are that blue origin and dynetics will be back in the bidding. expect on that next monday when we get president biden's 2023 budget request, which will be in focus for investors in defense stocks as well that's going to do it for "squawk on the street. "techcheck" starts now ♪ ♪ good thursday morning. welcome to "techcheck" i'm carl quintanilla with deirdre bosa and jon fortt. the battle of in-app payments continues. get a breakdown of google's new concessions for spotify and what that could mean for apple and millions of small developers. then, globalizations counterargument as larry fink calls for an end to 30 years of globalization. we'll discuss why that may not

be as straight forward as you may think. here to discull it all, dan niles thoughts on the fed, stagnation and whether growth stocks could still be headed lower from here. we have a break in the battle over app store payments spotify shares on the news after the company reached agreement with alphabet google with investors and regulators already watching this space this could have a ripple effect through a lot of different tech companies. julia boorstin is joining us to break down that impact julia, we're seeing moves in stock prices as early as this morning. >> yes and look, spotfy shares did about 3.5% they are down lower. this is important because up until now spotify made subscribers leave the app and go to its website to sign up to avoid having to pay google as much as 30% of spotify's monthly fee. but now, spotify allowing

subscribers to pay through google's app store's billing system with google accepting a lower fee is a significant step towards resolving the battle over app store fees now, google says this is a pilot that it will expand broadly and these are concessions in the face of regulatory scrutiny. which key bank says create a, quote, soft landing scenario for app stores where google play can continue generating significant revenue, consumer safety is not compromised and large developers and regulators are appeased. a number of analysts this morning pointing out this will make it easier for consumers to sign up to subscribe which could help spotify's premium subscriber growth. bumble and match stocks rose on this news on the expectation that google could carve out more favorable economic arrangements with certain apps. that's match is now up and

bumble is lower. those are two key stocks to watch here this google/spotify warter inship could have wide ranging implications across the app ecosystem. morgan stanley speculating that netflix, which forces new subscribers to sign up through a website rather than in-app could strike a similar deal with google, noting potential upside for roblox and zynga and for paypal and stripe to benefit from alternative payment methods. meanwhile, key bank notes that duo lingo could benefit from direct billing as well now the question is whether this new partnership pressures apple to follow suit its app store is much more important for the likes of match and bumble and track record of not making deals with individual developers and seen as unlikely to cave unless they're really pushed to do so by legislatures. guys >> julia, here is my sort of watch the fine print skrept

sc sk skepticism coming through. looks like in south korea where google has done this already, only reduced commissions by about 4% right? so, say that flows through in a similar for these other deals. that's not that much plus f you want to extrapolate lu threw to apple, google is like dollar tree. won't they figure out other ways to monetize these developers even if it's not directly through the payment system, through ads, through discovery because they know that that ios user base spends more and is more valuable. developers will pay up one way or another, i have a feeling. >> yes, yes, you're right. i'm sure apple will find a way to make developers pay up. i think it's important to note that we don't know exactly what kind of fee spotify is paying google but it's lower enough from the 30%. maybe it's 24%

but it's just low enough to make them feel comfortable striking this deal. maybe this is to spit in the eye of apple in light of their on going conflict because spotify and apple have really faced off here but the fact that they are agreeing to pay a fee and by the way, even pay a fee if people are paying through their own payment system does show they feel like they made enough progress that this deal is worth it >> all right so what does this news mean for apple? the other big tech giant coming under scrutiny for in-app payment policies steve koe vak joins us with some answers. steve? >> hey, jon, yeah. to your point i couldn't think of anything this is a shot across the bow at apple. that's where all the money is. if you look at the app store revenues for google and apple from 2021 based on apple disclosures could be up to $85 billion and based on google's analysts like 47 or something billion. so look, all the money is

happening on ios in that ecosystem to your point. by the way, this is just a way for spotify to say, look, we're really mad at apple. let's partner with apple's enemy in this space and then a year from now we can come out with all this data saying apple's argument here has been wrong the entire time. we can just say, you know, the security hasn't been compromised. people's credit cards aren't being stolen or anything like that and that puts more pressure on apple plus this looming legislation coming up in the eu, the digital market's act then the bill is going through congress right now here in the u.s. >> i get that this puts pressure on apple it's notable neither company is disclosing what the new commission rate is there's so many questions. what is this going to look like in practice? google's product in engineering teams are actually going to be building a new experience. you're ultimately going to see two buttons, pay through the android store or pay through spotify, for example so you're still giving customers

