on that. major averages all trading higher this morning. that's going do it for "squawk on the street. "tech check" starts now. good tuesday morning welcome to k"tech check. i'm carl dierdre bosa is in hollywood we'll start with netflix, down 40% since january. could today's results lead to a turnaround is a buyout of twitter imminent apollo enters the bidding in some ways. later, is robin hood over our undervalued both sides of the debate after a crypto expansion abroad. our feed begins with netflix just hours from reporting results for what some are calling here a make or break quarter for the stock. s julia borston with us on why and what to expect

all about the sub numbers. >> absolutely, d analysts say this afternoon's subscriber outlook is netflix's moment of truth, after last quarter's weak guidance from the 2.5 million subscribers in this quarter sent that stock plummeting the netflix shares down 43% this year and 38% over the last 12 months, the stock is sure to move on the company's guidance for the next quarter, and whatever insight they give us into the rest of the year. analysts are expecting the company to forecast the addition of about 2.6 million subs in the second quarter netflix's subscribers will reveal the impact of competition, the impact of suspending the service in russia, of inflation and economic uncertainty, plus price hikes and netflix's crackdown on password sharing rosenblat initiating the coverage of netflix are unusual rating he expects growth to have eased up, saying, quote, this speaks to a tough streaming

battlefield, surging choices, and changing consumer behavior post covid jeffries with a hold rating pointing to silver linings, saying they like the fact that netflix has a growing content library and platform that gives it options to find value in gaming and ad-supported content. we may hear more tonight from both reed hastings and randos about netflix games and also live experiences, and when those investments will really start to pay off. guys >> julia, all eyes are going to be on the q2 subscriber growth guidance, but this is historically, seasonally, been a weaker quarter for that number is there any chance we could actually see a contraction >> well, look, i think there is an expectation there will be contraction in the u.s.-canada region that's the region that is most saturated, and also where there is the most competition. i think there's an expectation

of a contraction there, but overall growth, 2.6 million. a lot of that is the international opportunity. there is a question, of course, whether the international subscribers are less valuable than the domestic subscribers. a number of different pieces at play also that question about where -- how the price hikes are working and how much more opportunity there is to raise prices around the world. >> julia, we're going to talk more about it. our next guest guys the stock at 450, about $100 north of where it trades right now. citi's media and entertainment analyst joins us jason, thanks for the time this morning. we talked about some of the challenges they have, at least with regard to the guidance. seasonable q2 is not usually the strongest though, is it? >> new yoo, it's not. you know, it's really interesting. when i think about this company, i call it the original sin if you went back to 2019, actually, you know, netflix told the street they wanted to glide toward free cash flow.

what the analysts did is kept the net add members a lot and the content spin they got a benefit during covid, where the content spend was down and net adds was really good now, it is the new normal, more modest upgrowth. the good news is the stock reflects more muted sub growth. >> right do you think there need to be -- some have called for a tier a long time. it always gets pushed back immediately from management. do you ever see that breaking or bending? >> you know, i guess it's possible it's certainly not in our forecast, not our base case, but it is possible everyone else is doing it, right? >> jason, it's possible. how likely is it then? at this point, you know, do you think it's kind of an inevit inevitability? does netflix lose the longer

that they hold out what do you think the argument is going to make, if they're going to continue to be against an ad-supported base or model? sorry. >> i view it as sort of a free call option, right what everyone is doing, what you do in ad-supported tiers, you're lowering the price and giving consumers choices. there were companies that held out and didn't offer toiers, an more are moving in that direction. investor sentiment is so negative on everything that is software and streaming based, that when companies go out and do an ad-supported tier, it is not viewed as good news, which it was a few years ago it is bad news now they have to do the ad-supported tier to keep it going. that's how sour the street's mood is right now. incredible. >> especially after so much spending on content. jason, what do you expect to hear, if anything, regarding their gaming strategy? i mean, clearly, they're serious. they have bought three gaming studios, which is suggesting an appetite for more. but the fundamental question, people don't go to netflix for

gaming are they going to be able to convince people to do that >> you know, i think this speaks to some, you know, concern we had about netflix norfor years years. our core thesis is most content is not globally scaleable. you are going to have a "squid games" or something that is different, but the rule in hollywood is it is regional. it is not a belief that gaming will be this huge business it is more through the lens of what sort of content is created that is, indeed, globally scaleable? gaming is. you know, watching videos or movie is not that's what it is, a more efficient way to get content out that that is globally scaleable. that'll help the efficiency of -- i'll call it the scaleability of the business more than anything else. i don't view it as a standalone revenue stream >> more tactically, we pointed out earlier this morning, i think it's traded down on 13 of the last 15 earnings prints.

