91 pinterest is not even back up to where it closed two days ago so massive moves because there was this complete give-up trade going into it. i think that's where you have to keep that in mind in terms of saying was this an upside surprise or did everybody brace for the worst and now you're covering shorts and buying a little because it wasn't as bad as we maybe had feared >> stephanie link, ed lee, thank you both for joining us in this wild after market session. great to see you both. >> we're just getting started in the second hour of "closing be bell". up next, reaction to amazon's profit beat when we're joined by

an analyst who thinks the stock will continue to rally from here, and we'll dig deep into results from snap and ford as we coundot wn all of thure earnings calls coming up later. visit indeed.com/hire and get started today.

as a business owner, your bottom line 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.™ snap shares soaring nearly 40% after beating expectations on the top and bottom lines. seeing it first ever quarterly net profit joining us rich greenfield obviously, let's hit snap first. extraordinary jump following an extraordinary fall during the session. compare and contrast with meta for us >> look, investors, look, meta was down because tiktok is literally eating its lunch right? there's no doubt in my mind, mark zuckerberg for the first time ever, looked vulnerable last night mark literally said we are being impacted by tiktok they are so big and growing so fast, even as we pivot, we don't know if it will be enough.

that's what meta said. like, snapchat is not a direct competitor to tiktok investors have been fearful for two and a half years now that tiktok was going to kill snapchat what they forget and is really important is that snapchat is first and foremost a communications platform. that is very different tiktok is entertainment first and is much more like facebook, certainly much more like instagram and youtube. i think that's what investors got wrong. >> and so why is snap doing so well in a relative sense this quarter? is it also down to planning better or just lucky that it's in a slightly different part of the market >> i think it's because users are gravitating towards it they're talking about high teens growth rate in users even in q1. consumers love snapchat. this is not about -- they're gravitating towards tiktok, they're gravitating to snapchat.

they're moving away from instagram and facebook rirlt not just tiktok hurting meta it's snapchat hurting meta there's no doubt about it it's a core communications platform and it's expanding its in age and demos and napchat is giving people more to do. did idfa hurt? it did, but they're recovering faster than investors realized and investors lumped them in every is getting killed by tiktok that is factually not true that's the mistake people made >> it's not just getting killed by tiktok. what about apple they're both being hurt by apple, aren't they facebook said it cost them $10 billion, the ios platform changes. snapchat warned in the past it was affected by that as well >> though doubt that the growth rates, remember, if you listen to evan spiegel not too long ago, he was talking about why they could grow revenues at 50% plus for years, literally years to come. obviously, their growth rates are below that as sara, as you just pointed out, idfa and apple's changes

had an impact and there's no doubt evan and his team made a mistake. they didinate do what they should have done to pivot away from apple fast enough the reality, though, is they're moving very quickly now, and i think what the street and one of the things the street is reacting to is that the change is actually happening faster than they expected at snapchat, and that's a real positive remember, there's a big difference snapchat has a relatively small group of advertisers probably hundreds of thousands of advertisers mostly big brands. they don't have the long tail small businesses that are really struggling and that's what's driving the $10 billion number at meta, there small businesses are being more impacted than the large brands who are helping to figure this out faster both on meta as well as on snapchat i think that different type of advertiser pool in this case is actually an advantage for snapchat versus meta >> what's your take on pinterest? >> look, pinterest is clearly oversold do they have real challenges in trying to figure out how they navigate the future? absolutely, they have had a lot

of management turnover but i think again, people have thrown out this entire sector. i mean, twitter has gotten crushed. everyone has gotten crushed on the fear of what's happening in the ad market, the digital ad market, and specifically after what happened last night, everyone just gave up and sold the whole sector that was clearly the wrong read. and i think what's going to be really interesting is how investors sort of start to look at these companies more individually versus and what their issues are than look at this whole sector and say, god, this whole sector is dead. >> so what does that mean overall for users and engagement because all of these questions came to the fore with those facebook numbers it wasn't just the ad business, the apple changes, the tiktok. there's a sense that there's a saturation point or a ceiling to some of these growth companies i think that realization on top of higher interest rates, which has already plagued the group, was a hard one >> look, youtube is growing 25%

