grow your savings/wealth. >> okay. >> i'm going to focus on the efforts there for the next -- >> okay. let's have a future conversation about that you know how it plays into kyle bass' form of esg, in this case, it's the land. we'll end it there, kyle it's good to have you on we'll be watching. and it's time to go. make sure you join us tomorrow "squawk on the street" is coming up now good monday morning. welcome to to "squawk on the street." i'm carl kwooint kwooint with taifd faber. cram has the morning off disney, uber, peloton, coke. m & a. cpi is on deck thursday.

frontier buying spirit. >> and spotify shares lower ahead of the open. crow daniel ek damning joe rogan's use of racial slurs. last week, mike, as you pointed out on squawk this morning. and bebds in the road from point to point, as you said. >> yeah. it was just -- there was pockets all over the place the individual market was more than 1% range each day the s&p 500 last week, i mean, part maybe is more complicated than what we're seeing in terms of this cyclical shift from very fast growth to something lower obviously fed tightening and the move in global bond yields everyone is now kind of talking about the shape of the charts of european bond yields cracking above zero pretty decisively and the u.s. two-year note after

the jobs number on friday, that docked 134 the 10-year was at that level two months ago so that's how quickly the bond markets reprice for several rate hikes. and, you know, we can talk about is that too many is it not enough is the fed going to look to surprise the market or not that is, so far, been absorbed it's not been comfortably absorbed you had a lot of wear and tear in the market along the way. another piece of that, though, is bonds are down in terms of their value on the year. so bonds and stocks down together we talked about the possibility for a long time. it used to be the way in the '80s and '90s. now bonds are giving you that offset to declining equity prices they're not a volatility dampener i think it explains the jumpiness. it helps explain why you're no longer as bold in buying dips and raising equity exposure. >> but, i mean, we're coming off what was an extraordinary week i mean, some of the damage that

was done. >> oh, yeah. >> and we've been talking about it for weeks now, of course, with the high multiple, you know, hypergrowth, low profit names. last week nay got to obviously meta was the key it's down 30% for the year let's call it. paypal we've seen what happened there. >> yeah. >> and then the crazy reversal in snap and the amazon number at the end of the week. i mean, i don't know what or how it positions us for this week. we don't have as many important earnings and alphabet, also, i forgot last week. >> yeah. >> but it's hard to tell right now. a lot of pain. i mean, you know, i talked to a lot of guys that run hedge funds. they're down double digits a lot of them. >> yeah. it's a big part of it. so performance orr yenlted investors like hedge funds are in an immediate hold in january. they were pretty crowded in some of those stocks. >> they were. >> in some you never have to sell because the business model is so good i think there's something that is such a statistical outlier or

a jarring situation when $800 billion goes down 20% somethi d implied fall. >> yeah. if you look at alphabet, if you look at microsoft. yeah, they have held together. there has been this splinlterring out of a harsh calling of winners versus losers that's the only thing. i'm not saying it's abnormal a lot of people are looking at thin liquidity conditions in things like s&p futures and so kind of explains a little bit of this interday jumpiness in the market and, you know, there's a general stress situation when we're talking about, you know, getting ready for tightening and

volatility levels consistently being high for weeks on end. >> b of a over the weekend have been calling for seven hikes this year. and the year end targets 4600. how do you get both? they argue that leverage is nowhere near what we saw in the great financial crisis banks better capitalize than ever you have $19 trillion in cash between corporate's and households that's up 35 from 19 in their words, the hikes won't hurt for awhile. >> yeah. they won't hurt, i guess, in a systemic way in an aggregate way. household balance sheets and corporate balance sheets in decent shape you're seeing a little bit of raggedness in corporate credit you're seeing it widen out a little bit i think bbb yields are above 3%. you can say that's a huge move they were below 2% or around 2. you know, we have to sort of say three is low but, you know, people get lost on the wayside along the way toward we're going to be okay ultimately i think that's the key it's a little more of a

selective market financials and energies doing fine this year certain areas of the market are not going to be dinged up by rate hikes and, you know, it's only going to get us up to 1.75%. even if you get to 7% which is more than a conclusion, you know, in theory -- >> over -- yeah. >> seven more meetings this year between march and december, we would need a quarter point. >> there is a school of thought if credit gets hairy, in the words of some, you look away from rates and away from leverage companies and back to software. >> sure. >> where can free cash flow is positive and they have two years of revenue visibility and little to no debt >> that's the interesting piece. the faang became faang because it was defensive in part because you can predict the businesses yeah that's something we'll are to see maybe they'll rotate back there.

at what point? is thedamage fully done? >> to your point, carl, you can't underestimate the amount of network moved from the high network individuals. something that is gauaranteed. something that may pay 4 or 5% in an environment in which rates are next zero, that's been atr attractive. >> to a degree what you're worried about is the havelocityo the moves in the fixed income. that's why everyone is posting the charts on the german yield on the idea that some accident happens. somebody gets caught offsides and it becomes more of a market wide issue as opposed to we have to reprice a little bit. i mean, it's more doctor mat toik say critrillions of dollars have gone from negative to positive rather than to say german yields are up 30 basis points, which is what they are. >> a lot of people are happy to see negative yield go away. >> absolutely. >> on the disruptions and strange things that happened as

a result. >> yeah. speaking of strange things happening, we'll get to shares of peloton they'll be up, most likely in reaction to published reports a strartty of places saying -- take your pick amazon or nike or apple? i don't know all said to be mulling possible bids for the company. and started off with this on friday it did send the stock up dramatically, at that point. i believe it was after hours i haven't picked up anything it doesn't mean it's not out there. it seems a little odd. to remind people, there's an activist in there but more importantly foley, the guy who runs the company, he controls it, too. you know, b shares 20-1. you have a controlled company here you can't really get much done as an activist or even as a potential bidder, if you really were there at this point, unclear to me what there really means or is or

whether there might be some interests. don't forget it's a company -- where was it done? it was 16th of november. i come back to it a lot. it sold over billion dollars worth of stock at $46. >> exactly. >> by the way, they haven't been making any moneysince then either and they said weeks or days before, we don't need the money. then they raised it. here we are potentially trading as high as $31 when you look, it's a complete up and back all the way. below the ipo price, i believe >> yeah. so we peaked at $160 right. it's kind of 20 to 160 to the 20s. i can't get to the point of the psychology of peloton management as a potential seller at these levels what kind of a premium would you have to do to say, fine, you know, that kind of compensates us to get us back to a place where we were six months ago when the stock was four times as it was now it's very tough. especially, i mean, the ceo sold a bunch of stock higher.

you know that people have gotten stock base comp at higher. it seems if why now is the time you would pull the trigger if you can't be forced into play. >> truist would argue they used to trade at 1.7 times eb sales now 11.3 now trading 17 and they use my lulu's acquisition as a proxy which was acquired at five times 2022 sale. i guess the point is, it's gotten cheap i don't know if you consider it back then at different kind of story given where we were with covid and that. >> yeah. all true it's, obviously, a lot cheaper than it was. it has a lot more questions in terms of the overall business model right now. and to mike's point, when a stock moved like this to sell off the absolute low, even if you were to get a significant premium, it's a difficult thing to do that's very much unclear i haven't spoken to foley. he's a willing seller, at this point, anyway. >> right. >> clearly there's something behind this.