the option to choose i guess there's no guarantee they're going to choose that spotify option because i know personally i like to have my subscriptions all in one place when we talk about sort of creating less friction, yes, but not maybe not in the way we think. maybe not in a huge way. >> right this has been the theme for years since these in-app payments have been a thing, deirdre. it's like to the end consumer, what does it matter? i'm still paying 10 bucks a month for spotify. and so it doesn't matter who gets the cut i'm still paying the same amount so what incentives can a company like spotify or match or bumble and so forth offer me to click their button instead of the google or apple button >> steve, good stuff quite a day. we'll see how much of this gets incorporated into the outlooks as well. thank you very much. >> thank you. joining us this morning, san tory funds dan niles joins us to kick off the hour. good to see you again. >> good to see you, too, carl.

>> you said a few weeks ago that cash was a position. i wonder how would you grade yourself in leveraging this recent rally we've had >> it's gone pretty well i mean, if you go back and you look at our twitter posts, we talked about the fact we thought a short-term rally would be coming we bought stocks in the fintech space to benefit from that markets rallied. and we started putting back on short. we actually now have again as many shorts as we have longs on. and so i think this is kind of the take we're expecting you get bear market rallies. you get selloffs you get bear market rallies. you get selloffs i think it's going to be one to two years before this is sorted through because for the first time in a long time the fed is your enemy and not your friend i think people are forgetting that mantra. don't fight the fed. worked great on the way up it's unfortunately going to work well on the way down as well wmplg how are you determining what the high end of the channel

looks like what is special about the levels we're at here that puts you to normalize your shorts and longs? >> well, we've got about 17 different technical indicators we use and there's the bottoms are actually a lot easier to pick with technical indicators. but, you know, when you're looking at prior periods of bear markets and we've analyzed about ten of them where they've gone down about 30% or more, you typically get back about 70% of whatever you lost on the prior leg down about 20% of those rallies you get back all of the prior leg down and so that gives you a starting point of me going, all right, now this is when technically i should start putting those on. if nothing about the fundamentals that i'm looking at have changed nothing on the fundamentals have gotten better. in fact, they have gotten worse. you got higher oil prices, higher commodity prices. guys are starting to cut numbers. you're getting towards the end of the quarter you're going to see the impacts

from europe. and so, from that standpoint, we saw somebody cut their estimates on amazon this morning by 15% because of oil for profits for the year so, you're going to see more of this stuff and from our perspective, the fed has just gotten started. so it makes it a lot easier when you analyze all the data going back in time >> hey, dan, it's jon. you mentioned europe actually the subject of my on the other hand this morning. hope you can spend more time there because we just saw adobe take a dive yesterday post earnings a big part of that was because of kind of pulling back on revenues out of russia, belarus, ukraine, et cetera and then i'm hearing more cautious commentary from the likes of volkswagon group, companies that are based in europe versus just global, you know, multinationals who have some business in europe. the ones who are closer to europe seem to think that the economic impact in europe is going to be bigger and flow through to more other places how much do you think the market

is considering that already? and how much should investors be thinking about it from here? >> this is a great question, jon, because think about adobe they're a category leader. they make tons of money. very profitable. and the stock was already down 33% going into the earnings release yesterday. and by the way, they had two prior quarters that were poor as well so, it wasn't like expectations were that high then they reported, said, hey, by the way, now remember adobe's quarter ends in february and russia invaded ukraine on february 24th. most of these companies are going to report the quarter, you know, their quarter ends in march. so you're going to have an extra month where things are slowing down adobe still got hit for 9% yesterday after being down 33% from its all-time high going in with two prior bad quarters. so for the rest of these companies i think you have a much bigger issue. you have an extra month worth of data europe is a very important region for a lot of the bigger

companies out there. and you know, i don't think investors are really paying attention to that or oil prices for that matter because that matters and wages. don't forget, you know, two thirds -- actually close to 80% of the u.s. economy is now services based and we just saw the lowest jobless claim number in 50 years. and there's 3 million more job openings than they are people unemployed that's going to keep wage pressure really high as well for a lot of these names so, and multiples are still very high at a 23-times trailing p.e. >> right so adobe perhaps is a cautionary tale dan, deirdre by the way. staying nation is your base case for 2023 some think perhaps we could avoid a recession because things are different this time. we're coming out of the covid crisis some of those pressures are going to ease, but you're not thinking that way? >> no. i love the phrase it's different this time, right because it never is. i like the mark twain quote, history doesn't repeat itself but it often rhymes.

