taking another check of the market right now, the s&p is down 1.6%. 4218 there ever s&p sector is in the red, and of course earnings are the main driver today, the fact you're seeing interest rates move higher, higher than expected data this morning that's going to do it r "squawk on the street. "techcheck" starts now good friday morning, welcome to tech they can, i'm kcarl quintanilla with jon fortt and deirdre bosa what an hour we have ahead the ceos of intel, snap and roku join us in the next 60 minutes plus, apple's red again warning of this $8 billion blind side due to supply constraints. amazon $4 billion loss, bleak guidance and the slowest guidance since the dotcom bubble burst. worst day in over a decade now down 30% since andy jas see took the reins,cizing costs,

inflation, overinvestment in warehouses, extra staffing cost them $6 billion in q1. he says we're no longer chasing staffing kpassy, we're squarely focused on improving productivity and cost efficiencies throughout. our fulfillment network may take some time. john, we're going to watch this closely. a lot of chatter about whether or not q4 will be the first profitable retail quarter, and whether or not layoffs are the next chapter. >> well, this isparticularly fascinating, carl, and d, given this is kind of andy jassy's first big retail e-commerce decision, i'll say because as amazon discussed on the call the capacity buildouts in logistics that were in place a year ago, that turned out to be too much, those were a long time coming those have been put in place before jassy himself took the ceo role and now he's got to adjust with now the backdrop d, of amazon

saying that they want to be the best employer on the planet, and this union drive ramping up. so somehow they've got to pursue efficiency, while not feeding into the narrative that's fueling the union drive. because if they do that, they'll reduce their longer termplexability with the workforce. this is quite a pickle. >> quite a pickle, quite a challenge. but if you think that amazon is going to be best positioned if we hit another demand shock, i mean, you could make that argument that that excess capacity will serve them well, and that's what they basically said they've got prime day coming up in q3. q4 is their big holiday quarter. they wanted this extra capacity. at the same time, though, it's costing them $2 billion a quarter. what does this mean for the rest of the space, though jon, shopify, i'm looking at shopify, building out logistics capacity the amazon has too much space, where does that leave their plans to invest a billion

dollars in a fulfillment center. core question, is this an issue of demand, amazon says no, but this could mean a lot more for shopify and others in the space. as we know, carl, amazon as other high margin businesses that some investors will say, okay, this is an opportunity to buy, because they have aws, and advertising, and that prime subscription revenue. >> the advertising, of course, comes with the caveat gnat decelerated 25% from prior 33. but dee is absolutely right, jon, it's almost this jeckyll and hyde nature of the company now given the strength of aws, which continues to put numbers together in the high 30s, let's say. >> i'm not sure amazon wants to sell the excess physical capacity to shopify, there's a be buy buyer out there, i guess the competitor is walmart. walmart tends to bin fit in inflationary environments in its physical stores when, you know,

working class americans, who are watching their pocketbooks, or looking for a bargain. so how does walmart invest in the e-commerce, and potentially higher end logistics area, as amazon is making these adjustments? that's going to be something for investors to pay attention to. >> great point. >> yeah, meantime, guys, apple is the other one worth watching, shares down as the company warns about supply chain issues, could result in an $8 billion hit to revenue. they add that covid lockdowns in china, hurting some business services driving the growth there, of course, revenue for the division at an all-time high, board authorizes an increase to the buyback of $90 billion. a lot of the estimates were more in the $70 billion range dee, you know, suggesting maybe if you do get a pivot in lockdown policy in china, some of this might be alleviated over time, and as it is, some argue, apple is the last man standing in faang. >> yeah, speaking of the last man standing, we see this decline of about 1%.

is that good enough? but as a whole, guys, i mean the market was so gofocused on megap tech earnings. the fundamentals are largely intact you swrnt seen the rerating for these companies yet. the nasdaq is down more than 1.5% again today, on pace for on a 11% loss this month. that does not bode well, sfael when these megacaps are basically still doing okay yes, there's caution on the horizon, but does anyone think that they're going to give up their leadership i don't think so. >> it's phenomenal that apple is only down, you know, less than 2% when you think about how well the stock has held up over the past several months, like this stock is up, year to date, much less two years, right, so you compare that against any of the faang names, remember faang was originally facebook, amazon, netflix, google, all of those are down, i think, over one

