1.3% s&p up about 1.5%. the nasdaq outperforming, up 1.9% that's going to do it for "squawk on the street. "tech check "s" starts now ♪ good tuesday morning. "tech check. i'm carl quintanilla with jon fortt and dierdre bosa the nasdaq is more than 13% off the all-time high. this hour, we're going to look at one sector badly beaten down. talk about what buying opportunities may lie ahead. we'll talk to the ceo of arista network plus, the ceo of f5 joins us, focusing on cloud security intel continues its spree of acquisitions we'll get more on this $5.4

billion deal for tower semi. we're going to start with the markets. what names are leading the nasdaq higher this morning as it outperforms? dom chu with that. over to you. >> nasdaq-focused trading day. it is an outperforming it often is the most volatile part of the market carl memntioned that 13% drop from the record highs we are still at right now just to put it in visual context, from those highs, this is what down 13% looks like overall. we are still below some of the longer averages or trend lines for the nasdaq, but trying to find some base we'll see if it lasts. within that particular trade, the s&p 500 technology sector overall is still down roughly 11% from the record highs that we've seen over the course of the past couple of months here what's notable about today eegs trade, today's trade, with the move higher 2%, this sector is above its 200-day average price on a rolling basis. so technology, a big focus there. within that technology sector, as we drill down a little more,

three focal points for many traders in that tech trade have been with the semiconductors, as you point out. also financial technology stocks and social media, as well. they've been a lot of the epicenter around the volatility, especially to the downside that we've seen among these three etfs that track semiconductors, financial technology stocks, and social media, only the semiconductor index etf is actually up roughly 8% over the past 12 months both of these, fintech and social media down 30% over the past year. just to give you an idea of how much downside damage there has been of course, what's happening with the megacap technology and communication services s relate type stocks. apple up about 1.5%. microsoft up 1.5%. alphabet up 1%, as well. amazon, the underperformer, only up about 1/3 of 1% tesla up 4.5%. this is where a lot of the

shopping lists, jon, have tilted as things pulled back a little bit. whether or not the big tech trade still plays out, that's going to be key. not just key for the nasdaq but the s&p 500, as well, jon. >> dom, keeping our eye on that. meanwhile, checking in on the state of cloud also, which is mostly enterprise software. the sector is slightly up this morning but has suffered as of late, losing about 1/3 of its value just three months after reaching all-time highs. security names are among those hit the hardest, including okta and service now. today, though, we'll take a closer look at infrastructure-related plays in the cloud space. data center, networking firm arista networks. the stock has risen 2/3 the past 12 months. also cloud security and app delivery company f5, down 6% over the same fortunate. both ceos join us later this hour f5's ceo with news. we talk about this lately,

cloud, i mean, we still use the term, but the meaning is a li little iffy. chips now are an important play in the cloud, as well. but, you know, it is all enterprise software. if you're enterprise software and not in the cloud, what r you do doing? >> everyone is a tech company. everyone is a cloud company. i believe there was a note saying that they are reminding investors of the fundamentals behind some of the beaten down names. i know we pointed to a few other ones, but they could bring greater confidence back to that small and mid-sized sector of this market. of course, that's going to rest largely on some of the names we have coming up remember zoom and docusign are going to be really key for how this space of the market trades going forward and what the value -- >> obviously, the valuation reset has been a big part of the story. then sort of the big macro waves, d maybe we'll see some moderation

in the wave of new business creation, as we exit what we think will be the end of covid obviously, the ongoing just move to digitize everything to manage your supply chains, employees, and everything else. >> yup it's a great topic to get to with emerging cloud -- our next guest, the emerging cloud index is down 15% year-to-date joining us with more on the cloud space, byron i want to talk about something you tweeted a few days ago you were hearing rumors, quote, the cloud is full. the chip shortage may be hitting some of the infrastructure behind the cloud this trend of digitalization that'd be a big deal what did you find out? >> right well, the demand continues to surge, and great to be back here, especially on a green day and a choppy three months. thank you for having me. we are seeing limited spots where the chip shortage is rolling through to this industry specifically right now, gpus, the graphical processor units,

