>> will do, morgan, yeah stay up late but you'll be here tomorrow i know that. bright and shiny. >> exactly bright eyed and bushy tailed that will do it for "squawk on the street." "techcheck" starts now ♪ ♪ good thursday morning, welcome to "techcheck. i'm carl quintanilla with deirdre bosa, and jon fortt and julia boorstin with us for the feed tech is trying to claw back early losses after a sharp drop following that harder than expected inflation number now at the highest level since '82. ten year has gotten back above 2% and financials and energy are leading as a result. disney does bring the magic back uber delivers while twitter appears to be the only buyer of its stock. we have you covered on all the

earnings of the morning. then the world's richest crypto billionaire looks to diverse fie. the ceo of binance will join us after his big invest nmt forbes. we'll start with disney the stock popping after the company posted a beat on top of the bottom line, got strength in streemg. that was a big theme this quarter adding 12 million subs in that time julia talked yesterday who reaffirmed the company's subscriber goal. >> we're reaffirming our guidance of 2030 to 2060 as we gave last december that's been our target that continues to be our target and really what's driving us what we said great content we'll have more franchise-added content on our big franchises added this fiscal year, double what we had in '21 >> that goal is right above netflix's current sub number of 222 million. julia, b of a calls the results

a hulk smash once you fold in all of the park results as well. >> yeah. really remarkable looking at the strength of the parks. the fact that the parks had a stronger quarter than they did in 2019 really surprising there. that was due to a couple of factors. prices are hire and the fact that they now have these add on services, people at the parks can spend a little extra to cut the line and go to the front of the line and people are spending more when they're at the park. so i was pretty surprised by that and then you have to wonder how the parks and the disney plus streaming service and all of these things can play together to this larger of bringing brands of disney into the metaverse. i had to mentioned, jon, just to tease you you're such a metaverse skeptic here he's bullish about the opportunity to bring all their franchises and characters into web3. >> bullish while i should say disney was bullish about bringing their disney and

characters into video games. lots of people are doing that just not disney itself i wonder how that plays out for them, if this ends up being different. and this whole issue of people spending more, that helping -- i wonder whether the attempts to battle inflation will actually hurt these effects that we see in so many companies where people are spending more as interest rates rise, you know, do people -- are people more hesitant to finance certain things, including travel do they feel less willing to splurge? there's no answer to that, dee but it's something i wonder. >> yeah. you're referring to the number of people who went to parks that wasn't at the levels that we saw in 2019, but they are spending more there we have seen a similar theme with the ride sharing companies. julia you squatted on squawk box about this that subs number to netflix's number yeah it was a surprise on the upside but there's other things in that like the bundling as well as international, some

freebyes i wonder is there any thought out there that maybe disney should be growing faster, this shouldn't a surprise, it should be expected because they are coming from a lower base >> well, they are coming from a lower base but so many of these things and so much of that growth is pegged to when they launch new shows so there is an expectation that growth will be very much towards the back half of this year when it comes to subscriptions because they are adding more content like new obi wan kanobi show launching in may. you raise a good point about bundling they added more espn plus subscribers than anticipated by over 2 million how many of the disney plus were thanks in a part to a lower cost bund if they can get people to subscribe to the bundle, overall lower cost, there are still advantages because that bundle is expected to reduce turn. >> you know, i thought this was all supposed to be against the old cable model, carl? wasn't bundle like a dirty word?

are we back to the dirty bundles, right >> good point. >> oh, well, they might not have explicitly wanted this and they folded it and didn't notice and get to like it over time that sounds all awfully familiar, vindication of the all the old school cables or dangerous territory for these digital streamers who are supposed to be bringing purity to content >> a lot of us are old enough to remember when the words a la carte were new and interesting wow, you could actually divide this up into individual services yeah it's amazing, isn't it, dee, how much we've come full circle on that. >> i guess the difference maybe is that it's easier to cancel, a little tougher to cancel the old school bundles uber the stock is jumping this morning after the company posted a beat on revenue for the fourth quarter uber pulling in net income of $892 million thanks to unrealized gains from investments of which it has many in the ride sharing and

transportation world the company also reaching an all time high for active users 118 million. uber ceo noting mobility is already bouncing back from omicron head winds that hit the business in late december. and that is quite the opposite of what we heard from lyft earlier this week. the company warning that omicron is a risk to its first quarter results. you got to sift through this quarter as you often do with uber because of all those investments. yes, the ceo was optimistic the company is past omicron hurdles, but the outlook was still weaker than the street expected so it is still expecting to weigh on the results for the current quarter, but i guess, guys, i don't know how much has actually changed yes, we are returning. people are going out, taking ubers and lyfts again, but we know that sort of goes back and forth and the long-term question, jon, have habits changed? are people going back to ride sharing in the same way? >> you know, i have more questions than that.