year alphabet is maybe up slightly. but apple and microsoft in an entirely different category, that's something we're learning this time. but i think part of what has investors somewhat concerned is you've got a hard number on that $4 billion to $8 billion impact of supply constraints in the current quarter. but you don't really have solid numbers on guidance. so, you know, the only thing there is to hold onto, carl, is not something you necessarily want to hold too close. >> yeah, of course, again, jim this morning referenced the enormous cash position, dee, and the line that kind of got buried last night and that is, don't kpliet discount the idea that we could use some of that cash for acquisitions, even if they're bolt on. >> that's a great point, and, i mean, that's kind of what separates amazon here as well. i mean, predicting an operating loss of what could be a billion dollars, or a profit of $3 billion. but that's key here. amazon has never had a capital return program so if you're holding out for

buybacks or dividends, that's not going to happen. even with alphabet, jon, some folks wanted a bigger buyback or more of a dividend they're going to continue to invest that's what's separating these so-called faang, prefer to call them megacap names t capital return programs, worth noting, the big dividend and buyback from apple. >> the faang over time got kind of squishy jim, i think, originally was talking about the growth potential in a certain group of stocks, not necessarily megacaps, maybe that's why apple and microsoft got left out but anyway, speaking of big companies, intel falling this morning after issuing lower than expected guidance for the current quarter. that's despite beats on the top and bottom lines for their q1. ceo pat gel singer warning investors on the earnings call, semiconductor will see capacity issues until at least next year. pat joins us now, and a first on

cnbc interview, pat, good morning. i want to start off with the big picture, again, technically waet on q1, miss on the q2 guide, but you're confident in your full year guide, still, why a lot of this has to do with the data center performance, and continued buying from the hyperscalers, just talking about microsoft, they're continuing to buy, right >> yeah, overall, jon, we'd say we're very firm in the year. we have strength in our network and edge business, which we highlighted yesterday, strong, strong performance in q1 continued growth in our data center business this year, and we had a very strong growth, 22% year on year and as we look to our new growth businesses, our foundry business, our accelerated, computing and graphics business, the expansion that we have with our mobile eye business, all of these growth businesses as well. pc has some inventory corrections, weakness in the low end of the consumer market but

we also see the second half. we have more visibility here, the supply chain, inventory adjustments. you know, the distribution channels, we just have more visibility into that and we see a strong second half in the commercial business, particularly overall we feel very good about the year and obviously q2 is a bit tempered because of these inventory adjustments. also some of the challenges in shanghai, and the port shutdowns. but we think it's a very solid guide for q2, and we're very confident in the rest of the year, and overall, feel semiconductors continues to be a great business that we see substantial long-term strength in the business. >> pat, i wonder, and i haven't seen this thoroughly addressed, about whether there might be creep in the pc business weakness, it's at the low end now. but there's been so much strength in the premium end, and in graphics, but historically, a lot of that's kind of more discretionary pc buying, is it possible, have you factored in the possibility that if inflation continues to run hot,

even that high end business could see more pressure? >> you know, we're pretty confident in the second half of the year part of that, jon, is driven by the commercial segment, and the commercial, you know, we're way overdue on a commercial refresh. and this is major corporate buying, you know, and those are very stable outlooks from the large customers, we also have a very strong product line, well ahead of our expectations, in q1, outlook for it is very strong, we have our next generation product, being broadly sampled into the marketplace. so we're really coming into a period of product strength, as well as into commercial strength, and as i said, most customers have, you know, brought down their inventories levels, we'll see a little bit more of that in q2 but we're confident in this outlook, and overall, as we've seen in the covid world, you know, the pc is the essential

device for work, learn, and play, and there's nothing changing that characteristic, and literally everybody has aligned around this 350 million unit outlook the analysts, the oems, there's a narrowing of the range. >> let's zoom out and check in on the strategy, specifically when it comes to design and process technology you said on the call that you remain on and in some places ahead of schedule to deliver five nodes in four years, which is way accelerated from what intel has typically done where does, though, that road map fit in with the constraints that we see on fab equipment, and, you know, the continuing logistical difficulties that we talk about, are you as confident that you will have the equipment to deliver the results of those five process nodes in four years? >> yeah, thanks, jon five nodes, four years, first