somebody is trying to get something going. you know, again, you have activists. i wasn't familiar with him in there. not clear exactly what they're trying to achieve. maybe to this point the fact that the stock did get somewhat cheap. >> right and it certainly could be the case that if you are amazon, nike, apple, it's almost your responsibility to consider the prospect it's only $8 billion. we can pay a big premium does it get anywhere strategically we want to go anyway it you can have the conversations and not yet really have the makings of a two-sided deal. >> that's true. >> here is dan ooifs basically said it would be a huge strategic coupe for apple. raises the possibility that disney could start to move. >> i don't know. >> i don't mean to laugh. >> you can laugh because what? how long did it take alphabet to buy fitbit

forever. if it's amazon or apple. even if you can say i don't see any competitive issues here. amazon is still trying to finish the deal to acquire mgm. i mean, it's very hard to imagine these megacompanies. obviously, we look at microsoft and what the market at least thinks in terms of how long it'll take to complete that acquisition of act vision. it doesn't matter the deal, it'll take a long time if you're amazon or apple. nike, perhaps, is a different story. >> true. there's other m & a news frontier and spirit agreed to merge. phil l.a. bow joining us with the details. >> it's been six years since we had an airline merger in the u.s. frontier and spirit are hoping to close the deal in the second half of this year. here is the agreement that they announced this morning the company's name, the ceo, the headquarters, that's needs to be determine. at this point, they're saying

it's a $6.6 billion transaction action with frontiering controlling 51.5 and spirit getting 48.5%. how does it work out for spirit shareholders they'll get 1.9 frontier shares plus $2.13 per spirit share as part of this agreement that's why we take a look at the stocks this morning. spirit up 13%. frontier down a little over 1.5% this is an interesting deal that a lot of people will look and say does it make sense the ceo of spirit this morning said, yeah, it makes a ton of sense. >> we will be asked that question why not and the answer i like to give is why not? i mean, it's a fantastic combination as barry said. we think it's extremely complimentary. there's going to be a lot of value to deliver the consumers it's not a regular airline merger it's two different things you have two low-cost leaders getting together to figure out ways to drive more growth. it'll be extremely beneficial to a lot of constituents. for that reason, we're excited

about getting this thing across the goal line. >> if regulators sign off on this agreement -- you would have the fifth largest airline in the u.s. being frontier/spirit they would have a little over 5.4% of the market we're using 2019 data. mainly because the last couple of years all over the place in terms of what has been happening with revenue, passenger miles. again, a lot of people point to the fact you have three out of every four flights in the country controlled by the big four spirit and frontier say, look, we bring down prices that's why when you look at shares of the two stocks, that is going to be the question for regulators is this a deal that helps consumers? they clearly believe it is they being spirit and frontier, guys but that will be the question for regulators does this hurt competition is it a case where these two really don't dominate any one market there is some overlap but there's plenty of competition out there and that's going to be the argument from spirit and frontier. >> there are other argument, phil, if you believe corporate

travel is going to lag leisure, this is your play. they're heavily in leisure it sounds like heavy airbus over boeing. >> all air-bus fleet bill frankie from indigo partners, back in the day 2006 to 2013, what did they own spirit they sold spirit they bought frontier now they're putting them together bill frankie thought it through. they've been talking for almost a year about putting the combination together with frontier and spirit. >> fascinating, phil we love airline m & a. fun. when we come back, we'll dive into spotify and the joe rogan controversy evolving yet again. the ceo apologizing to employees but said he will not cancel the podcaster. a busy week here with the earnings names and cpi on thursday back in a moment

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spotify is down in the premarkets ceo dan y-- daniel ek he's sorr about how the joe rogan podcast is affecting them. this podcast showing rogan using racial slurs making the rounds ek will not pull him from the

spotify. his argument is that cancelling, as ek put it, a slippery slope. >> yeah. he had made the same point last week talking about earningsin stock by the way, not responding particularly well for those earnings, as well. you can take a listen to what ek had to say himself when he joined us after earnings last week >>well, i think the big balancing act that we're trying to do as a company that is just critical is balancing creative expression with, of course, the one about the safety of our users. that's why we published this weekend our policies and really, for the first time did that and that's probably in our half something we should have done earlier. that's on me we have them out there now so that everyone can look at the policies and understand what those in our platform. >> you know a lot of podcasting, of course, is done in order to

get margins higher it's a company in 2018 promised that a longer term would have margins in the 30s it's not there yet, mike it's difficult to imagine the music business where they're paying out roughly 70% of realla reminder that the business model hasn't really proven out to date right now. just in terms of, you know, profitability. you mentioned margins. and, you know, that stock has a similar pandemic round-trip look to it as a lot of other ones you know, kind of doubling and then having, again, in the last two years. >> what are we calling them? what did you say it's got a round-trip --

>> i like that. >> yeah. >> i wouldn't have thought spotify necessarily should be in the bucket >> i didn't either you wouldn't necessarily have felt a paypal would either it wasn't purely about it was a front loading of demand, i guess. and excitement it was front loading of so many people rush into the market. the market did so well there was a lot of aggressive flow and at least that was working in the pandemic it was someplace that is still didn't have its business up ended. meanwhile the number of podcasts on spotify q4 19 looks 500,000 or 600,000 it's above 3.5 million now daniel is talking about 50 million creators, at some point. >> yeah i don't know i'm sorry i don't understand how do you -- i don't know i don't -- 50 billion. >> you're literally throwing up your hands >> yeah. >> 50 million podcasters

>> yeah. >> okay. i saw that the other day and i wondered -- i had trouble understanding what a creator was. like -- >> it's also like how many creators are there on youtube? >> yeah. >> and, you know, the top five garner, you know, the most -- >> right. >> i think that's, you know, where we are now. >> meanwhile stock looking down yet again after a hard day on friday. >> yeah. we have some upgrades to talk about this morning morgan stanley on snow flake one of taiwan semigot a street high of bank of america. we'll get to that and the opening bell afterhere t bak

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names. tyson up 8.5 as margins nearly double year on year. they guide above the street. we'll take a look at that and what it means for the future of > biconsumer in a t. >>opening bell in about five minutes.

albee baa baa shares falling in the premarket some analysts are saying soft bank may be about to sell a large stake in the company on friday they filed with the sec to register an additional $1 billion american depository shares i think city is saying it may sell ally baa baa own 25% of alibaba.

they have so many different ownership stakes both the private and some public companies, as well that are technology related in china, have been hit as a result of xi's crack down on in certain areas of technology. you can see what happened to softbank shares. is it a surprise they might be looking 0 monetize some of the stake? no is it hard to imagine they would sell that much of it perhaps. so we'll see but they choose to do. but, again, it is, by far the largest in alibaba at 25%. one of the greatest investments of all time. >> yeah. >> sure. >> in buying that stock. >> yeah. obviously, it's at least nothing else kind of a shadow psychological overhang on the stock. all though the shares have not necessarily thrived because softbank was there as the, you know -- [ cheers and applause

you know, it's a heavily traded stock. >> keep an eye on that there's the opening bell here for the cnbc real time exchange. at the big board it's anheuser-busch looking ahead to weekend's super bowl on nbc, of course, this sunday [ opening bell ] >> and speaking of soft bank, uber we'll be amazed to watch this week. so we'll get earnings later in the week and amid the general reopening, guys, we have new jersey this morning looking to drop the mask mandate in schools. at least four financials are returning to auchs in the coming weeks amex, goldman, city, and the number of cases in the u.s. is 70% off the january peak. >> yes. >> and combined with, you know, friday's jobs number, yes, jacked by seasonal adjustments and another estimate it did drive home the point that a lot of economists have been saying for awhile.