that's what you have right now where you've got a lot of wage pressure you could get away with stimulating the economy. both central banks as well as governments as well as there's no inflation when you get inflation, if you think about the u.s., 35% of people do not own homes. 45% of people don't own stocks those people are getting absolutely killed by inflation you own stocks or homes, you're doing great because your stocks in homes are up a ton over the last two to three years. but the other portion of the population is getting clobbered. that's why the fed has talked about moving expeditiously i'm expected a 50 basis point rate hike when they move in may. and i think they're going to stay aggressive because they let inflation get away from them and now they're dealing with it. and that's why i think stagflation next year is sort of the base case because you have oil prices doubled relative to the levels of the average over the prior two years which is in the low 50s. you got cpi well over 5%, close to 8% now. and you've got a fed that's

getting aggressive while multiples are high by the way, estimates are going to be going lower when companies report and guide to jon's point earlier on europe. >> yeah. so dan, i keep coming back to comments we heard from jeff last week he said because of all of these pressures essentially that the nasdaq was no longer a place to be in the longer term. would you agree with that? >> yeah. i mean, you have to balance risk with reward. the last -- think about it this way, right, you had a global pandemic the last two years. and the s&p 500 has doubled over the last three years so, you know, you've -- it's paid to take as much risk as possible and buy anything you could, whether it's a boat, a used car, crypto, art, stocks, et cetera. now you've switched to a realm where with rates going up, tech stocks are the most highly valued out there because a lot of those names you're buying on the promise of what profits you can produce ten years from now

and try to ignore the amount of money you're losing today. so i call this the jerry mcguire market, dating myself a bit here you have gone dream about how wonderful things are going to be ten years from now to show me the money. can you grow profitably? are you turning -- growing as well as expanding your margins that's what the market wants to see. and that makes nasdaq a tough place to be for certain pockets of companies we still have longs, but we've got as many shorts against those. those shorts are more in the unprofitable expensive names than the names we own are the really unsexy names, you know, going back to the '90s but they make a lot of money, cheaply valued, some have dividends, that's what we want to be in. >> so then, dan, given that you see things playing out that way, particularly what you were saying about the portion of the population that doesn't own stocks or homes, is this bullish for companies like walmart, right, that farewell in tough economic times >> yeah. i mean, i think it really is

because you know, consumers are getting squeezed really hard if you're going to the pump, you're going to the grocery store, et cetera and so that's creating a lot of pressure on the consumer and those people are going to start to trade down. and you can go back and look in the past when you've got into a recessionary-type environment, you know, the low end, like walmart, they do really well because then people are really focussed on saving money so, from a relative standpoint, they should do a lot better, but, you know, don't forget back to your earlier point, there's a lot of other pressures going on at the same time like how much has shipping costs changed for them how much has total cost changed for them things like that you know, you got to take into consideration. but on a relative basis, i would think walmart should hang in a whole lot better. >> dan, how are you processing the theory that cash, for example, is negative year on

year, used car prices are beginning to top out, the wait time for container ships at a nine-month low basically the idea that not only will you have base effects at work but maybe inflation does go soften in the second half and the street always overestimates with how aggressive the fed is going to be. >> well i think you can think about it this way, we kind of talked about this earlier. about 80% of the economy is based on services. so that's based on wages you're paying people. and if you look at the average company in the s&p 500, about two thirds of their cost is tied up to that you've only got 20% or so tied up with things like oil, with logistics, et cetera so, that wage price spiral is a thing that you really should be focussing on if you've got 50-year lows and jobless claims, the work force is a lot bigger than it was 50