or high 20s, right 17 years after youtube was created. it's sort of staggering. there is still a massive shift of consumer time spent on things like television. there's a long tailwind of time spent that all of these platforms are capturing. now, is facebook, meta i should say, is meta on the losing end right now? no doubt about it. they do not have the product right now that consumers want. and they're suffering in time spent. why it hasn't shown up in the numbers until this quarter, hard to tell because they have been losing time spent for a while. why this was sort of the real breaking point, it's honestly, i don't think it's totally clear whether it was just tiktok reached a point where it's finally big enough to be impacting, but again, just because tiktok's growing, just because meta is hurting, doesn't mean the rest of the sector doesn't have lots of room. remember, everybody else is a fraction of the size

so there's still a lot of room and time spent to go around. so what's bad for meta is not necessarily bad for others like snapchat and twitter >> we'll be fascinated to see what meta does tomorrow after declining 26%. good to see you. >> thanks for having me. >> much moroon today's wild after hours earnings up next, an amazon analyst who thinks the stock can still rally another 20%. >> plus, what to expect during l the upcoming conference calls.

check out shares of amazon after hours, absolutely surging, up 18% after reporting earnings moment ago yes, it lost about 7.5% in today's session. posting an earnings beat revenue a little below expectations it did break out its advertising business for the first time, a nearly $10 billion business, which is notable given some of the concerns around advertising from meta today. let's bring in tom forte, always rising the annual prime membership fee what do you make of all of it and the 18% stock surge. >> the 18% move is nice.

we have to remember it was down high single digits in today's trading session. the story of the fourth quarter is different from the second and third quarter to the extent the high margin businesses, cloud computing, and advertising, were able to offset a slowdown in e-commerce and the company's e-commerce business in the fourth quarter had a better than expected handle on some of the challenges, supply chain, labor, things of that nature. very impressive profitability in the fourth quarter, and at least for one quarter in the last three, advertising, aws, were able to offset the challenges to e-commerce >> how do they deal typically with the pricing issue around prime? they're going from $119 a year to $139 a yer, citing a rise in inflation, basically, cost related to wages and transportation as well as expansion of benefits under the membership how does that typically go for customers? do they automatically renew? >> sara, i do think they have a

large base of customers that automatically renew. my flippant answer was they're basically passing on the cost of lord of the rings to consumers not unlike the cable companies do with regional sports, but they're thoughtful with raising the price of prime i think that's rr been four years since they did it last time prime today is very different than it was four years ago the amount they have been spending on video is, you know, multiples higher the quality of the service we think with one-day shipping and things of that nature is much better than it was the last time they raised price on prime >> tom, tell us what you're most focused on in the earnings call. >> so, the primary focus in my mind is on the e-commerce front, were they able to manage the labor expectations, supply chain, things of that nature because if you think of a march quarter versus the december quarter, while you have seen from apple a sequential improvement in supply chain, things are still challenging

the labor market is still tight. i'm curious to find out at the e-commerce level, how are they managing supply chain and labor challenges >> online sales were actually down, but to your point, aws up 40% helps. what about the advertising business now that they're breaking it out, $10 billion, based on 30% growth in light of some of the concerns with facebook how does that look >> in my mind, breaking out advertising services reminds me of when they first broke out cloud computing. it's amazon saying we're taking this seriously and look how big the business is and how fast it's growing i think investors in addition to being encouraged by the better than expected results are favorably reacting to the increase in prime and they're disclosing their advertising sales. >> tom, where does this stack up with the mega cap names in your preferences? >> well, clearly, right now, i think apple is the cleanest story. to the extent they are performing at the highest level.

