shares will david zazlov be able to execute this new company with the series of assets he has. and what will we see from at&t with what it says is its new focus. that's going to do it for us on "squawk on the street. "tech check" starts now. ♪ happy friday welcome to "tech check." today the nasdaq threatens to snap a three-week win streak we break down the winners and losers and where things go from

here riding the cyber rodeo and bears in the hood. speaking of elon musk, we are minutes away from an historic spacex launch they are scheduled to launch a crew of four to the international space station from florida. all four are civilians flying with a commercial airspace company called axiom space takeoff is at 11:15 eastern. stay right here. we are going to start with stocks it has been a volatile week for nasdaq down almost 4% and now on pace to break a win streak. we are joined to break down the action >> so we can blame the fed rates, recession talk or just

the failure to price it all in, but we have some swings today and this week after over 2% decline. today they just barely crossed over into the green. o'reilly automotive saw the biggest swing, over 8% no reason for it you have constellation energy, astrazeneca all up this week costco had the biggest point wise number, over 100. and in the dog house the catalyst is mostly macro, head winds for these high growth stocks starbucks stock is still down over 10% on the week the company also suspended its buyback program. in terms of the biggest swings

from intraday highs to lows throughout the week, the winner is pinguoduo and nasdaq is on pace to break its three-week winning streak. >> what stands out to you this week one of the things to me is cupa which is up about 5% i think it was trading in the 70s and now it's above 100 a share. one wonders where it goes from here if there is the sense based on this inspire event, conferences coming back, customers talking to each other, a sense of loyalty, you wonder whether some of these smaller software stocks have bottomed out. >> we will be talking lots of software we have been talking about them

on a monthly basis some of the names that sold off the most are still up on moontly basis. door dash, paypal. the bigger picture, still have seen the recovery continue in some of these names. semis though is a different story, negative on the last month. that underperformance continues. this morning a note from truitt, they are saying they haven't seen negative data order points in a long time what does that say about this industry already under pressure? >> let's spendsome time on enterprise here. the igv down more than 4% since monday we were joined yesterday to weigh in on what's driving the pullback take a listen.

>> i think investors in particular are looking for shorter term profitability with a rising rate environment. that has caused these stock ware stocks unprofitable today. they are great companies to be down on average over 50% everyone needs to get the medal that the market has changed and you need to be high and profitable and show that while you are growing your business. >> does that mean buy them here or abandon them here chief operating officer sanjay is with us you know the software space like nobody else. i mentioned the coupa upgrade and a lot of mna going on. how much value is there in this market >> good morning, john. i agree. let me underscore something you just played.

people need to get the memo that what investors are looking for is profitable growth there was a lot of craziness the last two years if you are not showing free cash flow and growth together as opposed to just growth with a distant future with respect to margin expansion, i think you got hit hard the nasdaq was down 15% since their highs in november. even companies i respect like snowflake and coupa, some of them down 50%. coupa does one of the best jobs at procurement i think some of these stocks are now at a point where they have bottomed out potentially and some of them are acquisition candidates whether by strategic buyers or pes. when they are flush with cash, there are good buys out there.

>> they are not the only ones buying we have george coming up later in the show. they just bought instacluster and there is still complexity even with cloud and having to manage databases, multiple different types. are there opportunities for public companies that have cash that are specifically focused to beef up in a way that's going to drive their growth over the next couple years >> we had a general rule of thumb at those two companies, you could spend 10 to 13% of your market cap. they will look at smaller acquisitions i will be interested to see if companies like them will look for transformative ones. for the bigger companies, microsoft, amazon, google,

apple, a big move, the key question is will they buy the bigger ones. i think the google acquisition is a trial to see how the department of justice and antitrust look at those. i think there is good buys in security, in sas applications. the larger players, this is a good time to be looking at your war chest and looking at opportunistic buys >> how important is that approval or not approval by the anti-trust regulators, on that google deal. if it is approved, maybe it is an indication they can be approved >> it depends where in the stack. those two players, it is about $120 billion between the three of them. you saw boeing splitting up

their billion dollars across all three. when you start to go up into the platform later -- john, we talked about this last time -- three companies i see most often, snowflake, day breaks and amazon you move up to applications, they are about 365 office dynamics and work space. but amazon has a few apps. will they move into the sas space? there are lots of opportunities. these are the companies with multitrillion market gaps. it will be interesting how they play with the big guys the other thing is that acquisitions are not easy to digest i have a lot of scars on my back the draft record is 80 or 90%. you want to approach mna