i'm not sure what uber is anymore. i used to think it was a ride hailing company with a delivery business now maybe it's a delivery company with a ride hailing business and julia, i find it concerning that uber is not anywhere near being the solution to peloton's problem. just for context, peloton is talking about how they want to outsource more delivery and more logistics. oh, we took too much of that in-house uber has been talking about uber fragtd for a long time uber has been working on solving the last mile problem for a long time, apparently why aren't they able to get in here with this where it's a pretty big customer that has a problem that a lot of others, in fact, are probablyhaving, too. what is uber >> well, i think you make a really good point, jon i would also say on the flip side the fact that delivery grew 34% indicates even as omicron continues to weigh on some of

those overall mobility results, you still have the fact that it seems like food delivery is just here to stay food delivery is not going to be something that was really a pandemic trend and the fact that uber has continued to grow those food delivery numbers does seem optimistic about the future of that business. but i also found it interesting that so much -- i think was 13% of gross bookings were airport drives so what does that say about the potential to ramp up that business and maybe people as they get out and about more and travel more will be relying more on uber? so some interesting numbers buried in there, dee. >> jon, i have an answer for you, in one word what is uber? it's a conglomerate. there's one slide they always show in the earnings all of their investments in other companies. and it's essentially a play on all of these other companies that, by the way, have beat uber at its own game along the way. grab, aurora, or sectors that

uber tried to go into. you might argue it also has a very, you know, unprofitable food delivery and mobility in business. >> it's a conglomerate made up of things including dd and grab which are also conglomerates, just turtles all the way down? >> it's the masasan empire we called that in the past. >> where is the beef turning to twitter, it misses across the board on earnings, revenue and daily active users for the company's first report since ceo took over from jack dorsey stock hanging on barely by its fingernails to some gains this morning, really about flat at this point twitter also announcing it will buy back $4 billion in stock and it's got an ambitious goal of hitting 315 million monetizable daily active users by the end of 2023 that remains in place. the impact from ios changes just modest unlike meta expects twitter writing in the

shareholder letter this retooling products in light of the changes took time but helped to reduce the impact to the company. carl, i'm starting to wonder whether i care about twitter given that its market cap is less than half of snap's and, you know, this monetizable daily -- i don't know. i mean, not a lot of movement there and, you know, the innovation is questionable >> we always said it was a niche service that caters to people who need information at extremely high frequencies we're learning over time how large that population is, julia. stock, you know, isn't performing that badly this morning got back to the early part of january levels it is remarkable, more than 10% total buy back on the market cap, their stubbornness not backtracking on this long-term dau target. >> i'll tell you why they're not

backtracking comes down to the fact that they relieased new numbers on signups they have seen 25% year over year growth in new account signups or react investigation and 35% year over year increase in daily signups those are meaningful numbers especially considering that they did not see anything close to that in terms of overall user growth in the quarter. i spoke to ned segel about this and i said how are you growing those signups so fast? why is it not having an impact on your overall numbers? they said they wanted to share those numbers because they think it will have an effect in this quarter and quarters ahead so i think that they are much more optimistic now about user growth potential than they were in previous quarters and a lot comes down to the pace of change, deirdre, they have been making so many changes to make it easier to use and on board people yes, maybe this will never be anywhere close to the size of facebook or instagram, but they are making progress. >> julia, jon has gotten me all

