bucks a share. that would be 11.3 times their 2023 enterprise value, elsleslie no rebound for those shares since the surprising quarter. >> peter thiel stepping down from the board. >> they'll have more on "tech check," of course, which starts now. ♪ good tuesday morning welcome to "tech check." today, an uphill climb leadership changes at peloton, as co-founder and ceo john foley announces he will step down. shares are surging how to right the ship, coming up. a broken arm nvidia's $66 billion deal collapses. what it means for both nvidia and arm's upcoming ipo don't shoot the messenger.

meta shares fall, down 33% for the year early investor peter thiel leaving the board. what that signals for meta's prospects. carl, we have two broken deals today. one arm and nvidia the other is peloton's share price falling apart over the trend. though look at the turnaround today. we'll start with leadership change former spotify/netflix ceo mccarthy is replacing foley as ceo. foley will be executive chair. shares initially plunged nearly 10%. but quite the rebound. they're now up more than 20% this all comes as activist investor blackwells has been calling for foley's investor and a sale of the company. kno foley out as ceo 2,800 job cuts, 28% of the corporate workforce. the move is expected to save $800 million in annual costs, while peloton will also wind down a plant in ohio as part of the announcement, we got a look at guidance

not great here full year 2022 revenue is projected at $3.7 billion to $3.8 billion, down from $4.4 billion to $4.8 billion. for q3, get ready for a bigger than expected loss, as well. i'm trying to figure out, this massive turnaround in the stock price, why is it up? it seems unlikely now that peloton is going to be selling itself to an amazon or nike or another company. at the valued like a tech company ev to sales, less than three, nine times to price sales. >> these moves, who knows? overall, like you set it up, things fall apart, whether it is in nv nvidia/arm or the old case for peloton. we'll see what new case they build. i want to start for a moment with arm there are massive implications for all technology, and specifically semiconductors in this arm is arguably the most important technology company in

europe, a sand it is about to b public again i'm not sure why it ever had to be other than independent to begin with you know, that was weird to me softbank having it was weird going to nvidia was weird because it's such an arms dealer software wise for the whole -- and design wise for the whole industry but okay that's asset light it is interesting. talk about asset heavy bikes are heavy, carl. that's a big part of this that investors have to think about. we're talking about actual large, expensive bikes you know, a logistic system that wasn't prepared for this gigantic shift in demand now a ceo taking over who is not an inventory specialist. he is a specialist in the area of peloton that i think you could argue was working okay before the physical goods got in there and screwed things up. >> yeah. the media generation and the sub

business, as you point out, was one thing. they were so vertical in the manufacturing and the transportation and the servicing of that hardware, it's two deep wells of knowledge you have to have by the way, the street's reaction today is largely about impressed they're coming into the cost reduction opportunities. as key, for example, says today, still convinced there is a secular shift to connected fitness. they keep a $60 target >> yeah. part of the business is bullish. you just mentioned, carl, that this was a vertically integrated company. who could really pull that off if you're not apple or a select few others on that sense, i was talking to a vc, mikegajaffrey, and he said maybe peloton should go all in on streaming services, which could be a good choice. >> try charging 40 bucks a month for just a streaming service nobody can do that in this weird case, the expensive hardware actually justifies the streaming premium. there's a bit of a trap there.

anyway, talking about leadership changes and conundrums, let's bring in julia, as we continue to learn more about peloton's new ceo, barry mccarthy. julia? >> well, that's right. barry mccarthy is really a veteran of subscription, direct-to-consumer businesses. most recently at spotify, he was cfo and head of the free business for five years. the ceo's right-hand man he helped build out the company's multiple revenue streams. and he drove spotify's unusual direct listing, which other companies have since followed. now, before spotify hit a brief stint at a mobile payment startup, and before that, he was netflix' ceo 11 years. including the crucial period when netflix launched its streaming service. now, he is a perspective on consumer and digital trends in his boards seats, of instacart

and spotify. he was previously with chegg, eventbrite, pandora, and rent the runway jpmorgan saying we believe mccarthy will be well received by the street and prove positive for the shares, near and long-term. we believe he will provide a steady hand to peloton as it works to rebuild demand while right-sizing the business. outgoing peloton ceo john foley praising mccarthy as a, quote, visionary and media subscription software services. he might be number one in the world in understanding, helping to rebuild netflix and daniel with spotify he is delighted mccarthy and his wife are big peloton users guys >> i giuess they have to be to understand the model and take this on. but i'm wondering, why does he want to take this on he's gone through his career and done a lot do we think he is going to stick with peloton for the long term, or do you think he'll come in here, try to beef up the business model, and not sort of