you know, each wave had a diminished economic impact and this one in, in particular, because people were so confident it was going to be relatively sharp. we're seeing the other side. obviously you never know what comes next it seems as if you have a little bit of a fre month window for the reacceleration of the consumer economy because there was a hiccup there was a hiccup in spending we've seen it all. and so market likes when it can look ahead to a revival of that. >> you have to mention fund strat. there's a lot of high frequency work on covid cases. said it's not a forecast grow look at the average duration from variant to variant, it's about 140 days. >> yes. >> it would put you somewhere in april where a new variant -- don't give me that look. >> sorry. >> april is also the month, by the way, where it's expected to become more widely available. >> yeah. the pfizer anti-viral that we haven't talked about as much because there hasn't been as much of it

the data was available, obviously, did not show the same level of efficacy as pay logan oopts but to your point, there hasn't been as much. if april, if there's another variant, hopefully there will be another variable there are some issues with it, as well, in terms are of mutations. i don't want to get into it. i'm not expecting another variant. we're done that's it. >> yeah. >> glad that's over with. >> yeah. [ laughter ] >> well, i take it as a little bit of a positive in a back door way that funstrat is taking that approach they've been serially optimistic about getting passed covid and how the markets were going to be fine with it and the rest of it. so they're kind of, you know, thrice bitten four times shy or whatever it is maybe we won't be jarred by anything that comes along. hopefully. >> i mean, there was an article about deer they're the next vector we have to worry about. >> deer the animal or -- >> deer the animal

30 million animal. they have covid and it can go to them meanwhile in new jersey they get to take their masks off in school that's potentially a good thing. >> korea a big deal and, you know, australia reopening borders for the first time in a couple of years. >> yeah. and you look at some of the societal pressures in canada and ottawa this morning where people are like enough. and the argument goes if you're going to maintain public health policy, you want to give people back -- give them a little sugar for the next time you want to feed them -- >> yeah. scott gottlieb who i continue to listen to on "squawkbox" this morning calling out the cdc for being late so often in terms of not moving quickly enough, of course, to respond and the fact that these policies have stayed in place for now it's been years when they should have been used as mitigation efforts around certain key times. >> yeah. or events. >> or events. >> yeah. and those lines, are you going to mention -- >> yeah. i was looking. green screen southwest, caesars,

and the cruise lines >> yeah. that's kind of the reflex when people are feeling optimistic about being able to do more stuff is those pluses. you mentioned tyson. it has opened higher best performer in the s&p. up 10% you have to imagine they're not going to be popular politically for that all of a sudden we're talking about companies taking advantage of pricing increasing and supermarket, you know, meat and grocery items the big focus. >> it was a discussion this morning on twitter, at least how do they do it with clorox? margins were crushed the opposite direction in their quarter year on year i saw average beef price out of tyson up 31.7. how much is actual gravy >> yeah. exactly. >> right right. yeah, no, it's a good question in terms of the clorox stuff it'stotally unclear. i know that, you know, when packaging is a big part of the expense, that means it hurts clorox plus, you know, demand is not in

a run after months of hording and all the rest. >> yeah. >> i want to come back to amazon, of course, a feature on friday one of the largest market cap we've seen in a long period of time with the stock up dramatically after earnings were better than anticipated. and it's adding a little bit today. there was also something as the day went on that once people got a chance to read the actual filing, the earnings report following the cue about stock buy backs that surprised some people namely this is a company that authorized the $5 billion repurchase plan of 2006, but did not buy any stock in 2019, 2020, or 2021. however, it bought $1.3 billion worth of shares back in a month from the beginning of january to february 2nd you can see it there this went around on friday i saw sort of midday somebody texted it to me but it may be another reason there was a little more momentum

there in terms of the sustainability of that rally a number of people pointed to that, mike, as a real positive given they had not been in a market for so long. >> sure. you know, it's a small piece of market capital. >> tiny. >> yeah. nobody is talking about it being a huge swing factor for value. in terms of the orientation of capital allocation within the company, it means a lot. i mean, look, alphabet went from very little or nothing to a pretty aggressive buy back you know, meta has a decent sized one, too which is now bigger relative to the market cap than it was before last week so i think that the street wants to see this. it no longer takes it as a signal there's some kind of mature phase in these companies growth pass or something it seems like, look, mitigation the increase in the share count. >> yeah. >> it could be help through. >> people are pointing to it again i'm seeing research here now. it was first time in 10 years they had bought back stock. >> yeah.

>> it's a long time to go without doing that and there is some analysis done that indicates that amazon stock does quite wheel when they bought back stock. so you to go back a long time to look at that period of time given, again, it has been 10 years since they bought any stock back the largest e commerce retailer in the world by far. >> we mentioned their cap x guidance last week a nice chart out of b of a this morning. reported cap x tracking up 18 year on year. >> yeah. >> and up 19 versus q4 of '19. >> yeah. >> there's a lot of corporate cash and b, of a's view it's going to go to cap x more than buy backs. >> at least incrementically. certainly. i think that's correct buybacks will be heavy markets up a lot so maybe it won't matter as much as $800 billion of, you know, a few years ago in the 2018. but, yeah, it does -- it is

going to make a big difference cap x business business-to-business psych is a story getting going now. we'll see if that, you know, really comes through sector wise i mean, software is, you know, that was a big story for a long time, too. that cap x sought the software spending we'll see, by the way, morgan stanley have snow flake bit this morning was interesting. i thought the stock is up 6% or something like this. 7% and what is fascinating is, i mean, nobody denies the growth, the fact that, you know, customer, you know, uptake is amazing. they use it called a rule of 40. i don't know if you saw this i don't know if they created it. it's revenue growth plus free cash flow margin so it's basically it's a long way before you will be seeing earnings and appreciable free cash flow. here is how fast they're growing and here is how profitable they'll be eventually. and the upgrade was sort of like we initiated coverage in 2020. we thought it would be a certain point in 2030. now we think we'll get there

earlier. so, you know, it's a little bit of 2020 math. >> right. >> it terms of buying the expensive stock. >> yeah. >> at this level but it is down a lot. >> yeah. >> and they still have had the growth and if you look at the other similar names data dog and things like that, it looks relatively attractive. >> if jim were here, he would be talking about sleep on his couch and the other stuff. >> no question and, by the way, it's the third upgrade for snow in the last couple of weeks by my count. i saw piper in the last couple of weeks today, of course, as mike said, morgan stanley did say significant free cash generations within reach. >> korea. >> they also upgrade taiwan semi it trying to look past the 2022 down cycle on semitoday. numbers, by the way, revenue ahead. guidance above. >> yeah. there's a sense that the chips story, which is another big cap x point is getting better. >> yeah. it's getting better. it's held up relatively well but, you know, in the final kind of flush lower into the january 24th low

it finally the stocks did get hit. and, you know, some of them look better texas instruments looks touch and go in terms of its stock performance and the markets. but, yeah, it's definitely, you know, the area where the long-term though us is has not really been challenged very much. >> yeah. one thing we haven't seen much of this year are ipos. certainly not to any extent we did last year, of course, which was an amazing year for them given the performance that many of them had and so many [ speaking in italian ] s. i don't think we'll see many more of going public, as well. i mentioned that because take a look at shares of herself global htz. we talked about it briefly on friday they appointed a new ceo steve sure will take over former cfo of goldman sachs for interim crow markfields who has been running the company. but today a lock up expires. there's a $3 million share -- 3 million share block out. they're not a huge dollar amount you can see it what is notable is hertz had the crazy story, if you remember, the summer of 2020 when it went

