percent. that's going to do it for us "tech check" starts now. good wednesday morning welcome to "tech check." today, software has rallied hard after the lows where are we today plus the chipmakers testifying on the hill as they look to boost production we will talk to the ceo. and adobe shares falling after reporting results. should investors be concerned about the outlook date >> carl, we are going to start in washington as top chip ex

testify before congress looking for funding. what are we hearing so far >> reporter: so far this hearing has been part education and part advocacy he even brought some of his latest foreign an al salogy chio show congress. meanwhile it was argued that the u.s. is already risking falling behind in the investment in next technology >> the u.s. government needs to create the playing field and support investments in manufacturing facilities nearly every other country that has a significant share of manufacturing offers major

advantages including tax breaks. our government does not. the refundable tax credit is needed to ensure that visibility of a scaled up industrial base and to get a supply of semiconductors >> there was a somewhat testy exchange between republican senator ron johnson with him where he questioned the need, but by and large there is bipartisan support for this bill for the industry all of the holdup of this bill are the other pieces that are going into this broader innovation package >> thank you i did speak with the intel ceo ahead of the hearing a big part of his message to congress is you have to hurry up

much we are going to either invest in this industry or decline this is precarious that's part of my urgency right now. i fear if it starts dropping below 10%, we may never recover and we will have a permanent dependence on asia and other countries who are geopolitically unstable good to see you. i want to start broader. about 15% of your revenue is from europe. how do you expect russia's invasion of ukraine and resulting in inflation and sanctiones to affect european demand >> i don't see it affecting european demanding at all. the bigger issue is we have to

be methodical and watch our supply chain closely mostly on logistics in moving these gases in and out of our facility we haven't seen a softening demand out of europe amid this crisis >> that is encouraging how does this geo political situation impact the case for more chip manufacturing in the u.s. >> it's all about awareness. semicon ducktors have been insidious. it is to the world economy and how we can act and engage. it wasn't until there was a shortage, not enough being manufactured, that we became aware as a society how important they were. this crisis just adds to that sense of urgency and necessity to make sure that we as an industry invest to create that

capacity, but invest in the right regions of the world to get balance. >> good morning. i'm curious has to why you are not in congress today especially when the manufacturing side of this is so critical and you are in a unique position to speak to this already being there what kind of support do you hope for for your company >> for one, i am in washington myself after this meeting i will be heading to the white house to meet with president biden's staff on this very topic as a foundary, we serve a broad range of customers and technology we are the manufacturer for so many u.s. companies and other companies around the world in creating capacity. it's our job once this is funded, is to continue expansion in pt u.s.

we have a huge facility in upstate north carolina and another in vermont and another facility north of new york city. we will be looking to expand our foot print with the right economic model that the chips bill will provide to our company. >> we are looking at some of the u.s. locations in manufacturing. we are watching ohio, arizona especially, texas. how would you grade the early goings of these new announcements, new manufacturing initiatives. are there frictions we are not aware of or is it a seller's par market in terms of putting shovels in the ground even though it will take time to get them going >> two important points. since discuss is around supply chain security, that conversation goes back to the last administration. the rest of the world has reacted. a significant amount of the

capacity that's either a shovel in the ground to create a new facility that will have equipment installed or existing facilities already in the ground the u.s. is significantly behind in creating that capacity. that's part of the urgency you spoke with pat about this morning. it's time to act now your strategy, we believe that economy to scale and capacity to bring online quicker expands facilities that's an advantage to us. we are in singapore, u.s. and germany. it is about a year and 18 months faster to bring capacity on to an existing facility, even adding factory space because you could add a few tools to get output a greenfield expansion you need complete expansion for output

and that could add 12 to 18 months to the schedule our position is to leverage our footprint in existing locations. most importantly, what we announced last summer, once it's funded in the capital region of new york >> there are three areas i would point to where the semiconductor policy is looking for movement tax credits which were pulled back and looking to get some of those back and workforce preparation. forgive me if i am for getting a broad area but which do you this i could be moved on most immediately and have a big impact? >> i think we have to create the manufacturing first and foremost or we will find behind and never catch up that goes hand in hand with having the talent.