their stock has done very well for amazon, i am encouraged that they were able to offset the challenges at the e-commerce level with higher margin aws and also cloud computing obviously, netflix has challenges facebook, meta, whatever you want to call it, has challenges. and google is probably performing as well as apple is so put amazon -- sorry, put apple and google at the top and then amazon afterwards >> tom forte, thanks for joining us good to see you. >> time for a cnbc news update with shepard smith >> hi, wilf. thanks from the news on cnbc, here's what's happening. the leader of isis is dead after a daring overnight raid by u.s. special forces in syria. his name is al qurayshi. the terrorist leader detonated a suicide bomb killing himself along with his wife and two

kids president biden called it a final act of desperation and cowardice. according to the pentagon, all u.s. soldiers made it out safely >> secretary of state tony blinken and defense secretary lloyd austin giving u.s. senators a classified briefing on russia and ukraine. after that meeting, the chairman and the ranking member of the foreign relations committee and others said bipartisan support for sanctions against russia is growing. and a mass exodus now from ten downing street in the united kingdom. today, as four senior aides to prime minister boris johnson resigned among them, his chief of staff and his communications director. the quitting comes just as the scandal intensifies over those parties at 10 downing street during strict covid lockdowns. prime minister johnson has apologized, but so far, he's refused to resign. tonight, a bill introduced in congress today looks to end legacy admissions to most colleges and universities across the country. the details on the news right

after jim cramer, 7:00 eastern, cnbc sara, back to you. >> shep, thank you we'll see you then shep smith up next on "closing bell," mike santoli looking at the decline in tech companies issuing higher guidance and what that means for the sector over the rest of the year >> plus, ford shares under pressure here after missing on both the top and bottom lines. a bullest analyst on what he wants to hear in that company's conference call. the stock down 3.5% after hours.

(doorbell rings) (family chattering) - [announcer] meat-itation, a sense of calm that comes from being transported to your umami place. on time, lowest price, or we'll make it right. grubhub. ♪ chicka-chicka

we have to quickly show you some of the after hours earnings movers it's crazy the kind of moves snap is up 50% this is not one year this is right now after hours. >> having fallen 20% >> sure, but first quarterly profit it's a huge relief amazon, snap, pinterest. a big sigh of relief for investors in these names and in entire tech sector after what we saw from meta, which closed down lower than 26% amazon surging 17.7% in itself, a huge move for a mul multi-trillion dollar company. >> let's get to mike for a chart

or two mike >> yes, exactly two. first of all, wanted to take a look at a somewhat longer breakdown of the tech sector back in september 2018 is when s&p created the communications services sector. and it is dominated by alphabet, facebook, netflix. it was afraid technology was getting too hefty. so it moved in i think at the time people thought it was almost a lock that the communications services sector would outperform because it was hur faang in a sense. what's actually happens is it's rolled over along with the internet stocks in general as technology, which basically has the benefit of apple, microsoft, and semi-conductors has opened up a wide lead here. we'll see if there's some kind of convergent waiting for us some point down the road look at current technology trends in earnings guidance. the percentage of technology companies so far this quarter delivering positive guidance is up 33%

you see a massive step down from here in the pandemic where it was the majority of tech companies saying things are better than before it brings us back more or less to the pre-pandemic area which is not so terrible because tech was doing fine, but it gives you some sense of why investors are gun shy about the outlooks for tech companies ow. overall s&p coming into today, 3 to 1 negative to positive guidance >> why is that, mike what are some of the reasons they're citing for not being as enthusiastic about the outlooks? >> i think it's a combination of they certainly front loaded a bunch of demand, therefore, estimates got ahead of the reality. and you see what's going on with the advertising supported companies. where they're talking about supply chain and margin pressures and all of the things that brick and mortar companies are talking about because their customers are impacted by those things all those things together plus a step down in e-commerce spending

seems to be the culprit. >> mike, thanks so much. appreciate it. up next, we'll are discuss whether investors should be buying the dip in shares of ford following the disappointing earnings report, and look at unity software,it's surging after reporting a smaller than expected loss and issuing strong revenue guidance feel stuck with your finances? ♪ ♪ move your money to sofi.

