be a finish to a negative week the nasdaq once again, the biggest loser down almost .9% right now. as you'd expect many of the names who make up that index in the largest components of it are down ge is warning not helping matter as well. that will do it for us "tech check" starts now. good friday morning. welcome to tech check. the ruckus of roku doing the chamath. he steps down as virgin galactic chairman what does that mean for the company?

you don't want to miss dropbox ceo this hour. talk about earnings, the cloud, remote and a whole lot more on top of the geo political tensions busy hour. >> busy indeed stocks are lower after a big risk move. the dow seeing the worst day since november 2021 and the nasdaq is on pace for its second consecutive week of losses is now the time to put your money to work? we have joined with some of the cheaper names. you're looking at one valuation and that's priced earnings >> on a forward basis because a lot of traders and investors like to look at the forward price to earnings ratio as a way to gauge what the prospects are today. the price you pay for next year's anticipated earnings. if you look at the s&p 500 tech sector you can see under performance in tech. that's led some people to say, hey, it's the s&p 500's biggest and most important arguably sector many the entire market. can i find certain values there.

we'll look at the low p/e stocks on a ten-year basis, over the first part of the last decade, you did see the s&p 500 generally out perform in terms of the overall kind of market. the sector wise valuation now stands at about 25 times forward earnings for the s&p 500 technology sector. it's closer to around 20 times for the broader s&p 500 overall indicating that there is a premium put on valuations there within that overall sector if you take a look at some of the stocks that are kind of in play now we decided to do a screen and in that screen, what we wanted to look for was all of the technology stocks in the s&p 500. that's roughly 75 of them. we took a look at those ones that have had a positive year. 12 month price performance that's been to the upper side. meanwhile, what you've had are sell offs in the last few months here a year to date negative performance for that particular, at least those particular stocks among those, we found 22 that

have priced to earnings ratios on a forward basis of 25 or less the reason why 25 is important is because that's the overall ford p/e of the sector we look at the megacap names that fit the criteria. first of all you have a chip maker in broadcomm that trades at 17 times earnings cisco at 16 times earning forward is another one and oracle at 16 times as well some of the other names that pass the screen from a megacap standpoint are names like ibm, qualcomm and applied materials qualcomm at 14 times forward earnings applied at 17 times and ibm at 13 times as well there's a slew of stocks that could be considered values but we looked at one scenario. the rest of those 22 stocks are on my twitter feed if you're curious which otherstocks pass that screen. >> i can imagine someone like

kathy wood looking at this list and shaking her head and saying you're missing a lot of the future innovation. it's a different way of looking at valuation than many investors have over the past two years the pandemic darlings were based on price to sale because o lot of them didn't have earnings you're not seeing some of those high growth momentum names as they follow to favor it's sort of the shift at looking at earnings versus the potential sales. >> there's always a balance between trying to figure out which is more important to you future growth prospects and what you're willing to pay or this valuation aspect are they trading so cheaply they have the catch up at some point. from valuation side of things there's more focus because of the sell off one of the other things that's interesting is most of that list of 22 that's up there, they all pay a dividend each of these stocks in the top six in terms of market cap all pay a dividend north of 1% the only one that doesn't is

applied material it's closer to a three quarter% dividend yield very much more in focus given the fact we have seen this down trend in some of these tech stocks >> dow is down almost 200 here nasdaq down 1% it is expiration day we'll watch that along with some remarks from fed chief john williams let's get to steve >> we have remarks from two fed officials. a little more on the dovish side john williams speaking across the river from where we are says he supports steadily raising rate, reducing balance sheet we don't know for sure that could be a kind of code that's been out there among those officials that have favored 25 basis points.

pretty optimistic on inflation before falling further next year as supply issues continue to recede it's by unusual supply side shocks he thinks inflation has widened and does require a substantial repositioning quality. he says no expractice policy restr restraint is needed. >> we'll watch for that our next guest says low p/e

names are out performing talk to us about, in a universe where you see some opportunities u talk about the basket we should be eyeing right now. they are in the sophomore sector investors gravitate toward that. right now what the fed raising rates, investors are paying close attention to how higher interest rates will affect the discount rate and that's housing a lot of the names

we're looking for investors to move toward the cheaper names as way to find opportunities there for geood companies but to get the support that you're not getting. >> right does it matter if they're low p/e growth versus low p/e value. >> i think the word in every example is low p/e i think that's what's most important. when you look at this sell off, typically quality companies do well in a market pull back this time companies are also under performing in addition to growth what investors are doing is they are simply taking a look at their portfolio. really sorting the portfolio high the low on p/e and selling the expensive names and it's simple as that it's unusual to see that happening. we would encourage investors the lean into that approach.