we need to couple those together let's get the funding going and then get the talent. if you force a pecking order, you have to start with getting the manufacturing or it doesn't matter what you do with r and d because you can't deliver, and then talent close behind >> what is the risk that politicization backfires they talked about the market being global and needing to stay that way what happens if we start to hear a politician tell companies to prioritize chips for certain regions like yours >> i don't think the answer is friarization i think the answer is creating capacity it took half a dozen years to become half a trillion business. it's going to double in the next eight to ten years we as an industry need better

economic models for that capital deployment that's why regions much the world, u.s., customers, have to partner together to create the dynamic to create that supply. the losing game is to do it by allocation rather than fixing the problem deciding what the world and world economy needs. >> you talked about the risk on supply that makes sense in asia is there a sense that production in europe still puts the u.s. at risk on a net-net basis? >> i don't think so. we need a global footprint there are other things just besides geopolitical that can happen any single points of failures are always risk items for industry or business or society. getting a more broad-based

supply of semiconductors is good, good for society and the industry >> thank you, tom, ceo of global found ris. >> thanks for having me on >> adobe, shares are down after earnings coming in lower than expected >> we have stopped all new says in russia and belarus, and in addition to that, because you have subscription of a business, you do not have ability to collect payment. we have reduced the annualized rectoring revenue as well as the revenue for the remaining three quarters >> still posted revenue on the quarter, but that's back-to-back quarters where the digital media guy comes in below consensus here, john, still not as low as

the 4.07 we got on march 14 clearly we have exited the period where they blow away expectations as they did much of last year. >> expectations rise when you do that it's a different kind of bar this stock action, i see it as perhaps a warning to investors that european economic impacts from this russian invasion of ukraine are not all priced in because that's so much of how adobe's numbers and the guide differ from expectations, not only the guide from russian ukraine or the overall situation. a lot of officials saying i don't see much impact, but when they have to give guidance, we are starting to hear impact in

europe and i think investors should pay attention to that >> what if the worry is more fundamental. you hear talk about competition. you don't want to get against them, because he has turned the business around before even this morning it was said that rivals are making new inroads among customers. that may reflect in some of the weakness we have seen over the last few months. you don't want to bet against him. still to come --

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time for gut check a bit of optimism on the regulatory front for chinese tech giants. remember the restriction on kids playing video games? that's having a real impact.

ten cent is reporting its slowest revenue growth it is significantly growing back growth to 1% tencent says it has lost nearly half a trillion ride it is as roller coaster of volatility for investors it feels like one thing and another totally coulntradictory thing. >> it seems to be a function of trading in some of those names cyber security coming into focus as the president warning we may see an increase in cyber attacks due to sanctions these stocks are both in the red this morning

dimitri, good to have you back thanks for the time. the white house has a habit of warning us about things that in some cases end up being justified warnings how acute are you saying these warnings are >> very serious. in talking with white house official, they believe russians will re-cataliate for sanctions. we have good information on everything russia would do to ukraine so we have good information there. >> it is warned that russian attackers scanned at least five energy companies in at the u.s >> the energy sector will be an impact given the impact on russia and the western countries pulling out of russia as a result of sanctions and overall pressure most of the sanctions have been

on the finance sector, central bank, major banks, and i think they will respond accordingly. >> what is your read on microsoft and octa they seem to have narrowed down 300 accounts touched by one outside contract or who got hacked how good a job is the industry doing at providing a detailed response and explanation >> one thing to remember here is that it's not all about nation states as we talk about russia, criminal groups, teenagers doing this stuff as well this group is believed to be based out of latin america, not state based, and able to infiltrate these large companies. okta provides authentication, so

it's concerning. it shows you what a capable state like russia would do if you have teenagers in latin america able to do this much damage >> speaking of other geopolitical threat, the focus is on russia, but is the conflict creating an opening for china? data research is seeing an increase in cyber attacks from the country? >> the chinese are interested in stealing intellectual property they are paging warfare, breaking in and stealing secrets and passing them onto the private sector huge concerns. >> what do you think happens for the clients of a lot of these vendors? is this a matter of new clients who had not thought about this and coming on board or existing

companies broadening >> i think people will look closer at their vendors. even though you have security vendors like this getting hacked, everyone gets hacked at some point there are two types of companies, those who know they were hacked and those who don't know it is how you respond once you are hacked everyone will be watching okta, how transparent they are, that's what a lot of their customers will be looking for and how they decide which vendors to go for in the future. >> i hope you get a little deeper into that okta down 8% today after recovering a bit a few days ago. what should investors look for in a response? what tends to turn clients off