bankrupt but then it was going to actually -- or it was in a position to raise money because of the strange mania around the stock for a brief time probably should have the sec destroyed it they went through the bankruptcy si came out with big equity recovery value then went public in 29 that was november. there are holders happy to get at insiders now. so we'll keep an eye on it again, these are secretaries these are not sales by the company raising any capital for the company. but you have a $3 million share blockout there i think goldman is selling that and a few others, mike, to keep an a close eye when the lock ups expire it's an important time. >> when the reopening stocks are up and avis up a couple of percent. clearly it's the lock up

exploration there. i was looking at the biggest drivers of the s&p to the upside is amazon, tesla, apple, nvidia, microsoft, paypal. the old megacap growth faang-type stuff but, again, conspicuously absent is meta. it's not really been a very kind of active buy the dip. stock is settled in the 230s it's not as if it was free fall every day. but i think it's a bit of a measure of how it was a little bit crowded and the complete kind of, you know, rethink of the longer term profitability and the fact they had user growth decline as many point out, once you get rid of the big 20% air pockets in the stock like this, and, obviously, there's earnings. obviously it's not trading at a discount to the s&p 500. we'll see how the earnings forecast play through. you know, you think you can have this sort of rehabilitation period over a certain period of time so we'll see if that does develop here it's had a hard time, you know,

getting much transaction. >> yeah. we've been wondering what will be the initial evidence of that. is it a resumption in daily average user growth? >> yeah. >> or something completely related to new growth categories we used to talk about 320 of the floor of the shares. >> absolutely. or is it something that, you know, people have to get a little more comfort on what that spend is on these new ventures in terms of meta and people aren't sure. to me, i would assume the company is saying we're spending this much in aggregate we consider these parts of our business and all this hiring to be about stuff that is not just running our existing platform of products therefore, we're calling that the investment into new stuff. i don't know. >> that's part behalf is happening as opposed to just, you know, buying tons of servers and, you know, r & d on the new goggles or something. >> yeah. what it is is a lot of software engineering. that's what the main cost is. >> yeah. >> my understand, at least. >> sure of the $10 billion last year and whatever the number

will be this year and next year. >> yeah. building the metaverse is not just about service it's about a lot of people programming. a lot. >> for sure. yeah and the question is, can you get people the buy in and the idea it's not just kind of, you know, shock gun approach and, you know -- >> yeah. >> see what is there. >> you mentioned faang netflix is worth mentioning. it's not moving much of anywhere carl, you had laura martin on last week, i think she doesn't like the stock they did a survey at needham of u.s. netflix users only 50% of u.s. subs are happier with the content now versus a year ago. she said the survey showed despite netflix strongest content slate ever but the conclusion is kind of interesting is that netflix cannot win the streaming wars given the current strategy we believe but, again, she has not been positive on the stock. >> no. she's been calling for the ad supported tier for years now. >> yeah. >> but this new series of

suggestions of getting into sports and news, buying a library, or option four, sell. >> yeah. >> yes. >> i mean, i don't know what you're defining winning the streaming wars is. you're kind of in the lead you have the biggest market share. it means you'll dominate. >> yeah. >> yeah. >> it doesn't seem like roku has historically as a way of essentially saying, like, that's going to be some kind of a hub for streaming and supported. it's everything running through this and you can just benefit from the overall growth. >> right. >> right i still continue to believe at some point some of the lesser players will find more pressure their shareholders the other way saying maybe the direct to consumer is not working as well as we hoped. you are consuming a lot of capital without much return. >> yeah. morgan stanley trims disney to 170. they were at 185 they think there might be risk you can get on the cnbc investing club with jim cramer find out more cnbc.com

jointheclub. befr we go to break, we'll watch bonds. 2-year did get to 133 this morning. that's the highest since february 2020. and the 10-year just south of 193. we'll be right back. we're hoping things will pick up by q3. yeah...uhhh... [children laughing] doug? [ding] never settle with power e*trade. it has easy-to-use tools and some of the lowest prices. get e*trade and start trading today.

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let's stay here. >> yeah. it's time to blaze our trail the new frontier it ain't rocket science. >> try it-it's right here. [ laughter ] salesforce the olympics ad -- super bowl ad taking aim at jeff bezos and mark zuckerberg when it comes to the metaverse. speaking of super bowl ads, nbc said it sold out for sunday's big game with some 30-second spots selling for $7 billion of course, that is our parent company. should be a good game, if it's anything like the last couple of weeks in the playoffs. wow! >> for our sure.

doubled in decade is the price of an ad just about so $3.5 million, i think, they said it was 2012 so what is that? 7% annualized growth that's pretty good for television. >> yeah. >> which has been in the decline. >> it's the nfl, though. nfl is not television. >> it's the nfl. >> it's just kind of taking advantage of being the last bankable thing. >> yes the last thing to aggregate real viewership and anheuser-busch coming back. >> ringing the bell this morning. >> yeah, for sure. i think it's somewhat amusing, you know, salesforce, you know, consumer ads, the whole thing. obviously, it's branding it's not just, you know, looking for a point of sale activity people at home going to get a salesforce subscription. it is kind of an interesting way to, you know, distinguish themselves. >> interesting to see they have people back in the office because salesforce, of course, not going to have anybody back

in the office if you don't want to be. >> and not a real return to office. >> not at all. >> it's interesting. i guess, you know, you could play it both ways in terms of how the business is leveraged with slack and everything else they can do remote but they named a couple of massive skyscrapers in two different cities after themselves. yes. empty. beautiful empty skyscrapers. >> the pepsi halftime show pepsi earnings on thursday and probably guidance as to what kind of value they see in that audience when we come back, how to answer questions about crypto on your tax return bitcoin and other cryptocurrencies are on re.rois a twoen hadwithin heek high we'll be right back.

how should you answer crypto-related questions on your tax forms? we will go to robert good morning. >> good morning. this is a key question for the more than 20 million americans who own crypto and it can have a big impact it's the first question you see on the 1040 form and it asks, at any time during 2021 did you receive, sell, exchange or otherwise dispose of any financial interest in any virtual currency now, if you answer yes, you are

required to report all your crypto sales and trades on a different form and, of course, pay the next taxes because the question says received, many investors who brought crypto last year and held it assume they have to answer yes but in separate guidance the irs says if you just purchased crypto with real currency, dollars, and didn't sell, you can actually answer no here are the basics on how you should answer this question. first of all, you can answer no if you simply bought crypto with dollars or received it as a gift you must answer yes if you sold crypto, used crypto for a purchase, including an nft, received crypto from mining or staking or traded one token for another, say bitcoin for ether all of these are taxable events in the eyes of the irs and must be reported even if you don't owe any taxes. failure to report your holdings can be seen as tax fraud by the irs. now, guys, starting in 2023,

crypto exchanges will have to start reporting all of their customer holdings. so, carl, it's going to be harder to hide clearly, the irs struggling to keep pace with the fast changing industry nfts, crypto, the metaverse. all of it. >> we will talk about it more in the coming weeks robert frank talking about tax season and crypto. quickly on some auto business, ford cutting production once again at about eight north american factories this week. because of the chip shortage got this annual filing out of tesla where they talk about the value of their crypto holdings and an update on s.e.c. subpoenas regarding that settlement they had long ago. >> took a little bit of a loss, again mark-to-market on the crypto all the stocks are, you know, they are down 20, 30%, including gm and ford off their highs. there was that big rush of excitement into wanting the value, the ev businesses obviously, things are going to clear a little bit this year and

demand seems fine. now it's interesting that everybody is rooting in a sense for car prices to come down. new and used that's going to be the big driver in cpi on thursday and beyond. >> we've got a piece on our website, used cars, one to three years old, average cost down 2% i didn't know you had dahlias. they're my favorite. they just came in. thank you.