was intel 7, with ouralder lake product, that one's done 52 million units in q1 intel 4, our meteor lake product, looking very good i keep getting hello worlds coming from meteor lack systems across the country they want the ceo to know. and we have our first test chips non intel 3, and granite rapids products, we have just taped that in. so we're well under way there. and 20 a, and 18 a, will have the first test units on that, and some of the foundry customers in the second half so overall, five nodes, four years, back to unquestioned process leadership, going super well, and really proud of our teams. you know, i also had the unique opportunity, as we opened our new research center module in oregon, we renamed the site the gordon moore research center, and just in honor of the

founder, just a pretty special moment the equipment industry that you asked about, that's part of the reason that we believe the overall semiconductor shortage will now drift into 2024 from our earlier estimates in 2023 because the shortages have now hit equipment, and some of those factory ramps will be more challenged now, overall, we feel we're with our id m2.0 strategy, internal and external foundry capacity, we're better off than others we really invested this those equipment relationship, but that will be tempering the buildout of capacity for us, and everybody else, but we believe we're positioned better than the rest of the industry, and we're overall on track, five nodes, four years, big capacity buildouts are well under way, our construction projects ahead of schedule. so overall, this machine is executing well, and i'm quite proud of our teams. >> ambitious plans, good morning, pat, it's deirdre, by the way. reading intel's financials has become more difficult, i've

found, since you've tooken over, you billion pulled out stock comp, resegmented businesses some people say the understanding of intel's mundmentals could get murkier as you guys mobilize. how should our audience judge the underlying business, and how are you increasing transparency, something you promised when you took over? >> this is if first quarter, and i ralz there's going to be some amount of digestion. this is the first quarter we've presented our financials against the six business units and the reason we did that is they align with the markets, they also align with exactly how i am running the business. and we have six general managers that are held accountable for their businesses, so in this way i think the transparency has increased. six business units, the alignment with our business, with how we're presenting those to the market increases, and we're trying to give investors all of the old to the new, reconciliations that they require, to see how the business looks. you know, we've also, i think, laid out very clear five-year

plans, and given the street plenty of points along the way that they can measure us against. and you know as we saw in q1 we hit all of those metrics, new product metrics, you know, the financial metrics, the capital cash flow metrics, we're giving them much more transparency. and for that, because as i said, we want to be a say do culture, what we say the street can count on and we want to be a consistent meet and raise company that's back to that execution engine that came came to know and love and have confidence in intel. we are well under way in making that happen, deirdre. >> we appreciate you saying it on "techcheck," as you work to go out and do it thanks for being with us pat gelsinger. snap making a number of new announcements. just a week after the company reported that challenging q1 our julia boorstin joins us now with a very special guest. high, julia.

>> hi, carl, we are joined by evan speegle, the ceo and founder of snap, thanks so much for talking to us today. >> hey, julia, it's great to be here, thanks so muchfor having me. >> evan, we have so much ground to cover augmented reality ads, the new hardware you introduced yesterday at your partner summit the foundational issue of user growth, you reported much faster than expected 20% monthly active user growth to 600 million your daily active users have consistently been growing faster than expected. my question to you, is can you deep up this rate of growth? >> well, we certainly have a huge opportunity, globally, there are still billions and billions of people who don't yet use snapchat to communicate with their friends and family we're focused on that opportunity. we've been making lots of investments to improve our plplak application, to partner with tell co, to make our service more affordable.

there's plenty of opportunity around the world and we're excited to stay focused on our community's growth. >> and what about competition with tiktok? what kind of impact are you seeing from tiktok or are there other services that are more focused on messaging that are having a bigger competitive impactsome. >> the video entertainment business, certainly a huge opportunity, but it's also very competitive. whether it's tiktok or instagram, or youtube, there's many folks who are investing a lot in this space. we have our own competitive product called spotlight, which we shared, time spent 230% year over year last quarter we're making steady progress there. as you pointed out, the engagement on snapchat, they're using it to communicate with friends and family, to use our ar platform with all sorts of amazing lens to see where their friends are at on the map, to save and edit their memories so people are using snapchat in all sorts of different ways, which helps us with our competitive positioning because

