in the meantime, just getting a quick check on the markets, it is a mixed picture, s&p is slightly higher, the dow is flitting between gains and losses that's going to do it for us here on "squawk on the street. "techcheck" starts now. good tuesday morning, welcome to "techcheck," i'm carl quintanilla, with deirdre bosa and jon fortt. today, tech stocks still cheap and not worth buying the valuations of these prices, one example mean chegg, a pandemic down another 40 cratering after poor guidance. the ceo are join us this hour. and bearish comments from a few investing titans ray dalia warns that even know tech valuations have not come in, not aed goo toim to get long equities paul tudor jones said this rng

this morning. >> you can't think of a worse macro environment than where we are right now. >> clearly, still some market anxiety at these levels, and, jon, we continue to turn to analogs, the dotcom bust, the nasdaq had a similar fall to this one but then continued to tumble in the next couple years. >> yeah, you know, right here, i was asking lo toney yesterday whether this was an historic opportunity not to buy anything. the ceos i'm talking tonight large, large cap side, and smaller startup companies, they've got a siege mentality. some feel like they're inside the walls, being laid siege to some feel like they're outside the walls. it's a question of resources and business health. do they have enough resources to tough out a perhaps extended difficult time when it might be difficult to raise funding sure, from the public markets. but even in the private markets

as some of these venture capital -- choosey about who they give capital to, companies they they they're going to be able to acquire and grow, and companies that are are burning cash as part of their vision long term, maybe they don't get more money investors in the public markets need to think in those terms as well, and think beyond the stock pricing, even beyond revenue growth to assess health. and that's something we've been talking about more. >> that revenue quality. and as ptj said this morning, this moment, he says, is about capital preservation so, you know, our job, of course, is totease out the opportunity. but a lot of sort of ominous thinking, and advice this morning, it's going to be a big week, guys in terms of consumer spending we've been keeping a close eye on the demand side of the picture, which many ceos tell us remain strong, but take a look at expedia, reporting this yesterday, you saw bump up in the stock, and now it's down more than 15%. some saying that this recovery is already baked in.

how does that bode for airbnb, which is going to report and then carl you've got uber and lyft, if the recovery was baked into expedia, certainly we have not seen that kind of run-up in the ridesharing names. but this is the market, to jon's point, that wants to see profitable growth, and i'm just not sure -- i mean, adjusted ebidta profitability was tough anyways and i think that metric is going to be tougher going forward for investors to digest. >> it's been interesting to see how that reopening playing, the travel play has collapsed today with expedia and hilton to some degree our next guest seeing a potential burst bubble, and high value to low tech names like semis to weather the storm tony saginawki, you write is there more pain for high priced tech, potentially, but we're far less worried than we were to start the year is that just because everything's come in

>> good morning. yes, it is i mean, we have been focused on the most expensive technology stocks for the last year, year and a half what i mean by that are the 20% of tech stocks that are the most expensive in the market. and why we focus on those is, if they become very elevated, they could certainly fall more, and have a cascading impact on the rest of the market when the market peaked for tech in november of 2021, that cohort of the most expensive tech stocks was trading on average at 17 times revenues. today they're trading at six times revenues historical average is 4.5. on a relative basis we're close to historical average. we feel a lot better about the risk of downside for extensive technology stocks than we did at the beginning of the year. we could have a market drawdown that goes further, higher beta,

more expensive stocks will fall more but six months ago, you know, we really saw valuation levels, particularly the top end of tech values, that were really unprecedented, other than the dotcom bubble. we've seen some coming into that that's had a cascading impact to the rest of the technology marketplace. >> right, i guess the question for some investors, toni, do we think about it where a reasonable baseline on valuation now is unwinding the covid bubble, getting back to pre-covid valuations or pricing in an additional level of pain if you think there's, say, a 50/50 recession risk. >> i think that's the operative question in the marketplace. because i think if you look at tech valuations on current earnings, they're not that far off from historical averages so techs trading at about a 30% premium to the market, historical averages about 25%. so certainly, on a relative

