in fact, the tail is wagging the dog, essentially we've seen bond etfs with underlying bonds that are sometimes less liquid, trading very well in this environment, david. >> it's an important point, of course, given so many bond funds have been absolutely crushed, just like the broader market nasdaq down 20.4% for the year that's going to do it for us on "squawk on the street," "techcheck" starts now good thursday morning, welcome to "techcheck," i'm deirdre bosa, with jon fortt carl has the morning off "techcheck"s, getting slammed, the nasdaq down as much as 4%. e-commerce names, shopify, amazon down more than 6% speaking of earnings, the ceos of both mar mount and expedia, they're ahead this hour, only on "techcheck," jon, it's a big show. >> yeah, dee, that selloff is whether we're going to start, after a brief post-federally

nasdaq is deep in the red this morning, giving back those gains, narrowly in the green for the week mike santoli has perspective on the drop we call it a drop, but we're just about where we were ait yesterday. >> yes, so basically a head fake in one direction, maybe it's a head fake in the other direction, jon, it's the kind of twitchy action you do see with the market under this kind of pressure, right, down 20% or so, we still are above the lows from earlier in the week, but not by much, and, flt, the nasdaq 100 is starting to really sort of give up a lot of that -- the accumulated gains over the prior couple of years. couple of levels that i think are worth keeping in mind is this one back here, that was the labor day 2020, after that, initial rush, everybody wanting to pile in to the big nasdaq 100 names, as pandemic plays, as instruments of safety, it's really not that far below where we are right now, but the more immediate issues here are right there, we're under 13 #,000, again, and it seems as if they don't have the sort of

fundamental traction that investors want right now there's also some signs cheer of some kind of urgent, some would say forced selling, you know, we've talked about a lot of the pain, a lot of the big hedge funds have had, some of these have been concentrated names, although you would think by now with positioning very light, it's no longer been the case faang type stocks over an even longer period of time, have essentially come back to the market the first trust internet etf, fdn, it basically is a faang plus faang and faang adjacent stocks, does not have apple in it but a lot of the other ones, heavily weighted this is a five-year look here's the lead you built up, it's not been behind the overall market until very recently right now. so you see that it really is the kind of tide going out, in a pretty pronounced way on this category of stocks at the moment, is there going to be some kind of valuation support get some relief on the bond yield side we'll have to see. but right now it keeps testing

lower, and all rallies have been treated as suspect, guys. >> mega caps have given up leadership first, it was netflix that did this round trip to prepandemic levels and i just can't look away from amazon down nearly 7% it's now at levels we haven't seen since back in may of 2020 it is almost there the fact that this is such a large company. netflix wasn't even close. what does that mean for the market >> it's been a huge anchor on the nasdaq in the overall market for a while right now. there is a line of thinking that says, you know, pretty much most of the heavy weights might have to kind of revisit those pre-pandemic levels. nothing says there's a rule book that implies it has to be that way. right now there's not a lot of real fundamental faith in the moment that amazon finds itself in, they've talked about overinvesting. it seems like a less efficient financial story right now, at the same time there's near universal bullishness on the sell side still, even if it's just kind of complacent, they're

not willing to downgrade the stock type of activity you haven't seen those guys throw in the towel on the analyst front. >> what message does it tend to send when a rally that strong gets given up that quickly >> well, that the rally itself was at least, to some degree, exaggerated. there's definitely a little bit of a chase, a little bit of short selling, it's a highly emotional market, jon, i always point out the market can move a very long distance if it's been at that very spot very conveniently when you have a volatile market that's basically been just sort of ripping higher and lower, it's not that hard to get up 3% if you were just at that level four days ago. that's been the case for this market right now, and so you have to wait for that fever to break, and maybe you have more secure, longer term -- stocks have to find their way into the hands of people that want to own them, and not just trade them. that sometimes is a pretty violent process. >> own and not just trade, all right, mike, thank you. now let's bring in candace

venture partner mike gafari. this market is weird, for people who are trying to trade it but for those who are in for the long term, what message do you think the recent action sends, and what are the themes, maybe technology-wise, innovation-wise that people should really be focused on >> well, i think, look, e-commerce and marketplaces are getting hammered right now last time i was on, i talked about a bumpy rights that was ahead. we're starting to see that yesterday there was a false sense of hope that surrounded this idea that there wouldn't be an aggressive rate hike in the future but i think the reality set in that we're in the middle of a long deleveraging cycle that's going to continue to be painful. in addition to that, you've got obviously inflation and labor issues you've got to buckle up for a bumpy rite ahead there will be names that will long term make it out of this. amazon is a long term hold they face a lot of head winds now. they are priced very aggressively but it's hard for me to imagine a future five years from now