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good monday morning. another hour of "squawk on the street." i'm carl quintanilla with leslie picker and david faber morgan brennan has the morning off. steady start to the week, although it will get busier with high-profile earnings out of disney, uber and lyft. cpi later in the week. vix just around 23. >> that's 30 minutes into the trading session. here are three of the big movers today, tyson foods rallying

after boating earnings expectations they say they are on track to achieve $1 billion in productivity savings by the end of fiscal 2024 plus, snowflake getting upgraded to overweight from equal weight at morgan stanley saying investors are undervaluing the potential for durability and quality of growth. spotify under pressure amid the joe rogan controversy. the ceo sending a memo to employees over the weekend saying he is deeply sorry about the issue, but adding that removing his podcast from the platform is not the answer he talked with us last week about the issue. >> i think that the big balancing act that we're trying to do as a company that's just critical is balancing creative expression with, of course, the one about the safety of our users. and that's also why we published this weekend our policies and really for the first time did that and that's probably in our half

something we should have done earlier, and that's on me. but we have them out there now so everyone can look at the policies and understand what goes on our platform. >> shares of spotify down almost 30% year to date you can see down 1.5% today. >> shares of peloton surjing this morning in reaction to reports that say amazon and nike are among those considering bids for the company. our next guest says it would make sense to see apple in the mix as well. wedbush securities dan ives, good to see you. >> great to be here. >> did you say yesterday the acquiring peloton would be a major coup and that apple may be forced into the deal if others aggressively go after it can apple really be forced to do anything >> i think they would be forced into it if amazon goes after peloton, which is why we talked about being an defensive and offensive move we view this as a unique asset, especially on heat, fitness and

for apple this is something where it's a huge strategic initiative from a sub perspective. you begin the three million subs subscribers. this can't fall into amazon's hands, which is why we view apple, one way or another, they will be aggressively involved either offensively or defensively. >> we talked this morning about foley's control over the company. are you getting any sense that they would be willing to play? >> obviously, it comes down to activists will be involved for peloton, watch a short documentary on go pro and fitbit maybe they don't sell here, do they sell 40% lower? this is a fork in the road for the board of peloton i could do ploefb if they are ur bid, you look at apple, you look at alexander, you look at nike, potentially other players, apple

for apple this would be a golden goose type of acquisition if they get peloton, especially cooks initiatives on fitness if you look at subscriptions, this would be key. i think it's a unique brand and just a further entry into the consumer's living room. >> yeah. again we should make the point, dan, that peloton is a controlled company so it is clearly up to foley as it whether he is even interested in entertaining any inbounds if they actually are for real when it comes to apple though, this is a company that at least through its history, recent history, has not been interested in doing large deals i think the beats still is still the largest at like $3 billion that doesn't mean it can change. but if history is any guide, they don't like going down the acquisition route for a big deal. >> the core dna in cupertino is no acquisitions. absolutely, beats, 3.2 billion the biggest to date. you think we are seeing a new age here h i think microsoft

buying activision sixel kicks it off and it's gosomething for apple, this is a unique asset that they cannot let get into amazon's hands defensively from an offensive perspective, from a subscription, from a fitness, from a health, this would pro fell those initiatives, especially on the subscription side. i believe there is some turning tides in cupertino that an asset like this could potentially come on the block. >> yeah. explain to our viewers why it would be damaging in your pin if amazon were to buy apple what is the key area of competition between the two that you are kroiting >> it's really on the fitness and health side. and i think for amazon they were able to get peloton, that would give them a significant leg up versus apple obviously, the subscriptions, a unique brand and i think that's something apple is looking at. studios have come and gone

this is a rare circumstance for apple in terms of a peloton potentially being up for bid and that's why i call it it's a defensive potential deal in terms of an amazon, but offensively, too, because i think for apple subscriptions going down the road in terms of metaverse and streaming, these are key initiatives for, you know, within those walls of apple park >> dan, i'm trying to put myself and the viewer's self into john foley's vantage point. you control the company. you are a fund founder you have seen shares plummet recently oftentimes founders are optimistic they will be able to recover. the only reason he would sell is if he sees benefit going to one of those companies, if they can do something better than he believes peloton can do on a stand-alone basis, supply chain, deliveries, wherever he sees strategic growth why do you think apple fits that mold >> i think part of the problem is for foley to watch 30-second

documentary on gopro and fitbit. i think founders tend to be glass half full. when you look at apple, 1.8 billion ios devices, the unparalleled install base and ecosystem which is services. that's why for them on health and fitness, this would -- my opinion, take peloton to the next level if they were able to acquire -- as the best fit, better than amazon, better than a nike, better than some of the others out there the fork in the road because too many times we've seen these stories where founders do not ultimately listen. they think it's going to get better and it doesn't. then ultimately they sell 30, 40, 50% lower. >> peloton, too, is notorious for doing things alone they really kind of have this vertical integration when it comes to things like delivery and logistics. do you think that they have it in their dna to be a part of the

bigger organization? >> i think that will be a question for i know larger acquired, they have a niek brand. in terms of what they built, the distribution, the services, the cachet, despite the dark st. cloud we have seen the last six months and you will see any of the work from home start to fade off. it comes down to fitness and streaming from a subscription perspective. that's not going away. and i think that's a big focus of apple in health care. a lot of investors have questioned apple and health care apple watch, the subscription on the fitness plus, this would give a huge pooboost to those initiatives which ultimately is really important to cook himself in terms of going forward. >> finally, dan, throwing disney into the conversation, i wonder how do you think they would fare in a big-scale manufacturing business like this i know peloton shoots a lot of media. that makes sense

but shipping bikes halfway around the world, does that make snens. >> yeah, and, carl, i hit disney because it speaks to streaming how do you get entry into the consumer living room you are seeing a crowded landscape in terms of streaming. peloton is u nmenyiora niek in terms of another entry into the consumer living room and that's why disney, obviously, off the radar but i would not put them aside in terms of if peloton is ultimately up for bid. >> it's going to be a fun parlor game the next few days we'll see. dan, appreciate the insight. >> speaking of deal making, frontier and spirit merging to create the fifth largest airer air airline in a fault eye billion dollars deal. >> they say it's time for the two low cost operators, the two largest to get together. so here's how this deal is going to be structured

now we'll see if anything changes over the next several months as it goes through regulatory review. frontier is going to be the acquirer, if you will, in this deal it's a $6.6 billion acquisition. frontier will control 51.5% of the merged airline as for spirit, spirit's shareholders will get 1.9 frontier shares and $2.13 per share in the deal. the name, the ceo of the merged airline, the headquarters, that all remains to be seen they will be determined over the next couple of months by a committee being overseen by bill frankie, the chairman of indigo partners, who put the deal together if they come together, testimony it will be the fifth largest airline in the u.s spirit and frontier would have 5.4% of the market in terms of revenue passenger miles. the big four, three out of every four flights in the country. according to the ceo of frontier, the reason this deal makes sense is because these