cautionly. >> that's interesting sanjay that's the tech side of it what about the boom in pe bios is there a danger that too much companies start doing now, particularly those who may not have as strong of a record in tech as long as you are aligned with management and have a clear plan, the yields can be successful could it be that easy? >> the ones where you have a company not doing so well, highly profitable, a little bit of what we saw with citrex and other ones but i can tell you that it is a good company if you think about financial planning, sales planning, the first problem i tackled almost 15 years ago this is a big problem. you take one of those like

supply chain planning, companies that solve that today which is why we have a lot of those challenges the company must be able to get more profitable and potentially grow more fachter to pay $10 billion-plus for that as seth to take it profitable >> in the $1 to $5 billion or the $5 to $10 billion, i think we could see that happening. >> we will look for that and hope to call you back and have you back on when it happens. thank you. >> thank you, john cowboy hats, sociopathic

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another milestone for private space travel with axiom just moments to launching the first flight for civilians we are joined by morgan for the countdown. >> john, we are t minus three minutes to liftoff of this historic mission the crew will go to the space station. it will be eight days on board in terms of the video, that's a spacex rocket that has already flown to space four times. on top is the crew capsule endeavor set to make its third trip to the iss. you have a former nasa astronaut now an executive at axiom, two

mission specialists -- we are doing final checks as liftoff is just about two minutes from happening. this is the ax-1 mission, the first of four contracted by axiom space which is backed with spacex and in conjunction with nasa to basically further space flight research and information. don't call it a space tourism mission according to the company, to start building out commercial space stations which is the longer term business model for axiom. there will be a lot of research and testing over the next ten days if and when this gets off the ground in about a minute and a half >> maybe even less than that, morgan maybe in the 30 seconds or

whatever we have left, put this in context for us. this is a space mission. other companies are here spacers -- i know they don't want to call it that -- but virgin galactic and others, where are they in terms of sending crew >> this is an orbital mission. speaks to the type of human space flight that spacex does. space orbital flights are tourism flights. let's listen in. >> four, three, two, one, zero ignition liftoff! godspeed axiom one [ cheers and applause >> together a new chapter begins

godspeed ax 1. >> there you have it, a falcon 9 rocket with a dragon capsule endeavor on the top for new astronauts headed to the international space station with axiom space. it's incredible to think they just started doing human space flights less than two years ago and this is the first of two crewed missions that it has on tap for just the month of april, guys what is going to happen -- >> incredible images my question before was even though virgin galactic and sub orbital, do they have intentintentions to do something similar?

>> for virgin, not right now and for sub orbital, they look to take not only cargo but humans into orbit. they were one of three rockets contracted with proje -- amazon for the project kuyper over the next couple minutes, the booster stage will detach and make its way back down to earth to re-land again for a fifth time the astronauts are expected to travel, get in line in orbit with the iss and dock about 7:30 a.m. eastern tomorrow morning to begin their time on board the iss. again, a historic mission that we are all watching as human space flight becomes still expensive, but dare i say more

commonplace? >> yeah. morgan, great to have had you on hand for this. we will continue to monitor it thank you. speaking of spacex, elon musk putting on his ten gallon hat to celebrate a cyber rodeo this is just the end of a very busy news making week for musk he is now the largest individual shareholder of twitter let's hear from alex, author of the big technology newsletter. where do we start on a week like this why don't we start with the ama? this is the first time we have seen a board member sit down and ask questions from employees what do you think he intends to choose >> it's highly unusual, but elon

musk is an unusual person and when he comes on to your board there will be questions. what happens to our revenue from here twitter long decided it didn't want to moderate platform. it said it was the free speech party. and then it changed course and started to moderate heavily, bringing in 5.8 billion in revenue. now elon is going to come in he has already talked about how twitter moderates too aggressively people charged with bringing in certain sales numbers and they are going to ask is our number one board member going to have us roll back those board activities they do need to spend time with elon and ask where the business is going, because at the end of the day it's still a business. >> a lot has focused on