[ laughter ] i'm not kidding. some strategists don't know which metric it'll trade on with the print. is it guidance is it international? is it pricing related? i wonder what line you go to first, which is the metric >> well, this is what is so weird about this environment right now. i'll give you one simple metric we use, right? we say if you take the gross profit margins, acquisition costs, what is the worth in the old days if you bought netflix stock, you were underwriting the double or tripling of the price. where netflix is trading now, you're close to one to one, meaning you don't need a lot of subgrowth or improvement in the economic value to justify the stock. the bears are pushing for, oh, this is going from a growth to value stock. they want to push it down to a multiple of free earnings or free cash.

that's fine. but i think the reality is that this company is still adding subs is the sub growth more modest than the salad days of covid when we were all locked down yes. does it mean the growth is over for the company? no what do i think the stock trades on this dwaquarter? probably net adds, as you suggested, and the sub outlook, probably true. again, this is a weird world we're living in. what is a net add metric it is a growth stock, right? yet, the stock isn't trading it's not valued like a growth stock. it's sort of a betwtweener, rigt that's why it is a good question you're asking. it is probably net adds until we get enough earnings or cash flow, which is what the bears want to push the stock down to. >> jason, if it is still net adds, same question i posed to julia, is there a possibility we could actually see a contraction in the number in the quarter ahead, especially when you take russia out of equation, which has, what, about 1 million subs? >> yeah. i mean, it is certainly

possible certainly possible i think you guys called it right. >> what would that mean for the stock? >> if it was aggregate negative for the quarter? yeah, i think it is probably down, right? yeah, i would say probably down. if we end up seeing negative subs, right, then the bears will win. it'll go to a pure value stock, right. people will focus on the earnings and the free cash flow. we're almost at a point where you can justify the stock if you roll forward a fwibit on earnin. the problem is there's not a lot of free cash flow out of the company, right that's the disparity between earnings and free cash flow. netflix is content, which is a debate the street is having. whether or not this is a good business or not, right tbd. the earnings and free cash flow have to converge, whether earnings come down and cash goes up. >> right management told us long ago that covid was going to be a pull forward, and it sure looks like they were right. we'll see to what degree tonight. jason, thanks so much.

good the so see you, as always. >> absolutely. we turn now to twitter sources telling cnbc private equity firm apollo entered the ring to possibly help finance the takeover of twitter. what would a deal look like, and how likely is it to actually happen leslie pickard joins us with the details. leslie >> hey, yeah, this is par for the course in buyouts. an asset like twitter becomes, quote, in play, meaning potential inquirers circle firms get potential bidders. those who finance offers wave their hands, looking to get in on the action, having discussions with bankers and consultants and the like enter private credit funds yes, you may know apollo for buyouts. think of things like takeovers of companies such as yahoo! and michaels but apollo actually has a massive credit arm, as well. comprising more than $350 billion in assets. that's actually about 70% of the firm's total $500 billion in

assets its credit arm is used to help other private equity firms finance takeovers. apollo partnered with shop bravo in the past, a firm rumored to be considering a bid i haven't independently confirmed how serious that firm is in regard to a takeover of twitter. i'm told apollo could participate in a preferred equity financing or pipe, as well again, all of this incredibly early stage, exploratory a source tells me apollo, at this point in time, is not interested in buying twitter, but like anyone in the financing business, seeing whether they can provide support from a debt or equity side to help someone else, be it elon musk or another pe firm, buy this asset, guys. >> leslie, the magic question is going to be whether there is a universe of players beyond apollo that might be considering the same thing or do you think the road sort of ends with them >> no, there are

i know there are i'm working on nailing down specifics. i will bring those to you as i get them but, no, apollo is not the only credit shop that's circling this in terms of financing. it's likely that toma bravo is not the only private equity firm that's also looked at this like i said, it is an asset that's in play regardless of how serious these potential bidders are, regardless of how serious twitter is about selling, and whether it is the appropriate defense right now, if you want to call it defense, you know, from its unpolisolicited offer m elon musk. absolutely, this is something that caught wall street's attention. people are looking at how they could play a role. now, the seriousness is another question the price, another question. >> fascinating, leslie we look forward to the details, especially since it may be such an unusual deal. thank you. >> yes. spencer joins us now on