we've placed such different roles in peecople's lives we're not just a single service. >> evan, shifting gears over to your revenue outlook, you outlined you revenue growth is slowing dramatically in the wake of the war in ukraine, and all these inflationary prsessures, i want to ask about a different revenue pressure, apple's system changes. have you fully addressed that issue and when, if not now, will you fully have found work arounds to that apple ios issue? >> we've been making steady progress there i believe we shared in the leadup to the invasion, our dr revenue was -- or direct response revenue was growing about 50% year over year, and the full quarter year of year growth rate was higher than our overall growth rate, which grew about 30%, year over year, we've been making very steady progress there. i think we also shared on the earnings call that, you know,

advertisers representing about 90% of our revenue have now implemented our first party solutions, that allow them to measure and optimize their advertising campaigns. it's going to be an ongoing journey, and we expect more platform policy changes, of course, from google, as well so we're just focused on serving our advertisers, making sure that they can achieve great roi on their advertising campaigns, it's an ongoing journey. it was before the platform policy changes and it will continue to be we always want to be improving the return on investment for our advertising partners. >> yeah, and we certainly expect some more of those privacy focus changes ahead. but returning to those macro economic factors, you know, whether it's inflation or supply chain zrients, putting pressure on advertisers what's your outlook for how long those pressures, as you see them now, will impact the business, and is there anything that you're doing to help brands work around them, or make snap more appealing, considering those

constraints? >> well, i certainly wish i was an economist it's too hard to say the macro environment is obviously very complex right now. i think when you have a nuclear power going to war it creates a lot of uncertainty, and, you know, i wish i was able to predict the future, but i don't think that's possible at this point so we've just stayed focused on helping our advertisers meet their business goals, whether that's with our viz advertising and performance products, or with augmented reality, which has been a huge focus of ours. we've seen how augmented reality can drive much higher conversions for advertisers. we've been working to scale that out, including with some announcements yesterday at our snap partner summit. grands often say, gosh, i want to engage with augmented reality, but i don't have a whole catalog of 3d assets how can i get involved with my 2 d catalog. we introduced a product to bring their 2 d product into augmented reality, and enable that with 2

d images, users can try on thousands of different looks or outfits, without ever changing their clothes. of course that helps with exploration, and consideration, but also higher conversion, and that's something we're really excited about. >> hey, evan, good morning, it's deirdre, i've got to ask, what do you make of what's going on over at twitter, do you see elon musk's takeover as perhaps an opportunity for snap to gain advertisers or users or even engineers amid so much uncertainty, or do you think that he could ultimately change the whole landscape that could make it more difficult or different for you to compete >> it's hard to say because the platforms are so different you know, twitter is this public square, and snapchat's about communicating visually with your close friends and family so, you know, i don't think there's a lot of overlap i think the strategies are going to continue to be very different. but who knows, you know, elon is so passionate about the twitter product, and i'm excited to see what they come up with over there. >> guys, announcing a pixi drone

for $230 in a way this seems more practical to me than speks spectacles, what's the role of this kind of hardware in your strategy i mean, it doesn't seem like you're looking to do mass market apple, or even sonos numbers with these things. should we think of this, even in terms of how roku is using hardware, or is it more inspirational? >> well, as a camera company, we're always experimenting we involving what the camera can be what we learned with spectacles when we first released them. people love captured hands free video. they can explore the world without having to hold their camera in front of their face. we started experimenting with free flying cameras, situate you in your world with your friends and allow you to create a totally new type of content. it's an early ex-permit, but it's a really fun product. people are going to enjoy playing with it. >> what can we tell from this product or learn from this

product in terms of what your strategy is going to be for hardware going forward will there be more many devices you're launching and do you see some of them as being mass market plays >> potentially mass market plays over time, but the important thing is to extend the software experience we have in snapchat with hardware, that's the case, of course, with spectacles we found using august mmted reality on this tiny screen where you have to cruise your thumbs isn't as compelling as overlaying augmented reality in the world around you, being able to walk aroundand use your hands and voice to interact with all sorts of new experiences, sp spectacles are a way for us to extend what we're seeing on snapchat today, 250 million are engaging with ar daily, just in snapchat alone, that doesn't include our camera kit partners who have taken our augmented reality tools and embedded them in their own applications and services hardware for us is really a way to extend the core of our business and to see how we can, you know, unlock new engagement