twitter's business model i can't help but feel like this misses the point elon musk didn't buy a piece of twitter to earn a return he is doing it almost as a hobby. if he looks to maybe keep the free speech spirit of twitter, how do you think employees will react, especially on the finance side >> it's so strange typically when you have an active investor come in, they say i can buy a stake in a business, make changes and make a ton of money that's where i see some of the tension coming in with twitter and employees and elon there are going to be tension there. he can be at odds with the employee base. i think the number one thing he needs to do is communicate with the employees. there are ways to accomplish

elon's goals do you make twitter distributed amongst a bunch of different twitters, one with moderation policies, and the other that doesn't. i think employees are going to want to hear from him what his ideas are for the company moving forward. can they sync the company goals with elon's philosophical goals. >> is that a conversation you want to be having? he is not an activist investor, but an activist user he would probably be just as happy if the business fell apart and people were allowed to tweet whatever they wanted to what degree is this in danger

as a stock it had a little to do with the average user and even less to do with the business. >> great question. it becomes a free wheeling place like it used to be and all of the employees walk out the door. can elon's presence balance out the fact that the companies are going to bring in as much revenue? right now with elon, twitter is the ultimate mean stock. you have investors who are going to put their money in because elon is there and they believe in his mission is the company in danger if it stops making money that's a great question and what we will see play out in the coming months. >> we are seeing some weakness after the initial gains. elsewhere we have paypal

co-founder have ha listen >> enemy number one. i think the socialio pathic of grandpa from omaha it perhaps the most honest and direct, when they choose not to allocate to bitcoin, that is a deeply political choice and we need to be pushing back. we need to say you have to get on board on this >> alex is playing to the crowd. does this hurt or help crypto adoption among the mainstream. he expected his comments to be on network television, but what does it do for the long-term adoption who don't want to hear these famed investors called

names. >> i think the point he is trying to make is that bitcoin is a political movement. there is the financial part of it but a side of it where people are trying to use it as a balance to the current system, the international monetary fund. i was in salvador and it's being used to change money where people pay through remittances i think of bitcoin to get widespread adoption is not something that people who are in favor of bitcoin are thinking of they are thinking this is a political system that is trying to overthrow the current system. i don't think he's considering how to sell this to the mainstream i think in his mind he's leading a revolution and by the time the rest of the folks are weary of

hearing warren buffett called names. it is a political system >> is it political i am not at bitcoin 2022 in miami. the things i have heard and seen out of it sound like a political rally but like a religious sore philosophical movement you have the celebrities and athletes on stage. was there a technology interest driving people is it philosophical or something else >> you are hitting on the second point. it is financial, but it is a philosophy that's what all money is money is just an idea. i hold this paper and am able to give it to someone and get something in exchange. the first thing about money is

people need to believe tin that idea there are people out there that make it feel like an evangelical revival. people need to put their money in bitcoin for it to be worth something. so part of it is to press forward, but part of it is for the true believers to put their money in bitcoin if you look at the history of bitcoin, that has worked well. the idea has become reality, and the question is can it push forward from here. you look at the momentum, and you would have to say yes. >> well said, alex you look back at the history of money and it doesn't look that dissimilar john, we got pretty philosophical in a five-minute

conversation >> philosophical, religious for some goldman sachs telling investors to sell robin hood

welcome back dow higher, nasdaq lower tech by far the worst performing, down .8 of a percent. plus let's check on cybersecurity. first, a time for a news update. morgan told us about rockets what else is flying, morgan? >> here is what else is happening. the ten-year treasury yield has risen to a three-year high the spread between the two-year and ten-year has widens more than 25 basis points wd-40 extending gains after

extending strong quarterly results. shares surging 13% today they are still down nearly 20% this year though and jetblue trimming early losses spirit airlines said it will start discusses with jetblue over the buyout offer. they say it could lead to a superior deal with low cost rival carrier frontier back to you. >> a partnership to help customers defend against cybersecurity events around the globe. this week receiving authorization to protect critical u.s. assets george, it is great to have you with us this morning one of the biggest issues we have talked about about cybersecurity is the idea of

coordination, sharing intelligence and getting splintered responses this partnership addresses it. is that part of the trend of the industry as a whole as they become better as disrupting attacks? >> it is we work closely with the government they have joint clab tifs. i think it has been a great opportunity to collaborate with other providers. a lot of folks don't realize i worked with kevin in my first company i started, and it was the early day of the forensics market so be able to collaborate on these important and devastating attacks and understand what a threat actors are doing is critical now that they have sold off some of their technology, now they