>> is that a short term trade. if you're in it for the long run, what do you make of kathy woods argument that she made yesterday looking for value this way is backwards you have to look for companies that are inknovinnovating, sacrn the eu earnings for growth in the future >> i agree with kathy. i think you want to find innovation i think the question is what are you willing to pay for that innovation right now, paying for that innovation is extremely expensive. if you look out over five or ten years, you can afford to make that enration because likely the aer earnings will come through that gap has a long way to close. there's a lot of opportunity for those cheaper names.

>> how do we think of low p/e names but names that have a run in this environment like some cyclicals and like some banks. the economy is still really strong companies are recognize inflation. >> sbinteresti ing environment r in appreciate that very much. thanks from outperforming to under performing, let's turn to roku

missing expectations shares are plunging this morning. our next guest is a roku bear saying the latest profits were lower than he could have even imagined you kind of called this last november we have to give you kudos for that worst than you could have expected we have seen the shares lose about half of its value just this year alone. do you think we're seeing the bottom now how far does this extend >> it's funny. there's a quote when the knicks were losing, someone said where is this going? he said the ship would be sinking and the sky is the limit. we think that a lot here the problem is there's no valuation support at all the company is locked in with three or four mayorjor competit. we try to put a price target of

about 100 bucks on it. the reality is the revenue looks really optimistic. the sky is the limit >> or the bottom is the limit. >> exactly >> when you think about a roku, there's been chatter when you see this value wiped out, it could billion an acquisition target you say it's in a competitive space, it's very true. what's the technology that roku has that you think a potential acquirer would want? >> the operating system is good. we enjoy our roku tv sets. they work well almost better than the ones we have from samsung. i hate to say that but it's true they have an emerging business with the channel the problem you have is the buyers, the amazon, apple, alphabet, they can't buy roku. there's too much anti-trust. the immediate media companies wr

have been slaughtered. maybe it would be a television where they want o accelerate their pivot to connecting tvs. that's probably your best shot the question is can they do it themselves. >> you spell this out pretty clearly in your note today you say as such, the stock will likely be orphaned until earnings turn positive and give

tennes the out look that looks like a long time from now what can a long time look like >> that's your questioning of the previous quest about what do you buy here our view is the only thing that works are earnings, surprising positive. it's about getting the revenue number right we have a pretty good way to track this give us some time. we'll come back to you to me, it's that 35% revenue guide is at risk that's how we see it

>> michael, what happens to content spend in the year head is roku maybe an indication it cannot last at these levels. you also have the likes of amazon and apple the big tech players who have such deep pockets to continue the sort of arms race. hopefully we get outside of our homes and walk around again and play, you have hours in the day. >> streaming may not be a good business but i go back to like offense an apple and amazon. they don't need toyota be a good business because they have other profitable businesses. where does it go >> if you're -- i agree with you. that's the problem with the business model if you're in streaming to sell

groceries or sell new phones, you can lose money you can over invest. that's the biggest challenge where does it go at some point you'll need consolidation. >> it's a tricky question. we'll continue talking about it with you, michael. thanks for being with us this morning. >> thank you meantime, drop box shares are slipping we'll talk to drew house ton in the moment tech check is just getting started.

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with results, shares fumbling despite a smaller than expected quarterly loss. a weaker than expected guide for '22 adjusted ebitda. despite the streets skepticism,

he does remain optimistic. take a listen. >> we have a multi-year plan the plan goes out five years we have certain milestones we need to hit each year to get there. so far we have hit them all. we haven't missed a single guide since we pewent public almost to years ago. it's been all over the place but we haven't missed a single number that we put out there i think our track record speaks for itself. >> it's not that dissimilar to streaming as well. the more dollars, more marketing dollars in this industry carl, dropbox shares lower on the back of a strong q4.