philosophical now over what is twitter. is it this innovative growth company that's going to release new products that really evolve with its audience or is it, you know, kind of relying on financial engineering? what was the most exciting part of this release? was it is the buyback? >> i think the buyback was definitely the most exciting part of this release for investors. >> oh, no. >> i would say for me the most exciting part was the new signups and what that could indicate for the future, but i think fundamentally it is a smaller type of product in terms of the total universe than saying facebook is. >> you know, carl, what twitter is starting to remind me of yahoo. really >> ouch. >> you mean with a ton of different verticals? in what sense? >> you know, product innovations that aren't quite that innovative, don't really seem to latch on and the wheels end up spinning and they move on to the next thing leadership changes, kind of

unclear whether they're going to take any big swings. that's dangerous they got to not remind me of yahoo in two years unless it wants to be bought by a large, slow-growth teleco >> we're going to find out big swings -- i mean, buying back 10% of your market cap is a bit of a swing it's just not involving huge technology or competitor, but time will tell, as we like to say. still to come this morning, the world's richest crypto billionaire is make a major investment in forbes the ceo of binance is with us next. the markets are taking a leg lower the ten-year did revisit the 2% mark. "techcheck" is getting started what the world needs now... is people. people who see healthcare a little bit differently. where technology helps doctors provide more precise care...

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welcome back want to mention uber stock halted news pending you can see it was up about 3.75% ahead of that on earnings so we will follow that as well also want to talk now about twilio, that cloud communications platform posting a massive revenue beat in its latest earnings. sales hitting $843 million up 54% year over year and reporting shallower losses in q4 than the street expected, offering upbeat

guidance for the current quarter. shares surged on those results, up 10%, though, dee, a 10% surge, almost pedestrian in this market, but still nice. >> and you got to look at the longer term, too, as you always remind us, jon. turning to binance, announcing 200 million strategic investment in forbes this morning to help it go public by spac joining us now changpeng zhao. great to have you on the program again. >> thanks for having me. >> so, cz, walk us through why you did this deal and how it will help push the adoption of web3 >> sure. i think forbes is a typical web 1.0 pre-web company. and they've lasted through the generations. it's a 100--year-old company and most of the media businesses have had a hard time transitions

from non-web to web 1 to web 2 and we would really like to help them to transition to web 3 using crypto currencies. that's really the main goal for us. >> right sort of fits into i know we talked to you last time about binance becoming less wild west, more credibility, working with regulators so i wonder why is traditional media the route here versus going direct, building it yourself with web 3 tools, which some might argue is more in line with those principles? >> i think the media is not the only industry we'll look at -- not only traditional industry we'll look at. we'll look at almost every sector of traditional industries and try to make a few acquisitions, a few investments and try to bringweb3 on the regulation stuff, we continue our efforts to hire more people to be fully compliant everywhere, get licenses everywhere, so that hasn't changed those two things are independent, at least in my mind but, we are working hard to

bring web 1.0 companies into web3 >> is the independence of forbes important to you how do you guarantee that if you are while trying to create the whole business model and create it as a web3 platform? >> sure. i think forbes will continue to be fairly independent as any of our investments. >> fairly independent? >> no one is a majority shareholder there. and we don't run -- i don't know how to run a news business so, we want to help them with the crypto side and how to integrate that into their business, but the rest of the content is up to them. we made similar acquisitions before, coin market cap, at a time questioned are they going to be independent. so far i believe the results is they have been fairly independent. we'll continue to let them run independently we just want to have great people, great teams that we want special experts

running their own businesses >> unless you're talking about using block chain somehow for micro payments, i don't understand how this helps forbes or its business model at all on the editorial side as you seem to allude to, journalism to some degree is necessarily centralized in the sense that you have to know the philosophy and the ethics with which the organization is operating. and then on the business side, to some degree, you want to know who your readers and subscribers are and what they want in order to deliver the content to them so the idea of anonymity and decentralization i don't see how it applies here. do you have an idea? >> yeah. i think that's many different possibilities. i don't know exactly what will be done, but for example, a centralized business can use crypto currencies and can issue nfts, utility tokens, incentive tokens, they can -- in addition to micro payments, you can do read to earn -- you have many --

you have -- just accepting bitcoin for subscriptions just enlarges the user base globally. so there's many different things you can do even as a centralized business i think there's many different possibilities. >> so why do this, say, with forbes as opposed to going with casual or mobile gaming or some other form of say entertainment versus journalism that involves high frequency, relatively low cost why pick this area >> i think we're picking every area that you mentioned. so we are looking at gaming companies, we're looking at entertainment companies, et cetera we're doing partnerships, doing investments and we're sometimes even acquisitions. so we want to work with in multiple sectors in the traditional industries and kind of bring them into crypto or bring crypto to them so, yeah we're not ruling out any of them just that this is probably one of the earlier deals and this is -- forbes is famous and has a