the high-end chip sets people use for artificial intelligence, machine learning, and also crypto mining, in some cases, are seeing that backlog build. some of the availability zones and azure, is zones, and others are having difficulty in provisioning because of the backlog. it is not yet more widespread. obviously, one of the benefits of cloud and the layer is infinite scaleability. this would be a major story if more backlog builds. right now, it's in specific areas. the demand surge we see is continuing, which is, of course, putting that upper supply chain pressure on. >> byron, which companies are best positioned to deal with it if we see this start to become a problem, more intense shortages? the tech giants, obviously, are big players in this. are there other companies, perhaps under the radar, that could deal with the specific areas you're mentioning? >> so i think there's two pieces to that. one is which company specifically, as you see these

potential supply chain surges, certainly, those would, with the large is buys, including alternate clouds where you could see workloads rotate to cpus as opposed to gpus on the margin. i think the more general trends we're seeing also go to efficient businesses in this broader tech rotation that you've been talking about and we've been witnessing for the last 90 or so days overall, businesses right now that are able to scale efficiently are the ones that are being rewarded we're seeing this trade-off, where people were in a growth at all costs mindset as recently as three months ago very much now oriented toward efficient growers. we're seeing pressures on the fundamentals of the business and free cash flow ultimately is going to be an equal weight to growth >> yeah. i was going to say, you know, in a world, we're exiting a period where, you know, we were shooting way down the field for a touchdown, and now it's much more about short-term, tactical moves, maintaining your cash

flow, not letting cash burn go too high is there a new magic metric for the whole space, byron >> well, if you do a regression on the multiples, what you used to see was this 2-1 willingness to pay for growth versus free cash flow or net income. that's moved back to about 1-1 in our world, we think of these efficiency metrics and which dials are being rewarded people with the interest rate concerns are less willing to bet on forward free cash flows and future growth. they want to see it now. ultimately, these businesses that are able to scale while generating free cash flow, and in a cloud world, it is companies like z-world, data dog, crowd strike, companies that are generating 20% to 40% cash flow margins while still growing at impress i hasive rat those are the ones who have been a little more resistant to this pullback some of the high-fliers, like the c3ais and others are pullin

back 50% plus from highs over the last year, as people are now in this mindset of, show us the money. we want to see quick returns on those investments. we're less willing to give you, two, three, four years for payback or for ultimate profitability. >> yeah. byron, morning, it's jon you said it is nice to join us on a green day up to this point, it's been mostly a boulevard of broken dreams i want to ask about margins when it comes to the cloud. on the infrastructure side a bit, too talking to marvel rele recently, they made the point that even though product goes into the hyper scalers, they have such visibility they're sending so much chip business in there, they're able to maintain margins and keep from getting priced out. we look at arista, also increasing its presence with large players, as well as some other companies in the space in general, dealing more with the hyper scalers. what is the impact on margins?

>> yes, well, thank you for diving into it because there is this entire economy i'd call hybrid cloud, including f5 and atrrarista, tht aren't pure cloud businesses but are betting on and benefitting from these massive trends we're seeing in the market one of the surprising things has been the margin profile that's available for everyone in the sector amazon first and foremost. when they got into the infrastructure as a service business, there was this expectation the raw commodity products, storage and compute, starting at the base layers, were going to be commoditized to near zero and they were doing it for the upper stack capabilities as we saw in their earnings recently, both amazon and google l pulled away from the facebooks and netflix of the world on strong earnings prints, largely because of their cloud businesses in the amazon case, the entire earnings of the business is driven by the cloud, which is an infrastructure property. we're seeing that in adjacent businesses, as well.