basis, tech has come much more in line. the question obviously is, are these firm and real earnings if we have an economic downturn, earnings will be cut, they'll likely be cut more for tech. and they'll be continued depreciation in stock prices and i think that's -- that's really the big question that all your guests are talking about, is the likelihood of an economic slowdown, and the likelihood that prevailing estimates are going to go down. >> so, toni, when we talk about real earnings, i wonder, what do you do with the ridesharing companies? they certainly have not seen the kind of run-up, even if you think that they are reopening plays, and of course their earnings, they like to use the metric adjusted ebidta what do you do with them do you think there's value here? >> on many of the metrics that we've looked at, some of the ride -- companies are characteristic this marketplace, we've had a

high number of technology stocks that are unprofitable. peaked about 35% of all tech stocks in november it's now come down but i think the market is -- will continue to be punitive for names that don't have viable levels of profitability in the near term. so to the degree that we continue to have pressure on the marketplace, more broadly, i think unprofitable companies will continue to be impacted. >> when you say profitable, toni, what metric are you using, gaap, net profits or other measures that tech companies like to use? >> it's reported net income, so that's a non-gaap net income number, not an ebidta number. >> toni, i want to go back to tech valuation premium you were just referring to, about 31% above the market, versus 25%, the historical average isn't that still kind of high? you think about the historical average. that's not the historical norm in good times it should be a

little better than 25% at bad times lower than 25%. i think the consensus might have shifted into, we're heading into bad times. 31, closer to 21, that's a bit more of a gp, isn't it >> jon, it's a great question, and it's a big investor debate you certainly argued one point of view. the other point of view is that many investors would say, well, look, we're seeing a level of digital transformation happening in the technology sector that's probably historically unprecedented, other than maybe the dotcom and that level of digital transformation means we're having higher revenue, those companies deserve better valuations so if this was a normal time and the historical premium was 25%, but we have higher levels of digital transformation and more companies with higher margins in

recu recurring revenues, shouldn't that premium be higher that's the push and pull on that debate. >> finally, toni, what leads you to semis for a long time we've talked about the vulnerability, the liability of being hardware based versus software, just given what supply chains are doing all around the world what makes you so confident? >> look, i'm not sure we're -- we have a crystal ball by any sense, and a lot of the work that we do is quantitatively driven and, again, we have a bias -- a continued bias towards more value oriented names when we look at names that have what we call high quality, so good accounting, good visibility on earnings, et cetera, a lot of the ones that turn up are semiconductor names, those include names like nxp, microchip, sky works, korvo that

have been beating down it's good to layer fundamentals and incentive on top when we layer a market that's continued to punish companies that don't have real earnings, that don't have -- that do have high valuation multiples, and we think there's a risk that that can persist, we're looking for the opposite companies that generally have pretty good cash flow visibility and are trading at reasonable multiples. >> interesting well, viewers are definitely looking for fresh farmworks, toni, this is one of them, appreciate it as always, see you soon. >> thanks for having me, carl. let's get to a company at the intersection of a couple of things we were just talking about, digital transformation in education, andal chegg, shares plummeting on earnings ceo dan rosenswag joins us now dan, first of all i know that you set up the quarter itself was good, but the guide, based

on some fundamentals, happening with the economy and with education, you cut 7%. i want to ask first about chegg itself what is the impact in this environment to the way you run your business? i'm thinking about costs, your cash position, any belt tightening are you watching operating expenses, and how they might be growing faster than revenue? >> we've also had that discipline and so it's a very difficult time to run any business because all the macrofactors continue to evolve and almost none of them are in your control however, within that environment you can control what you do. so as you said, we brought our guidance down 7% i, you know, the reaction seems a little strong for changing the guidance by 7%, and still growing. so we are growing. by the way, we do produce adjusted ebidta of -- i think we estimated about $250 million we do produce 50% to 60% of that