stay >> he's in his late 670s and has been cfo at major companies. someone always in the number two role and yet had a close understanding of how these businesses run would love the opportunity to be ceo. i just have to point out, because you were talking about the challenges around hardware when he was first at netflix, they were shipping the physical disks. he does have insight into the idea of transporting physical goods with instacart, which is, of course, all about getting goods and groceries from one place to another fast. chegg also was about shipping textbooks at the time he was there. rent the runway, as well he does have some interesting perspectives here. >> yeah. but that's little stuff, right that's a gallon of milk, some vegetables, a textbook we're not talking, like, massive bikes. also interestingly, i was thinking about this, the peloton

subscription is priced to compete with a gym membership, right? it is not priced to compete with fitness plus or, say, amazon's new halo fitness service i wonder if what peloton really needs to do is partner with gyms at this point, so that people who have peloton subscriptions get free or discounted access to gyms that also have pelotons in them i mean, if they're going to maintain that big subscription number, they have to build something into it, right >> look, they already are partnering with companies to try to get people to use pelotons. also, they are partnering with gyms in terms of getting those pelotons into the gyms but, look, he's had perspective on pricing before. we keep on talking about how expensive the peloton subscription is, and it's only worth that much because it is paired with the bike or the treadmill. but look at netflix. they raised prices again spotify has not had so manyraisl

be interesting how he brings his perspective from netflix yeah, small disks and not big bikes, but transporting disks to launching the digital service. better to some perfspective on how to ship goods than not. >> thank you, julia. other stay at home darlings like zoom, netflix have taken a hit, some lower by 40% joining us this morning, global advisers tom lee talk about the fallen angels tom, good to see you. >> good morning. >> so when you -- i mean, a lot of these names began to correct. we're lapping on a full year of some of this corrective price action i wonder how much you think has been built in and is starting to look constructive in rretrospect >> carl, this is probably the time that you'd start to try to pick winners from losers as you know, as a cohort, a lot

of the stocks in 2021 had super normal demand and they became popular. you had a combination of both much better earnings plus huge, multiple expansion now, a lot of these are broken chart. so if an investor does their homework, i do think you're going to find some real gems that can compound that earnings growth if you don't have much multiple compression, these are going to be great long-term winners. >> examples? >> i mean, for instance, you know, i would say companies like shopify, for instance, which have been structurally -- really changed the economy, right they've made it easier for merchants to do business i mean, these are companies that are going to have permanent benefit in the future. but, you know, they've had to correct something. that's a name that comes to mind you know, i mean, i don't know the valuation of companies like zoom, so i don't look at these

names that carefully, but, you know, it's part of the everyday lexicon. it is something that has traction beyond the pandemic i think investors have to do their own homework because it is sort of like sifting through rubble >> yeah. i mean, peloton and its massive re-rating showed companies that pitched themselves as tech companies during the pandemic may have gone that valuation at one point but haven't lived up to it. are there any other industries that could see the re-rating, as well something coming to mind is maybe ride-sharing but it hasn't run up at all during the pandemic do you think it is having more trouble showing that it has a tech -- a real tech component? >> you know, ride-sharing is a good example, like the lyfts and ubers. i think it is really a question for investors about how they allocate capital and their margin structure you know, is the demand for the service strong yeah, it is clear. they've actually -- you know, they've had an impact on how

people basically move around and get food delivered and how they think about their lives. it's also created a gig economy. again, it is really -- you know, for me in 2022, in a year where it is transitioning, it's probably easier for investors to find structural growth, and then where multiples are reasonable, that's where you're going to see some potential expansion for instance, i think even fang-to-fang complex itself looks reasonable. >> we've been talking about broken charts a little bit what about broken business models i mean, peloton is an interesting case where it saw this massive pull forward of demand, it seems, and then layered on a whole bunch of costs that are now not appropriate. so it is particularly broken looking. but is there anything else like that that you see now, or anything that you might -- you think might end up looking more like that as things continue to

play out >> that's a great question i mean, you know, like when you have hardware and service, it reminds me of the wireless industry as you know, like when you look at wireless, maybe two companies were able to sell hardware and service and actually make margin on both the hardware and the service is blackberry and apple. everybody else lost money. so you either had to choose to be a service provider or you had to become a metalware company, like a tower industry which had great returns. so i just think, you know, anyone who is trying to re-cast something that is traditionally a dicyclical business -- or the goods with movement -- they're not asset light, as you talked about. unless you can charge more money with inflation, an asset heavy business would work better for instance, that's kind of why the market is favoring financials and energy right now.