a number of the ipos over the last year and the last 18 years, certainly snowflake, are powerful infrastructure businesses showing immense gross margin capabilities and ultimately free cash flow capabilities i think that's been one of the pleasant surprises of this wave. the profit potential of these infrastructure providers. >> byron, i'm so glad you touch on the sort of changing landscape, especially in the wake of earnings and the valuation re-ratings we've been seeing you know, you've come on and talked a lot about mount sass, a different basket that includes some of the big tech stalwarts, the hyper growth names how are you viewing this basket now, especially in the wake of the changing landscape are you taking a second look, or has it mostly turned out okay after the last volatile few months? >> it's been a brutal three months for the industry. so this basket has been hit, as has hyper growth tech and certainly cloud specifically the macro trends remain strong, and i do feel like we're fumbling toward bottom right

now. the traders have certainly beaten the investors in the short term, this volatility. you see 5% plus swings in any given name with no news within a day. it's certainly caused some folks some anxiety but if you close your eyes and think ahead a few years, these trends remain. the move to cloud, the digital transformation we're seeing, so much of the big data opportunity, the ai, machine learning opportunity is front and center the percentage of gdp that is tech based is only going to increase therefore, right now, it is a multiple question. these businesses are delivering on their results they are building value. over time, they will be rewarded we've fallen from, you know, mid 20s sales multiples down to 15 sales multiples. i think there is more upside than downside from here. i'm not ready to call full bottom, but it feels like we're close to it. >> you're sticking by it byron, thank you so much talk to you again soon. >> always a pleasure thank you, deedirdre.

intel is paying up 53 a share, 60% premium during where the stock was trading. acquisition further cements bolstering the business. intel's market cap just under $200 billion in january, the company an announced plans to spend $20 billion on the ohio plant and has pledged investments of more than $100 billion over the next ten years. jon, we talked with cramer about it this morning. he likes this deal you know, i think we acknowledge they've got engineering and production challenges. now, a lot of portfolio management a lot to jungle. >> that's the game where intel was, there are credible paths to recovery and thriving g gelsinger articulated one he believes can work, and you buy it or not.

analysts are spectacle of the strategy, but often, they don't articulate what other choice intel has to build up the capacity in manufacturing they need for their own product, but also be flexible in an environment where you can no longer say, hey, any flavor of x-86 you want. there are hyperscalers out there saying, we don't want to take what's off the shelf we want custom stuff by the way, there are other companies out there who need foundry services if you want to be a cutting-edge manufacturer with leading-edge nodes, you have to do foundry at this point if not as your only business, as part of your business. >> still a bold and expensive move i guess, jon, the question is, how do they do it? if this strategy is moving forward. evercore's takeaway was it seems like a low quality way of doing so you know, intel was also looking at global foundries before i guess, jon, i would ask you, what's out there is there sort of a right or wrong way of doing this? obviously, this takes many

years, so it is hard to tell, but why would evercorps say this is a low quality way of doing it >> i don't know. i don't work for them. i don't think global foundries make sense for intel because it is not leading edge node that's where intel needs to be i'm not sure they were seriously looking at that, carl. i mean, you place your bets. maybe intel can't figure it out. maybe the stock falls apart. or maybe they can. if so, then this is another brick in the wall, as the old song says. >> yeah. some of the 13fs einhorn and green light, intel has their attention. we'll be watching that as the company evolves. by the way, we'll hear from gelsinger later in the week. we're going to continue to watch the markets. nasdaq just shy of a 2% gain for the day. the ceo of arista networks is next "tech check" is just getting started.

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shares are getting a boost on those results. joining us exclusively this morning is arista network's ceo, jayshree ullal great to have you back talk to me about what led you to the guidance you gave. >> thank you it is good to be back. it's a very different arista we're in our second phase of growth, and as you know, the pandemic had an effect on all of us it slowed us down. what we're now seeing is a combination of great cloud strength enterprise diversity fact. the post-pandemic era, customers want to invest more. arista is becoming a strategic part of their investment. >> talk to me a bit about customer mix and geographic mix. what's changing? why do you think >> if you look at arista historically, we've very much been focused domestically, almost 80% of the business came from the united states arista has made some strong investments internationally. if you look at our last quarter,