in responses, both in terms of whether it's minimizing something without enough evidence, whether it is trying to blame an outside party when it's not clear that you are presenting evidence it is an outside parties's fault? from a security company's perspective, your view on what constitutes a good response? >> transparency, transparency and transparency that's what customers expect i have been through this with many cybersecurity companies that have been hacked. as long as they are honest and open, they don't lose anyone but if you look like you are hiding something, that's when you are in real trouble. >> let's hope we don't have to have you back in an emergency situation, but it's good to have you. >> thank you very much coming up, coming off a rally.

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in china their strict covid policy will have an impact welcome back coming up this half hour, buzz feed says that facebook has a user problem julia has more on the impact of ad spend but first let's get an nbc news update >> good morning. a surprise drop in home sales last month the annual rate fell 2%. median home price climbing more than 10% and breaking above $400,000 general mills benefiting from higher prices. the maker of cheerios expects stronger demand even as it its creases prices shares of general mills are up about 3% moderna says it will seek regulatory approval for its

vaccine to be given to young children they say low dose vaccinations are safe for children as young as 6 months old. they say it is less effective for this omicron variant shares are down today. and moscow exchange is set to open for the first time in about a month. back to you. software valuations, look at this down by about .5 is this the beginning of a snapback for tech? our next get, nina it's great to have you with us do you trust the weather this some of these high growth technical names still off their peak do you think they settle in and around these levels? into thanks for having me.

it's great to be back. it has been a rough year, as we know, for tech stocks. if you take a look back and see what is happening with a lot of these names. i can tell you the demands for technology, especially from what we see on the early stage side is promising at the moment >> so, i know you talked in the past about the ipo market which has been extremely slow so far this year. you think there is reason it could open up in the next little bit? >> i think it's important to take a step back and see where we are in the market a third of tech companies that have ipo'd since 2018 are actually trading below their last round of valuation. up until yesterday uber was included in that so you have three options, wait it out on the sidelines and hope for the market to get better

second is explore mna which we explored in january. the third is brave the market, go for it because there are some strategic decisions and reasons to ipo, even in a market like this >> what would some of those be other than the need for capital to funneled general corporate purposes >> history shows us that winners take market share in downturns he would saw it with amazon in 2001, visa in 2008 those were not easy decisions to either go public in those markets or double down and be aggressive look where those companies are today. that's reason number one if you believe you are operating in a huge market, in could be time to build a war chest, and maybe acquire companies in the short-term the second is if you are selling to largent price customers, they want to know you will be around

two to three years from now, especially if they are spending tens of millions on your platform and being public is a stamp of approval i know the narrative has shifted to show me the money but i think investors still care about the balance between that and growth if you are a private late stage company, you want to make sure you capitalize on high growth above 30% as you can with a company. on balance, some companies, not a lot, but a few, look and say it might be wirthorth going outi year saying yes, it could be bumpy, but three years from now, it could be good we may be surprised what companies come out in this marks. >> if you are stripe or private

valuation about $100 million, why would you? do you really think that stripe would still have $100 billion valuation in the public market like it has in the private market it hasn't had any trouble doing deals, making partnerships and growing as a private company, raising more capital why go into the public market in this environment >> that's a conversation happening real time in every boardroom. just to be clear, i don't think all companies, you know, that are in these areas, or those companies you mentioned, will go public i think we will be surprised, because i think the assumption is who would want to go out in this market, just two volatile m m multiples have come down but when you try to optimize in

today's market, i think there is a good case for a few companies to come out. >> i know you are focusing on the later stage companies, but over the last few years we have seen so many more earlier stage companies go public and then many have fallen short of their target and suffered. is this an era where that's over and is that a good or bad thing for retail investors >> there were a lot of questions around spacs what i will tell you is i think a lot of people are questioning can these tech companies show profitable businesses. what i like to share is we have the fortune much seeing all of these companies very early stage and at a high level for the best tech companies, what we are seeing, number one, average contract values are landing