to free cash flow. we are one of those companies that actually does grow and produces profits, and produces cash so we're in a very strong position to operate. having said that, we have a challenge in the moment, given all the macroconditions that we talked about on the call, with the u.s. higher education market where students are choosing to earn over learn right now. they're taking fewer classes, they're less academically rigorous they're opting for more hours, because there's more hours we know all of this is happening. all of it is temporary the international business is growing, skills business is growing. we're seeing really good opportunities ahead of us. in this time we are just very prudent in the short term. we invest in things we're very confident will get an roi, and we'll get an roi soon, we're making those long-term investments in the technology, the platform, the content for international growth we're making our partnership with guild, going spectacularly well to begin with in the u.s. market we recognize our efforts are in the funnel,

as opposed to the top of the funnel, until the top of the funnel comes back. we are being more prudent, a little bit smarter but we are -- the only tech company in the public markets that dwal produces adjusted ebidta and free cash flow. we have an advantage, plus we have a billion six on the balance sheet. so -- and by getting rid of the textbooks business as owning it, we no longer use any cash for that we think we set ourselves up, jon, for exactly the kinds of questions you're asking. >> okay, and so that, perhaps, seals off some of the opportunities you might have looked to for further m&a in the near term, but does it focus your r&d efforts in a particular way also in the near term, to set you up for, you know, i guess an acceleration perhaps out of of this period since you expect it to be temporary? >> yeah, so in the u.s. our focus has been on moving more people to the bundle over the basic package, which is 1995 versus 14.95.

which means the more successful we are in that it's about $25 more a customer, with pretty much all margins and it all goes to the bottom line because it's the same set of products that we're already investing in so in that case, we're seeing record take rate of our check study pack that will mean for future years, every customer we have will be significantly more profitable. so outside the u.s. we're investing in a platform that allows us to present in local pricing. not only in local pricing, but local currency, and then in local currency, the right price value equation for those markets. we have huge top of the final in indonesia and philippines, and mexico, and turkey what we don't have yet, because we only just -- we're just built in, is the ability to price at what the local price should be that should accelerate our growth outside the u.s. and then our skills business, our relationship with guild, they have over a relationship with over 4 million frontline users we are not doing academic support there. we're doing job skilling of

which cybersecurity is our number one skill we see a lot of growth coming out of this, just in the u.s we've got to be smart right now. that's all. >> dan, good morning, it's deirdre, good to see you. >> thank you, deirdre. >> on the call with analysts you talked a lot about inflation and the macroenvironment was the reason you're seeing fewer and less rigorous students and expect that sort of in the future what makes you confident that it's inflation and not simply coming out of the pandemic, people getting back to work, which would be more of a structural challenge for the company. >> yeah, we said it -- if we didn't say it, we may have to say it's both. the question of what i was answering is what's changed since our last report. so what's changed is in addition to the economy, so the structural issue is that a million people left higher education to go to work rather than to take classes at all in the last two years that is the top of the funnel issue. that obviously affects our business because those are the peoples who are -- people who are going to either two-year colleges, or who are going to four-year state schools that

perhaps were never on a path or not on a path to complete within four years that group of people chose earning over learning. so they either took -- they either delayed their enrollment, or they reduced the amount of classes they're taking that, we believe, is the temporary issue driven by the fact that we have wage inflation that is allowing people to get paid a lot more. and who can blame them, rather than taking on debt, actually reducing their debt. so it makes perfect sense to us that they're choosing to do that right now. but overall, they're 50% of the world's population around the age of 30. if you believe like we do more of them are going to be studying, more of them are going to need academic support and help, more of them are going to need job kills, chegg is the right company and the right position all the -- we believe outside the u.s. we're seeing that growth, the skills market is seeing that growth, and we do believe it's going to come back in the u.s and we are very profitable, and we produce cash flow, and we have cash. we're in a great position to accelerate our leadership in

difficult times. >> well, we've all got something to learn so, we definitely have that. >> particularly your curriculum, jon, very valuable, and very important. >> thanks, dan we want to turn now to another story we've been watching very closely, that is a union voted second amazon facility on staten island, workers rejecting this proposal this time around after a separate group of warehouse workers voted in favor last month. you may remember that surprise victory, a lawyer for the amazon labor union says the group plans to challenge the outcome of the election the vote comes as workers around the country are looking to fight for better pay and more benefits as an example just this morning apple store workers in mnd have begun a union drive. the outcome, either company, not having an outsized material impact on either company's stock. no surprise there, carl, still a long way to go, but you could argue the traction continues. >> interesting to watch those