where amazon isn't a really valuable company, and continuing to increase market share shopify, some of these other names, you could build a long-term bolt case. you have to pick very, very carefully, and at the same time you have to ask yourself, some of these stocks you might have been holding onto, as glamorous stocks, worth as much as you thought they were last year. a lot of these companies are trading at lows since they haven't seen since 2020 or right after the pandemic. >> we're going to talk more about shopify, i'm sure, a little bit more on that. shopify is down around 400, coincidentally where it was at the beginning of 2020, pre-pandemic all that talk about the world is changed, all of this e-commerce, progress has been made within, you know, five, ten years within a short period of time if any element of that is true, and if investors are able to correctly identify, if not winners, companies in a strong position, does that mean there are bargains to be had here with

all this doubt >> i think the one big caveat i'd place on that generally, that line of reasoning is true, that there are bargains to be had, except the one thing we weren't facing in 2020, when we started this big acceleration of e-commerce it's very real people's metrics, doordash did several years of progress in a few months and a lot of companies in e-commerce saw that. the one challenge is, that wasn't a very loose monetary environment, and it's very hard, no naert how much organic growth you have to face, both a difficult interest rate environment, and increasing inflation, that will eventually put downward pressure on consumer spending. so that's the challenge, is this entire market was priced, and, you know in 2020, under a different premise of loose monetary policy. and i think, the environment we're facing now, it could still go a lot lower so you've either -- if you're trying today trade, and if you're trying to call the bottom market, that's notoriously difficult, if you have a long-term view, you can build a case around a few specific

companies. if you have a reason to think they've got a defensible long-term mote that will give them advantage and we can get into specific companies if that's he helpful. >> mike, you can have a long-term view but you can still see companies perhaps never make it back to their highest valuations when we talk a lot more often about the dotcom bubble bursting you have a company like cisco that has remained valuable, but has never recouped the losses. you say amazon will be valuable in the future. a few would argue with that. but will it ever be able to attain that pandemic high? what's happening to valuations right now, and what do you investors have to be worried of, even long-term ones? >> look, i think it's hard to say you go company by company, in the dotcom crash, amazon lost 90% of its value, but i think even from the peak it's up around 15x now amazon was a much younger and smaller company. i'm a vc, and part of my jab is

to pick companies when they're private and much earlier before they hit the public market for up we see a lot of long-term upside in tech companies we have to take a step back and say relative to any other sector, tech does have the most growth potential there's lots of e-commerce penetration, software penetration, cloud penetration, infrastructure penetration to go in the u.s. and the whole world, and u.s. has a major technology lead fueling the world's tech. so there's lots of upside in tech as a sector relative to the rest of the economy. and i think if you look at history, i think companies can recover to higher than their peaks but there will be other stories to companies that got so overvalued they never quite recover. i think the all-time highs, you have to look at those as somewhat irrelevant, and say fundamentally where is this company trading now, where is the quality of their earnings going forward? and what's their long-term advantage? do they have a defensible position amazon did cisco didn't have as great a position as amazon even back then. >> as we're speaking, mike, the

dow down a thousand points this market action, just brutal in another part that's selling off, we want to bring attention to, is e-commerce. we had earnings from shopify, e-bay, etsy, all plummeting this morning. the growth, the main culprit ebay and etsy, outweighing the q1 beat. a cautious outlook -- these results come just after amazon, we've been talking about this slowest growth in two decades. that stock in the yesterday this morning. if you're trying to figure out some of these other smaller names which are perhaps the future amazons, which is the ciscos which may not exist at all. what kodo you think >> i personally own some shopify, the three major head winds, labor shortages, inflation risk, and interest rates, those are three major head winds facing all these companies, not to mention supply

chain or ukraine war crushers. amazon faces all of these risks. one interesting thing about shopify is they're not as exposed to labor unions the way amazon is. this might be a moment for shopify to come out ahead and say, look, yes, we share some of this inflation and macro risk, but actually we can build in rebel alliance they made a smart acquisition of this company deliver in the logistics and fulfillment space. there's making a run at amazon shopify could come out ahead the only caveat. they're still very richly valued the valuation multiple in earnings and revenue, it's still pretty high. the revenue multiple is starting to come in to some realm of reality. you really have to believe that long-term there's going to be some future cash flow there. i could build that bull case, but i could also see them dropping a bit more before they bounce back. >> you say shopify is not exposed to unions, as they're trying to move more into fulfillment, aren't they exposed

to labor cost, whether it's technically unions or not, could end up being, depending on how strongly they push into that, they're going to end up having to pay either because of a union, or because of the related market costs, right, the cost of that human labor. >> that is correct i think labor costs will be higher for everyone. but when you're a company that's directly exposed to a unionization movement, when you have lots of headlines, and pressure around dealing with that, when there's executive mind share that has to go to thinking about labor relations in the long term that might lead to a healthier relationship but those are more headaches the shopify management team doesn't have to worry about. shopify says we can let other participants in the market figure that out. we're going to have an easier go of it with regard to labor. >> mike, thanks for your insights on that this brutal market day mike ghaffary.