very strong brand presence, but we will do this in other sectors as well. >> forbes is famous, also a little bit infamous at the moment especially after it came out this week that one of the crypto hackers heather morgan, who was accused of trying to launder $4.5 billion in crypto currencies in a hack, as a contributor, publishing more than 40 articles on the site is the aim here credibility, why forbes instead of something else >> i think -- i think basically forbes -- well, number one, it's we look at a spectrum of different businesses and there's no right fits and what's available not every news agency is open for investments. depends a little bit on both i do think forbes has an incredible brand and it has very strong influence. and its reputation is very

strong just because they have one contributing writer who happens to be a hacker in her private -- or in her hidden life, i can't -- i can't really comment on that. yeah >> cz, i do want to talk about your business binance and talk about spot transaction fees. you charge .1% in the u.s. for transactions, coin-based charges as much as five times that i wonder are there other costs to your users? how do they know they're getting the best price and best spread from binance >> yeah. so, we -- yeah i think there's no other costs in fact, for other crypto exchanges, even when they charge a much higher fee, typically 5 to 10x of ours, they still make a spread on top of that, which is a hidden fee. we actually don't do that. >> so they're getting -- >> so binance always strives to be the lowest fee possible from our perspective and then we just want more users to come in we want the lowest friction for users to access crypto.

>> but how they know they're getting the best price that you're matching them up with the best price >> from a user perspective, they may -- the easiest thing to do for them to buy some crypto binance and versus another platform, see what prices they get. and how much they spend and how much coins they get. take $1,000 and try it on both platforms and you'll find out. >> okay. last question for you, what makes binance's stable coin busd different from some of the others out there like tether and circle >> binance is not issued by binance issued by an nydfs licensed entity. operating out of new york. so we don't issue it we don't control it. we just help to promote it because we have a branding collaboration. i do believe -- i believe busd is the most popular-backed their reserves are the highest of any stable coin

it's different from tether tether is more or less like a black box. i never know what -- ever audited, including myself. i don't have any information that's not public. >> your website -- >> your website, though, says that the usd is subject to regular audits they're attestations can you clarify if they're audits or attestation. >> i'm not sure of the technical detail to be honest. so the audits would be done by paxles and they would be conducted with paxles, so we don't really manage the reserves at all we just help to promote that stable coin. and we lend our brand to it. it does have strongest reserve backing. >> cz, thank you so much for coming on to chat with us. we hope to talk to you again soon. >> thank you for having me. still ahead this morning, the ceo of sonos will join us. that stock is popping.

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welcome back to "techcheck" i'm deirdre bosa with jon fortt and carl quintanilla we continue to watch the nasdaq currently lower by just less than .5% data dong get a pop. much more on disney in just a moment, but first a news update with rahel solomon good morning, rahel. >> good morning, deirdre here is what's happening at this hour the annual inflation rate is at the highest level in four decades. cpi jumped 7.5% over the last year driven by .6% increase in january. furniture prices in january posted the biggest monthly rise in 55 years. bond yields are surging after that inflation report the ten-year treasury yield gone above 2% that hasn't happened in 2.5 years. predictions for moves by the federal reserve also changing.

markets are now pricing in six quarter point rate hikes by the end of the year. president biden acknowledges that inflation has increase bud he points out that wages are going up even faster and also says that inflation is expected to fall substantially later this year speaking of falling jobless claims fell for a third week in a row. the dropped 223,000 new claims, make sure the labor market is moving past temporary disruptions caused by the omicron variant. coca-cola, the beverage giant posted strong quarterly results on growing out of home sales. however, margins shrank and four-year profit guidance is only slightly above estimates. carl, shares are up a little less than 2% right now back to you. >> rahel, thank you very much. back to disney, of course, now up 4% after yesterday's earnings report. next guest bullish on disney, bent on the theme park recovery and disney delivered bouncing back to pre-pandemic levels. jessica, what a delight to have