70% was still the u.s., but 30% was international, which is our strongest momentum internationally. with a growth of 40% plus year-over-year this has been really nice to watch. many of that comes from regional strength but also cloud titans who invest internationally as part of that and so that's been very, very nice to watch, as well >> jayshree, how are you managing the potential margin impact of having more business with cloud titans? big customers usually with put pressure on their suppliers to lower prices so from an innovation perspective, from a portfolio perspective, how do you plan to manage it >> i think you hit the nail here innovation is a key part of our differentiation. our customers appreciate that while there's a lot of pricing pressure, that arista has one of the best software stacks, one of the best management platforms, programmability, quality support, and they're willing to pay for that the cost of a downtime is

millions of dollars. there is a premium that arista is given for the superior platform we have at the same time, you're right, we have the pressures of gross margin due to the increased cost due to supply chain, as well as the mix of the cloud titans. it is definitely a balance as the cloud titan mix gets higher, it will pressure our gross margins a bit more. >> hey, jay tjayshree, it's diee i wanted to talk about our discussion earlier with byron deeter he was talking about the chip shortage hitting data centers. are you seeing anything on your side >> oh, yeah, we're part of that, too. you know, the cloud is a wonderful thing. we're delighted with the growth. arista has been a long-time pioneer of cloud networking. they're scaling the data centers. the whole applications of meta, inference, ai, virtual reality, real reality, gaming these are very much the future

of why our cloud customers, cloud titans as we call them, are investing in us. however, you know, the forecast for the visibility for these requirements used to be one or two quarters when they came to us with these requests, the supply chain lead times on some of our components is one year. so there was a huge gap and huge mismatch between what was required and what we could do. add to that some of the omicron shortages, we really took two steps forward, one step backward omicron also brought delays on several components that used to be in weeks, now went into 50 weeks, 70 weeks. so the supply chain not only on the component side but freight shortages, logistic shortages, labor shortages, has been quite a challenge for the entire industry we certainly hasn't ly haven'te to it. >> no industry really is it is affecting across the board, corporates of all kinds jayshree, appreciate it very much shares up better than 7%

take you back to early january good to see you again. thanks meanwhile, we're getting some super bowl ratings. julia has that julia? >> well, about 112 million people watched the super bowl on nbc and on related streaming services this is according to nielsen, as well as nbc, cnbc's sister company. the 112 million is a 14% increase over last year. looking just at linear tv, there were over 100 million people who watched. 99.2 million viewers on nbc alone. plus nearly 2 million viewers on telemundo. plus an additional 11.2 million viewers watched on streaming platforms, which does include peacock. we're seeing increasing streaming and also an increase in viewership over last year guys, back over to you >> julia, any sense yet of the readthrough for advertising sort of versus expectations, and how much of that viewership might

have stayed around after the super bowl to view olympics, which is certainly what nbc wanted people to do. i'm not sure it's what people always do. >> well, it certainly is what nbc wanted there were lots of promos in there. lots of promos for peacock as well as the olympics coverage. so we're still waiting for more granular detail. jon, we'll get great data on whether there were an additional boost in sign-ups for peacock. we're waiting for that data later this week. i do think that this boost in vi viewership is very much what was anticipated. these numbers are aligned, for instance, with what variety projected for the ratings for this big game. i think what's really important to note here, jon, is that, obviously, it was a huge season for football, but, overall, tv ratings have been declining. so this increase in ratings for the nfl is in line with what we've seen, especially in the playoffs for the nfl but it makes the viewership even more valuable than ever at a

time when more people are spending time watching streaming content. >> yeah. close game probably didn't help. down to the final minutes. julia, thanks. after the break, crypto company blockfi paying a fine for some of the things it violated ceo zach prince joins us next on how the company is moving forward. "tech ec iba ia mechk"s ckn mont knows a momen. ...demands a lotion this pure. new gold bond pure moisture lotion. 24-hour hydration. no parabens, dyes, or fragrances. gold bond. champion your skin. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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welcome back i'm carl quintanilla with jon fortt and dierdre bosa julia will have the story on ad performance in a moment, after a news update with rahel solomon. >> at this hour, producer prices shot up 1% in january. that is double whatexpecting over the last year, wholesale inflation is up 9.7% a surge in holiday season bookings helping marriott shares