>> 1,000 point drop on the dow, more than 950 points down. malcolm etheridge on cic wealth. is there any protection, or is there just down less malcolm, can you hear me >> i can, can you hear me? >> i can so what about that protection? >> yeah, i think protection is probably as good as it gets at this point, but the distinction i would make is just that, you know, quality tech names seem to be getting sold off indiscriminately alongside lesser quality names at the bottom of the qqq and the arc innovation etfs, and such. microsoft and amd and nvidia i'm not talking about junk these are major enterprise

clients, long-term deals and government contracts stretching into the end of this decade. there are companies getting sold right now that are selling at a decent discount that are worth a look, but that's as good as it gets if you want the word protection, especially in the tech sector. >> yeah, speaking of amd, it's down almost 6% but still up more than 4% for a full week, if you're looking at that what message does that send about a company that did so well on earnings outperforming, and then how quickly yesterday afternoon's rally deteriorated for investors who are wondering how much they can trade and how much they have to hold their nose and be in it for the lock haul, what message is market sending? >> well, it's two things, one, it's become, if it's not already become, it's becoming a stock picker's market. we have to focus more on quality names, that are returning capital to shareholders, whether that's through buybacks or

dividends or some kind of m&a activity, i would be focusing on those sorts of companies that are better quality, instead of trying to go dumpster diving here or go on a shopping spree, and just buying tech indiscriminately the companies doing those buybacks i'm talking about, it's something like a trillion dollars citizen goldman's estimate of what buyback activity will look like by the end of this year those are the companies that the second half of this year will likely end up having a decent little comeback here, and not necessarily because of any fundamental or any sort of new product offering that's accretive to the bottom line it's going to be because share buybacks are just attractive to folks looking for companies that are returning capital to them in the near term, when interest rates are up, and everything seems to be selling off. you guys just got done talking about amazon as an example amazon set to buy back $10 billion worth of its own shares this year, that's probably enough to make people pile back into the name, at least in the short term, and bring that share price back in the right direction.

>> well, not yet, at least malcolm, what about the idea of not buying anything at all, we've had -- it feels like an increasing number of voices on this network, saying cash preservation is the name of the game in this market. do you think you sit on cash when you see this much volatility, and so many macro head winds ahead >> that's a tough one, i think for anybody who has the stomach for this kind of volatility, the right kind of temperament to not get overheated and start selling if you bought the nasdaq today and it falls 5% or 10%, today is very much proof of that. if you're the person who has that kind of temperament, start adding to your shopping list and picking out the names you like but for most people it's probably not the right time to be going on that shopping spree. having that dry powder on the side looib and waiting for the right opportunity. i think you're going to get more opportunity since we know the fed is poised to raise rates a

couple more times before the year is out. >> malcolm, we saw shopify do something interesting earlier this week, its founder and ceo toby luki said he's asking for shareholder approval for a founder share to get more voting power. i thought it was interesting because that company in terms of cap, its value has come down so much is this a good thing for investors, do you think that we will see more of this from ceos that are also founders, try to protect their position, maybe fend off m&a activity? >> yeah, i think unfortunately we will start to hear and see more of these types of activities that smell a little adam newmany in the future, where companies that are concerned that their share prices have gotten whacked you have that folks are starting to look at them, and maybe they're on the chopping block. i do think, though, investors should be weary of that kind of activity, i think focusing on companies that had no business coming out in the last couple of

years, coming out public in the last couple of years, and they did so anyway because all the back money was there, and it was the time of get it i think you're going to see quite a few more of those types of attempts as we go through the remainder of this year, and i just would caution investors to not go for the okeydoke in that situation where its looks a lot 1999-2000 y, and you'll see more private equity tech acquisitions start to happen. that's how we'll know when we scrape the bottom as far as valuations are concerned companies that had no business going public in the first place start to go back private we'll have an idea. >> that being said, we are talking about shopify, up more than 4x, over the past five years, even after this drop, and still a $50 billion company. so are we at risk of getting into a period where investors short-term jitters could also get in the way of founders and