years ago. you're sitting at sub 4% unemployment which is one of the bottom 10% of all readings yes, you're going to get help from all this other stuff. will cpi come down from 7.9% well, obviously. but is it still going to be a lot higher than what's comfortable for the average person that maybe doesn't own stocks, doesn't own a home yeah, that's going to cause a big problem. and so, that's why i go, yeah, well both things are going to go down we're short oil up at this level. but, it's a longer discussion where you need to think about the trends that are going on, plus some of the macro stuff, which is we're building more stuff in the u.s., not in china. that's inflationary. there are less people being born, adding to the work force that's inflationary. and green policies are great for the environment, but coal and oil is still cheaper than solar and other things that's inflationary. >> right. >> so all those long-term trends

are working against you. >> yeah. certainly that's what howard marks and larry fipg and now dan niles have been arguing today. dan, great stuff nice blend of the macro and the micro. we'll talk soon. dan nil section. >> thanks a lot, carl. appreciate it. coming up the streets top calls on software and hardware and why names like microsoft might be priced for disruption "techcheck" is just getting started. ♪♪ making friends again, billy? i like to keep my enemies close. guys, excuse me. i didn't quite get that. i'm hard of hearing. ♪♪

oh hey, don't forget about the tense music too. would you say tense? i'd say suspenseful. aren't they the same thing? can we move on guys, please? alexa, turn on the subtitles. and dim the lights. ok, dimming the lights.

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let's get a gut check on lodge tech headed hider this morning. bank of america initiating the stock with a buy and $170 price target shares are down, however, almost 30% over the last year bank of america thinks the accessory maker is well positioned for long-term growth with exposure to megatrends like increased video conferencing and expansion of gaming into mainstream entertainment, on, those shares up more than 6% this morning. >> indeed. turning now to soft softwaru next guest shez they have to walk the line calling names like

salesforce and snow flake some o the best entry names in the sector keith weiss joining us now welcome. let's start with the macro we were just talking about this with dan niles how concerned are you about what's going on in europe? certainly from a humanitarian perspective. but when it comes to the broader economy, when it comes to impact on demand and stocks, are we able to assess that yet? >> i think it's still a little bit early to really understand the assessment but you can screen for risk factors, right and so, if we think about enterprise software in particular, it takes a while for those demand impacts to get into the system, to see it in the pipelines and the close rates. but you can screen the space for what parts of software are going to be most protected and what will be most at risk of macro disruption potentially

stuff that's most protected will be your security spending. that's not going to change people still have to really shore up their defenses there. you're large digital transformations. we think those will have solid funding behind them, particularly from large enterprises. on the riskier side of the equation would be stuff that has to focus on the consumer, marketing spend is going to be more volatile or stuff like collaboration software, which tends to be shorter cycle. so we focus on the parts of the ekwquation that will be most durable even if you have macro disruption and match that with where you see the best valuations and if you take that perspective, you can still find really nice risk/rewards in the market and software in particular. >> so how much can valuations contract even in the areas and with the stocks that you like? i mean, if we do go through a bumpier time macro wise, is there more risk perhaps than investors are considering at the moment >> when we look at the

multiples, multiples have come in a lot in software really since november. if you look at broadly across the group, we look at stuff like ebitda sales multiples, enterprise value divided by your forward sales, if you look on absolute basis the group overall has pulled back almost 40% that's a pretty big correction the levels that we have gotten to we think are pretty interesting. we look at those ebitda sales multiples on growth adjusted basis. what are you paying for every percentage of growth when we bottomed last monday, those levels were spot in line with what we saw in late march of 2020. and is in line or actually below the five-year average and below even five-year average before we saw this really nice period of software multiples rising during covid. so, the valuations in our perspective have gotten to a point where they're pricing in disruption investors think something is going to happen. it's just what level of disruption what you're worried about more

are the forward estimates going to come down are people going to have to revise down their revenue? that's what you like about software they have very durable fundamentals a lot is reoccurring revenues, going to amoretize on to the income statement software can prove more durable than a lot of the other spaces out there when it comes to the absolute fundamentals. you have a good level of multiples. you have fundamentals that probably prove more durable than people fear. >> so keith, what do you make then of recent deal making in software, particularly this wasn't the cheapest or the most battered cloud name. so what does it tell you about valuations in the rest of the space and appetite not just from private equity but perhaps the big tech players >> yeah. i think it's a really good validation point of what we're seeing in terms of attractive valuations, these financial buyers are seeing as good valuations as well like you said, ana plan wasn't the least expensive or the most beaten up, but if you look at the multiple that they're taken out at, that's well above where