rise more than 5%. top and bottom line results were well ahead of estimates. revenues more than doubled year ago figures. virgin galactic taking reservations for flights into space again. the price is $450,000 a seat a deposit of $150,000. virgin galactic shares are up 20% on the news, but the stock is still down more than 80% over the last year. moneygram going private at a $1 billion cash deal madison dearborn will pay $11 a share. shares are up 18% today. 50% since the first report of a possible buyout two months ago dierdre, back to you. >> thank you crypto startup blockfi has agreed to pay $100 million to the s.e.c. and 32 states to settle charges against its retail crypto lending product. the s.e.c. saying the company illegally operated 18 months as an investment company. blockfi is applying to register with the s.e.c. to offer a new

product called blockfi yield what does it mean for the future joining us now, co-founder and ceo zac prince great to have you with us. i want to talk about the product you've been selling. you've made yields of 8% or more on some crypto by lending it to institutional investors. what do you take from the investors on the back end as collateral how do you make sure blockfi is protecting users lending out its cristo >> thanks for having me. i'm excited to be here we have information on our website about risk management and what we take from institutional borrowers. i want to give folks a bit of context. >> can you explain it to our viewers who may not know what kind of collateral. >> absolutely. it is liquid collateral, cash, cryptocurrencies or publicly traded securities, like shares in the listed products if anyone isn't familiar with

blockfi, we're a 4 1/2-year-old company with 850 people based in the u.s. the settlement announced yesterday is related just to our blockfi interest account product, which is one of six retail-facing products we have it is one of our most popular products because it offers an attractive yield on cryptocurrencies and stable coins at a time where inflation is running high, as you mentioned. yield is hard to come by consumers around the globe have benefitting tremendously from this product, which paid out $700 millionin interest to blockfi to date, including cnbc's jim cramer, who mentioned us on air a few times. thank you, jim, for that two key things from the settlement i think are important for folks to know. one, this is a neither admit nor defy settlement. blockf i cooperated with regulators throughout. we have a history of compliance in working with regulators, and this is another example of that. two, the settlement lays out a path to registration of a crip c -- crypto-bearing product, which is helpful to the sector

because of the clarity it provides. >> right you're going to have to sort of jump through regulatory hoops to get the product on the market. but the existing one has been one of your most popular now that you can't provide new interest accounts or grow existing ones, what is your business, zac? why would use ergrs keep their e with blockfi versus moving it to a higher yield and add to it in a different jurisdiction where, i guess, where does this leave u.s. companies like yours, in competitive position. >> first, let's be clear, this settlement doesn't impact our existing clients' ability to earn interest. for folks with an account, you'll continue to earn interest as you always have on our platform additionally, for someone that doesn't have a blockfi account today, you can still access five over products on our retail-facing platform cryptocurrency trading, a credit card product that earns bitcoin rewards, loans, our blockfi wallet, and a personalized yield product available to high net

worth individuals. outside the u.s., for our institutional clients on our blockfi prime platform, there is no changes whatsoever as part of this settlement and registration process. >> yeah. but, zac -- >> during the registration process, we'll pause accounting new clients for the interest account. once the registration process is complete, we'll reopen we think there is a good chance we're going to be a first mover in that regard. >> how do you make sure, though, that you continue to keep those customers? i know this doesn't affect existing customers who already have money in, but they can't had to the pile. i've talked to a few people who switched to other platforms like celsius. >> yeah. i mean, look, our clients use a variety of products on our platform they're able to still deposit funds today and use blockfi wallet they like working with blockfi for the reasons they always have, which is, we have a diversified suite of products. you can do more on blockfi's platform in terms of cryptocurrency, financial services, than you can anywhere educational in the industry. we also have the best client

service in the industry. you can call folks we're the first company with a phone number for our client service team you can call folks, speak to educated people about our platform and the broader industry we have this personalized yield product where folks could, you know, deposit new money today on an individual basis and earn interest we see a lot of growth from across the product suite, and we think ourportive of our platform throughout the registration process and beyond. >> tax policy, we're starting to get a better sense of how the irs views income related to crypto is any of that a surprise? are they being surprisingly aggressive or passive, or is it pretty much what you think investors expected the agency to come around and do >> it seems relatively, you know, middle of the fairway to me if you're earning interest on something, it counts as income, whether that's, you know, cryptocurrency denominated interest or interest maybe from, like, staking or some of the