ceos long-term strategies, people got so excited about the hype over the last couple years, maybe they thought that was normal >> well, i would ask, you know, is it the investing public, the retail investor who got overheated in that sense or was it the ceo that sort of made, you know, promises that made it sound good, right, ceos, half their job is coming out and telling a good story, and maybe they're living and dying by that sword where they told such a good story the expectation was we're going to continue this ride forever and now the music has stopped and there's only one chair left, all the sudden the ceos are having to go back and recalibrate how they speak to investors. in some cases it could be too late. >> i think it was a segment of the investing public we tried to keep people sober over here but it didn't always work malcolm, thank you. >> thanks, guys. meanwhile media names are certainly not immune from today's selloff and what has already been a rough period for that sector, post earnings julia boorstin is with paramount bob

bakish on the volatile media landscape. julia, to you. >> thanks so much, deirdre bob, thank you so much for being with us today. we've been sitting here watching the stock market plummet i'm thinking about all the different ways in which paramount is exposed to fears of a recession, economic uncertainty. you have the fact that you're trying to sell movie tickets, you have the advertising business, streaming subscription questions, but i want to start with the movie business. you have some big movies coming out this summer, are you concerned that audiences will be wary of spending up for movie tickets, not only because they're feeling these economic pressures, but unlike past recessions, they have so many free or inexpensive options at home >> we're feeling great about paramount and what it's doing in the film business. you saw "top gun maverick" last night. before we get there, we're right now 4 for 4, the only hollywood studio to open four films number one in the box office, that

started with some younger male films, and we've aged up to adult audience, kids and family audience, scream, lost city and sonic. every one of them jut performed expectations, every one was number one people are clearly back to coming to the box office sentiment is very good and we can't wait to open "top gun maverick" memorial day weekend, it's a film that's fantastic. >> in terms of the economic uncertainty, how it's going to exact consumers, do you expect consumers to pull back and not pay for as in streaming services is >> what the data suggests is people are dying to get out in real life again, and every one of those films i just commented on, the four that have opened, outperformed our expectations, had broader audience delivery than we modeled. so people are looking for entertainment options, including out of the home.

i think that's going to continue and you're going to see it at scale with top gun maverick over the memorial day weekend we feel very good about that. >> shifting gears to the streaming business, you added more streaming subscribers than expected but we had netflix warn they expect to lose 2 million subscribers in the second quarter. are you worried about not only a saturated market, but consumers who are increasingly strapped for cash and not wanting to pay for as many services >> we remain tremendously excited about the opportunity for our company in streaming if you look at it, the market out there today is massive and will only grow if based on what consumers are doing. importantly, we're going at it in a differentiated way than the legacy streamers we, as you know, have both pay, paramount plus, low price pay with ads, paramount plus, and free, pluto tv so that pay, plus free strategy, dual revenue stream, subscription and advertising,

really gives us the opportunity to maximize consumer appeal. frankly, gives us some diversification. and we, again, feel very good about that, creating a huge opportunity for us in streaming. >> it was interesting in your numbers, overall, though overall you saw an increase in streams subs, showtime, b.e.t. saw a decline in subscribers, do you think you're going to see subscribers shifting away from smaller more expensive services over to lower cost or free services like pluto tv >> so, again, i think there's power in the portfolio our flagship service, paramount plus added 6.8 million subs in the first quarter. it is true that the other segment had a slight decline i'd also point out that those services added over 5 million subs in 2021 so they have real consumer appeal we had some programming timing on some of those services, in q1 so we fundamentally believe it's a powerful strategy for maximizing, again, access to

that total addressable market, and feel very good about its prospects going forward. >> pluto tv was the beginning in terms of free ad supported and now it seems as if streamers worry about subscribers not wanting to pay as much money disney plus is working on launching a lower cost ad supported service but then you also have netflix working on an add h supported service, are you with worried an competition in that tier of offerings for these newly cash strapped consume sners. >> we have a differentiated strategy versus the legacy streamers, that included being the first to believe in advertising at scale, you know, when we bought pluto tv, including, you know, talking on cnbc, people questioned what was it, and at the time coming out of 2018, it had 70 million in revenue. in 2021 it had over a billion in revenue. and it continues to grow very strongly our ad supported revenue was up 58% in the first quarter so we think pluto has a tremendous road ahead. we think what people are now talking about on the legacy

streamer side is validation of a strategy we long believed in, and i'd also point out that being in the ad business is not that easy. we've been an ad leader, not only in streaming, but in linear media as well, and we're very much looking forward to showcasing the combined capabilities, adding up front, back in real life in carnegie hall on may 16th or 18th it's a tremendous asset in our company, it is a differentiator. and again, people are following us in. that's fine. we're the leader we have momentum and there's value in being a first -- >> let's talk about this linear advertising business in general, there are questions that with the recession, economic uncertainty -- pause for the airplane. >> fighter town usa. >> exactly you know, we've already seen a negative impact on advertising from supply chain constraints, from inflation, and now there's this question of how a consumer recession could also impact advertising overall. what's your outlook for advertising, and how much do you