this it's certainly been exciting, interesting, fascinating to watch. this first time we've had you on with us since this all started what are you making of it all so far? >> well, it must be quite a distraction for twitter employees, i guess as a former public company ceo that's the first place i'd go. the second place i'd go is i think, as anti-climactic as it might be, the most likely scenario is nothing happens. elon sells his shares at a very large profit and walks away. the second most likely scenario is a private equity firm does a pipe, meaning they invest in twitter, but twitter stays public and elon doesn't catch his prey you know, the market seems to agree with me. obviously, if the market thought elon's bid was going to be accepted, it'd be closer to the offer price. if they thought it'd be -- the price would be higher than his offered price. as of now, the market is saying, this probably ends up not getting done. >> spencer, if that's the

ultimate outcome and this ends up not getting done, what does it mean for twitter? we've talked so much about how this stock hasn't gone anywhere. it's struggled to monetize struggled to grow. what happens do you think that would be a negative >> well, i mean, twitter is really in the crosshairs of what motivated elon in the first place, which is this battle between free speech and content moderation, while also trying to build a business plan or business model on top of it. it's always been very difficult to monetize user-generated content because some advertisers don't want to be in that type of of environment if elon were to walk away and the company remains independent, i think they'll continue the path they were already on, under this leadership, which is to error on the side of content moderation, reduce the hate speech, and continue to, some would say, validate accounts elon musk would say censor accounts keep donald trump and others off twitter is the general

trajectory the company is on it is probably the trajectory it'll stay on if it stays independent. >> spencer, if, in fact, this is a dead end on the musk bid, it's not like he is going to exit the platform completely. he is going to continue to tweet. it's a big part of his social currency i would imagine he'll continue to keep the board on the defensive, just on operations. i wonder how you think they respond to that, since they are unlikely to be able to be as free speaking in their communication. >> that's exactly right. this elon headache is not going away for the twitter management team, even if he goes away as a shareholder. if he is not a shareholder x he'll probably be more unencumbered and a thorn in the side of twitter management, continuing to, you know, throw tomatoes from the sideline at twitter about everything you know, i think this is, of course, why he ultimately didn't join the board once you're on the inside and you do have responsibility to shareholders, then your wings

are clipped somewhat twitter is between a rock and a hard place if they sell the company at a price they think wasn't full value, or have elon walk away, which is not really a win because he'll be using their own platform to throw tomatoes at them i mean, it's a real difficult situation to be in where i started the conversation is kind of where, you know, i'll go back to, which is, it must be a very distracting environment for a twitter employee to be in. imagine sitting in a product review or, you know, a sales meeting today at twitter headquarters or working remotely at twitter with all of these distractions around. this is a company that's always had these types of distractions. it is success in the face of the distractions is amazing, actually there's probably no company that's been more talked about and had more curveballs thrown its way than twitter. >> we general ly say punches above its weight in influence, given the dau size thes the way in which it steers

cultural conversation. speaking of that, though, the internal angst among employees, i wonder what you make of dorsey's seeming recent willingness to step into conversations where he's not necessarily involved last night, responding to cnn about whether the media provides hope i mean, is he enabling some of that distraction >> i mean, yes he is. you had another complication the shadow of former founders and former ceos, especially if they're still on the board as he currently is, i mean, that can be very confusing. i'm at a real estate conference here in new york, and i'm walking the halls, meeting a lot of former zillow employees who i'm friends, they're former colleagues of mine, and i haven't been in zillow a couple years. we still have a lot of kkt connectivity you can be sure when someone like jack dorsey is tweeting from the sidelines, or the field, employees are listening

employees see that again, that is further confusing. it is difficult for the management team, the leadership team there to get people to focus. you know, it's a tough operating environment to be in we certainly have plenty of distractions at zillow, but nothing approaching what twitter is experiencing today. >> especially when elon musk says there could be a large number of jobs on the line finally, as a founder, one that serves on different boards, what do you make of the twitter board's incentives, the poison pill are their incentives aligned with shareholders and what is best for the business, or as elon musk claimed, are they interested only in keeping their seats? >> i don't think that's a fair criticism, no. i don't think anyone on that board is motivated by the $200,000 or $300,000 a year in compensation they get from sitting on the board of twitter. they're trying to do what they think is right for twitter shareholders they're trying to maximize value for the shareholders the reason that poison pills