as you have inflation, their earnings actually track the inflation. but, you know, if you're selling equipment, industries are neutral -- industries and asset-intensive tech, they're a little more of a challenge unless you pass on the price increases, you're talking about margin pressure. >> finally, tom, you've done high-frequently work on covid, and you did mention this week, you said it is not a forecast, but you looked at the average duration of the cycle in which various variants occur you said it might suggest that we could get -- if we're going to get another variant, it could happen in april. how are you using that thesis, i guess, as a play on some of these stay -at-home flanames? >> good point, carl. if we look at the four drawdowns for equities, they did coincide with surges in hospitalizations and surges in cases. we know that credit card spending took a hit big time with delta and omicron

so if a variant does emerge in april, and that's not a forecast, as we're pointing out, it is just looking at the same interval of the last four variants, you know, we can expect consumers to intentionally be disappointed. so we could see spending dip i think it would sort of bring back into favor a lot of these 2020 stay at home names. >> yeah. we're going to hope this cycle is different we're just going to have to wait and see on that one, tom good to see you. thanks so much, tom lee. >> great to see you. thanks meanwhile, we're getting new data on household debt levels. we turn to steve leesman >> the new york fed reporting that total household debt rose by $1 trillion in 2021 that's the biggest annual gain since 2007 it was pushed higher by auto and mortgage loans the report shows how debts rise along with inflation they force up the size of the loans as consumers struggle and reach to afford the higher

prices fourth quarter debt rising by $333 billion, also the biggest quarterly jump since 2007. on the plus side, delinquency is barely budging, remaining low. economists saying household balance sheets remain strong they're helped by still low interest rates along with f forbearance on student loans the concern could come if car loans are greater than the car's value down the road. the data also shows some trouble among younger borrowers with their auto loans second, financial stress for debts could rise for some households once the student loan forbearance ends for now though, overall household debt is in good shape. the possibility of higher interest rates not presenting much of a challenge for at least existing borrowers watch this space, deirdre. >> thank you after the break, we're going to dive into the collapse of nv nvidia's deal for arm.

"tech check" is just getting started.

welcome back

nvidia-arm is officially over. announced back in 2020, nvidia was supposed to be buying arm from softbank for $66 billion. regulators had other ideas softbank will take the company public through an ipo later this year designs are used in smartphones like androids and smartphones, in servers, and all kinds of wearables, sensors, and smart appliances the deal face d scrutiny from th beginning, getting pushback from authorities and customers like qualcomm who uses arm's technology, along with just about everybody else softbank will get to keep $1.25 billion worth of breakup fee it negotiated as part of the deal it'll count as profit. softbank reported results this morning. just barely returning to profitability. >> yeah. i mean, the softbank piece of this is interesting. i think the assumption is that nvidia is going to be fine softbank has been trying to unload this for some time.

there is an interesting this was described. colorful, have a listen. >> the environment is back we are holding tight, still planting our seeds i think we're going to be having a big springtime sometime soon >> i mean, carl, masa son has weathered many storms and often come out on top, especially going back to the dot com bubble and the amazing alibaba investment he made, one of the greatest of all time what was interesting about that call was the disconnect between private and public market weakness someone on the softbank team saying they turned down a number of transactions in the private markets the past quarter that's interesting we have yet to see valuations coming down in a real way in the private markets. of course, softbank being one of the biggest crossover funds and the vision fund. >> you make a great point.