results come in last night. still to come this hour, logitech lowering guidance, plus elon musk reportedly seeking more financing for twitter, "techcheck's" just getting started. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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let's get a gut check on logitech shares are under pressure today after the consumer electronics company reported a 20% drop in sales from a year earlier. lodge steck also cutting its 2023 outlook, facing head winds from the invasion of ukraine the company now expecting sales growth of between 2 and 4% the stock now down 21% for the year, carl, back to july 2020 levels. >> meanwhile, jon, the broader market hovering higher today ahead of the meeting mike santoli is here looking at the areas of strength in tech keeping the selloff from being

worse. >> at least relative strength, i guess you would call it in most cases, take a look here at the nasdaq 100, year to date along with some of those names that have outperformed the nasdaq 100 we treat as synonymous with tech and internet, it's 70, 75%, but also plenty of other stuff in there you have t-mobile that's been actually -- we don't have it here t-mobile a big net positive contributor to the relative upside in tech here. but also how about kraft heinz apple that be negative net contributor but has well outperformed the index utilities, exxon, american electric power so essentially in the nasdaq 100 looks like it's not really reflecting the degree of carnage in a lot of high growth tech in software, it's because mostly because of non-tech or some telecom in there as well. >> i guess the question is, how much -- how big of a waiting can

that possibly get even with tech coming in? >> it can't do all the work. and maybe the defensive sectors aren't going to have much upside left yesterday you saw weakness near the lows in some of the defensive areas. so the big question is, what are the heavy weights likely to do from here? are we still going to have to see valuation, kind of bleed out of them, to sort of, you know, have a full reckoning with how expensive they got and the new growth picture out there the real big question, i see a lot of sort of people doing chart work on this saying, we have so many stocks that have gone back to pre-pandemic levels, can apple really kind of stay, you know, aloft at these levels, and withstand that pull of gravity we'll have to see. >> i was wondering about apple, mike, are we in a situation where apple falling less than the overall market, is bolstering things more than a lot of other stocks actually going up >> yes, i mean, it's keeping it

from actually getting to deeper new lows there's no doubt about that. i mean, obviously, as i said, it's a negative net contributor, but if it were down, commensurate with nvidia, with meta, you know, with alphabet even on a year today basis you'd see the nasdaq 100 have a much deeper tail spin. >> mike, good way to look at things. >> got it, thanks. as we continue to look for -- by the way, we're not really done with earnings prints at all we've got a lot to get through this week. the lions share of the remaining results this week, mike, are going to be in consumer, and before we move into the more media names -- >> yeah, definitely not done you've got about 75% of the market cap through coming into this week in terms of reporting earnings already but now, yes, you are getting a little more on the consumer seat. >> let's get to the president. >> the main reason why i've worked to hard to keep -- is

reflects his view almost -- anyway, look, the idea that concerns mea great deal that we're going to after 50 years decide a woman does not have the height to choose within the limits of the supreme court decision, in case number one but even more equally as profound is the rationale used and it could mean that every other decision relating to the notion of privacy is thrown into question i realize this goes back a long way, but one of the debates i had with robert bourque was whether griswold versus connecticut should stand as law. the state of connecticut said the privacy of your bedroom, husband and wife as a couple, could not choose to use contraception. usually contraception was a violation of the law

if the rationale decision as released were to be sustained a whole range of rights are in question a whole range of rights. and the idea we're letting localities make those decisions would be a fundamental shift in what we've done. it goes far beyond, in my view, if it becomes a law, and if what is written is what remains, it goes far beyond the concern of whether or not there is the right to choose. it goes to other basic rights, the right to marry, the right to determine a whole range of things because one of the issues that this court, many of the members of the court, a number of the members of the court have not acknowledged is that there is a right to privacy in our constitution i strongly believe there is. i think the decision of griswold was correct overruling, i think the decision of roe was correct because of the right to privacy. there can be limitations on it,