guys, spirit and frontier, they bring low-cost options to more markets. >> everybody wins through this transaction. consumers are going to win with $1 billion in savings. shareholders win with 500 million in synergies and team members win with 10,000 more direct jobs the next couple of years, thousand more with our business partners. everyone's gonna win we will announce the headquarters brand and management team in due course. >> as you take a look at shares of frontier and spirit, keep in mind that they expect this deal to close later on this year. the big question is, what does the biden administration say about this deal? we've got some calls out this morning. we expect the proverbial we'll review it, yaddie-yaddie-yada. the question is will they have questions or will they be looking and saying we are not so sure this is god food for the consumer it's hard given they have a track record of bringing down prices when they go in markets and they don't nominate any

single market in the united states. >> the network map is interesting on this one, phil. thanks for that. phil lebeau. as we go to break, it's not just airlines. you got bitcoin to watch, trying to bounce back of a 40k. tesla discloses this large holding in the crypto space. >> plus, we are going to speak with chili's blinker international. we will talk inflation and the shortage of labor. >> and former nfl head coach marvin lewis will join us on that brian flores lawsuit as we are one week away from the super bowl re" eawkn e squa oth stetahd. don't go anywhere. shop or a new loca tion without the right people in place. i couldn't keep up until i found ziprecruiter. ziprecruiter helps us get out there quickly and get us qualified candidates quickly. they sent us applicants that matched what i was looking for. i've hired for every role, entry-level technicians, service advisors, store managers. ziprecruiter helps me find all the right people, even the most difficult jobs to fill. - [announcer] ziprecruiter,

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welcome back time for our "etf spotlight. looking at how the recent market volatility is impacting overall flows into efts. >> thank you extreme traded funds in the stock reversal of january 2022 efts collected $36 billion of new money in january which sounds like a lot. that's less than every month last year. fixed income efts like vanguard total marketest gave up 6 billion in january to investor withdrawals. the first month of net outflows since march 2020 names like spdr etf trust, ishares russell 2000 the highest redemptions. since the movement of cash in and out of efts doesn't equate

to performance, look at the recent winners this month. you have mostly a focus on metals as well as energy-related funds and then you got the losers, which pretty much fall into the retail category, construction and clean energy. xlc in particular, it has a 23% waiting in meta and of course it got slammed recently due to that ex exposure and how about efts that could get because of recent earnings, pharma ift al gates 20% to pfizer alone and then you have coca-cola that is 10% of consumes like

the spdr vanguard and schwab dividend eft especially as the market volatility is if expected to continue. >> busy week ahead. today cloudflare up 8% data dog, pagerduty, twilio among the top gainers. during february we are celebrating black history and featuring some of our cnbc contributor. here is courtney gibson sharing how she believes we can make the american dream a reality for all. >> the most important thing you can do to change the financial future for the black community is to own it we can all own a piece of making the american dream a reality for all. set a goal measure it monitor it we have kpis for everything we do in business from measuring revenue to profitability to operating margins. why not set a goal for black economic inclusion

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i think this is the value system of civil rights and that was the idea that you owed a very important obligation to your community, to the nation,

to society, to stand up to what is absolutely and actually right. welcome back to "squawk on the street." crypto, bitcoin hitting the top 50 day average for the first time since november. our next guest says to expect bitcoin to slowly rise and test 50k this month joining us now is token metrics founder and ceo ian bow lean a thank you for being here as niall ferguson described it recently in a column, it's been a dark winter for bitcoin. what makes you think things can change >> thank you for having me yeah, so bitcoin has bounced back we believe bitcoin looking at the technicals has reached a bottom and based on the market interest we think bitcoin could push 45k and rise to 50k and that's since people have taken profits and that healthy correction has allowed new investors to come in and buy bitcoin. >> what are some of the key

catalysts there because at least more roecently bitcoin moving i tandem with some of the risks on assets is that a key driver or is there something else afoot that could propel bitcoin higher from here? >> yeah, for example today's interest with tesla, having over $2 billion of bitcoin is really a flag bearer for people and other companies and firms that want to enter the space. but i think bitcoin is going through a liquidity crisis with concerns when d comes to the fed interest rates and the overall economy. i think that's concerns have gone out of the way. >> well, tesla took an impairment charge on their holdings it raises its question how many retail holders are underwater at this point there have been studies on that and whether or not it's large enough to inhibit sort of animal spirits when it comes to crypto. what do you think about that >> i think that comes with the territory. bitcoin and crypto is volatile people who are early in bitcoin have made money on bitcoin

and i believe bitcoin being a strong value and being digital growth, long-term i think people will make money on bitcoin. >> where do you think we are at with the spot bitcoin eft that everybody has been excited about? it's been a while. a lot of people were expecting it to come last year you don't think it's going to be approved this year, right? what is the major holdup here? >> the s.e.c. has concerns when it comes to manipulation liquidity and i don't see this concern going away any time soon when it comes to bitcoin and the crypto market, a as whole, i would be shocked and surprised if a spot eft has been approved this year. first resp /* some first responders recommit application i don't think it will happen with the s.e.c. >> seems like significant hurdles. ian, thank you very much appreciate it. >> thank you for having me. let's stay with crypto the growing number of hacks in the fspace have many investors

wondering how secure their crypto is. eamon has that for us. >> that's right. last week's $320 million crypto heist from the worm hole network is being called the fourth biggest crypto hack of all time, and's reminding investors of the dangers of cutting-edge services rob wallace told me the sheer size of the theft that's possible in the crypto space dwarves anything we have seen in traditional finance. >> i have investigated some of the largest bank heists in history and the largest we have ever seen was 80 million here we have a $320 million heist. it's only about fourth or fifth largest crypto heist ever. >> and he said investors brave enough to venture into this realm should prepare themselves and go in with their eyes open >> it very much feels like the wild west out there. there are ways to protect yourself understanding the protocols and the investments and doing your

own research still though there are risks associated with these -- out there. >> wallace recommends using the blue chip platforms of the decentralized finance world which have seen a lot more usage and, therefore, security testing than some of the newer offerings. it includes, he said, maker dao, compound, uniswap and aave last week's case, worm hole offered the hacker a $10 million bug bounty to return the stolen funds, but the hacker never replied to that. worm hole also offered a $10 million reward for information leading to the arrest of the hacker, which, as far as we can tell, has not been claimed. the company behind worm hole, jump crypto, said it would make the $320 million in losses whole in order to support worm hole now as it continues to develop so that is expensive lesson learned, guys. back to you. >> yeah. 320 million? wow.

that's surprising they have that availability eamon, who is behind these most often? i mean, you report so much on this overall are there nation states, is it criminal gangs do we have a sense as to who is really perpetrating these? >> yeah, it's both we have seen a lot from the north korea ans who are desperate of suburbansy of any kind in this case we don't know who took the $320 million. there is that reward out there for any information. so if i had that information, might turn it for the reward you look at criminal gangs and nation states as your likeliest suspects here. you could see individual hackers who are studying these protocols, find that weakness and take advantage of it and make off with some of this money. we will have to wait and see >> regardless, eamon, your beat is definitely heating up it feels that way. after the break, we will talk about inflation and the labor shortage impact with the ceo of blinker international, parent

company to chilies and tggiano's ashe s&p is up 10 points, 4511 i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪ ♪♪ here are the receipts from the other store.