he's made enough big swings and hit the ball, he could afford to have setbacks, if you want to consider this a setback. we don't know what the future is for this company, but clearly he's got options. >> as he says, he is in a blizzard he just has to get through it. let's stick with nvidia. joining us is bernstein research managing direct or stacey stacey rasgone was this deal a distraction for nvidia >> don't get me wrong, i would have loved to see this close this could have been huge if they could have pulled it off. now, that being said, i don't think anybody expected it to close. this is one of those things, it was a bold action. i'm actually glad they took it i don't blame them for trying it at all but i think the chances were always fairly remote, especially once the regulatory and customer headwinds started to get going i would have loved to see it happen. >> arm is a unique proposition jon went through why it is

unique and different, and there is no other arm right now. what does nvidia do from here? do they work on developing that business on its own? is there anyone else that would be appealing in terms of an m&a target >> remember, arm is an ip company, selling ip cores and other things that customers use to build chips nvidia is part of the $2 billion they paid, some was for an architectural license to do their own custom arm designs they're pushing into the data by themselves i actually do personally believe that the deal itself was to push into the data center and help create a widely adopted, robust ecosystem for arm and the data center, which is something that is lacking today nvidia will continue to build their servers and push it into the market they'll try to do it alone rather than steer where the broader ecosystem is going.

>> is there the risk, the chance that softbank and, to some extent, nvidia destroyed value in arm here though to me, it was always weird that arm, you know, this jewel of the uk was floating around from owner to owner, when there didn't seem to be big, strategic value add, from it being owned by somebody else meanwhile, you had the biggest customers looking at alternatives during this period, should nvidia not treat arm in the most non-partisan way. so as arm comes public, is that potentially a bad thing for them >> yeah. so when softbank bought it, oh, six years ago, whenever it was, part of the case was they were going to massively increase investment to drive growth they did massively increase the investment they didn't really drive all that much growth the problem is most of the revenues were smartphones. the smartphone market has plateaued since then nvidia was going to push this more broader into the data center they were absolutely going to ramp up the r&a to do that

nvidia could support that. part of the issue is they were, all of them, out there during this process talking about the need for that further investment and how difficult it would be for arm on their own to do it. arm on their own is now going to have to do it, so we'll see how that works your comment on alternativesis also an interesting one. there are other instruction sets the other one that has been getting a lot more traction, i think, while arm has been in this purgatory has been risk 5, another instruction set which is free to use. it's been getting a lot more traction in china and other areas while this happen there. so you could, i guess, in theory see a case where arm standalone is facing more competition, especially in this instruction set ip area than maybe they did have before. >> so then who is this good for? qualcomm was very outspoken, for example, in opposing this deal there were others who were, as well does this put any particular players in the semiconductor ecosystem in a better position than they would have been in had

nvidia been able to pull this off? >> maybe so in terms of qualcomm, i actually don't believe that, like, nvidia was going to use this to push hard into the smartphone space, which is where qualcomm plays if nvidia wasn't prioritizing the smartphone space in favor of things like data center, which qualcomm isn't doing, maybe it wouldn't be good for qualcomm long term. one i'm sure was opposing it was intel. certainly, if nvidia had bought this asset and succeeded in making arm and the data center a bigger thing, even arm in pcs or what have you, that would have been very bad for intel. so i guess, in some sense, it's better for intel that nvidia does not own it. is it a positive no at least it is not a negative like it would have been, i think, if they had been able to purchase it. >> not that they want any more negatives. what about the softbank masa son piece of this? can they get the same value

nvidia was offering for arm in an i people's epo over the next? >> original deal was around $40 billion. nvidia's stock price went up considerably since then. the numbers i saw thrown around, $66 billion, whatever it was i don't know what arm is worth at this point. you have these issues. can they drive growth? how much investment is going to be needed to drive that growth you know, how credible is the story going to be without a company like nvidia pushing it what value are you going to put on it, especially when their biggest business, which today is still smartphones, has plateaued on a unit basis. i don't know what it is worth at this point, but it is likely, especially given the increase in the nvidia stock price, it would have been attractive for softbank, if they could have gotten it. >> thanks so much. talk to you soon >> thank you as we go to break, check out shares of block. falling a bit after apple announces plans to introduce

tap-to-pay this morning. basically an expansion of apple pay, allowing you to use contactless payments strike will be the first platform to offer tap to pay on iphone to customers. a lot more on that andelon ayitus pot ...because i know everyg about furniture ...but with the business side... ...i'm feeling a little lost. quickbooks can help. an easy way to get paid, pay your staff, and know where your business stands. new business? no problem. success starts with intuit quickbooks.