revenue grew 12% guidance for the quarter and the full year missing the streets forecast that is what the pressures the stock. joining us for an exclusive, ceo and co-founder drew. great to have you on program it's been four years since your ipo. you're less than a few dollars above your listing price but the company has expanded you made a number of acquiacqui acqui acquisitions you've gone into the collaboration space. what are investors missing how are you creating long term value here >> well, we're building on a lot of our momentum. 2021 was a strong year for us. the end of the year was over 2.2 approximate and are significantly increased profitability. we made a lot of progress since we went public we dropped new products like

dropbox capture and beta >> drew, we talk about this often. it feels like it comes down to converting free users. you have a ton of those and to pay the users. the growth there is sort of flat and even though you are adding all of these new features, do you need to get more aggressive about making people pay even if that loses you some of the free users. how will you convert them better >> we have a huge audience of free and paid users. we continue to grow subscribers, for sure part of the longer term opportunity and what we're working on now is introducing more of our products to our existing customer. a lot of folks started in just using dropbox but if you look now, we have a lot more to offer our customers.

>> drew, in term offense the nature of the post-pandemic work, we talked to cisco earlier in the week. they are talking to change they will continue to do so even after people start coming back to the office in bigger numbers. how are you thinking about that and how you're positioned and where that's going to lead us in terms of normalization >> we see a lot of -- all along we have seen a will the of opportunity in this transition that we have all lived through in the last couple of years from working almost entirely out of offices to now working almost entirely out of screen from a company standpoint, we change our operating model so we have a virtual model where it's working from home but there's light at the end of the tunnel with covid

things are reopening. what used to be 100 files on your deskto is 100 tabs open >> you talked and some of the analysts talked about the creator category, how you are capturing that >> we always had customers of

all shapes and sizes from people using it as consumer stand point to fwige the biggest companies enterprises. where we have seen growth is with the creator economy. we have seen a lot of demand to use dropbox not just for storing and syncing and sharing but a lot of request to do other things around our contest.

these audiences see a lot and their work flow revolve around rich media they need a lot more from dropbox. >> it's been great to work with peter. he's had an amazing run. just think of the whole journey he's seen and we have a strong board in place yeah, we wish him the best >> i didn't think you were going to say more than that. i had the try. drew, thanks as always. great to see you >> awesome >> dropbox is one of these companies that value tech name with that lower p/e ratio. >> yeah.

it was more than i expected drew to say thanks, drew what do door dash and peleton have in common a lot more than you might think. you can find out why after the break. dow recovered some of that leg lower now down 93. at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.

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welcome back markets are all over this morning after a volatile week of geopolitical concerns. tech under performing with the nasdaq down for its 6th day. are there holes in the arc let's get a news update with frank hol holland. >> existing home sales shot up 6.7% last month. that growth is over five times more than expected the houses fell to record levels with inventory dwbetween a thir and a quarter of levels.

this is sells of homes more than $1 million shares of pilgrim's prides are down 13% brazilian meat packing product has scrapped the plan the buy the shares it does not already own. deere giving up early gains. shares are down 3% q1 results were strong on the conference call deere said inventory levels are at mull multiyear lows land not recover until next year. blooming brands is up 17% this year that's the latest. back over to you >> appreciate that pandemic darlings and profitability. what is the deal take doordash down today

the company did miss big on per share the the loss per share and questions linger oaf wver whetho called growth stocks will become the next amazon or the next pel on -- peleton. you have looked over the quarter and sounds like you're conflicted about how much news was good versus bad. >> doordash is in a tough place now. they fit into this larger story about companies that kind of tell these grand visions and they actually realize them because for months and years, investors have given so much lee way to companies that make the grand claims they said this like four times in the earning call, 14% of monthly active users were participating in non-food category like grocery, pet food and alcohol. it kind of starts telling this story it's not just about food

delivery which no one has cracked the code how to make money. it's about the higher margin, non-perishable businesses. this is a company that still hasn't shown it can make money the only quarter of profitability was at the height of the pandemic. their losses increased in 2021 up to $468 million food delivery is a business. no one knows will it make money. doordash is in this position where they have to show they can realize this better version if they will become a profitable sustainable business and finally, i think investors are starting to pay attention to this kind of thing >> i wonder, take amazon over the years going back to the late '90s or early 2000s. there were quarters that were great, quarters that missed. investment cycles they were clear about because they are chasing a very long goal could this be sort of th dynamic? >> it's tough because for the last five to ten years, receiver i think l start up, every

company says we're the next amazon we're next facebook. amazon were building this but the expectations weren't baked in they were allowed to not show profit because they kept investing. all these companies that were valued, remember door dash was valued at 22 x sales about a year ago companies like door dash have to show concrete result ss into realizing these visions. the operating system for local commerce finally investors are saying show us this is possible.