you could earn up to $2,230 when you download the app, and feel what it's like to get your money right. sales are down from last quarter, but we're hoping things will pick up by q3. yeah...uhhh... doug? [children laughing] sorry about that. umm...what...it's uhh...

you alright? [loud exhale] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. [ding] get e*trade and start trading today. ♪ music ♪ [ding] get e*trade ♪ dream, dream when you're feeling blue ♪ ♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change. let's get a quick check on

today's after hours earnings movers amazon up 18%. snap up 53%. pinterest, 30% just completely nuts these moves. and polar opposite to last night, kind of hard to get your head around, this volatility is so, so pronounced. ford down only 4% and clorox down only 8.5% >> even with these gains, snap is still down for the year, which shows you how much pressure there's been on technology in general lately on the fear of higher interest rates. let's hit ford a little more it's down 4% after hours michael ward joins us. he's got a buy rating on that stock, $29 price target. a miss this has been an outperformer, up 70% over the last year. hot is the problem here? is the chip shortage still hurting sales? >> yes, and no question this was a miss it was disappointing there were four kind of metrics i was tracking and watching in the quarter, and they missed on three of the four one positive thing is they did

provide record guidance for 2022 despite some of the ongoing chip concerns, as you mentioned >> so what does that tell you? they see some light at the end of the tunnel for some of thos shortages? >> well, they're probably looking at the same things i am. when i look back at the auto industry in the last 40 years, over the next couple years to me, the outlook for the vehicle manufacturers in north america is better than it's ever been. i mean, this is the first time in history coming out of a downturn that the auto industry isn't faced with the prospect of restructuring cost, revenue, or product, and restructuring balance sheets ford is in great shape in all three of those fronts head nothing to '22, '23, '24, '25. and the underlying demand trends are more positive than i have seen in 40 years >> how does their lineup, vehicle lineup, stack up versus key rivals >> well, i think obviously the market is very focused on what their electric vehicle lineup is, and ford has a very different strategy they also have the benefit of two of the strongest brand names in the marketplace, mustang has

a historically strong brand name and the f-150 has been the number one selling vehicle in the united states for decades. they're electrifying both those products the mustang has been very succ successful production in 2021 was about 20% higher than targets at the beginning of the year, despite the chip shortage. you have over 200,000 orders for the f-150 lightning. that's positioning ford to be among the leaders in electric vehicles over the next two to three years in the u.s and i think two years ago, if somebody had said that, they would have been laughed at >> now, and that explains i think a lot of the rise, right so what do you want to hear on the call >> you know, the value of rivian kind of distorts their balance sheet, because it shows up in their cash to marketable securities you had a big bump at year end, but ford ended the year with about $7 billion of net automotive cash if you take out rivian, and they're going to generate another $5 to $7 billion in surplus cash this

year this is a very strong company. what you want to hear is very direct comments, where they missed, where they made up, and the three out of the four items i felt they missed, where was i wrong? does that change my investment horizon. >> michael ward, thanks for joining us >> thanks very much. >> when we come back, much more on this afternoon's busy earnings session amazon shares up sharply after reporting a strong quarterly profit we'll dive deeper into that report when "closing bell" comes back

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. welcome back, more on amazon's results deirdre bezo bosa has more. >> i just got off the phone, i asked about the impact of apple's privacy changes and the company said that the opportunity for brands to engage customers across amazon properties is unchanged. so essentially no effect and that decelerating quarter over quarter growth they attribute to prime day being moved around in the year he was asked about that prime price hike he said that they are comfortable now to raise the price of prime it is hard to draw comparisons to when they have done so in the past because there is more offered now. but he also did say that revenue

per prime member grew significantly during the pandemic and they're confident in the proposition on riveon, there will be marked market going forward, so some volatility on the pml, that's obvious. but do remember that a lot of the net income gain came from the stake on paper on the labor situation, he said that they feel good it going into 2022, that omicron did provide some challenges, but that they have proven they can hire well, they need everyone healthy and to regain that productivity and that call kicks off in 30 minutes. we'll be on it for more. >> and just stunning move, great to get that extra color before that call. thank you for that up 17% we have been saying this, the scale of these moves in market cap -- >> gigantic. >> even when it goes up, mike santoli, not to be celebrated. it shows what a bizarre market environment we're in at the moment. >> yeah. i wouldn't say it is entirely