i can get live tv and on demand anywhere. look, serena williams... matrix... serena... matrix... serena... matrix... ♪ ♪ ♪ get your tv together with the best of live and on demand. introducing directv stream.

don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity.

welcome back to "tech check. i'm carl quintanilla with jon fortt and deirdre bosa we have a news update with rahel. >> here's what's happening this hour pfizer shares are down about 4%. fourth quarter profits were strong, but guidance for the year is on the week side, especially for covid vaccine and anti-viral pills pfizer shares are down about 15% this year. harley-davidson stock soaring 14% on a surprise profit last quarter the motorcycle maker also posted q4 revenues that were 50% above

estimates. harley-davidson giving encouraging guidance for this year profits at dupont getting a boost. the materials maker raised its dividend by 10% and announced a $1 billion stock buyback plan. shares were up 5% today. and china's imports of u.s. goods last year fell 40% short of what was promised under a trade deal negotiated by former president trump. overall, u.s. trade numbers were released the trade deficit jumped 27% last year to a new record. december's deficit was smaller than expected. carl, back to you. >> rahel, thank you. time for a gut check as we set on take 2 interactive. it is a miss on revenue, and disappointing guidance is weighing on the stock. the gaming company set to acquire zinga, which set off a flurry of deals, including microsoft's deal were activision blizzard but take-two is not worried

about the competitive landscape. >> two minutes to go, there were three big ones they were a pretty distant third with the zinga combination and the sale of activision to microsoft. we became a close number two we think that's a powerful competitive landscape, and we're excited to be in that position in the entertainment business, you compete with everyone and you compete with yourself. people don't need our products they want our products if we put out the best properties in the business, and that's our goal, our goal is to be the most creative and innovative and the most efficient company in the business, when we achieve that, people show up whether we have ten big competitors or one, it really doesn't matter we still have to deliver >> take-two is lower by about 20% in the last 12 months. pretty fascinating landscape right now, jon speaking of microsoft at least, i see morgan stanley today rolled out some new five-year models that would imply a price

long term, five-year, of 625, essentially doubling from here of course, gaming and microsoft just one piece of the pie. >> one piece of the pie. controversial piece. nvidia-arm showing how hard it can be to get certain kinds of deals done we'll see how they do with activision blizzard. this quarter from take-two, d, not that bad yes, they missed the street's hopes, but they kind of delivered some upside to their own projections. the guidance, while, again, not what was hoped for, not that bad. >> jon, on the regulatory front, it was interesting how he didn't, i guess, pull a zuckerberg and talk about the competitive landscape after microsoft-activision deal. he said it is going to be an interesting one, a robust one. perhaps some confidence there. he is welcoming more competition, although this is going to be a very mighty one. for you, jon, he was asked about nfts

i think you'll like his answer he said, we're concerned about the overlay of speculation we expect to participate, but we have no interest in bringing them speculation there you go. >> yeah. >> without saying the "m" word. >> kindo of hard to stir up the regulators when you're trying to get your own deal done be careful who draws first. >> good point. >> then in gaming with nfts, it is a whole different story, right? there are a whole lot of gamers who are like, get that junk out of here. we don't want your nfts. we don't want you squeezing more money out of us in game. keep it fun, carl. so you have a whole different reaction to this, whether you're in the kind of crypto world, d, or if you're kind of leaning more into the gaming world some like it, some don't. after the break, a look inside outgoing peloton ceo john foley's company holiday parties, and the culture he helped create acc "tech check" is back in a moment

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim® is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim® by td ameritrade

as we celebrate black history this month, we turn our attention to education while public edtech companies

struggled the last year, our next guest believes edtech is the key to broader opportunity in the years to come joining us now, lightspeed venture partners mercedes, welcome. >> thanks for having me. >> i like to look at these themes in black history in the context of just the broader market and what's important for the economy overall. and so when i think about education, i think about economic mobility, which is important for groups that started out with a disadvantage. to what degree is edtech providing more of an engine for economic mobility in an economy that hasn't been delivering so much of it lately? >> thank you, jon. i completely agree my interest in the edtech stems from the fact that it is one of the best opportunities for economic advancement what we're seeing at the early and late stages of the sector as a venture capital investor is there are companies that are leveling the playing field at