>> it's making money much better >> i would say door dash is the best in a bad category doordash uber. they are trading 13% belore their ipo from three years ago i think doordash in a category that's not the most attractive has shown they are better at execution than anyone else they have started to show they

can make these strides again, the fundamental question is, can they actually realize that vision. i honestly, food delivery worked many years into this experiment and no one has shown it's a profitable, sustainable category >> right they need to find that sort of profit engine like amazon has aws and now advertising. some say it could be advertising. i want to get your thoughts when we're looking at the shared economy. what do you think about air bnb? the brand has prove on the be so strong do you think that makes it use nee -- unique in the space? >> yeah. at the height to have pandemic and the layoffs, air bnb seemed to be a company in complete layoff and they have shown in this brand new economy they can transform. they can become this infrastructure of people working remotely, of people creating new types of living, short term

experiences. i think they are the perfect example of the company that shows they are much more than just what they originally were promised which was a more inexpensive way of getting a room for the weekend i think they are a perfect example of where the doordashes of the world need to show they can go >> we mentioned peleton in the intro. i know your concerns about them are pretty acute given the losses are growing even in the face of the core business dece decelerating >> i'm so glad you brought up peleton because last night they debuted this new video game experience and as a long time rider, pit's the most fun i've had on the bike in three years it's like the guitar hero and you pedal harder and faster depending on what it tells you to do. it was exciting because you say innovation happening it wasn't just trying to sell some dangerous treadmills or more of the same bikes you can tell it's one the

company had its back against the wall they can debut these new types of experiences from a business standpoint it's exciting because are you a gamingame ing platform you're not longer depending on a small subset of instructors. i really think, and again, peleton had a very rough ride. at the core, it's a good product. they are finally showing they can create new experiences and maybe take the company to that next level that they promised for the last three years >> yeah. middle of a big shift. we know that great insight into some names that viewers care a lot about. always good to see you thank you. meanwhile, intel investors not convinced by investor day. shares are lower despite the ceo announcing they are aiming for double digit revenue growth. shares have fallen over 20% since he took the helm over few

years ago. tech check is back in two.

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kathy wood remains bullish joining the halftime report exclusively yesterday for more on her strategy. have a listen. >> we have a lot of tesla's, tesla like stocks in our p port portfolio. we're looking for companies that will use artificial intelligence and create come petitive ad advanadv advantages that no one will be able to catch. >> ark unloading about $56 million of shares after they sent shares down 16% yesterday wood still sees opportunity in innovation stocks saying they are now in quote bargain basement territory carl, there's a lot of things to find fascinating and to like about the way that cathie wood invest the transparency and the way she selects analysts and does research. with the interview with scott yesterday, he asked do you think the stocks will come back to

prior levels she said, absolutely and beyond. i was hoping for a little bit more nuance. not every stock can be a tesla nor does it need to. look at what she's been able to do with tesla. >> that's what's curious right now. that's exactly right how is she now making, splitting the difference between, as you say, selling on the print and buying roblox. it's getting interesting to see where it is for fun. the jpmorgan desk note says the recline in ark resembles the nasdaq tumbling. the ark trade has opinion a beneficial short underperforming spy by 68% over the last year.

it's been very tough >> yeah. the last year has opinion brutal we do have to look at her performance as she would like us to that five year basis. it's been impressive thanks so some of those big names. where can they pick up where's the innovation still there in the value e-commerce names have been on sale this week. falling more than 20% in two days along with names like chewy, overstock, wayfair and a lot more only name to escape that carnage so far is amazon we'll talk about that when "tech check" continues