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welcome back here is your cnbc news update. the kremlin says it's not expecting much from today's talks between russian president vladimir putin and french president emmanuel macron. a spokesman says that the ukraine situation is too complex to expect decisive breakthroughs. president biden meets at the white house with germany's new chancellor biden will reportedly be trying to get him to publicly commit to strong sanctions against russia if it invades ukraine. new jersey governor phil murphy will end the state's school mask mandate today. covid cases in the state are down 95% from a month ago.

and in canada ottawa's mayor has declared a state of emergency as big trucks continue to block streets and a protest against covid rules. towing experts tell the canadian broadcasting corporation it would be extremely about diff difficult to move the trucks and the companies that have the specialized equipment would not actually not want to do any towing because that would hurt their relationships with trucking companies so quite the predicament canada finds itself in. carl, back to you. >> thank you very much rahel solomon. an hour into trading a check on the markets narrow to start the week a lot headed our way the next few days peloton, twitter, pepsi, under armour, coke, macro, cpi on thursday our senior economics reporter steve steve liesman with an update, a bit of an expected slowdown in

q1. >> that's right. the con census forecast in our cnbc rapid update a slowdown followed by a rebound in the second all of this coming amid expectations for high but gradually declining inflation. we will take a look. the average forecast this time, we have 11 forecasters, sees the strong fourth quarter 7% giving while gdp is expect ted to slow the trend around 2% for the next two years. last year's 5.7% growth slows t

3.9, 2.6 by year end the fed is successful, that's a debatable question for investors. first the assumption of a soft land for the economy that seems built into the forecasts with all of that fed tightening going on second, the issue whether the economy overall, you know, it might have held up well as the job market looks to have done the same through the omicron wave with the strong jobs numbers, i wonder if the gdp numbers weren't quite as weak. >> an interesting point. thank you. and a good place to start with the next guest. wintertime wintertime, the ceo of blinker international nice to have you you know, steve just reporting on talking, obviously, about inflation. so if we could start there in terms much cost pressures you have seen. i believe you raised your menu

price about over 4%. is that enough in terms of dealing with the inflation you have seen on the other side of your business? >> good morning, david yeah when we look at inflation and what's been happening with the cost structure, we look at it in two parts. labor and really commodity side. with labor we know those increases aren't coming back, wages aren't going to come down. that's fine. we priced for that 4% should be plenty to cover those pieces of it cost of sales a little bit more interesting. we look at those commodity prices and think there is probably an opportunity for some of that to come back as the economy and the supply chain kind of rights itself a little bit. and so we don't necessarily price for all of the headwinds we are experiencing there. we will be a little more cautious there our pricing strategy is to, you know, continue to provide the best value for our guests and to make sure that as the economy comes back and people get back to work that we continue to beat

the industry and drive traffic into our restaurants so we are a little bit more cautious than some on how aggressively we price. but as we see things start to be more permanent, we'll price for that we feel good about where weat we get an upside advantage as guests come back into dining rooms. it's a little different from other models the difference between the takeout business and dining business is significant with regard to check averages so we're excited as dining is starting to get busier again, as omicron starts to move out we see a lot of upside demand for people coming back into the dining rooms and that had elps r business a lot it's not just the price increase that matters. >> right talk to me about traffic are you seeing returning to levels from a couple of years ago? where are we in that progress you are talking about? >> yeah. we are this through this whole covid journey and the roller coaster we have been on the last two years, whenever covid startsto you know, dissipate and we get

the -- a little less of a headwind there, we absolutely see the traffic coming back to levels that are pre-pandemic now, we have been outperforming the category on traffic because it's key to our strategy but that dining room traffic is really what's important for us, and as we see the impact move back down like we did in december, even in our maggiano's business, which is heavily kind of leverages banquets and large parties, you know, early in the holiday season there was a lot of interest in that. and we saw guests coming back. it made a big difference. >> wyman, we had a discussion about tyson and their earnings and their year on year margin went from 6 to 11, which sort of flies in the face with all the precious that we keep hearing about. do you think, not tyson, but do you think some of your suppliers are using the environment as a bit of a grab? >> you know, i don't want to -- i just think some of these prices are coming down

i think the economy has got to, you know, stabilize itself we will get the workers back in. but, yeah, i think the capital markets will kind of right themselves and we will start to see some of these over what i would call aggressive increases in prices that are not justified with just the labor increases. we will start to kind of mitigate that's why we are not necessarily pricing for all of that immediately we are going to wait and see we don't want to get ourselves ahead of some of these costs if they come back down and we want to make sure our consumers get a great value every day. >> i just wanted to follow up on that

>> people have more money in their pockets as the inflation comes down, gives them more money to spend that their restaurants. commodity prices we talked about an example, i think they are going to come back to a more reasonable level i don't think they may come back pre-pandemic but we're seeing some extremely high inflationary prices on certain commodities. they tend to spike and come back down we are watching that we think that will happen. so, yeah, i know we are not talking transitory any more, but that really is, i think there are some costs that are going to come back down >> but as for labor, not on what you are paying them, but whether you are finding enough of them do you have an adequate supply of workers have things normalized again >> they are getting much better. obviously, with what i call people coming back to work,

these are, you know, whether new jobs, people coming back to work because we still have as economy a lot -- we still have millions of people that are not in the work force d to that were pre-pandemic the good news is the last few months those numbers have gotten better, right. and when you think about hospitality and leisure, i think about 500,000 people have come back into the hospitality and leisure section, by far the biggest category of these jobs creations, if you will, people coming back to work, really in hospitality and leisure. we have more team members today in our restaurants than we had pre-pandemic so we're starting to be able to staff. now we have to train them and get them, you know, stabilized because there was a lot of shake-up in the summer with the great resignation and some of that delay in getting people back into the work force i think that's a good sign not only for us, to be able to, you know, drive the demand but for the economy. we get millions more people back

working getting pay checks that's going to be a nice tailwind for the economy as we start to kind of move through some of these other maybe more headwind oriented things with tapering and some of those other things. >> absolutely. just last week the national restaurant association said in a report that at industry will likely never return to its pre-pandemic state, citing changes in technology and dining preferences and things of that nature do you agree with that and is that a good thing for blinker? >> well it is a good thing for blinker. coming through the pandemic scale mattered we didn't close a restaurant in the last two years, even though we have had regional challenges and we've been able to keep our managers and team members employed and we have been able to bring technology to bear in ways we never had that made us more efficient and effective we have been able to leverage our supply chain in ways that, you know, some couldn't and that's kept us afloat.

while we haven't taken any money, we didn't get a dime of fed assistance so we've worked our way through this pandemic leveraging our scale and the really the commitment and the passion of our team members, our manage ergs, our operators. they have been just amazing the last two years as they have kind of battled through this covid. and it has changed our business model, i think for the better. we will see a bigger mix of takeout and delivery than pre. we are using technology. we rolled a new technology system our service model changes to hand heads in front of the house with our servers and leveraging technology to be more efficient allows us to maybe use a few less bodies in the restaurant as labor becomes more and more of a challenge. >> yeah. finally, wyman, we looked at year to date of your stock it's doing okay. you go back a year, the stock as high as 78 what do you tell shareholders at this point in terms of those who perhaps own it a lot higher?