higher than ever before. second, sales cycles are shorter than ever in the past. third product development is faster and more >>, -- agile, and profitability is at record highs 120%, sometimes 140% i think things did get out of control last year. when you look at fundamentals of this business, i think things are not as pessimistic as people think. >> a lot of people we talked to look at that metric. this is essential lis fo--ly a y to invest earlier. so is this swinging back to private markets where retail

investors will get less exposure >> direct listings was a great example. i don't think the pendulum has swung. i just think people will be a little more cautious i think in times of uncertainty people flock towards certainty and going public, the more traditional ways have been something that people feel more comfortable with relative to spacs that are relatively new. so i don't think the pendulum is swinging the way of investors investing in those companies >> thanks for your insight we will have you back again soon after this, does facebook have an attention problem? the stock has turned a positive for march but still down more than 35% on the year

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facebook's parents shares meta ashares are down more than third this year. investors are concerned. julia, new head winds for facebook >> we are seeing red flags

around facebook, user and ad challenges, and this comes after last month meta reported the first ever daily decline in users. today it said it sees audiences spending less time on the platform we were told -- and with user decline, ads come under pressure as well insider intelligence tell cnbc exclusively that it's lowering its forecast for meta. it's slashing the expected revenue for the company by about $2.5 billion both for this year and next year, and it is projecting that a fall ad will be down 25%, down from the 22%

in 2020. meta revealed that one in five businesses are closed, more than were closed in july and more than a third of small and medium sized businesses globally reported that they reduced employment as a result of the pandemic today a crictical note was issued -- but on the flip side atlantic equities equities issued a far more bullish aassessment -- so right now met is a shares are down about half a percent.

it will be interesting what comes out of the next quarterly earnings for meta. seems like it will be a crucial one. >> what is your sense of how much of this attention challenge facebook and meta have might be due to reopening people have more things to look at outside than their phones and they are having to figure out new solutions to the attribution problem? >> these are all factors the question is whether this becomes a perfect storm. the reopening is a big factor. if you look at the fact there was such a surge in online activities for all of these companies, whether netflix or roku during the first participate of the pandemic. we saw that facebook got that decline. i asked do you get a sense where

those users are going. they said they can't tell if the facebook users are going elsewhere because there was no notable increase elsewhere will we see an increase in tiktok usage or snap usage or people just spending less time and there are operating changes that make targeting and impact more effective they were damaged by the apple move they have been making progress the question is are they making progress fast enough to counter all of these other factors and issues they are reckoning with as well. >> and the other competitors julia, thank you so much after the break we will head back to washington as chip executives wrap up the testimony.

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amazon, lyft, shopify. karen joins me good to see you. i want to talk about some product changes in updates you are making in the context of first party data which we are talking about more and more because of some of the privacy platforms companies are making >> we are changing the way companies interact with customers. the first is sintintercom surves it is different from a stand alone survey our survey gives you the ability to ask customers questions and use that forever more. if you are going to a retail furnishing store online. i could ask you a question, if you like traditional, a modern

guy, and based on that i can personalize my communication with you forever more, on the website, e-mail, et cetera, powerful way to gather first party data and also intercom switch this is no more waiting on hold. now customers have the option to switch with one click to messaging to get their questions answered faster. >> with all of this, and in this environment where customers aren't able to do some facebook spend and pull in customer volume in the same way they were in the past. to what extent are they shifting their attention toward investing in that first party relationship, even if it means they don't have as much cash flow to do it in the near term are businesses able to do that and have that focus shift? >> we see a huge trend in how businesses are thinking about investing and investing in

gathering first party data they are looking to tools like intercom for help. they are looking for tools to help customers come to their website, to engage with customers and support customers. we see that and it pays off. when you use an incontext way of communicating with your customer, we see three to four times engagement of traditional tools. >> good to see you we talked about the ipo environment saying the market was open for late stage quality companies. what are you thinking about your path to public market? >> we are focused on our customers and building break through bridges. so how can we solve problems and we are focused on innovation, and we are excited about momentum in the business >> where is the line between

being persistent and maintaining engagement hoping to get repeat sales versus pestering where they feel they never want to engage or get on a list because they feel they will be drowning in junk e-mail for the rest of their shopping lives >> great question. we are overwhelmed with spam calls and direct mail and e-mail we believe the best time to interact with a customer is when they are already thinking about you. not days or hours later when they don't want to be getting that that's why we think in context communication, when you are on the business's website, in a product is the right time to engage versus ongoing spam everywhere else. also we believe not all of the time people will be with you right there on the sight so i think it is a balance, but in general, talk to people when they are already thinking about you. >> lots of attention to first