you back good morning >> thank you so much for having me back. >> we were laughing a few moments ago act your hulk smash line you really were counting on the operating leverage at parks and you say that the quarter ratified your view >> it was spectacular quarter. you know, we have seen over the years that disney has a ton of leverage in theme parks. but this was a real shock. we were projecting 1.3 billion in theme parks came in almost double, 2.5 billion. when parks turn, they turn for years. so, while our numbers went up and everybody on the street raised estimates, this is the beginning of an earnings revision -- upward earnings revision curve >> right you reiterate your buy you keep 191 those who are less bullish on the street, at least this morning, seem to be doing so by putting it in the context of the rerating and netflix i wonder, is that some kind of

cloud or suppressant on the valuation for disney overall >> that's not our view our view at the studios namely disney or discovery soon to be warner brothers discovery, huge advantages or your parent company, comcast have huge advantages versus somebody like netflix or apple, facebook, amazon and that is that they have studios with deep library, content that consumers know, the brands that they know, they have production facilities in place, very strong expertise but they can use this content across multiple networks and platforms. they can really leverage what they do for streaming elsewhere. >> what about the type of that content, jessica, bob cha pack gave an interview to julia boorstin you can't help but notice the massive encanto poster in the

backdrop that was a massive hit does it move enough outside of disney's core and help capture an audience that it doesn't have already? >> well, on the conference call, bob spoke about it as well, they are expanding their content offerings. so it's more general entertainment. whether it's the beetles, blackish, they will expand general entertainment, but within their core four brands, pretty much unmatched. star wars, which is lucas, marvel, they created so many universes, so many new just environments we talk about the metaverse. we'll see what it is, but they're certainly in good position for that. and then pixar and disney. these are great brands with a lot of content and lot of expertise. >> jessica, i think it was the b of a desk earlier in the week thinking about where we are in the intellectual property value franchises, those values have been inflated as the amazons and

the apples of the world have gotten into film yet you're still working at least theatrically with an old school model mom and pop theater operators. and i just wonder how you think that's going to evolve if we're in for a wave of theater closures do we know if people will come back to theaters post covid in ways that they were going prior to the pandemic? >> well, for certain films obviously they will. spiderman was a humongous success by any measure, pre-covid or in this environment. so we'll see what happens in the next year. i would think the number of screenings in the u.s. will probably shrink a bit. but the thing -- the ability of the studios now they all have streaming platforms, they have the luxury of either going the traditional windows and maybe shortening those windows, but benefitting in later -- having the promotion which will help

them in streaming or go direct to consumer via streaming. so, there are options for these films. in any case and content was just a great example because disney did great a new brand. and i know the westside story is coming finally to disney plus. so there is -- it's just -- there are a lot more platforms, a lot more distribution windows that they have, but the film business won't go away actually that's a really good point because film did not recover. theme parks still have a long way to go in terms of capacity international visitors are 20% roughly of the total and they're not back cruise ships really aren't back. just think about all the things that will be coming over the next year or so. >> i was just thinking about west side story, march 2 nd, jut in time for the oscars jessica, always good to have you. really appreciate the time thanks so much. >> thank you so much some news out of washington just now, the senate passing a controversial tech bill that could have a big impact on big

tech ylan mui on capitol hill with that ylan >> reporter: well, deirdre, the senate judiciary committee has just voted to advance the earn it act, this is a measure that would create a carve-out from big tech's liability shield from material related to child sex abuse content. now, this passed with strong support from both republicans and democrats, but the industry has fought hard against it they say this is really a way to go after encryption and could actually erode user's security and privacy down the road. there's also vocal opponent among democrats in senator ron widen. he said this is a broken measure that won't actually solve the problem of this type of unsavory content being on the platforms again, the senate judiciary committee did vote to advance it it would not move to the senate floor, potentially packaged with all those other bills that went after big tech companies that this committee has passed in recent weeks guys >> ylan, thank you now we also want to hit some

news out of california state of california suing tesla for california department of fair employment and housing says it received hundreds of complaints from workers alleging racial discrimination and harassment we'll continue to monitor any developments and bring you the details. we're back in two. ♪♪ ♪♪ ♪♪

uber shares are halted as the company holds its investor day, laying out some of the long-term metrics. we're getting them now as the investor day is live streamed. the company is saying they want to achieve adjusted ebitda profitability of about $5 billion by fiscal year 2024. remember, that uber just had its first adjusted ebitda profitable quarter in fiscal 2021 it also expects gross bookings to grow to 165 billion to 175 billion by fiscal year 2024 and also expects to be free cash flow positive before the end of this year. so, guys, we are getting this out. jon, maybe they were listening to us, what is uber. they're trying to show themselves at least a few years from now as more profitability i don't know what that means for the net income side of things and still growing healthy clip of more than 25%.