in the future. >> you know, your event yesterday, you unveiled all sorts of new august mmted reality tools for advertisers, specifically focused on e many of commerce and you had impressive numbers how many people are using lenses to try on clothes draw the connection for us between those lenses and advertisers on the platform. are you seeing that kind of technology increase ad spending? >> yeah, this has been really exciting for us, what we saw very early on, you know, we've been working on ar inside of snapchat for seven or eight years now, i think, and what we found is that people were using augmented reality to express themselves, whether vomiting a rainbow or trying on a pair of virtual glasses. with brands, bringing products, accessories or clothing or a new pair of sunglasses into augmented reality allows people to express themselves with that product but also see how it looks on them. when they can see that something

is a good fit or compliments their style, they can easily convert in one tap from that ar experience what we've seen brands do is build these ar lenses that allow people to try on their products, add them to their brand profiles so they're easy for people to find and experiment with, and then they're buying distribution for those lenses in our lens carousel, in our camera. snapchat opens into the camera it's a really big advertising opportunity for us, because our advertisers are front and center in the snapchat lens carousel, allowing people to try on, and play with their products. >> yeah, so evan, you are making this big bet on augments reality, and you had recent comments about the metaverse, which you said was pretty ambiguous and hypothetical what makes you so sure about a.r. i mean, you could make the same argument for internet in the early days, hypothetical and ambiguous. why solely focus on a.r. >> as i mentioned, 250 million

are already engaging with a.r. on a daily basis in snapchat there are hundreds of thousands of developers, there are more than 2.5 million lenses that developers have created on snapchat it isn't hypothetical. it's really today. our users are getting a ton of value. we're doubling down on that momentum and continuing to expand our service really, i was referring to, technology is complicated enough we don't like to use fancy words at snapchat. we like to speak directly with our community about the products we're creating. >> well, evan, i'm sure you use fancy words sometimes, but of course when we talk with the metaverse, we have to talk about what mark zuckerberg is doing at meta the fact they've recently been talking about this metaverse world into the 2 d world, making it more accessible without those vr headsets. what do you make of meta's moves, and do you see it as a competitive threat coming into

your a.r. space? >> i haven't seen anything yet i'll be eagerly awaiting some of their product developments we'll see what happens >> well, we look forward to hearing more from you, and getting the latest, and also trying out that very cool flying camera ourselves thanks so much for joining us, evan spiegel on the heels of all of those announcements yesterday, and your earnings last week. >> thanks so much, julia, take care. still to come this hour, the ceo of roku, anthony wood, plus chinese tech surging still, what's behind that move? we'll look into it next. as always, there's a lot more "tech "techcheck" coming up.

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officials there reportedly promising more policy support to fuel economic growth as the country battles an ongoing covid outbreak take a look at the k web it is absolutely surging this morning, they'll come off its greater gains earlier, it is on track to break a three-week losing streak, the sector, though, as we well know, jon, has been beaten down over the last year, more than a year now. >> yeah, for sure. speaking of time, amazon is having its worth dana over a decade we thought we'd take a look at the stock from a valuation perspective, and dom chu has that for us. >> let's look at that valuation story from a couple different perspectives, dollar perspective and multiple perspective amazon shares, over the last two years, it's still up 7%. that's pretty modest what you are in essence here at these levels is the same price you were at for amazon stock going all the way back to the middle of june in 2020 so just as we were kind of

coming out of of the lows of the virus pandemic and the market lows in 2020, that's now where amazon is given this nice little 12% move to the downside so far. if you take a look at the overall picture, at the record highs we saw for amazon, a nearly $1.9 trillion valuation, or thereabouts today at these levels you're talking about a $1.3 trillion valuation. $600 billion lost during that span so pooel put that in dollar terms for you in the value terms of amazon. a valuation from a multiple perspective. looking at forward pe, how much will you pay for an amazon share today for the amount of money it generates next year, anticipated, that's what they call the forward p/e it stands around 69. if you look over the last five years, at one point we were kind of closer to like 165 times, forward earnings, or estimated earnings from an analyst

perspective, and now we're kind of closer to 69. so tilting towards the lower end of that valuation range in a variety of different reasons going into that. maybe slowing growth maybe cost concerns, and whatnot. so that's something to keep an eye on now, as for how amazon has performed versus some of its -- is it really appear? we'll try to put it in context with names like microsoft, a big cloud competitor over the last two years. amazon is up 7%. microsoft is up 60%. even walmart, from a retail/e-commerce perspective is up 25% in that two-year span, an interesting way, jon, deirdre, to look at amazon from a lens of valuations from a number of different viewpoints it's tough to call given amazon's growth profile last two years. >> what's interesting, dom, i think, is that amazon has the strongest cloud business in aws, and nobody's questioning that, through all of these labor costs, and logistical issues really, it's the e-commerce and