party data these days. karen, thank you as we go to break, check out nasdaq briefly turning positive on the session the s&p is a few points shy of 4500 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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poshmark today shares slid 10% pre-market after posting that weaker than expected revenue guidance now climbing through the day with the rest of the market firmly in the green still down 60% since the all-time high last year. it's been tough sledding for online retailer. just look at stitchfix, thredup and realreal up 70% from record highs. >> katie haun, one of the most influential voices in crypto announcing her new fund of $1.5 million to read more. go to cnbc.com, if you missed part of the show don't forget to follow and subscribe to our podcast any time, anywhere where ecchk"s ckad podcasts. "th ec iba in just a moment

you have a lot of people in this market, a tremendous amount, more than i've ever seen that have no idea what they're doing. you know, the market is not a gambling casino completely there are people in this market that do have an edge, and you have so many people out there

that really are gambling >> that's icahn yesterday with his trademark candor, and in completely unrelated news, gamestop closed up 30% on not much news. chairman ryan cohen did tweet he purchased 100,000 more shares raising his stake to 11.9% and the stock continues to rally today, jon, as we did get a halo effect on other meme names and we'll see how long lasting this wave may be. >> some people do have an edge how is that different from a casino again the house always wins. >> hasn't it always been that way though, guys that's nothing new. >> what is new look at peloton, affirm, chewy, warber, ahsana, close to 7%. this volatility, the velocity of some of these moves, dee, is something else >> of all of the things you can

pick up at a discount, which is just evidence, carl, that the snapback is happening whether it last, of course, still very much an open question >> we did get morgan stanley saying they prefer affirm. the chip executives wrapping up their testimony on the hill. let's get back to ylan mui >> carl, that hearing is still going on and it's clear there is bipartisan support to provide the $52 million from washington. the money isn't free democratic senator ed markey one of the ceos to assure him that they would limit the impact to the environment of any ramp up of production and here is his exchange with the ceo sanjay marotra. >> it has a strong program. >> would you make a commitment to reduce to zero greenhouse gas

emissions. >> the long term is which year >> we have a program in place regarding and investments being made on. >> which year are you -- >> we will soon be announcing that we have not yet laid out the year >> now republican senators grilled the ceos on the return on investment to taxpayers and also questioned the wisdom of industrial policy. >> this is foundational to every other industry and every other aspect for and thus, we believe it's justified to take such steps as the chips act. >> when government starts attempting to allocate capital it just screws things up. >> these were the testiest moments in the hearings by and large when we heard from lawmakers were the same thing we heard from ceos which is that congress and washington need to make this investment or the u.s. could risk falling behind. back over to you >> ylan, do you ever recall having that testy exchange about

farm subsidies >> about farm subsidies, certainly there are many members of congress who are in favor of farm subsidies and look, every industry comes to washington looking for some help and looking for what some would call a handout, but the real issue is this is part of a bigger package and congress is trying to pass it as an innovation agenda that they say will really sort of leverage us into the next generation of technology we'll see if that happens, but certainly this is the driving component of that engine. >> yeah. >> it's often the case, ylan where the government does have to lead a little bit certainly, we looked at subsidies in the electric vehicle market for years which now appears to be more several-sev self-sustaining. the time line to get this done may be some time in the spring >> that's the goal here. the chairwoman of the committee said she would like to see this passed in may, but as you know

on the hill time is very fungible, things tend to slip and they're trying to create that urgency to get this done sooner rather than later >> we'll keep our eye on it ylan mui, thanks so much a pretty tight range somewhere in the high 4900s. let's get to the judge and the half thanks, carl welcome to "the halftime report." i'm scott wapner front and center this hour, rally and risk as stocks continue to fight their way back is there enough to keep this rally going or is there simply too much to worry about? russia, rate, the reality of this brave new world we take it to the investment committee as always. joining me for the hour, shannon saccocia, degas wright, joe teranova and jon najarian co-founder of marketrebellion.com. the s&p down 16 and the nasdaq's made a burst down by 25% and the yield ten-year not