other, you know, products that are available in the cryptocurrency space if you make a capital gain from buying something and selling it at a higher price later, a capitoc capital loss, that has clear tax implications in my view, the irs has been somewhat of a leader across the regulatory complex if i recall correctly, you know, they initiated their first guidance on cryptocurrency taxes well before any other regulatory agency had issued guidance >> zac, last question for you. a number of stable coins are available on the blockfi platform, including tether, circle, busd, they also offer some of the highest yields on the platform what should investors know about the risks of stable coins? >> yeah, well, the stable coins we support or blockfi for our u.s. clients are the stable coins of kind of the highest -- the highest regard, in terms of their infrastructure and their regulatory standing and their banking connectivity so you can, you know, deposit

dollars or stable coins to our platform and withdraw dollars or stable coins from our platform i think that what folks should know about the risks of having stable coins is not different from having bitcoin in our interest account product or other products i would encourage folks to read the pages on our website where we talk about risk management. go ahead. >> should stable coins be regulated like money market funds if your interest product is going to be regulate snd. >> look, i don't want to comment on stable coins in particular and how they should be regulated. i would say that i agree with some of the comments that have been made by folks liks at somef the hearings recently. there is a framework for papypa and the cash app, where you have a digital dollar on a platform i think stable coins can fit neatly within those existing regulatory frameworks. i also would highlight for folks that i think stable coins represent a tremendous opportunity for the u.s. to

advance its interests in the dollar standing as a global reserve currency using these stable coin payment rails, we can get better distribution for dollars people around the world want dollars. increasing access and increasing demand to dollars is great for all of us here in america. >> certainly been an important tool for the crypto market zac prince, thank you very much. hope to talk to you soon. >> thanks for having me. we've got a little drama on the hill regarding those fed nominees elon has the story for us. >> reporter: carl, republicans are saying they plan to boycott a committee vote to advance president biden's nominees to the federal reserve, citing concerns, in particular, about sarah bloom raskin as vice chair. the committee is evenly divided between republicans and democrats. it needs a majority in order to vote that means if republicans do not attend, that none of the nominees can move forward to final confirmation on the senate floor. the ranking republican senator,

pat toomey, spoke to reporters he said he is willing to advance the other nominees if democrats hold back raskin's nomination. he said that he is concerned, in particular, about the master trust that a bank she's affiliated with received from the kansas city fed. he feels she's not answered the committee's and republican's questions adequately now, the ball is in democrats' court, to see how they will proceed. but as of now, republicans planning to boycott the committee vote on fed nominees this afternoon we'll have to see how democrats get around the roadblock guys >> really quick, elon, i'm just trying to keep track of toomey's complaints you mentioned some of these concerns about potential con conflicts. in the past, he's talked about raskin and been critical on the review of climate. is it combination of all those things, and are they widely shared >> reporter: certainly, republicans are unlikely to support her nomination, even if they were to have that vote on it they can always vote no. that is what the democrats say

but in this case, he says they simply have questions that have yet to be answered until they get the answers, they do not want to proceed with even a consideration of her nomination. >> all right thank you. now, as we head to break, let's get a check on the top performers on the nasdaq 100 chips are leading the way this morning. nvidia, marvell, micron up there. "tech check" continues after this look, serena williams... matrix... serena... matrix... serena... matrix... ♪ get your tv together with the best of live and on demand. introducing directv stream. (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

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facebook giving an update on the impact ios privacy changes are having on ad performance jeulia borston has the info. >> meta announcing it's made progress on measuring ads impact this is about two weeks after meta's earnings revealed dramatically slowing growth, in part thanks to apple's operating system update, which limits facebook's ability to both target ads and measure the impact of ads. meta stock declined by about 35% since earnings, wiping out over $230 billion in market cap, as the company guided for slowing revenue growth between 3% and 11% in the first quarter yesterday afternoon, meta announced it is making progress on ad measurement, saying that average underreporting of ads impact is now 8% that's about half the 15% average underreporting the company announced last year.