think it will be impacted by the kinds of market swings and volatility we're seeing today? >> look, in q1 we had a solid ad quarter. if you take out the super bowl comp, we were plus 4% in tv media, ad and d to c, we were plus 8%. the d to c side was plus 58% so we see solid performance there. and we saw some real strength in categories that had been lacking for a while, categories like film, for example. it is true that there are some category softness, the auto category continues to suffer with supply chain. we've got to manage through that but fundamentally people need to advertise to move product. we're a leader in that space and we have tremendous leverage we can pull to help product, you know, production manufacturers, and suppliers move their product, and we just think it's a tremendous opportunity. >> for our final question, i want to get you to weigh in on m&a, there's been a lot of speculation in the wake of warner brothers discovery merging that maybe there would be another deal, and maybe

paramount, formerly viacom cbs could be a part of that. do you think you need a bigger scale to successfully compete with the other streamers, but also the tech giants >> if you look at our company we have a world class portfolio of assets we have over 100 years of films in the library, we have the number one broadcast network in the united states, which by the way is number one, even though it didn't have the olympics and the super bowl that speaks to the underlying power of our programming, we have the largest broadcast network portfolio in the world, leading cable network -- >> but do you need to merge or acquire another company for scale? >> in a word, no, we have a great asset portfolio. we're executing well we have tremendous momentum and francly see plenty of upside ahead. as stew wards of the vary of value, we'll consider other options, the market is starting to see the power of paramount. >> we will leave it there. bob bakish, thank you so much

for joining us today to reflect on everything going on in the media space, but also this market volatility. jon, back to you. >> julia, thank you as well. now bring everybody back up to speed we are about two hours into the trading day, and boy, hold your stomach, the dow is down just about a thousand points, it's been hovering around there that would be about 3% it's 2.9 at the moment, down about 978 # points the s&p down just shy of 3.5%. and the nasdaq down more than 4.5% you want to talk about what's losing the most on the nasdaq 100, cognizant is off more than 10%. crowd strike also off more than 10%. match, which we talked about yesterday, having a ceo change, down 10% airbnb, which had good earnings, all down about 10% and then you've got e-commerce names, libre is down quite a bit, as is ebay. behind all of this, a lot of it

anyway, we're talking about e-commerce is the state of the consumer we had bob bakish talking about huh his hopes for consumers wanting to get out of their homes. there's a big question of who's differentiated enough to get the additional consumer dollar and what consumers are willing to spend on. >> as a whole, jon, that's a key question for this market so far consumer demand has been holding up pretty well you look back to amazon's earnings, they have the overcapacity issue, but management insists by all the metrics they're looking at, the consumer demand, the consumer still looks strong that is key, and i know we're going to be talking to the expedia ceo later this hour, but if that holds up, is the selloff overdone or is this market, of course the leading indicator, jon, telling us it may not, that with the fed tightening, with inflation, we may actually see the pullback, and the streamers

get caught up in that as well. was subscription, that subscription model, a pandemic thing? >> we're talking about it as a selloff, indeed it is, but people have got to keep in mind there was a big run-up in the afternoon yesterday. so we are still roughly at the levels, even on, you know, i'm looking at the dow we're at levels where we were trading during the day yesterday. but it's just all those gains got given up, and then, you know, another thing to note, amd is down this morning, but they had standout earnings on market share gains in a differentiated product. apple also had great earnings. little iffy about the guidance based on things outside their rock and roll, but again, a differentiated product, a premium product, like some of the amds, that consumers are willing to spend on. so perhaps the long-term story isn't completely broken, but boy, if you're a trader, there's a lot of volatility to trade. >> yeah, and some of the sectors, too, you mentioned crowd strike, one of the biggest laggers on the nasdaq.

as a sector, cybersecurity has been caught on the downside. it's held up a little bit better, another name caught up in today's swing, that's fortnet, revenue and eps, raising guidance for 2022. the street does like what they're saying, mizuho upgrading the cybersecurity firm from neutral to buy and increasing the price target to $350 wells fargo upping their targets as well. as i mentioned, shares are sinking this morning despite the results, although if you take a look to nearly 3% is not bad considering the overall broader selloff. let's bring in paul hick key of the spoke right now as the market continues to sustain dramatic losses. paul, what's going on here i know we were breathlessly talking about how the dow is almost down a thousand the nasdaq down more than 4.5% but as jon said, this doesn't bring us back to levels that we haven't just seen, is this a little bit too panicky what do you think is the breadth