logistics businesses, that account for this valuation discount, and they're probably giving more of a valuation discount, in a way, than is apparent in the charts, right? >> and not just that you have to look at the reasons why that valuation discounts's happening with regard to the e-commerce, the consumer spending side, and of course the transportational logistics side. those sides are maybe more exposed to some of the cost pressures that could be anticipated over the course of the next couple of years, perhaps, we're talking about labor costs and inflation, the unionization drives happening in multiple locations in the warehouse universe, and by building more warehouses during the course of the virus pandemic, to meet consumer demand, you have infrastructure to take care of, and that costs money. so all of these things playing out the way they are, carl, gives you a real sense of whether or not amazon is a place that's still considered growth, or whether it's going to be a value kind of proposition going forward, and some of those valuation arguments are the

reasons why those forward p/es are being scrutinized more these days. >> there will be case studies done, dom, on whether or not amazon, one of the best innovators of scale, even they -- the forward pull from covid. we'll find out in the years and quarters to come. roku shares getting a boost this morning on the heels of earnings despite dim guidance we'll hear from ceo anthony wood on the other side of this break. - in the last two years, we quadrupled our team

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roku reported a loss in q1 of 2022, management blaming macro head winds like inflation, geoapp g geopolitics. julia boorstin sad down with the ceo for an exclusive interview. >> roku's anthony wood telling me that the company's growth, 1.1 million users added in the first quarter, was moderated by

the end of government stimulus payments while the kbaen's business of selling its software on tvs was particularly hurt by supply chain issues, which aren't going away anytime soon. >> the supply chain issues are, it costs more to ship products, harder to get parts, that's causing the prices of tvs to go up, reducing the number of tvs sold overall by the industry. >> looking ahead to the second half of the year, the company expects growth to reaccelerate in part because of easier comps with last year, and in part because roku expects more ad-supported streaming options to help shift more ad dollars from traditional paid tv into streaming. roku telling -- i'm sorry, wood telling me that disney's ad-supported option, and netflix, the fact it's working on one, are a good thing for roku's platform. >> advertising generally is a very important part of the streaming ecosystem. it lowers costs. it increases engagement, and it increases the number of people

that are streaming and so that's good for us as a platform, because it increases the amount of viewing. >> i asked what if he was concerned that the new joint venture between comcast and cnbc's parent, of course, and charter, which was announced earlier this week, they're planning to offer a streaming platform and devices similar to roku i asked him if he's worried it will take market share. >> you know, we'd be competing with google. we'd be competing with amazon, and multiple markets around the world, and we're the number one streaming -- we've been competing successfully, and we've been winning our competitors are big companies. they're very successful companies. but they have other businesses that are more important to them than streaming so, you know, they're not as focused on streaming as we are. >> another potential threat that's been raised by analysts, the merger of warner brothers and discovery, giving the combined company more negotiating leverage with the platform but wood told me that mergers

will create streamers that can succeed on his platform. >> merging is helping to build more competitive streaming services streaming services are not just competing on the u.s. now. they're competing on a global basis. they have to have a lot of scale to compete, to be a platform. >> now, roku shares are up over 8 #% today, but they are still down 72% in the past 12 months analyst craig moffit upbraid grading from sell to neutral now the company's forward estimates reflect what he sees as a more appropriate view of what's going to happen later this year. but take a look at what a roller coaster for that stock. >> julia it's been a lot of pain some analysts will be giving it a second look. i guess, you know, you combine the comcast carter, jv, what we've heard from netflix, and

roku wouldn't you argue id adds up to an overall maturation of the bids, and even that bit about now superseding legacy tv, that we're really in a moment. >> yeah, really in a moment of maturation if you think about it the shift from this proliferation of sort of endless streaming video on demand services, to this idea that if you really want to compete, you values to have some lower priced ad-supported options. we have to remember that roku does have its free ad-supported roku channel the question there is, are they going to have to be holding onto that ad market share, is there enough ad market share to go around as more ad dollars shift over from tv, or are they going to be competing more with the likes of annette flix. it was something he would not address directly, i tried to get him to go there, but of course it's a couple years before netflix launches its ad-supported version, though disney plus has its coming later this year. >> julia, connecting the dots, when we think about the failure of cnn plus, we think about this