>> we'll see if it's a cash flow machine, dee, yes. meantime, peloton stock losing a lot of weight not in a good way, three quarters of its value, sales have slowed a firm felt the impact as well amazon might not be the buy now pay later biggest revenue driver kate rooney looking ahead to affirm's results tonight kate >> reporter: jon, yeah, the good news for affirm investors peloton is a lot less important than it used to be for affirm. amazon and shopify appear to be picking up some of that slack. the lender is slowly shaking off its reliance on peloton when affirm went public last year, peloton accounted for about a third of revenue at the time, that was really a good thing it sold a lot of bikes and subscriptions during the pandemic, but as we know, sales have slowed significantly. as of the third quarter, peloton only made up about 10% of revenue for affirm that's coming down shopify, meanwhile, really has stepped up for affirm in a big way to help affirm grow to more

than 100,000 merchants last year the big story today when we get those numbers after the bell, how much will amazon add to that picture? affirm's exclusive partnership with e-commerce giant ticked off around the holiday shopping season last year in surveyed some users who also shop on amazon hof those more than half say they reported already having checked out using affirm analyst dan is among those predicting amazon will unseat peloton affirm's biggest driver of sales and raised gmz and price target as a result affirm still not the biggest buy now pay later provider globally. by no means. the swedish competitor in that space. that one has quarter million merchants on the platform. affirm's stock has been one of the worst performers in fintech really beaten down this year the other big head wind watching -- you have to watch into earnings, cfpb into buy now

pay later lending. we have to see what max says on the call tonight about that one. back to you guys >> yeah. a lot of the street still counting on some good guidance we'll see what happens kate, thank you for that as we go to break, let's check on delivery hero revenues up 39 year on year, better than uber eats 34% gain but the guidance is worrying sectors. coming up, why bill miller says metta is attractive at these levels in a moment what happens when we welcome change? we can make emergency medicine possible at 40,000 feet. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster.

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i think those stocks are not particularly expensive and meta trades lower ebitda than ibm and it's still expected to grow. with these prices i think that represents attractive value. we have own id it for a long time, so it's not a new position for us, but we certainly don't want to sell it down here. >> that was miller value partner's chair and cio bill miller yesterday still not a seller of meta at these levels amazon's buybacks make that stock attractive and looking at alibaba saying it falls into the value camp some of the names especially amazon, dee, bill miller knows awfully well. >> interesting that facebook is compared to ibm. after the break, sonos beating q1 estimates despite the

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welcome back checking in on sonos, connected audio company getting a volume boost after beating on the top and bottom lines for the fiscal quart. stock still down 10% over the past 12 months joining us now first on cnbc sonos ceo patrick spence

patrick, good to see you now, i got to start, you have a big product launch coming up soon you're vp marketing has called it one of the most ambitious projects in your history and please do come to talk to us about it first i don't expect you to spill fir. i don't expect you to spill the beans today, but if you had one criticism of the wearable speakers on the market today, some call them headphone, what would it be? >> great to see you, john and incredible opening how about we talk about this quarter first? we were able to successfully navigate really the most challenging supply chain environment that certainly we've ever seen in the last two decades and deliver more for our customers and exceed expectations and we see strong consumer demand and our models are working and we increased our guidance range for the year. we feel that things are on the right track and kind of the worst of the supply chain challenges are behind us we have a super exciting road

map that i can't share with you when we're ready to release the new products >> when you're ready to release the new products you said you can't wait, and then we have to wait i'm not going to ask you more about that i do want to ask about the supply chain stuff and how you've worked through that have your shortages changed your overall approach to your supply chain and product design and i don't mean necessarily reactively, but as you've gone through this period, has there been any re-tooling and any re-thinking of the components you use and the suppliers you use and the processors you use so maybe your margins or your approach will be different from here on out even once through this period? >> absolutely, john. it taught us that resilience is the key and i think our team has been very resilient. probably one of the most important things is making sure that we have multiple suppliers for a variety of components and we've increased the number of