the mid cap software is taken out. the average small, mid to cap is trading 7 times. that shows a lot of potential value in that small to mid cap space. i do think there are more acquirers out there than we have seen historically. a lot of the larger vendors i would point to like vm ware or cisco or ibm still trying to -- we don't know about any particular deals but these are vendors that we think will have an appetite for more software as well as some of the other vendors. they're looking to go up the stack, get higher level functionality and lot of interesting assets in software right now. >> and a lot of big players who are hungry, as you mentioned keith, thank you keith weiss from morgan stanley. meanwhile, keep your eye on apple today. we are on pace for eight days in the green from 150 to 171, up double digits since the 15th

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♪ welcome back to "techcheck." i'm jon fortt with carl quintanilla and deirdre bosa we're at session highs as chip names lead the nasdaq higher top gainers this morning include nvidia, intel marvel and amd plus we have the bull case for roku as one analyst calls it, quote, the most controversial name, unquote, in their coverage universe that's later this hour. but first, a news update with rahel solomon >> hi, jon good morning here is what's happening at this hour weekly jobless claims falling to just 187,000 last week that is the lowest level since 1969 continuing claims also fell to 52 year low as labor shortages continue. bond yields bouncing higher

following yesterday's big decline the move bringing the ten year not far from the highest level in nearly three years. >> oil prices are falling as the u.s. and allies discuss any releases from strategic reserves assess crude dropping 2.5% before rebounding and then going back above $114 a barrel and the u.s. postal service placed an order for 50,000 new delivery trucks, price tag is nearly $3 billion. it includes 10,000 electric vehicle which is is actually twice what was initially planned. shares of oshkosh, the recipient of the order are up right now about 1% i'll send it back to you, jon. >> thank you. the end of globalization is it here black rock's larry fink today writing, quote, the russian invasion of ukraine put the end of globalization we experienced over the last three decades. oak tree's howard marks similar sentiments telling investors in a note yesterday the recognition of these negative aspects of globalization has now caused the pendulum to swing back toward local sourcing

but, making that swing might be harder than we think particularly when it comes to semiconductors here is intel ceo path gelsinger's thoughts from a wide ranging thought he and i had on squawk box yesterday. >> we're way too dependent on too few places in the world for something as critical as semiconductors for the future. and the asian presence here is very significant you know, as i talked about before and 1990, 80% of semiconductors were built in u.s. and europe. today, 80% in asia >> but that said, investment in capacity has continued here in the u.s. nvidia says it's considering using intel as a foundry ceo says it is complicated as, quote, it's not just about desire we're not buying milk here carl, wow. what a difference 10, 15 years makes. there was a time when there was

talk of intel crushing not only amd but also nvidia. those companies have done well, but now we're talking about this kind of dislocation between the west and the east and perhaps a move on the part of a lot of u.s. and european-based companies even in the semiconductor industry to work together >> yeah. to call the end of globalization is maybe sort of an overreach, i think, dee we just, for example, lowered tariffs between the u.s. and the uk on steel. we're going to find our partners i was struck by what ian said on twitter a little while ago that russia's invasion is not the end of globalization it's the end of globalization for russia >> yeah. i was looking at that exact thing, carl, right as we were going into this. and it's a good point. but maybe not just russia. maybe instead of the end of globalization we're seeing the splintering which we talk and and have talked about for years in technology but maybe on a bigger scale now right? you have russia and perhaps

china on one side. we talk about this when it comes to payment systems as well increasingly so, i also would say that pat gelsinger's comments he said say there was a need for u.s. leadership he also said it wasn't so simple they that they need to continue to have investments in places like china. he said that a quarter, about a quarter of all semis are consumed there ch a and quarter or more are manufactured or processed there. so you can't just turn that around perhaps more protections in place. but i'm with you, carl and jon, on that sense that maybe not the end of globalization maybe more splintering >> well, and what replaces it i think is a question here is it back to sort of cold war-era containment policy and what happens to places like australia, places in southeast asia, places in africa that have so much investment from china, for example, that kind of taken themselves out of that if that's what the west pressures them to do would be difficult. well, to learn more about the global supply chain and the role