jv, between -- or this partnership between comcast, our parent, and charter, and what netflix is trying to do with the cheaper ad-supported service, it seems like perhaps what's strategically value in cable and streaming is shifting, it is moving back toward free and ad-supported how does that change who has the most leverage, and kind of who has hand going forward >> well, i think that roku's in sort of a bunch of these different businesses, right, so recue is a platform, and that is exactly the same thing that this joint venture between comcast and charter is trying to do. offer more of a platform being a platform is beneficial, and there are a lot of options and you're not sure which one of them is going to succeed this push to ad-supported reflects what we're seeing in this macroeconomic environment if there are less expensive or free options that will give more incentive to people to try new things we're all pushing towards this new -- this new layer of the streaming wars, which is all

about giving consumers choice, at less of a cost. >> julia, thanks for that smart analyst. we know that recue as the cathie wood favorite, it's moving higher today, but robinhood, headed in the opposite direction. t teladoc rebounding slightly. don't miss cathie wood herself on "the exchange" at 1:00 p.m. eastertoy.n da you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

apple. still in the red but only fractionally, and it's up more than 20% from 12 months ago. one area of strength in the quarter they just reported is the mac, apple's investment in its m1 chip, just paying off, investors could hear more about that we've got apple's worldwide developer conference steve covak joins us now the mac story, so fascinating, i think, because it's typical apple, vertical integration, given what we just heard from intel about difficulty in the consumer, apple doesn't seem to be having much in consumer pcs. >> that's exactly what's happening. mac sales are booming, smashing records quarter after quarter for apple's q2 the sales were up over 15%

let me put that in perspective for you. back in 2019 apple booked about $25 billion in mac revenue for the entire fiscal year tim cook telling me yesterday this is from the new m1 pro, and m1 max chips adding, quote, the last seven quarters have been the top seven carts in the history of the mac. there's more to come, expecting more announcements in early june and the company is already teasing a new mac pro is coming soon, which will complete the transition away from intel kmip chips. i should also mention apple is doing this amid an overall slowdown with demand for pcs, like you said, until reported last night jon. >> steve, appreciate that. we'll continue to watch the split between apple and intel today. still to come this morning, elon musk selling shares at tesla as he raises money to buy twitter we'll get more on that dynamic in just a moment

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time for gut check on western digital. citi sees opportunities on the heels of w d.c. earnings naming them the top value tech stock. saying it is trading near 50% discount to peers. shares are higher this morning by a little better than 1.5%

tech check is back after this.

here's something that you don't hear every day shares of rob in hood are up more than 2.5%, despite a rocky

first quarter. monthly active users also declining. saying the quarter was two competing forces are accelerating product development. a difficult macro economic climate. the company will cut work force by 9%. the stock, 88% off its 52-week high that's nearly 90% off its peak on the bright side, out of the single digits. all about future products. if user base is declining, how do they take advantage of the young active user base made so much of during the ipo. >> they said they want to move to working with institutions, perhaps employers. what's the pitch going to be with new products to pull those employers away from fidelity and van guard, names that have been around

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one more thing elon musk sold 4 billion he tweeted he is done selling. that didn't match yesterday's batch, he soldanother 4.5 to 5 billion of tesla, the total between 8 and $9 billion the pressure twitter financing will put on shares and layoffs at twitter lining up the deal reuters reporting he has picked a ceo already but no word who that person is according to a source talking to reuters. >> i don't want to gloss over it too quickly. 8 or $9 billion of stock dumped in a week, i don't know when we've ever seen something like that because he wants to buy something else other than tesla. >> well, he is serious, right?

i think there was a lot of skeptics that thought maybe he would deter, especially with the selloff of tesla in the last week or so, see what next week brings it has been an eventful one. >> we got through a lot of big megacap tech and travel names next week. have a good weekend. let's get to the judge >> thanks so much. welcome to the halftime report the road ahead big tech in the books. a historic fed meeting looms what it means for where stocks head next. joining me, carrie firestone, janet is a koesh a, and jon najarian i will show you what the markets are doing. not a pretty picture red across the board april is usually a good month for the markets, not this time good riddance. right now,