exist is to prevent activist investors, whether a single investor like a ryan cohen or elon musk, of a hedge fund investor like carl ichan or bill ac ackman they try to prevent the investors from sneaking up on companies and acquiring a controlling interest without paying a control premium the twitter board is trying to do its job, saying, look, as recently as a year ago, our stock was in the 60s or 70s. thanks for your 50-something dollar offer, but it is not fair value. they're motivated by the right thing, i think you know, but, again, they have their work cut out for them. they're absolutely under a bright shining light and under the media's glare as we're all watching what they do, as they try to navigate not just any activist investor, not just the richest person in the world, but the most successful entrepreneur of all time. and a sitting ceo of two massive companies. i mean, this is not just any other hedge fund activist.

this is elon musk. you know, it is a hairy, hairy situation to find yourself in. >> yeah, indeed. well said, spencer thanks for being with us >> thank you meantime, it's been choppy waters for cyber names this year valuations sinking and buyouts increasing time to get a shark's take robert herjavec will join us on the other side of this break stay with us ♪ with my hectic life, you'd think retirement would be the last thing on my mind. hey mom, can i go play video games? sure! ...after homework. thankfully, voya provides comprehensive solutions, and shows me how to get the most out of

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♪ gut check on microsoft shares are down nearly 20% since january. analysts, they aren't sure a turnaround is ahead. wells fargo splashes its revenue forecast barclays thinks a slowdown in growth is coming there is not a single sell

rating on the street for microsoft. the average price target is around 369, a 30% premium on where it is trading this morning. shares are up 1.5% carl, what is interesting, especially about the barclays 23 note, they're not cautious on the whole sector, like data dog, but they point to potential nervousness around growth in office, which we've been talking about. >> yeah, office 365 is going to be the big question mark as earnings come forward. how big of a player can it become in the enterprise we'll watch that closely. private equity is lasering in on one sector toma bravo buying sale point just under $1 billion barracuda turning around for $4 billion. all with a war in ukraine. crypto hacks and other vulnerability at the top of mind for investors. what exposure should have your portfolio have

joining us now, robert herjuerj of "shark tank" fame is back with us. >> great to be back in person. >> let's talk about the backdrop, i guess, constructive, for better or worse, right, given the turmoil around the world? >> yeah. it is a great time to be in our space. i mean, i think you've got all kinds of tailwinds in our space, including the war on ukraine and, obviously, a lot of it is also being driven by compliance. there's a lot of board regulations now that require ceos to have cybersecurity experience somebody on your board has to have experience with it. dw you've got to spend a certain amount of money on it. it is a combination of compliance, the war in ukraine, and just general increase in hacks. >> a lot of that was going on, and valuations weren't necessarily reflecting it. what do you think flipped the switch >> i think what we've seen and what we saw personally is covid was the greatest accelerator of time and business cycles in our space. it's one of the reasons i did an

equity deal about a year ago i think our space is going to continue to grow, accelerate you're seeing all the m&a, as everything is brought forward. so i think it's going to be a very robust time. >> do you think the m&a is happening because clients want as few vendors as possible or they want to see the market consolidate? why so much activity in the m&a? >> what we're seeing is incredible complexity. the average enterprise has 72 security products. how can you keep up with that? i think what people are seeing, there will be a lot of consolidation, putting the solutions together in the face of threats it is all about risk who can help me manage my risk there will be a lot of upside. what has changed, though, is the focus on ibita if you're not making money, dwro you'll get hit from a valuation standpoint. >> of the public names we follow, who do you think is

interesting? >> i think you're going to see a lot more acquisitions. i like cyber ark there is a general feeling in our space that identity is the new perimeter. so you as a person, you as you log-on, that's your new identity i like cyber ark and the impr privilege access space we do a lot of work with toma bravo. bullish on them. i think you'll see good upside on palo alto they have a new technology in xdr, which is a new version of end point security i think you'll see the network, the end point, all those thins come together. >> when there is a major hack, it tends to make news. maybe not as much as it did a few years ago, ut but it makes news we don't hear about the hacks prevented. will companies say, look what we kept from happening? >> i think there's a new regulation coming out, i forget what it is called.