but it cannot be denied. >> do you think that this leak has changed the court? we've never seen this happen before. >> well, you know, if -- if this decision holds, it's really quite a radical decision and again, the underlying premise, and again, i've not had a chance to thoroughly go into the report, the decision, but it basically says all the decisions relating to your private life, who you marry, whether or not you decide to conceive a child or not, whether or not you can have an abortion, a range of other decisions, whether or not -- how you raise your child, what does this do, and does this mean that in florida they can decide they're going to pass the law saying that same sex marriage is not permissible? it's against the law in florida. so there's a whole -- it's a fundamental shift in american

jurisprudence. >> do away with the filibuster to codify roe? >> i'm not prepared to make those judgments now. but, you know, i think the codification of roe makes a lot of sense look, think what roe says. roe says what all basic mainstream religions have historically concluded, that the right -- that the existence of the human life and being is a question, is it at the moment of conception is it six months is it six weeks? is it quickening, like aquinas argued the idea that we're going to make the judgment that is going to say that no one can make the judgment to choose to abort a child based on a decision by the supreme court, i think, goes way overboard.

>> thank you, thank you, guys. >> the midterms, what does this mean for the democrats' argument in the midterms? >> i haven't thought that through yet. >> do changes need to be made to the court in light of this if this decision holds? >> i beg your pardon. >> do changes need to be made to the court? light of this? >> we just have to choose. look, one of the reasons why i voted against a number of others on the court, they were choosing to acknowledge that there is a ninth refused. refused to acknowledge there's a right to privacy there's so many fundamental rights that are affected by that, and i'm not prepared to leave that to the whims and the -- of the public at the moment and local areas. thank you so much. >> thank you, guys, come on, guys that is the president responding to the leaked draft opinion on his way to alabama, where he will tour a lockheed martin facility that makes weapons, that the u.s. has sent to ukraine, including some javelin anti-tank artillery. meanwhile, chief justice roberts

with a statement now this morning, affirming that the report is authentic. the draft opinion that was leaked, although he says it does not represent a decision by the court or a final position on any member he goes on to say i've directed the marshal of the court to launch an investigation into the source of the leak we're ten points away from 4200. dow session highs. take a quick break here. "techcheck" back in a moment ull. when you become an expedia member, you can instantly start saving on your travels. so you can go and see all those lemons, for less. cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪

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welcome back to "techcheck"ment i'm carl cons quintanilla. paramount, off the interday lows, but still lower despite adding more than 6 million streaming subs julia will have more on that let's get a news update with morgan brennan. >> moments ago behind telling reporters if the supreme court does overturn roe versus wade other fundamental privacy rights

could be in danger he calls it a radical decision the president is responding to last night's unprecedented leak out of the high court of an early draft overturning roe. the chief justice confirms it is authentic and has ordered an investigation. protesters and some supporters have gathered outside the supreme court, the draft says roe was wrongly decided, and holds that elected representatives, not judges, should decide whether abortion should be legal or not a final decision isn't expected until next month. there are still a lot more jobs than people to do them. the government reports there were almost 11.6 million job openings in march. that is the highest on record for data going back 20 years at the same time 4.5 million workers quit their jobs, also a new high deirdre, back to you. >> morgan, thank you very much, we're going to turn back to the broad selloff in tech, north island chairman and silver lake co-founder offering his take, earlier this morning on "squawk box," have a listen.