meta attributing that progress to advertisers adopting recommended best practices and saying they have more strategies to deploy, including ai-driven automated ad campaigns meta also warned they do expect some level of underreporting to remain as part of the baseline michael morris telling us, quote, progress on measurement has yet to have a positive impact on advertising trends he says, i expect apple's privacy changes to impact facebook's performance by the same amount in the first half of 2022 as it did in the back half of 2021. just because the measurement is improving doesn't necessarily mean the company's ability to target has improved. facebook is coming off very high level of targeting power, he noted, so the decline is particularly felt by meta compared to some of the other players, guys. >> julia, that was fast. to me, it seems like, for those people who wondered if facebook

was aiming for a kitchen sink quarter here, where they just flushed out a whole lot of bad news and mentioned tiktok a whole bunch of times, but really that $10 billion revenue headwind they mentioned might have been an overstatement, might this add some fuel to those who think it really was kitchen sink and maybe they can do better? >> well, what michael morris told us was, look, there are two pieces to this equation. there's the actual targeting itself, and then there is the measurement of how well the targeting is working he's saying the targeting is better, but they're not seeing the ad revenue from -- he's saying the measurement is getting better, but they're not seeing the actual improvement in the targeting have a real impact on the revenue just yet. he's saying that they sort of expected this improvement in measurement, but the fact that we're not seeing better revenue guidelines for this quarter indicates it is going to take a while to really work through the issues so they have the tools they're working on it. but this is a big issue that facebook still needs to plow

through. >> yeah. sounds like it is a mix of engineering and arm twisting when it comes to clients it'll be fascinating to watch, julia. thanks let's get a check on tesla today. according to a filing, elon musk owns 21.2 mi% of shares as of t end of the year. in 2021, donating $5.7 billion of stock to charity. that should help set off some of the his tax bill, as well. shares bouncing off of yesterday's 850, back to 919 th, we quadrupled our team and the pace we're growing, i couldn't keep up without ziprecruiter. they do the legwork and they get my job posting in front of the right candidates. i love invite to apply. i instantly see great candidates and i can invite them to apply. we have hired across all departments, engineering, marketing, hardware, field techs. you can basically tell ziprecruiter who you need, when you need it, and they deliver. - [narrator] ziprecruiter. rated the number one hiring site. try it for free at ziprecruiter.com

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alright, so...cordless headphones, you can watch movies through your phone? and y'all got electric cars? yeah. the future is crunk! (laughs) anything else you wanna know? is the hype too much? am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league!

time for a gut check intuit in the red. tax season gets off to a slower start. the home of turbo tax and credit karma believe they're on track to meet its $12.3 billion revenue goal expected to make up lost ground later in the year. stocks down 18% since january. still no sell ratings on the street, jon. maybe it is just a bit of a push into q3, q4. >> not uncommon to see this happen during tax season that wouldn't be a surprise. now, let's get back to the, well, cloud sector enterprise software and related things today, f5 announcing a new security solution to strengthen protection of the digital world. according to the company, 88% of

organizations operate legacy and modern systems, increasing the need for protection platforms like this one. joining us now to discuss, f5's ceo, francois locoh-donou. glad to have you it is not just a security thing though you're announcing distributed cloud services today explain how this is different from what you've been doing in the past >> jon, thanks for having me you know, the challenge of cybersecurity has only been growing strongly even during the pandemic, it's costing business hundreds of billions of dollars. it is affecting the lives of a lot of people. i'm sure you know folks who have had money stolen out of the bank accounts you know, in the u.s., we've had hundreds of thousands of people, you know, who have filed complaints because their identity has been stolen to claim government benefits. it's a real issue affecting a lot of people. we at f5 have been on a mission,

you know, to bring a better and a safer digital world to life. today, we are announcing a major expansion of our security portfolio. really making it easier for thousands of businesses around the world to to secure their applications in any cloud. what we're seeing is more and more businesses around the world are deploying apps all over because it's central to their customers' digital lives and we're making that easier with today's announcement. >> in your most recent quarter, supply issues hit you as well. when you're planning your strategy i know you're trying to make adjustments work with the chip available, but how does the software approach position f5 overall into the future? >> well, the software approach, you know, positions us extraordinarily well for where applications have been and where