if you have a hack, even though it has been prevented, you'll have to announce it. so i think companies are going to do more with that but i do think, carl, we're seeing a shift in terms of services premiums. when there's so many products, how do you keep up i think you're going to see a lot of value and growth in services companies, which is, obviously, self-serving, what we do in a managed security space. >> finally, government policy, have they been sort of she shepherding this movement efficiently, or is it a mess of regulation, con ffusing message from the white house or congress >> the government is doing a great job. we saw president biden announce that everybody needs to be more vigilant there is obviously the war in ukraine isn't slowing down i think we all have to be careful out there. if you are a large enterprise and you have any exposure to russia or the eastern bloc, in that sense, russia is not going to go quietly into the night we're going to see more attacks, and i think people have to be

much, much more vigilant this is just the beginning. >> right the trend is not going away. great to have you back >> great to be back in person, yeah >> robert, thanks. >> thank you. let's get a news update and get back to bertha coombs. >> hey, carl morning to you shares of american campus communities are soaring 13% today. the company will be taken private by blackstone for $13 billion, including debt. blackstone appears to be anticipating higher rents for student housing as colleges reopen after covid despite higher mortgage rates, u.s. housing starts edged 0.3% up in march starts for single family homes fell by 1.7%. johnson & johnson will stop providing revenue guidance for covid vaccine, citing uncertainty over demand and a global supply surplus. it lowered its full year earnings and revenue guidance. the stock is up 4% to an all-time high, with wall street apparently focusing on j&j's

better than expected quarterly profit and in an example of wage inflation in a tight jobs market, verizon wireless is raising its minimum wage to $20 an hour for customer service and retail employees it is also offering a signing bonus for retail specialists and assistant manager positions. a lot of folks getting higher wages these days >> bertha, thank you so much meanwhile, we have some breaking news on disney. julia back with us julia, what's going on >> well, florida governor ron desantis has asked the state legislation in florida to consider ending the special tax districts. these were established back before 1968, and these have effectively allowed disney to operate walt disney world as a separate entity, and to govern that property and that land independently. so this, of course, comes after a conflict between disney and

the florida governor over this so-called don't say gay bill this legislation that has passed in florida disney recently came out in opposition to it this is part of that whole conflict we have reached out to disney for comment on this. we have not heard back, but we hopefully will be hearing back from them soon disney shares are making gains today, the stock up more than 3.5% dierdre, we will continue to see what the latest is on this story. >> yeah. we know you'll bring us any developments julia, thanks so much for that meanwhile, keep an eye on plug power today the hydrogen company inking a deal with walmart to deliver 20 tons of liquid hydrogen per day to power facilities and streaks. shares popping 8% on the news. more "tech check" after the break. stay with us so, who's it going to be? tom?

could be danny. guess it's on maggie. should we have another one? talk to us about retirement today. feel comfortable about tomorrow. massmutual.

it's been a volatile ride, lower for the nasdaq since january. what are the names avoiding the instability? dom chu joins us to break down the action we have to be talking relative instability here >> it's all relative, right? markets, to your point, dierdre, are all about relativrelativity when it comes to volatility, it's the same story. so we took a look at a measure of volatility called market beta it basically measures how much a stock moves in and out or up and down compared to the broader market overall now, the reason why we're looking at these three sectors, consumer discretionary, technology, and communication services is because these three sectors are the three worst performing sectors in the entire s&p 500 on a year-to-date basis. you could make the case they're the most important because they house many of the biggest stocks out there that have a huge effect on the way the markets work, especially with the nasdaq and the s&p 500.

so if you take a laook at the market betas for each of these particular stocks versus what happens with the market overall, the ones that have the most volatility compared to the broader market in the u.s. are maybe names you're not unfamiliar with at this point. if you take a look, one of the most volatile ones, compared to the broader market, is and has been tesla over the last several years. we looked at the 3-year beta according to data, tesla now has a beta of 2.8 versus the broader market, which we'll say is 1 that's a big deal. dxc technology is closer to around 2.4, so more than twice as volatile as market, up or down so three of the most volatile names with regard to the relative volatility in the market are those three and those sectors. meanwhile, some of the ones with the least amount of volatility, which don't move nearly as much up or down, when the markets move up or down, are three large

megacap names we've come to know, as well. microsoft has a beta below is 1, closer to 0.9. oracle is close to 0.8 intel is about 0.6. the large megacap technology napes don't move as much, up or down, with the broader market overall. so dierdre, when it comes to volatile i, yes, relative is the key word there by the way, if you're curious, reviewers are curious, over on my twitter feed at the domino, i put out the ten biggest market cap companies in those three sectors and what the market beta is for each of them. it is interesting. tesla, 2.8 apple is 1.4 m m meta platforms is close, as well more finformation for you guys, dierdre. >> i like that shouldn't be necessarily surprised, but for such a big stock, a big market cap to be that volatile is interesting > xt. hanks for the look >>ne up, we are talking with