>> we have a very strong underlying economy, even though the last -- the print last time was nominally 1.4 negative, was really in the midthrees positive, because of the underlying economic activity you have economy strong. so i think the -- i'm concerned about recession. i think that's probably my base case but i'm not concerned about a deeper long recession. >> so where should you be looking for opportunities? joining us now, managing capital partner jeff richards. i know you're focused on a longer time horizon in the past. you've looked to high quality growth companies, strong f fundamentals even these companies have been killed some suggested on air this morning that maybe investors should sit it out. >> well, that -- deirdre, that always seems to be the advice of folks when we're in a nervous market it's been brutal for tech stocks over the last 6 to 12 months, in

particular the last 90 days have been really rough. as you mentioned, you're seeing great companies, companies we consider great companies, that are core to cloud infrastructure in the way the next generation of our economy is going to be built, companies like snow flake and data dog, and some of these companies that held up well through the downturn in tech over the last six months have gotten hurt last few months. i tweeted out twilio is -- a level we haven't seen in a long time it's hard when the market keeps coming down every mork and you feel like you're catching a falling knife. we believe if you have a long-term time horizon, these are high quality names to own. >> what did you think of glen hutchins, saying this isn't armageddon, if he does see a recession, it will be a short one. i liked your thesis on small businesses, that isn't something we think of typically that you can bet on in public markets but you do have a few names, and you also say that if we are going to -- if the economy is going to recover, it's a good place to be. >> yeah, it's such a great

point. so we don't -- you know, a lot of small businesses aren't really tradeable in the market, so we don't talk about them a lot. but small businesses make up 40% of u.s. gdp, 60% of americans work for a small business. it's a huge part of our economy. last week we launched our s&p tech 50, a list of 50 of the best private technology companies focused on small business, and obviously in the public market you've got companies like square, and ring central, and shopify, that kate tore small businesses. if you're looking for a way to play the rebound, and in many ways we'd argue this is one of the more interesting bets you can make, because coming out of covid who benefits, who wins, they go back to doing things live and in person, it should be the american small business. one way to bet on that, buying these tech names that supply technology to those companies, we highlighted that with the s&p tech 50, the companies i mentioned have gotten beaten down quite a bit over the last 12 months, but over the long run, we are seeing positive signals with small business. i'm on the board of several s&p tech companies, we saw as many

as a third of workers miss shifts in q4 due to the omicron variant. we're seeing people showing up for work in purchasing behavior for tech in small businesses the point that morgan maid earlier, and dplen was highlighting, the big issue or small businesses, which is labor, it's really hard to attract workers. those businesses are still struggling with that, and we've got to figure out that if we want our economy to rebound. >> jeff, are we entering more of a hobbsian state of labor market, lions and gazelles, companies on the hunt to consolidate and you've got companies that might be very nice, beautiful, swift companies, but they're the slowest gazelle, they don't necessarily have the resources on board, haven't raised the funding to be able to run faster than the others and therefore they might get done in. >> jon, i think this could be the story of 2022, which is the tale of two cities if you're a company that's well capitalized and has a strong balance sheet, we saw this in the great financial crisis with

companies like sales force, we're seeing that right now, if you're -- you know, i p, os, the average tech ipo from 2021 is down 41% not a good signal. but those companies are very well capitalized strong balance sheets. able to play offense in '22 and '23. we are seeing a little it out of a tale of two cities a company that has 18, 24 rks 36 # months of runway, 2022 looks attractive play offense, maybe acquire a smaller competitor, the companies that have to raise capital and don't have a strong balance sheet or great gross margins or free cash flow, this could be a challenging year, and i agree with your sentiment. >> the ipo element is really fascinating, jeff, it's hard to imagine that we're back -- remember those days where we had the conversation about why companies weren't going public yet, they were staying private for too long, but i know you've written that we're in sort of a nuclear winter for ipos right now, i wonder how long you think that winter could last. >> it's a great question, carl, the big challenge right now is the ideal beyer, people forget when you go public, there's a beyer for those ipo hares, it'

not only fidelity, it's cross overfunds. one of the challenges you have right now is those investors can buy if you believe companies at six to ten, great growth companies, the googles, not just the twilios and facebooks and amazons at reasonable multiples. they're applying those same multiples to growth stage companies. it's created dislocation the private market takes about six to nine months to adjust to the public market. we're in the second inning of that we're seeing companies raise capital. venture capital in q1 was still strong, it's a much more cautious market where investors are paying a lot more taeks to really key underlying metrics, gross margin, overall -- should have mattered but in some cases in 2021 weren't as high on the list of things to focus on. >> jeff, quick last one for you, our public market investors maybe growing impatient with adjusted ebidta metrics, toni