>> yeah, hang in there this is really all pandemic driven and casual dining has had a bigger hit i mean, you just referenced some of the indchallenges those are mainly casual dining and, you know, not fast food restaurant challenges, right and as consumers come back, they will want to dine out. they want to dine out in restaurants. as they do that, you know, we get better, a lot of the things with virtual brands and new technology start to leverage themselves and the results will show so we're saying hang in there. and it is getting better the good news is, omicron was, you know, a huge spike in january with people -- with team members and getting sick and excluding -- being excluded from the workplace. 2 million more people called in sick in january than december. but now it's dropped pretty much back down. so those are things that just are we deal with every day when you look at the long-term vision, it looks really good, i

think. >> all right we'll leave it there appreciate you taking time thank you. >> thank you. still to come, we'll talk with former nfl head coach marvin lewis on that brian flores lawsuit 'lbeig bk. stay with us leaving you lost. 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

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the super bowl capping off what could become a big season for change in the nfl. diversity coming to the forefront after former miami coach brian flores filed that class-action lawsuit against the team and the 32 member teams for discriminatory hiring practices. marvin lewis, special advisor it the arizona state football team and co-leader of octagon's career development advancement and transition division focusing on increasing diversity in senior levels of sports. coach, great to have you thanks for your time today i know you talked to espn last week about your own experiences swer viewing with the panthers the commissioner himself has said that the lack of progress so far is unacceptable

where do you think this flores discussion ends up where does it lead the league? >> well, i'm hopeful that we're able to make some concrete and consistent changes for the future i mean, i think that's what it's about. this cycle is basically over and, hopefully, we can lead and gain some really proper footing and groundwork to help for the future we, you know, it's been said that while the piper iline is n strong, the pipeline is strong, but we have to get the prepared candidates, not the hot candidates >> so that's a discussion really -- that's an owner-level discussion, is it not? >> i think it's an owner-level discussion, but also i think it really needs to have some input from the league office we continually rely on people who are no longer in the league that are no longer on the ground

floor and know who the real coaches are. and we rely too much on what is hot. you know, examples are coaches that are interviewed for jobs in previous seasons and maybe don't obtain the job, but two to three years down the line their name is no longer mentioned are they not a better candidate right now than they were three years previous there is no question in my mind they are better prepared. >> a lot of people are watching this discussion take place amid the images of end racism on helmets and racism painted on the end zone is this something not resolved, couple of high-profile fires >> i don't know that one or two high-profile hires solve the issue. we are continuing to press forward and have the opportunity

for young black coaches for the sons of sons of coaches to feel good about the opportunity to go into this profession we have so many ex-players now going into this profession and we want to be able to provide a light at the end of the tunnel that for their hard work and for their commitment to coaching, that they know that they can achieve their own goals. and what's happened before, just like i was able to do for the, you know, for the people that broke ground before me and broke through before me. >> wow, absolutely marvin, i wanted to do pivot to this weekend's super bowl. ticket prices getting a lot of attention on social media over the weekend. cheapest ticket worth more than $5,000 there were tweets saying, you know, can someone explain how die-hard fans of these teams are supposed to support their team and attend the game? what do you make of ticket prices for super bowls and the ability for, as i mentioned,

die-hard fans to be able to watch the games in person? >> well, you know, it is the biggest sporting event in our country. no question about it and the value of those tickets has continued to rise. and i know sometimes they talk about who is in the game well, now we have one of the largest cities in the country. but you also have fans from franchises who has been to two super bowls but is yet to win one. i know how excited the people of cincinnati are, the fans of the cincinnati bengals are, and i'm sure they are driving up prices. maybe not that everyone can afford it, but i, obviously, heard from a lot of people back there in cincinnati about how do i obtain some fikts for this football game. >> coach, this is david faber. i want to get back to coach flores for a moment. he is a young man, in his early 40s. i wonder, do you think that he has significantly damaged his future prospects as a coach? i mean, colin kaepernick never

threw another pass in the nfl. >> you know, i don't know brian. but i have followed brian's career and i respect brian a great deal as a football coach, everything he has accomplished even before he became a head coach. and just watching the man from afar and how he is always carried himself and thing i wou will be a shame if that's what happens. because he has been a great leader of men. he has made his football team better he's helped those young men on his football team become better men, better players. that's what coaching is all about. i sure hope he has that opportunity to continually do that, to mentor these young people, also blaze the path for other young minority coaches as they want to get into coaching in their futures >> well, in a way, maybe the timing of this discussion on super bowl week is a good thing that it just draws even more awareness to the issue of equality in the league we'll see certainly what happens on sunday, coach

thank you very much. >> you're very welcome thank you for having me. >> you're very welcome. time now for increased number of black nba candidates over the last decade frank, i think you are speaking of personal experience since you, too, earned your mba. >> the reason people get their mba because they make 3 million more dollars over the course of their career than workers with just a bachelors of course it's the motivation for many people to go ahead and go to the school but the return on that investment really varies by race black mba take out 24% more in loans and less likely to receive aid from their employers or to land jobs in the most coveted fields that include tech, private equity and venture capital according to management leadership for tomorrow. that's a nonprofit focussed on helping diverse applicants get into top b schools they need to redesign the recruiting process if they want

more black employees and more importantly they need to understand the cause of the understand representation and the fact that some of it is systemic and some has to do with just networking before you get to b school and it's certainly not just a pipeline issue. but the percentage of black mba students has grown overall mlt and many other nonprofits really focussed on helping black and other diverse students apply and succeed at the very top b schools. back over to you, carl >> frank, appreciate that. frank holland. coming up on "techcheck" this morning, we'll do a deep dive on peloton and what might be some potential suitors, nike, apple, amazon rumored to be in the mix. tight range he, re45.12 on the s&p. we'll be right back.

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welcome back to "squawk on the street" i'm dominic chu. stocks are mostly higher fractionally speaking to start off this week and technology is one of the best performing sectors so far, in the green by just one quarter of 1% within that particular group, we are seeing relative strength among a mix of names including solar edge and payments processors like paycom and global payments as well, some moves higher there the chip stocks are also largely

in positive territory. names like xylinx and in vid ya and applied materials also moving higher at this hour keep an eye on the semiconductor stocks very much in the green > ers rew. >>the'mo "squawk on the street" ahead. stay with us right here. don't go away.

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all right. we have about a minute left in the show take a look of shares of alibaba. quoting analysts who say softbank may be considering selling a large stake, you know, 25% is a massive stake 25% of alibaba, unclear they would have any interest in actually selling anywhere near that amount. but, they are citing a form that was filed on friday with the s.e.c., alibaba, registered 1 billion american depository shares softbank stock has been shift ownership of alibaba as any ownership stakes in chinese technology companies and the like.

>> that's right. he first invested in alibaba in 2000 despite the recent declines jack ma steps off the board of softbank last year, two years ago. i guess this was kind of in motion if it does materialize. >> we'll keep an eye on it to your point, one of the greatest investments of all time. >> oh, yeah. >> no doubt about that that's will do it for us right here on "squawk on the street. "techcheck" starts now ♪ ♪ good monday morning. welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa today the harsh calling of winners and losers is this the metta market or the apple market nasdaq trying for its sixth positive day in the last seven. plus, should peloton be peddling a sale? who