can move to world class and we are excited about that >> more time is going on and we haven't seen the sort of major attack out of russia that was and has been expected. why do you think that is >> it's a good question. a lot of people are looking at this and wondering as well when you think about what's happening in ukraine, obviously it's horrific, but i think they are fairly focused and distracted there when you think about these cyber escalations, something has to happen you see more sanctions, more in the geo political area that ratchet it up and perhaps cyber is part of that. once you use a cyber weapon, if it's a destructive weapon, it's pretty much done it is used once. you know how it happened and how

to recover that particular technique and how it worked, just like with the solar winds type attack, is now known and you can protect against it i think that's what we are waiting for. is there going to be an escalation and response. in this particular geopolitical environment, i don't know if everybody understands what will happen if there is a cyber attack does that invoke something broader than a cyber response back >> explain, if you will, the business case for security mna what is driving it and what tangible results will it yield >> there are a lot of companies in the security space. you have seen the funding over the last couple years, big valuations and big expectations. when we think about the mna world, a lot of companies that are great companies but are

features they should be part of a broader organization like crowdstrike and others we have done a couple acquisitions since we have been public those sort of things make sense, but from our standpoint, we are watching the landscape i think given what we have seen the compressions in multiples and public market, i think it will ripple down to private markets in the next round. i think some companies like ourselves will be in good spots to figure out what assets will be out there and how they might be interesting it is wait and see, but there is a lot of well funded companies and a lot of companies that may not get the valuations they want in the next round. that brings up other opportunities. >> to what degree does having a workforce that can give white glove, in-service to climates and having access to security

related data from a larger customer base in order to drive ai type response how is that important in security space and is that a driver of mna deals? >> i think value and the market dynamics are one of the biggest drivers, but when you think about a bigger company that has good features, they may have momentum it is about security data. the more data you can put into it, the greater moat you create for your competitors all of that rich information is being used from an ai perspective. i laugh and say you can get a second year commuter science student to create algorithm. how do you detect these things without having a bunch of false positives. the more data you have, the more

i ty lem tri all of that leads to better customers. >> we hope to talk to you again soon >> thanks so much. apple taking a swing at live sports we will talk strategy and what it could mean for competitors, next stay with us

apple's first friday night baseball mlb doubleheader kicks

off tonight. it will be the company's first stab at live sports. will this pay off? steve joins us to discuss. what do you think? a lot of money sloshing around for live con text -- content >> and apple has unlimited pots of money to experiment that's how you can view this baseball is typically a regional sport, not something people tune into across the country. we have an east coast game and west coast game. apple will be looking at this to see if it pays off if ittes does, i could see them looking at it more this is more for apple to look at their streaming exhibitions, but they are trying to make this happen for streaming plus.

>> the aim isn't necessarily to run mlb games but part of a larger flywheel, ambition, break that down for us for apple >> i can't think about the hardware subscription plan reports we have been hearing about that is supposed to happen this fall. you think about amazon prime, you get all of these extras on top of two-day shipping. if there is a plan, people aren't necessarily signing up for apple services in droves, but if you can tie something to it like you get oscar winning and grammy winning and live sports, this is something that can get people to sign up. >> i guess it sells apple tvs too, maybe a bunch of stuff. if i am a baseball fan and i know i am going to get to watch

a friday night baseball through apple tv it's just easier to buy an iphone because i could watch it on that or easier to buy an iphone or a tablet or something else because i can watch it there. the convenience argument goes a long way >> but apple tv is available on so many other platforms. we talk about apple's wall of garden but apple's music is on android. it's not necessarily the lock-in. i am looking forward to the hardware subscription later in the fall it's this thing that people are excited about, not necessarily the streaming stuff. >> thank you for breaking that down for us. >> these names are in the red since monday with amazon the