sagginachi said earlier, as a venture capitalist you're looking earlier stage, do you think that's wearing thin in puck public markets. >> i'm not a fan of adjusted ebidta we prefer when companies focus on metrics that are tried and true good software companies that people can understand, in particular i say software because it's got great predictable revenue, high margins, it's the reason you see private equity firms buying some of these companies and other firms taking majority stakes in some of these firms. you look at the outlook and the next five to ten years and know the total addressable markets are very big, they've got predictable revenue, predictable cash flow, and trust me, when those folks are investing or buying into a company they're not focusing on adjusted ebidta. the market will adjust, it always does, and companies will figure out they've got to present tried and true metrics and stick to them and it will sort itself out. >> we'll see what happens. we've got a few companies reporting this week, that prefer that metric.

jeff richards, thank you very much, ggv capital. let's turn to media specifically paramount, formerly viacom cbs is falling this morning after adding more than 6 million subs to its streaming service as we talked about yesterday, investor appetite for these stocks and strategies seems to be undergoing a massive shift. julia boorstin has more. julia? >> well, jon, paramount's revenue missed estimates, while its earning which beat expectations were down by about half from a year ago quarter but streaming did grow faster than expected. paramount plus added 6.8 # million subscribers. and while showtime and bet's streaming app suffered from a contraction similar to what netflix saw free ad supported pluto tv grew faster than expected to 67.5 million monthly active users jp morgan saying, quote, we remain positive on the growth of pluto tv given its advertising potential with the platform well positioned to lead the global

avod space that's ad-supported vod. this comes as the new front digital ad presentation's kickoff this week. the interactive ad bureau forecasts that digital video ad spend will increase 26% this year and that connected tv ad spend, which is a peefs that, will be a key drifr, growing 39% this year, to $21 billion, that's more -- the 22 -- the 2020 spend on that category. amazon's freevee, free ad supported service just announced a new slate of original shows and a licensing agreement with disney, this comes after yesterday, nbc universal's peacock unveils new ad formats and new tv coming to the platform roku's new front is happening right now. ceo anthony wood telling us just last week he expects more tv ad dollars to shift over to digital. and we're going to be digging into all of this digital ad

potential, and also concerns of a broader ad recession, or an ad contraction, on thursday when we have an exclusive interview with paramount ceo bob bakish, right here on "techcheck." dee? >> looking forward to that one, julia, thanks so much. after the bell today, airbnb, lyft, amd, we will live deep into those results tomorrow ckn mohcck on "teche." ba ia ment zero-commission trades for online u.s. stocks and etfs.

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gut check on western gauge today, actress elliott management -- the catch, they are calling on the company to separate their hard disk and flash business in a new letter out this morning, reserving that billion dollar incentive for spinning off, selling or merging the flash business with a strategic partner. western dig is currently trading aren't $60 a share it could reach at least 100 by the end of 2023. shares as you can see up 15% this morning, are on the heels of that letter, in buffet west performers this morning in what is a pretty flat tape, or at least was until a while ago, jon. >> that's really optimistic about what could happen by the end of 2023. still to come, more details about elon musk's twitter financing, or lack thereof, and how it could affect tesla.

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software among the standouts in

general. this quarter, 49% organic revenue growth pretty darn strong how confident do you feel given the shifting macro economic environment and the ability to continue that trajectory >> thanks for having me, jon we feel good about the sustain and demand environment we're in, feel good what we're hearing from commerce on the sales and marketing, telling us we want it invest in modernizing the way we find the next consumers, modernize sales and marketing practices. hearing more demand from recruiting and talent acquisition clients, saying this is the toughest job market we've ever been in we need digital tools and software to find the candidate to fill all of the open positions in the organizations, so we're seeing great demand coming from both sides of the business. >> how many canaries in the coal mine have you got. forgive me, everybody is a