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the nasdaq is up nearly 2% right now. the dow up nearly 400 points big tech is gearing up to report earnings next, alphabet, amazon, apple, they're all on deck in the coming weeks here we me now, revolution chairman steve case, also the author of the book "rise of the

rest, how entrepreneurs in interesting places are building the new american dream." steve, great to have you. >> good to be in miami rising city. >> exactly perfect example. we were on the main stage yesterday and had a great consideration. we can continue that you know a thing or two about big tech, running aol and seeing its dominance. when you look at tech giants today, their dominance, do they stay on top over the next decade is it possible to sort of discern that quarter to quarter? >> well, in the long run, obviously, they're terrific companies and will continue to be terrific companies. 10, 20 years from now, the leaders will likely be different. some of the leaders today will still be there other new companies, perhaps some here in miami today that are just emerging will surprise people and be big company ps that's the nature of creative destruction, the nature of markets, and we'll continue to see that innovation. >> at the same time, aol, you know, over its journey, tried to acquire companies like facebook

and youtube. you've seen the big tech giants doing that facebook, obviously, had a string of acquiacquisitions alphabet with youtube. does that help them stay on top? what is the regulatory environment now? microsoft and activism many thought this would be a much tougher environment. >> obviously, m&a ais a way to continue to expand your portfolio, not just rely on internal innovation but external acquisitions we did that at aol with netscape, time warner, and others getting the deal done is one thing. managing the asset in a good wa is another it can be tricky i think with big tech now, there is more scrutiny some of the companies that might be thinking acquisitions might be smart for them to expand their portfolio recognize that brussels, other places, there's a little more caution and a little more difficult path to getting those deals done that likely reduces some of their willingness to take a shot you'll see some of them. over the next year or two, some will end up passing muster and getting done, and some will be

turned down. >> i mentioned microsoft, activision, and it is a deal regulators are looking at. you're sitting in d.c. right now. what do you think the chances are for that >> i don't know the chances specifically of o that deal. microsoft has done a good job the last couple decades, after having real challenges 25 years ago. the government tried to break them up. issues in terms of unbundling the operating system. they've been more engaged with policymakers around the world. that's positioned them well. they've been able to get some things done that others couldn't maybe they'll be able to pull this off i don't know enough of the details to know exactly where it stands or predict what might happen. >> speaking of deals, the one that everyone is talking about, even here in miami, certainly, elon musk's bid for twitter. what are your thoughts on that, especially as someone who founded a company, the ceo of a company, now works with a bunch of different start-ups what do you make of the bid, and would that be good -- >> cnbc has a special on it today. elon musk is for business what donald trump is for politics it drives interest and ratings

obviously, elon is one of the greatest sbe est entrepreneurs l time, what he built with spacex and tesla is incredible. to have someone like that get involved with twitter is probably helpful, rethinking what could happen. i think it is a little more challenging to think of what happens on the business side, the profit side. you talked about doing some things about advertising and so forth that might reduce the earnings of the company. need a little more clarity on that there also are going to be some of these policyish issues frontd center the idea of being an open public square make sense at one level congress, even before he made his bid, was talking about taking a fresh look at the 230 provision put in place when i was running ao well. they'll have a say in that, as well great he is looking to shake things up and take twitter into new directions, but i focus on what he can do on the product side what happened on the profit side which will impact, perhaps, other interest of investors joining him. trying to understand what the business model going forward would be trying to understand the broader

context, not just in this country but around the world, around policies and social media. >> carl said earlier in the show twitter punches above its weight valuation is out of step with its influence. yesterday, you told me that good companies that stay on top need to keep innovating is twitter innovating? >> i think they've innovated 15 years ago, i was one of the first users. watching what happened the last 15 years, it's been impressive i think there are things they could do that would be more innovative they could be more agile any company when it goes from dozens to hundreds of thousands of employees, things slow down i'm sure there's things that could be done to improve the product, but it's not the only thing that needs attention there's the other issue that also needs to get focused on. >> steve, now you're ceo of revolution you have a number of portfolio companies. went public over the last year in a tough environment for tech stocks, especially new listings. how are you looking at the ipo window now that seems to be sch