every step of the career journey. when we first think about the career journey, people are starting out with discovery. they need to think about, what jobs are out there there are companies like forage, that lets candidates trial projects and work sam ples from companies like jpmorgan and lyft, to try their hand at what a work sample would be like before they ever join the company. handshake is another company that does something similar. they help students, 20 moillion of them, find opportunities of how they can get connected to employers. that's just another element of the career journey that gets them on the initial path of having the economic advancement we're talking about. >> here's a challenge that i see in the models. it is unclear to me, who is that real primary customer? we see companies looking at the ambitious student, the learner

as the customer. more companies now are turning to employers that want to provide education as a benefit in a tight labor market to entice the workforce, than as the customer some are looking at youniversits themselves to help them transform. it is not clear to me which of those or some other is going to be the deep pocketed customer that's going to drive revenue and growth for edtech overall. >> you're completely right this has been a criticism of edtech companies over the years. often, if you're thinking of the end consumer as the buyer, they always don't have enough money or it is episoepisodic they pay for one course and don't come back. that's not the most sustainable revenue stream that makes for great valuations i think what we have seen is some companies using an employer-paid model to really generate revenue while giving free services to students or candidates that want to learn.

the multi-verse works with apprenticeship they create programs for employees so kids can go directly from high school into the jobs sometimes bypassing their bachelor's 's degree. they work with citikp&g on job training on the job, versus doing it while you're just learning that makes it better for the employers to say, we're paying for someone and getting benefit out of this training at the same time >> really interesting companies. mercedes, we talked a little earlier about the froth in private markets and how crossover funds like softbank's vision fund are becoming more selective, maybe doing less deals. is there risk that spaces like edtech start to see less capital, less deal flow, as investors get more selective and perhaps want to go to some of the buzzer spaces, like web 3 and crypto >> i think that we'll always go through these cycles of seeing different sectors get their

shine. in 2020, it was a huge year for edtech we saw the great pandemic taking everybody online for both the k-12 and the career mobility companies. right now, i am also personally spending a lot more time in web 3 and crypto because that's where a lot of the interesting companies are coming you know, we still see the crossover funds, tigers of the world spending time with edtech companies. one of our portfolio companies, outschool, announced a fundraiser for them, announcing them as a unicorn. we see a lot of interest in this sector. >> i'm concerned that edtech, which has the potential to open opportunity to broader groups of people, could actually widen disparities. some of us have a wider culture, reflex when it comes to education, recognizing the opportunity in advancement than others

are there companies that figured out, start-ups that figured out a profitable and measurable way to get the tools into the hands of those that haven't traditionally been able to take advantage of them? >> it's a great question i think that you're right. there's sometimes -- i used to think of different industries, for example, the tutoring industry is one that does advantage more privileged people who have the money to spend on it we're starting to see a new crop of companies that aren't actually presenting themselves as education companies companies that are meeting the user where they're at. whether they're already doing investments or training, you know -- trading and learning their first -- putting in their first few dollars into something on robin hood. then these companies are saying, hey, how do we help you understand how to make that investment in a better way for example, trading tv is a company that is combining content and investment trading to meet these investors where they're at, while teaching them the skill of investing i do think it is important that we don't think of education and

learning opportunities as the silo moments that only happen in a course or in a school. they can happen all around you you need more companies thinking of learning as a service or embedded education within these other products that we're already using. >> especially as we move more and more toward a knowledge economy. mercedes bent from lightspeed, thank you. >> thanks. getting some breaking news this morning on another crypto money laundering plot. hey, ae eamon. >> the department of justice announcing the arrest of two individuals this morning and the seizure of $3.6 billion worth of cryptocurrency what the department of justice is saying is the cryptocurrency they have seized is related to the hack back in 2016 of bit finex, a virtual currency exc exchange originally the amount taken of

that cryptocurrency was valued at $4.5 billion. they've recovered $3.6 billion of that money that was stolen. they are charging now liechtlick t ten -- liechtenstein and his wife of money laundering in this case they're not charging them, interestingly enough, with the hack they say both members of this married couple were arrested in manhattan this morning without incident they say they were involved, allegedly, in money laundering of the billions of dollars in cryptocurrency through an elaborate system of washing of currency all throughout the cryptocurrency system. what they're saying here is that this shows that the united states can track fraud on the blockchain, and they can track cryptocurrency just as well as they can track any kind of currency that's stolen in the real economy, carl back to you. >> eamon, this isn't the first time bitfinex faced scrutiny from lawmakers it is behind tether, the most