of this selloff? >> the chart of the market today, it's basically a straight line lower this isn't just necessarily retail people trading here, you know, there's some heavy pressure on the market but to jon's point, yesterday afternoon we saw a lot of excitement when powell took 75 basis points at a single meeting off the table. but i think that -- if you were listening to the press conference, it overshadowed some other commentary that hardly painted a rosy picture i mean, at one point he was saying we have a good chance of a softish landing, and then talking about the process of tightening isn't going to be pleasant i mean, i get that the fed has become more transparent over the more recent history, but that kind of commentary isn't typically what you hear from a fed share. talking about the present conditions so i think, you know, the market may have gotten a little bit

overextended, and happy yesterday, and then, you know, we're getting a reality check today. and, you know, the fact is, powell is right. it's not going to be pleasant here inflation has shown signs it's not going anywhere over the last 24 hours crude oil making a higher high this morning, and the -- in the ism reports, the prices paid to the manufacturing report, that's pulled off its highs but in the services sector, that's hitting -- that's continuing to hit new highs. so, you know, that tends to be a leading indicator of inflation, and we haven't seen that, you know, level off yet. so those are -- i mean, i think the mark -- there's still some concerns out there for the market you have to get through. >> yeah, so that concerning picture that you say fed chair powell painted yesterday,is that especially bad for tech i mean, the nasdaq far underperforming the broader markets this year, does that continue what do you do with the serkt? do you just step away? >> i mean, i think -- you know,

in the short run, you know, you start seeing this kind of, you know, tantrums in the market, you know the best thing to do just let it, you know, almost let it burn itself out here. you know, it's pretty crazy to think about it, we almost forgot about it, but we had a 3% rally yesterday in the nasdaq and a 3% decline today. last time we saw that was last week you know, but these kinds of back and forth swings, they've typically only occurred during the most volatile periods in nasdaq history you saw it in '87 after the crash. you saw it in 2000 and 2002 period, you saw it late in the financial crisis, and you saw it in 2011. and 2020 you saw it so what you tend to see during those periods is these volatile periods, short-term reactions for the market were extremely -- you know, were much weaker than average for all periods, and then but as you get fouurther ot if you're just a trader here,

either biased to the downside. but then you look further out. these kind of volatile periods for a long-term investor, they do set the stage for, you know, attractive buying opportunities, a year later, following these other periods where you saw the back to back swings, and the nasdaq, where it was up 3%, down 3%, you saw, you know, significantly better than average returns over the next year so, you know, that's -- that's one thing to keep in mind. >> paul, is it possible that the fed actually got the messaging right, and that's what the market is bearing out this morning? i mean, when they took -- when powell took 75 basis points off the table, and the market shot higher, there were some people saying, shouldn't have done that but now it's gone back down to roughly where we were yesterday, perhaps based on some of the -- well things aren't all that great. we think we can sort of land the plane softly language that the fed was giving so maybe the feds got people appropriately cautious, even though, you know, the sky isn't

falling to the tune of 75 basis points, what do you think? >> yeah, i mean, so great, yeah, we're not going to hike -- you know, we're not going to hike 75 basis points at a single meeting, but, you know, he did reiterate the point that the fed is getting inflation under control. maybe they don't do it at 75 basis points but it gets stretched out longer the other thing we've seen from the fed over the last three or four months is that they've sort of eased the market into getting here, you know, we weren't even -- the thought of even a 50 # basis point hike three months ago was un -- wasn't on really many people's radar, that the fed would do it at all, and yesterday, you know, we rallied 3% after they did it so it's lmg like easing the market, easing investors into, you know, what they're ultimately going to have to do, getting there slower rather than fast. >> paul hick key, thanks for

joining us today with your insights, talk to you again soon. >> talk to you later thanks. >> the dow down shy of 9 #00 points, so off the lows, certainly the s&p and nasdaq perhaps bottoming out at least for the moment as trading continues, and meantime, travel names are getting swept off in this downdraft a seema modey joins usnous. >> there's noir from you and other ceos, the travel rebound has been extremely strong but the market seems to be more discerning are investors wrong to question whether this rebound in travel can last >> yeah, i mean, we haven't seen any signs, i've heard you talking about inflation, and the fed issues, but we haven't seen any signs of consumers being impacted in terms of travel spend. we all know there was lots of pent up savings, and underspend during covid, on services, and

travel, et cetera, we've been anticipating, and so far it seems to be bearing out that people are interested in spending, and if anything spending more on services as opposed to goods and things they were buying during covid. >> what is your response to the stock performance we've seen today, your stock is down today, and this week, you announced a number of new products today, earnings on monday, where the results were good, but you also indicated that costs were going up. >> yeah, i mean, we've said for a long time, that our fixed cost base when we took a lot of costs out of covid, there are things like wage inflation going on we are investing in certain opportunities where we think there's growth and we're bringing in great people to drive that but that's not really news i think, you know, from our perspective, the product innovations we're doing, the work we're doing on traveler success, and sort of changing the future of product engagement with our price prediction products, and other things, you know, it was a really step in innovation and on the b-to-b side, which we