shut how does it reopen >> we had the growth fund go public the last year or so successfully things slowed the last few months i'm not surprised because so many companies were going public last year. when valuations come down because of inflation concerns and general market reset, people tend to be more careful about new ideas. companies thinking of going public, even filed confidentially, put it on hold some think the window could open as early as june, others thing the fall time will tell generally, what's happened historically, a major company goes public, and that opens the door for others to follow. i suspect it'll happen, but i'm not sure whether it is a dynamic for summer or fall. >> put more confidence in the ipo market. >> exactly. >> thank you for joining us. appreciate it. >> thank you. we have much more from here in miami after the show, we have another "tech check" plus livestream ceo of crypto exchange is

happening at 12:30 p.m. eastern time wbitcoin hovers around 40k. twitter, (vo) for me, one of the best things about life is that we keep moving forward. we'll be right back. basically, choose what we want our future to look like. so what's yours going to be?

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citi puts the target to 190. they're projecting limited eps upside says it'll be difficult for the stock to outperform with margins nearing their peak bullish on the space overall pending a drop-off in lead times. recommending names like micron, global onsemi that said, nxp up 10% in what is a pretty good take best day in about a month and 2% gains on the nasdaq. gains on the nasdaq. "tech check" is back after thise i've got it all under control. [crowd cheers] voya. be confident to and through retirement. if you wake up thinking about the market and want to make the right moves fast...

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nasdaq continues to be up 2% this morning and robinhood is doing m and a this morning, but given the stock is almost 90% off its highs of the year. kate rooney joins us in miami with that news in today's edition of undervalued and overvalued kate, i am so glad you're able to join me in miami. i love this game, overvalued or undervalued. robinhood agreed to buy zigu, and executives have talked a lot about that recently in revamping that effort especially as retail business has been down you mentioned 90%. 87% off of its high and underperforming the s&p, roughly 30% so far this year the bulls would say robinhood is

undervalued after the sell-off point two-for-one its crypto business and diversifying away from overflow and equities with more banklike products and its user interface they say that is the big differentiator robinhood not profitable yet and look at the price-to-sales ratio and it's now come down to five times sales and more in line with your typical brokerage name charles schwab trades at 7.5 times sales at this point. robinhood again, not profitable, but those who think they're overvalued and they also point to some of the slowing growth and the lower average revenue per user and wall street is still lukewarm on this fame. the average price target now 16 bucks and half of analysts have a hold on the stock, d >> so let's talk about the bull case it's crypto business >> yes >> we talked to the ceos of

different crypto platforms and there is a war going in terms of fees and the user base that robinhood had just hasn't materialized in cross selling products and still payment for overflow >> no, such a good point on the crypto business and they were here in 2022 and they had more of a presence in crypto. they tried to compete on the zero fee, low margin side of the business and said we actually have offered free trade and they've predicted the same phenomenon we've seen in the brokerage firm and the same reason chanos, and we'll see compression, so they're betting they'll have an edge there and they've had to move into things like 401(k)s and some of the stuff that's not as exciting as maybe trading options or crypto. it's a long-term strategy and they would say, if this will be the single money app and a lot of thin techs will be the exact same. >> competition, certainly. >> all right, guys thanks >> robinhood not the only thintech player, and keep your

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♪ ♪ one more thing this morning and that's who can buy twitter here's david faber this morning. >> the more i report, the less i believe there's anybody else that really can show up here private equity's not real. that's also marketing. i'm sorry, orlando bravo good for you you're not doing this deal i mean, come popon the equity chickecks rate of returns won't work for you what are you going to do, serve equity firms and disney no way salesforce, i'll leave it to you. >> no way. >> no way. snap, are you kidding me >> okay.

relatively skeptical about the path forward here for musk. >> i don't blame him he made some good points however, what i would say to that is don't necessarily sleep on big tech with regulators, would a big tech company have it rather than elon musk and what about the crypto billionaires or dow? these are all new money options potentially? i don't know >> we'll watch it, obviously, as the episode unfolds. don't forget netflix and ibm tonight. let's get to the half. ♪ welcome to "the halftime report." i'm melissa lee in for scott wapner your stocks setting up for a near-term rally and it's just gotten better and we'll debate all of that and much more with our investment committee, stephanie link, jason snipe, jim lebenthal and jon najarian of marketrebellion.com. the dow up 58 points the nasdaq up by almost 2% and the yields hitting f