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and one of the millions of students we're connecting throughout the next 10. through projectup, comcast is committing $1 billion so millions more students, past... and present, can continue to get the tools they need to build a future of unlimited possibilities. tech acquisitions in focus with rising interest rates and fallen valuations across the sector joining us now fresh off a deal from cloud database customer instacluster net app george currian who has led the acquisition of ten other

companies over the last five years and yes, he is the twin brother of cloud ceo thomas currian. george, good to see you. i've got to start off in the rationale behind acquisitions right now in this space. how much of it is because of this multi-cloud movement that we're seeing boeing today announcing a deal with google, amazon and microsoft in the cloud and that means you've got to manage all of that from something outside just one platform. >> that's exactly right. good to see you, jon we have been transforming net app over the last few years from our roots in the enterprise data center to now offering multicloud management of computer and storage and today with the acquisition of instaclustr management of databases and data pipelines on top of that infrastructure so we see the trend and we're executing and capitalizing on it

>> so how much of a share of wallet opportunity is there for you especially given the pan dem take we've been going through? i know that our sister company dreamworks used some of your cloud technology to get "the bad guys" movie done during the pandemic does an engagement like that cause us to have to spend more on that kind of software in case something like this hits again >> we've seen really good acceleration of several long term digitization trends through the pandemic we've helped schools move classrooms online very quickly we failed to bring the vaccines to market in record time and we've been privileged to work with dreamworks on all their animated movies as well as to enable them to bring a hybrid, digitized work flow to enable them to bring movies together during the pandemic. i think with regard to the cloud

movement, that's continuing to move along in our customers and they're looking for capabilities like what we bring to the leading public clouds to help accelerate that movement >> george, it's deirdre, since you've done so much m and a i wonder what you make of the boom jamie dimon calling them out in his annual letter saying the migration was worthy of serious study, what do you make of that versus a company with deep experience adding features to its product. >> i think there's room for both in mature market segments. there's room for private equity ownership of technology companies and other companies and we have demonstrated the ability it pivot our business in catching market transitions, cloud, multicloud infrastructure and data management and so we're using m and a as a way to

augment our organic development of market-leading capabilities we started with cloud storage and we've expanded it to cloud operations and now we've added cloud data services. so i feel good about the combination of organic information and inorganic combinations. >> i guess private equity is pretty happy about your instaclustr buy in this case it's interesting to me that this company was out of australia how much has the move toward remote work made it, perhaps, easier for you to understand how to integrate an acquisition like this that's based on the other side of the world? >> great question. i think it certainly helped. over the last few years, we've moved net app from our roots in silicon valley to having technology centers around the globe. certainly in my home country of india, but also israel, iceland

and now australia and so we're excited to be where the talent is and where the innovation is >> yeah, with lasan's team 22 this week which you talked about earlier and now this buy it's a strong week for australia. george kurian, thank you >> thank you be well. >> if you missed "tech check," mike sure you follow and subscribe to our podcast wherever you download podcasts "tech chk"s ckn stec iba iju a moment ♪ ♪

on news of warren buffett's 11% stake today got a downgrade at ubs. shares giving about 2.5%, 2.25% back, d, concerns about weakness in the low end pc market over there, and also, you know, concerns that they might slow their stock repurchases next year after doing all of this acquiring. >> yeah.

that demand also hitting some of the chipmakers one more thing, that is a signal for semiconductor investors and another one, taiwan semi crushing expectation and the chipmaker reporting $17 billion in revenue and that's a 36% jump year over year, beating analyst expectations by a wide margin. tsmc has been able to keep up chip production despite recent lockdowns and benefiting from high demand. the average wait time for semidelivery stretching to nearly 27 weeks in march so, jon, this data point, no indication of a declining demand and not the same elsewhere in the industry. >> it doesn't look like the stock chart of a company that just crushed it on earnings, though, does it? i guess it makes you wonder just how much of the excitement has gone out of certain areas of the market when it comes to tech can the ones who have been doing well do that much better >> jon, as we end the week, the

nasdaq lower by about 3% and get some rest because we'll have a lot to look forward to in the weeks ahead. a really critical earnings season >> yes, we will, indeed as dan niles told us earlier. a lot of people will be watching that specifically to see what it means for tech and which way things are headed and that will do it for "tech check. for now, let's get to the half with melissa lee. >> welcome to "the halftime report." i'm melissa lee in today for scott wapner rising rates front and center as a benchmark hits a new high. where is the high for the nasdaq and the beaten up techtrade and we'll get you ready for the crucial earnings season. kari firestone, jason snipe, jim lebenthal and pete najarian, co-founder of market rebellion.com. well off of the lows of the session and yields are up. the ten-year yield topping 2.7% for the first time in more than three years. so did the 30-year yield the s&p anna