healthy. doesn't show you a very kind of smoothly functioning liquid market doesn't mean you get completely overexcited about it, not being real it just exaggerated moves. we have a lot of kind of spring loaded activity in these markets, some of it is options field, some of it is real kind of sector concentrated moves and you have these -- a full liquidation followed by short covering of buying back in all that together is dramatic. it tells you how severe the dislocations were. snap is jumping back up to a level around $38 a share, that gap down from january 14th, so that's like a -- less than a three-week round trip. but intense in both directions by the way, guys, on amazon, one aspect of the quarter out, which is as people are remarking, finally broke out advertising revenue and people have been back into the number beforehand, but in the fourth quarter, $9.7

billion in advertising services revenue, up 32% year over year it is more than half as large revenue-wise as aws. and growing almost as quickly so if there was one reason amazon traded down in sympathy with meta, what does it mean for advertising and that's a slight comfort. >> tom forte saying it reminded of him of when they were breaking out aws, a huge profit machine. >> yeah. >> mike, thanks. amazon up 17.75% snap surging 54% pinterest up 28% less than an hour away from amazon's conference call we'll break down what we'll be listening for on the call and what to expect from the others as well. "closing bell" back in a moment. with ibm, you can do both. businesses like insurers can automate

so agents can spend more time on customer needs. and whatever comes your way, you've got it covered. saving time and improving customer service, that's why so many businesses work, with ibm.

it has been another wild hour of after hours earnings as we await the conference calls from amazon, snap, ford and clorox amazon shares surging 18% after a bottom line result they lost 7.5% in today's session. that pales in comparison to snap, up 56% skyrocketing after reporting blowout earnings thanks to better than expected daily active user growth pinterest up sharply after top

and bottom line beat 26% ford under pressure, down 4.6% after missing profit and revenue estimates. clorox sinking after a bottom line miss and weaker outlook, all of this is in contrast to what happened to meta today, which lost 26% the company formerly known as facebook shedding $2 billion in today's session and jobs day tomorrow >> i'm going to miss all this. what a fun show we had today and i hope our remaining three together will be as fun. >> wilf is going back overseas with the strengthening pound. >> yeah, exactly, bringing a currency reference, exactly, moving back to the uk very soon, very soon. february 16th will be our last show, given our various schedules, only three more together mike as well and i -- >> i hope it was nothing i said. >> happy for you.

>> do you know what it was, it was the chart yesterday, it wasn't good enough that was the reason. but, anyway, more details on twitter and stuff, but very, very excited about the final few shows and remaining a cnbc contributor which couldn't have done without and we should pivot back to the market for the final minute, mike what an extraordinary market it has been sarah mentioned facebook 100 billion down from amazon, more than 100 billion up it is an astonishing moment in time that we live in and the question earlier was will we retest that intraday low that we got last week and all of a sudden it doesn't look like we will again. >> certainly can't say yes or no definitively, but we got some breathing room today, with these responses. it shows you there was a stampede of just people buying -- pilingon the stocks. for understandable reasons if you see a company the size of meta go down 26%, it seems as if there is a lot of treacherous

ground out there obviously, again, breathing room, it should give a little bit of a lift going into tomorrow we have a jobs number in the morning. it is unclear how much of a market mover, but we always want to look at it closely no matter what. >> it could be a negative number we're expecting a weaker report because of omicron >> what a day once again we're out of time though for "closing bell" today "fast money" picks up right now. tonight on "fast ," we're all over the major sell-off on wall street. the nasdaq handing its worst day since september 2020 check out the after hours action, amazon, snap and pinterest, stocks rocketing higher on earnings the calls for snap and pins under way. amazon kicks off at the bottom of the hour. joining us tonight, guy adami, tim seymour, karen finerman and dan nathan deirdre bosa has t