talk a lot about yesterday at our conference, we have great opportunities as we rebuild our platform to power many more partners in lots of new ways. >> you hope that these product enhancements will drive bookings on the topic of inflation we've seen hotel rates jump around 40% compared to the same time a year ago, a lot of questions around whether this is sustainable. on the call you referenced that we could start to see travelers opt for cheaper alternative vacations, are you starting to see that now when do you expect that to show up >> yeah, we haven't seen that so far, what we call adrs, rates have been very strong through covid, particularly in the middle and upper end of the markets. it is a little bit geographically based, so cities have been less strong on the adr front, where some of the luxury and -- sorry, resort markets have been stronger, that we've talked about for a quarter after quarter, beach vacations, mountains, things like that. but cities are catching up and

city adrs are growing as well. so there appears to be sustainable growth in rate, and the markets seem to have absorbed it. my point on earnings was if we see inflation impact on travelers, we don't think it reduces travel, perhaps travelers take a little bit off what their ambition is where they were going or what they were staying in, but they're still going to travel. >> peter, it's deirdre, you're not seeing inflation affect the product yet, and you're also not seeing a slowdown in terms of that travel rebound, but i wonder, given the fed's commentary about the economy and a potential slowdown do you start preparing for what some softness could look like, what would that mean >> sure, i mean, obviously like every company, we think about what it could mean as travelers make adjustments, but as i mentioned, unlike some of the earlier guests you had, and whether people are cutting off streaming services, et cetera, we think the pent up demand in travel will continue to drive travel demand, so for us it's really about helping customers find the right thing at the

right price for them you know, we spend a lot of time yesterday talking about how price has been really the predominant driver in travel shopping online for a long time. and we're trying to make sure we're matching customers with the right product, so that they have a great outcome, and keep traveling. we think that fly wheel keeps going for the forseeable future. obviously if we have a major economic melt down, that some of you are talking about from time to time, things could slow over time so this isn't a prognostication forever, if we end up in, you know, a highly inflationary period where people are cutting spending on everything but for the foreseeable future there's not an impact. >> if the economy continues to slow down, peter, i'm wondering how that impacts your ability to continue to compete with your peers like booking holdings and airbnb, both of which really share a strong upbeat outlook. >> yeah, i mean, i think we all have a strong upbeat outlook because we all believe in the travel recovery. each of us has our advantages,

booking.com is a great performance market we believe in great product for the customer that matches them better with what they're trying to do, creates better traveler outcomes, that's where we're investing our time and money and along with how we can power our partners in more ways, our b 2 b business has expanded its reach through covid and we expect that to grow dramatically in the future we each have our playbook and we all believe in the travel recovery strongly. >> that seems to be the case peter, we appreciate you joining us today on this big narcotic day. peter kern, ceo and vice chair of expedia. >> seema, thanks to you for bringing us that interview. check on the markets, the major indexes have bounced off session lows, however the nasdaq is it still down more than 4%. dom chu has a look at the key movers for us, dom. >> deirdre, to your point, the bigger than 4% drop off the session lows right now, brings the total drawdown from the record highs in the nasdaq, and

the nasdaq 100 to a pretty steep amount here. if you look at the qqq trust, the instrument that many traders and investors use to take a view on that nasdaq trade, we're now from the record highs here, down roughly 23 3k9 from the levels of bringing that drawdown back into play again, still in that so-called bear market territory that's a drawdown of 20% or more from the highs if you take that kind of topdown approach, if you look at the industry groups now within that bigger kind of tech trade overall, there is where you're seeing the real underperformance and key parts of it. we're looking at specifically places like software, semiconductors, that sort of thing. in fact, the semiconductor etf is down 4%, but 5% for software etfs fintech down 6%, and some of the biggest internet related companies, and it's worse for chinese internet stocks. train shares, china internet, kweb, down 7% right now. the stocks right now driving a

lot of action we were just talking about are the brand names that we know about the most if you look within the s&p 5 hurksz, the broader measure of the market, the worst performing stocks are the names you recognize. nvidia is down 7%. amazon is down 7 #%. paypal down 6. metaplatform/facebook down 6%. and 6.25 declines for netflix. deirdre, i'm not all about the gloom and doom, i'm not all about the fear, uncertainty and doubt. i want to show you one tech realitied firm that's actually in the green, and very strongly so today, that's epam systems, a tech consulting engineering consulting type services firm, it's been a pretty bad move since the record highs we saw over the last year, down to where we are now, still, though, epam is up big today, 10%, jon, after this morning reporting, a better quarter in terms of profits and revenues than analysts expected. so despite a 50% drawdown right