they're being deployed and you know, especially the post-pandemic era, jon applications are the way of life and it's the way we shop, the way we think, the way we collaborate and what we're seeing is more and more these modern applications are being built not just in a single cloud, but in multiple public clouds and multiple private data centers or private clouds and today's distributed cloud announcement we're making is providing a security stack in all of these environments. it makes f5 quite unique in our ability to secure any application anywhere regardless of where it resides and with the increasingly that's what we're going to see is securing the applications in an environment. >> francois, i don't mean this to slounound glib, but we've spt so much talking about i.t. shortages. what do you think resides

sooner, i.t. shortages in labor or i.t. shortages in goods and hardware >> i think probable labor results -- certainly in terms of the logistical challenges that have affected the supply chain, i think those results sooner the height in demand for i.t. skills will continue to go on, i think, for maybe years and cybersecurity in particular. there are over 3 million jobs globally in the cybersecurity space. i don't think that will resolve any time soon so we really need to bring more skills into the industry but in terms of the chip shortages, i think that's going to take, you know, a few more quarters for folks to build a capacity and things to ease up >> francois, do you have an expectation or even a range that you can articulate the impact of rising interest rates on demand in the cloud and demand for

technology in general, right because for inflation to come down a lot of people would argue it's not just about raising the rate itself. it's about bringing demand down a bit. will technology experience some of that? >> i don't think so and the fundamental reason for that is the way we work and the way we live and the way we bank, all of these things have fundamentally changed over the last several years and the pandemic has only accelerated that the demand for digital experiences, you know, has grown and it's going to continue to grow, and i think that demand is going to grow independent of what happens with interest rates because so much of our lives is shifting to these digital exper experiences. >> all right francois, thank you. ceo of f5.

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getting a gut check on box activist investors star board value exiting after losing a proxy battle last year. box is up with the broader market today guys, we should mention it's up and one of the software names that hasn't seen a sell-off and it's what the activist investor wanted to do, and win that proxy battle. >> yeah. how do you lose a proxy battle, carl, without really losing the proxy battle >> that might be how you get in the fight you don't get what you want maybe on paper, but you do get what you want out of stock prices somewhat. >> yeah. just one example of how the environment has shifted and made investors a little more aggressive in terms of trying to get some capital return. d, we'll be fascinated to see

how that shakes out. tomorrow, as we look at the tech earnings of the week airbnb, roib loks and toast and we'll hear from crow founder and ceo brian chesky and he'll sit down and talk about the quarterly numbers and shopify, nvidia and drop box. marriott was a big story today talking about people starting to get out and travel and some limitations in the number of new rooms that the industry has been able to build because of the limitations on construction during covid of course, airbnb is the magic of the model >> that's the struggle, too. keeping that supply high as you have competitors on the market airbnb has been such a fascinating story throughout the pandemic it's been able to benefit from the domestic travel. airbnb is awarded a much higher

valuation in the otas and hotel and it has to keep that and we are expecting a big number for bookings and we'll see if travel demand has held up as well as the long term stays and that's the future of travel is that people will stay in one spot and work from home or from their airbnbs which he himself is doing at the moment. >> it's an important bellwether in this economy as we look forward to warmer weather. hopefully more opening back up of -- i don't want to say post-covid because you never know with these variant, but perhaps the normalization in habit, but connected to that also hearing what toast has to say. their ipo not too long ago back in the fall and restaurant software, carl, they've got to have visibility into the higher impact costs and the impact of labor shortages and those questions about how people are going to be perhaps coming back or when people will be coming

back to strestaurants in greater numbers. and roblox, and what the metaverse will mean for football, and how much that will drive john crazy that's all coming up and the session highs are up better than 2% time for melissa lee and the half welcome to "the halftime report" in for scott wapner. tensions ease and worrying signs about inflation. what do investors do from here and is it time to shift the focus from inflation to growth plus hedge funds making some major stock moves in the market. we'll debate them. our investment committee, steve weiss, sarat, and jon najarian and the major averages snapping a three-day losing streak despite more data on rising inflation. russian troops are