widely used stable coin. there's questions about what backs tether $70 milto $80 billion market ca. what questions can this raise about a stable coin, if a company like this backs it and the central bank is looking at its own companies in the stable coin space, trying to vie for more transparency. it seems like a disaster. >> well, there are a lot of questions here, including who did the original hack here back in 2016. law enforcement officials briefing reporters a few moments ago did not say who was responsible for stealing this $3.6 billion they've recovered and if you are a person who believes that your cryptocurrency, your bitcoin was stolen back in 2016, they say there will be a court process now for people to apply and say, "i've got a claim against those recovered assets." that could take a while, but there is the prospect now that people whose crypto was stolen back in '16 might get paid back here in '22. of course, that cryptocurrency has skyrocketed in value since it was stolen back in 2016

interestingly enough here, they're also saying that the married couple at the heart of this, liliechtenstein, 34, and morgan, 31, used the illegal proceeds of this alleged theft in order to buy things for themselves, including gold and also nfts. so this money was plowed back into, allegedly, the online crypto economy we'll have to see how they untangle all of that, as well. >> wow charged with seeking to launder almost 120,000 bitcoin remarkable thank you. eamon. we are watching the markets. close to session highs near 1% gain on the jazz dak t -- nasdaq, and the dow is up 300. ng 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. ♪

>> let's get back to pol on ton. shares up 25% as it names a new ceo and plans to cut costs we talked about who the new ceo is, but what about the man he is replacing? john foley who has run it for a decade we have a look at foley's stock sales and the company cult are culture he helped create pellon ton is selling $500 million over the past year and a half john foley selling $120 million in company stock about 60% of his holdings and most of those sales were at $110

a share or higher. they were all through a pre-scheduled sales program. according to sec filings, foley pledged 3.5 million shares as collateral for personal loans. what do you do with all that cash in december he reportedly bought an ocean-front mansion in hampton for $55 million. reports say he also kept a yacht a at a nearby marina for shuttling his family back and forth from new york after imposing a holiday freeze, he hosted a party at the hotel, and hotel employees were not invited. after ward foley sent an e-mail to employees saying, since, quote, this personal event has caused frustration and angst within our team. please know that was never the intention. tomorrow we're going to focus on business-related topics, not

personal events. john, i will always be the first to say this is his personal wealth he can do whatever he wants with it, but the timing of these sales and this spending relative to what shareholders and employees were going through may have added on pressure for him to step down >> certainly, robert in some of these cases, i don't have peloton in mind specifically, but it wasn't the company itself that caused the stock price to go so high. it was investors getting excited. robert, thanks i also want to get a check on just the takeaway. grubhub's parent planning to de-list from the nasdaq. the stock will continue to trade in the amsterdam and london ock exchanges. "tech check" is back in a moment

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

yep, it's go time with wireless on the most reliable network. ok, that jump was crazy! but what's crazier? you get unlimited for just 30 bucks. nice! but mine has 5g included. wait! 5g included? yup, even these guys get it. nice ride, by the way. and the icing on the cake? saving up to 400 bucks? exactly. wait, shouldn't you be navigating? xfinity mobile. it's wireless that does it all and saves a lot. like a lot, a lot.

let's getta i gut check on airbnb up to buy from neutral pulling $190 price target with unsustainable expectations post-omicron "tech check" is back in just a moment

(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 >> one more thing and that is peter thiel stepping down from meta's board any what that could potentially mean long term, julia? >> i think this means this was a move that was a long time coming and peter thiel was so closely aligned with president trump and worked on his campaign and was an adviser for president trump throughout his time in office, and i think that as facebook faces regulatory scrutiny from all sides of the aisle, and as

thiel looks to support key folks running for republican seats this is a way for them to avoid more scrutiny there, guys. >> very interesting and we'll see if it's related at all to the company's growth prospects and julia, appreciate that we are sitting close to session highs. let's get to wapner and the half all right, carl, thanks so much, welcome to "the halftime report." meta is down 30% since earnings and now we find another investment committee member is selling that beleaguered stock we'll debate the road ahead for that and the markets joining me for the hour, stephanie link, josh snipe, and josh brown, and jon najarian ten-year note yield creeping towards 2% 1.96 and that's where we currently sit and we'll get to all of that, obviously. we'lki