little gun shy these days given all of the shocks, macro economic especially. you have record new business, in europe, middle east, africa. an area with concerns. strong business that's $100 million plus how are you going to know if that's starting to slow down and could it turn on a dime? >> yeah. i think a couple of things first, our business internationally is focused on western europe and canada and australia and new zealand. we have little to no customers in eastern europe, haven't seen a change in demand environment this is a business that lives on a variety of data and metrics. we run the business and instrument it to see things coming from far away we feel good about what we're seeing and numbers come in domestically and internationally and feel good about strategy, continue to grow internationally. >> you closed two acquisitions

as the quarter was ending. given how confident you feel in the core business, are you going to continue with m and a as sort of future growth or no >> that's a great question look, we grew the top line this quarter 58%. we grew, we do that with operating margins of 39% we're growing and we're profitable when we're out in the m and a market, it is a small market of companies that we can acquire that won't be diluted to us. we're looking for companies that are growing profitly that we can bring into zoom info, make it grow faster, get integrated into the platform we have a vision what the platform can be, we're looking for build, buy, partner opportunities and if we see something that matches up with our criteria, we're still inquisitive, but right now, we're focused on bringing

comparably into zoom info, focused bringing dog patch advisers into zoom info. excited about those acquisitions, but we're in the market looking at m and a transactions. >> all right with zoom info at the moment up a cool 4%. henry schuck, ceo, thanks for joining us. >> thank you, jon. >> if you missed part of the show, subscribe to our podcast listen anytime, anywhere at the vix works back to 30. holding 4188 back in a moment at cdw, we get these new ways of working bring new threats. that's why we started an office commune. not a security concern around for 50 miles. unless you count the wolves. and all the llama milk you can drink. you know at cdw, we can design a security solution using hp elite devices with real-time threat intelligence to help protect your data from new threats,

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what's it like having xfinity internet? it's beyond gig-speed fast. oh... hey bonnie, i didn't see you there. and it can connect hundreds of devices at once. that's powerful. unbeatable internet from xfinity. made to do anything so you can do anything. one more thing elon musk trying to ease some twitter deal burden. reporting that musk is in talks with investment firms, including apollo and ares about chipping in to lower his $21 billion cash contribution and the margin loan that he secured against tesla shares musk reportedly speaking to current shareholders, including jack dorsey about rolling over stakes with him rather than

cashing out. management registering worries after a file risks include our inability to attract and retain key personnel and recruit prospective employees, and the possibility that current employees could be distracted and productivity as a result of uncertainty regarding the merger something we talked about in the wake of his initial offer. as for shargs, virtually unchanged, but have come a long way from levels there was deep skepticism about it happening. >> in terms of employees being distracted, make the argument for the flip side, may be employees reinvigorated to see what elon musk does with the company in terms of going to find other investors to put in equity pie i can think of a few wealthy investors who would be putting their money where their mouth is if they were to do that because they have been excited and optimistic about changes he could make. >> those investors tend to be a

lot of places though more places than their money somebody that has more money than everybody doesn't want to put more of his own money into it, raises lots of questions for me but elon musk has been very good, carl, getting people to part with their money. and usually they end up making a lot. so that's going to entice some folks, you imagine. >> yep guys, obviously things are going to get busier from earnings standpoint after the bell. we're going to get lyft, airbnb. amd, shares down 40% year to date morgan stanley resumed coverage of nvidia, looking for a gaming correction, knows at dramatic as we have seen recent years like 2018, 20% down some quarters of the fiscal year. that's a concern for amd as they get market share gains in data center. >> carl, can market share gains counterbalance weakness in the

overall consumer market? we saw what the dynamic did to intel, it was able to lean on data center and hyper scalers. to what degree can amd do the same, how does it match up with investor expectations for the stock. we'll see. >> and the fed meeting will steal attention tomorrow as we give a press conference tomorrow afternoon. almost noon in the east. let's get to the judge carl, thanks welcome to the halftime report true state of stocks, whether the correction has run its course we ask brad gerstner, and also with me for the hour, the investor committee stephanie link, jim levinthal, and i will take you to the wall. show you where we are 12 noon in the east green across the board trying to put follow through together from the violent reversal late day yesterday. dow good