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turning to the streaming wars as more content providers warm up to the idea of ads, our next guest says roku's market opportunity is underappreciated and could reach two to three times current levels with shares almost 75% off their highs of the year and now trading below

pre-pandemic levels is now the time to buy. joining us now ever core's isi's. it's great to have you with us lay out the case for us. you called this one of the most controversial names in the space. spe especially as we see the industry at large move back towards an ad-supported model, where does that leave roku >> yeah. well thanks for having me. the reason i said it's one of the most controversial names so much debate going on with this name on one side we have supply chain issues where roku is seeing outsized head wind versus the competition. we also have this macro economic inflationary pressure and wage inflation and we also have the international expansion and investments that roku is making that makes infovestors little mr hesitant the next growth opportunity is for roku. that said we think that long term it is hard to imagine that roku does not emerge as one of the leading operating systems

globally for tv. and our long pitch here is that, one, rpu is very much underappreciated the street is estimated growth of around low double digits. 11, 12, 13% up to 2025 if you actually look at linnier, that ranges from $100 to 150 if you look at comcast. we think roku can exceed linnier and they're not close to that $50 probably by the end of this year and they could triple that if they -- if you think about the drivers that could lead growth now the pushback would be what about economic growth that's the controversy. >> taking a look at the fundamentals, you mentioned the supply chain issues led to a loss in market share over the last few quarters. how do we know if there was real demand destruction there and how do we know customers didn't go to amazon and now locked into that ecosystem much larger than roku's >> first of all, we did our

proprietary survey surveying 2,000 consumers which smart tvs they use and devices, in the u.s. we think that roku's share has ticked down from call it over 35% to now maybe 30% or somewhere in that range. but it is by far the leading operating system and the leading tv platform here for connected tvs in the united states and in canada as well so, yes, maybe there's some french market share loss due to android as well as amazon, but they still remain pretty small percentage of the market the second point is that satisfaction levels according to our survey are very high for roku they were the highest. what that tells us is that it's not only the conditions but it's the net additions the retention rates for roku are likely to be little higher than perhaps some of the competing platforms and the final thing i'll say is that roku at the end of the day is a tv-first operating system they were built -- they built their technology ground up for tvs. that's not the case with android. that's not the case with amazon. and when you think about oems

little more hesitant arguably to partner with amazon because of the retail partnerships and really it's either google's android which has a small market share here in the u.s. or roku which still continues to be the leader >> although, shweta, it's interesting to look at the strategic adjustments, some of these players have made. roku used to shun original content. then they got in the library netflix used to say that password sharing was fun maybe not so much anymore. doesn't that suggest that maybe the low-hanging fruit has been picked >> some of the low-hanging fruit, yes, i think so the one that i would point to is the streaming sticks it started with being able to stream tv. we all had nonsmart tvs and now we can't find a non-smart tv in the market all of us made our tvs smart with the sticks. that is penetrated in the u.s., maybe not so globally. so there's this shift of going from sticks to the tvs

but the roku back to your point on the roku channel and this shift across the different companies, i think that the roku channel brings -- roku channel is not directly -- the idea is not to compete directly with netflix. i don't think roku can afford to do that and i don't think they're trying to do that. the idea is that the roku channel itself is monetizes better than anything else on the platform that they have control and inventory for. so roku channel, they have full inventory control, trying to drive engagement and they've done a great job in five years, in about five years, since when roku channel was launched it's now a top five app and you think about the top apps that there could be, including amazon prime, youtube, et cetera, there are seven i can think of and roku is top five of them certainly done a good job driving engagement, which really is driving the monetization engine because they control that inventory. >> shweta, for me, this is the core question.

is roku the iphone and ios of streaming? purpose-built operating system for streaming the way ios was first for mobile, the best gateway similar to the app store for monetizing, for all of these other services that want to do that high loyalty, discovery potential, all of that do you think it is >> i think so. i think that it is and that is exactly what anthony is trying to do. first of all, we look at founder-led companies favorably. and in terms of execution, they've done a great job it is not a self-inflicted issue for them these macro head winds there's not something they created they've been executing fairly well so they should get credit for it the big debate, if they want to be the operating system for tvs, the biggest debate is how will they do in international marks they are the clear leaders here. how will they do in international markets? arguably google has a better brand name samsung and lg have good penetration. what will they need to do in