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the second largest cryptocurrency, despite the drop traders are finding new ways to hedge and more complicated ways to trade, and i guess this was inevitable, but it's interesting what drives either versus the bitcoin, a lot of this tied to the nft market >> a lot of talk about web 3 and bitcoin derivatives and the more advanced trades, and we are now seeing the same trend with ethereum sometimes called ether, there are now more sophisticated trading tools and strong demand for those products ether futures volume has been strong throughout the past year or so even in the face of lower prices open interest on the cme still near an all-time high. cme also launched something called microfutures late last year that lets investors trade in smart increments. demand globally across all exchanges hit a high back in

may. there's still been sustained demand in recent months and overall in the past year he calls that demand, end products like microfutures, a strong side of more sophistication and institutional investors likely getting in the most popular form of these crypto derivatives is something called perpetual futures there's no expiration date on these contracts and no rollover costs either, and with more leverage, of course, it may mean more volatility. crypto wales is seen as smart money in crypto as any person or a wallet holding more than a thousand ether and it might look like there are fewer whales in the market they're likely using those coins in other places and that could be spending on things like nfts, decentralized finance apps or other smart contracts. >> not to get too deep in this, but there's a paradox in here. you're talking about ether becoming more sophisticated and institutional investors, but

they're not getting in for the reasons that is the promise of web3 does that even matter, when you're talking about competition in the space different than a bitcoin? >>ethereum's seen as a pure play and a pure investment on the rise of web3, whether that's nfts or any of these decentralized apps, people looked at this and said this is the future and the infrastructure as behind what people see as the true internet. i'm buying on ethereum or building on ethereum or these other layer competitors that we've seen the markets tend to follow that and see the interest and there's interest and volume going on, so why don't we launch other complicated ways to trade this you see bitcoin futures launch on the cme, for example. i was talking to an analyst who said they'll often pair that with an ether product and they now have more optionality and can do both.

>> it will be interesting to see how that plays out kate rooney, thank you >> if you're hungry for more of kate's crypto content, check out cnbc's new crypto for the latest market trends to the biggest names in the space tune in daily at 3:00 p.m. eastern at cnbc.com crtorlypwod. we'll be back in just a moment age before beauty? why not both? visibly diminish wrinkled skin in... crepe corrector lotion... only from gold bond.

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one more thing this morning stepping down as virgin galactic chair. the stock has since failed to take off it hasn't gotten easier for the company closing in the last three months the post-spac down since the middle of december morgan covers space and defense for us it's a name that chamath sold his personal stake a year ago. >> he sold the remainder of his personal stake that was worth $200 million at the time in march. however, social capital is one

of the top three shareholders in virgin galactic. what is perhaps so notable about this news today is about how quietly it's happening and how abruptly it's happening given the fact that chamath is stepping down immediately and virgin group's chief investment officer and a longtime board member since 2017 is basically taking over as interim chair as the company now searches for a new chairman it comes in a very busy week for virgin galactic after the company opened ticket sales, and you saw the stock spike more than 30% on that news and it's given up those gains and now just today it's down another 7% on this chamath news, and it speaks to more broadly, guys, as you touched on just how hard hit the broader spac sector is virgin galactic is what popularized this investment vehicle in 2019.

>> and he's the guy who pioneered it, who wanted us back for every letter of the alphabet he has made a killing on this investment in particular, he was able to get out of the right time pitching this as an investment for retail investors to get into to hold for the long term because it was different than a traditional ipo, morgan. >> yes that's right it's not like he sold his stake which there were a couple of sales of his personal stake between december and march at the highs and certainly a much higher stock price than what we see virgin galactic trading at now. keep in mind, we'll be getting quarterly earnings from this company after the bell on tuesday. it is still a company that is for the most part, we'll see how this starts to take effect with ticket sales opening back up and it is a pre-revenue company and the focus here at least in the near-term is to be able to start launching that commercial space tourism service in the fourth quarter of this year, and that is really where the focus is

right now for investors and also for the company itself, but chamath halpatiya was outspoken about the longer term bull case that was supersonic travel and that's something we can get into at another time. >> the president will speak on ukraine at 4:00. enjoy the long weekend let's get to the half. carl, thanks so much welcome to "the halftime report." i'm scott wapner front and center, another volatile week for stocks as russia affect investors sentiment as we always do with the investment committee joining me for the hour this friday, stephanie link, jason snipe, shannon saccocia and josh brown. let's check the markets as they remain very much on edge i'll take you to the numbers, russia-ukraine headlines and they continue to dominate. we're watching fed speak closely, the