boards that we create and board variations inside our product. so consumers won't see this necessarily, but usually there will be one or two boards that we'll have so that we can make sure that we're giving up supply and dual sourcing across the supply chain, but in some cases now we have seven for a particular product, and so there are situations where we're going to build more of that resiliency and work with even more suppliers. you know there's been great investments happening in the united states around manufacturing, supply chain and all those things so we're following that closely, as well and we definitely want to build more resilience in over time so there are some learnings from this, and i also think that the good news is we feel that the worse is behind us there are certainly still challenges as we go through this year, and it's getting better, and the consumer remains strong. >> patrick, it's deirdre good to have you on. i wonder if you can give us insight on your relationship with google after patents and infringement suits and do you

think that's settled or are they still copying, and is your financial outlook look different? >> so on january 6th we were vindicated in the itc, and so we won an injunction against google 60 days later so march 6th, they have a decision to make. either they license the technology to us, or they stop selling the products or they can remove the technology from those products and ship an even more inferior product so those are their options we remain -- we have a relationship with them and we support google assistant and music and those things and they have a decision to make in what they want to do and we won definitively in the itc and reenforces that we invented the smart speaker category >> do you expect them to play ball going forward the royalties that they can potentially go to pay you will

be substantial material for the bottom line? >> we'll see what they want to do twe we do have people that are licensing our technology and that's the best option and the normal thing in the tech industry, but who knows what they want to do at this point? >> patrick, finally, are you satisfied with the incentive to upgrade that your very loyal customer bases had at this point based on the speakers that are in use which is a good thing and the bad thing and the new products that you're coming out with that your loyal base does appear to be picking up at a nice clip according to your earnings results. >> yeah. you know, john, we're seeing a couple of things i think the power of the sonos story, and last year 45% of our sales came from existing customers adding another product to the sonos system which is

awesome and then they tell their friends and family you should get sonos and that creates a supply with new homes, as well and that is why we're resilient in any conditions and on an ongoing basis and why we're looking at our 17th straight year of growth so as we think of the existing customers and how we take the homes that have the average of three today to the future and four to six and we bring our products that address our existing customers and interest them in new solutions and new products and we think about which products are going to appeal to new customers we don't reach today. we're only at the beginning and we do $2 billion in revenue this year and that's in the market of global audio sales of $89 billion a year we have a ton of opportunity ahead and we're just getting started. patrick spence, looking forward to those product announcements of the headphones -- i mean, ahead and we'll wait to see what they are

the ceo of sonos, thank you. >> thank you >> meantime, we have google open for trade and the stock down 5% on the incremental headlines we'll talk about why it was halted in the first place after a break. (doorbell rings) - [narrator] texmexcitement: when you realize the spice of life is actually the spice you just tasted. on time, lowest price, or we'll make it right. grubhub.

a volatile session for uber. shares were up and down yesterday. they were low by more than 5% after trading resumed just a few moments ago and pared some of those losses at 5% investors digest what the long-term goals mean and the profitability and the gross bookings on the surface look good, but sort of at what cost is what investors are trying to figure out now what does it mean for prices one of the executives said their biggest lever is to structurally bring down prices and what does it mean for the profitability that investors have been looking for. yeah it does appear that the headline, cash flow positive of q4 of 2022 is what's on the tape right now and one reason ywhy th shares may be getting lower. a quick programming note to the half we are live with the super bowl tomorrow all day beginning at 9:00 a.m. eastern time and through tech check, we'll talk

about ratings, media deals and off of the field controversy and we'll talk about what it means for the sports and world of business and i hope you will join us along for that along with a firm and expedia. let's get to courtney reagan and the half. >> welcome to "the halftime report." i am courtney reagan in for scott wapner hot inflation comes in hotter than expected hitting a 40-year high will it cause the fed to get more aggressive on rate hikes and we'll debate that and discuss the best inflation protection strategies for your portfolio. our investment committee today includes shannon saccocia, brad talkington, sechin the s&p 500 down a third and the nasdaq composite also down