order to gain market share in international markets? the reason why i think that roku could do a good job is because they've done a great job in mexico think about 20% market share there. they did a great job in canada about 1 in 3 tvs there are roku and i think they should get credit for that and that their execution has been good. finally, i think why they could be the operating system is because it is a tv-first platform no other operating system is and so, yes, android phones, google makes their own phones but samsung still uses android operating system same thing can happen with tvs >> well, shweta, thank you for joining us >> thank you very having me. >> the latest to jump into 15-minute delivery, not some startups but grocery stores like kroger and aldi with help of new tools from instacart we have exclusive inrvw thteiewi the ceo up next. stay with us

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♪ let's get a gut schek on evs. a lot of news. shares surging after announcing electric semi truck production up and running at their arizona factory. company expects to start delivering those truck in the second quarter and that means it will beat tesla semi, to the market as well meanwhile, tesla itself jumping back above $1,000 a share this morning back to trillion dollar market cap hertz now adding the model y as a rental option on top of the 100,000 model 3s it committed to

buy last year. chinese ev space, knee owe set to report after the bell tonight. expected to post a loss but having an awfully big run over the last week, up about 15%. "techcheck" is back after this

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network of warehouses to enable 15-minute delivery for its grocery partners the delivery space as we've been talking a lot on tech check has been heating up and with gopuff, gorillas and tier. that's staincart's core has been intensifying with doordash and uber's push. i caught up with the ceo and asked her about the decision to get into this crowded field. >> our approach is completely different from what the others are taking the -- [ indiscernible >> we are not doing that we are enabling it and we will run the nano fulfillment centers so they can offer 15-minute delivery it is a different strategy and this is simo's first big move and the idea is to turn insta cart into more of a platform for its retail customers with things

like expanded add and analytic tools and the key here is to keep them loyal amid this increasing increasing competition and the recent survey reports that fewer americans are ordering takeout for delivery have a listen. >> i'm definitely tracking that closely and we are seeing definitely price increases and as you know, the insta cart model is the sales surprise and we reflect them in the marketplace and it is setting higher prices and what we're seeing is that people are adjusting their habits as a result of these price increases and we see our job as providing them with more opportunities to save which is why we rolled and there are all of the discounts available on instacart and many other options like bringing dollar stores on to the platform >> she said consumers are increasingly sensitive to

prices so some of the features she mentioned like dealtab is part of the strategy to make the app more accessible. i had to ask her about ipo plans and current market volatility is not affecting their timing and maybe affecting their valuation private markets and she wants to be able to show that expanded vision to the platform in that sense of the vision, jon, this is a step closer when we will see that, reportedly been delayed a number of times and there are concerns that instacart has missed the window >> great talking to her again, dee, but i have to wonder about the capital outlay that will be necessary to enable 15-minute delivery and that delivery seems to be a local game and not only msa by msa and suburb and urban area by urban area meanwhile there, is a new bitcoin bull on the street and we'll te y w aerhe eak.llouhoft t

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one more thing before we go and that's another bitcoin bear biting the dust. larry fink telling shareholders in his annual letter that kwquo,

the war for the countries is a global sign for global systems like crypto that are able to bring down the cost of cross-border payments and pretty big for fink who told "squawk box" last november that he wasn't a student of bitcoin and where he's going to go sounds like school may be back in session as the acceleration from the invasion of ukraine will have multiple effects >> it was another what i've come to call a red pill moment and you see more of these business leaders at least show a curiosity and what a change that is from a few years ago when you were able to write off crypto as a whole and you don't see as much and you see more come over to the side and one more thing and that is restlessness at google cnbc's jennifer alias that was bombarded with questions and a growing number of googlers don't view their compensation package as competitive

keep in mind they are vastly outperforming their peers in 2021 up more than 65%. you can read the ceo pachai's response >> we are back above 4500 which we crossed for the first time in about a month and oil is interesting, too let's get to the half. carl, thank you very much. welcome to "the halftime report." front and center this hour the state of stocks and whether it is time to be cautious or bullish. a simple question, difficult answer, though and it depends who you ask as we have learned even with our investment committee. joining me for the hour, bryn talkington, jason snipe, josh. >> and the dow is off 257 and 232 is the yield on the 10-year