now it's still up 10% today, jon, back to you. >> bringing epam to cheer us up, dom, quite the move. >> i try. >> so here's my question sort of on the nasdaq, we were talking about how rough april was for people who are long, i think the close on the last trading day of april was 12,334 #. right now we've -- we're back in the 12.3 territory, 12,395 we're getting toward the end of the first week in may. what does that is say about in market, what do traders say, if we get back down to that late april low? >> are you trying to find an end runaround, of saying is this the sell and go away before the summer season this is interesting. the seasonal aspect is something people are going to be talking about, in my mind, the traders i've spoken to are -- seasonal -- just to the macro

environment, in general, more so that risk aversion trade overall. now, what i hadn't shone you here is if you could look at a four-year chart right now of the ten-year treasury note yield what you would see is that we're at the highest levels now for the ten-year note yield in the 3.5%, going back to december of 2018 in that way, if interest rates are going to be dominates that part of the discussion, what it could be telling you is that tech driven selloff may still have legs going forward, if may is going to be one of those months where people say, hey, you know what, i'm going to flatten my positions out, hedge fund, i'm a trader with a decent p&l, i'm trying to stem losses, what i want to do is take the rask off the table degross myself a bit and go into the summer months with not as much exposure, that's one way to look at it, i would also say if this does get worse, you cannot help but think there will be traders out there who are feeling -- the urge to nibble a little bit, now we spoke to

jenny partington this morning on worldwide exchange, she said maybe this is no the time you want to be chasing everything with higher multiples but still if there had been a precedent set of a certain stock at a certain valuation and it's been a huge drawdown since, you may not go right away into it but you've got to help -- you can't help but think that maybe this is the time you look at those valuations, deirdre, the reason why you want to take a look at the drawdowns we're seeing. >> absolutely, a as we don't to do thanks so much, joining today's selloff. trip toe exposed trading plays like robin hood and coin base -- seeing user growth stall perhaps more fundamental than these stocks have been absolutely crushed as you can see. including block, formerly square, coin base is down double digits today, wow, i thought these were monthly charts. block is down -- robin hood down 22%. what's going on here, particularly on a day like today? >> yes, we've got square earnings today, that story and sentiment really around block,

has been all about crypto, and ceo jack dorsey's long-term plans for that company but in the near term bitcoin hasn't been a meaningful part of block's bottom line. bitcoin trading revenue neared $2 billion but of that net profit was just 2% of that total, bitcoin accounted for about 3.9 # of total net profit, that's expected to shrink this quarter as crypto trading activities slow down there's been a lot less volatility in digital asset markets, block has gotten crushed as we've talked about with high multiple tech names, down more than 8%. some analysts say it's better positioned than fintech peers heading into earnings, it's less exposed to e-commerce than say paypal, e bay or shopify it's more exposed to restaurants and small businesses and then you've got cashout the growth story for block that makes up half of revenues.

stimulus checks grove the outsized growth. block did buy credit karma today the first time we hear habit afterpay the buy now pay later company that block bought, a lot of concerns around consumer credit and regulatory issues, you've got a firm down, about 13% today. >> thank you so much, kate we'll dive it into it later this afternoon. shopify's single -- jon, i think we're going to talk shopify later, but we are continuing to look at the markets. nasdaq down 4.5%. >> just as i was saying the dow was bottoming out, perhaps popping up around down 900 it's back down 981, going to be flirting with a thousand points down again of course we will continue to track that all day here on cnbc we'll have more on today's sharp swg weafr isreinlor teth bak don't go anywhere.

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massively underperforming, jon, down almost 5%. >> jumping the gun, talking cloud stocks which had a brief bounce after yesterday's fed decision, brief, but lost it all. the wisdom tree cloud computing index down more than 7%, a hair below it was trading this time yesterday. frank holland joins us with a look at the space. >> hey there, jon, cloud stocks bounced after the fed announced they would hike rates, expected 50 points. now you can see they're falling hard today sales force down 7%. snowflake down 10% datadog down 9%. these are at base cloud stocks again, you can see they're now deeply in the red. two factors, the first is interest rates look at the ten year yield,

cloud stocks go right up overnight, that reversed ten year-year-old has gone above the milestone. these stocks are high beta, sensitive to general market trends, but there's a megatrend that will spark elevated cycle. it includes financial, supply chain, manufacturing, talent management up tick in all workers, i.t. professionals back in the office 12 month projects that are very labor intensive. >> they're in need of modernization. there's a line of legacy antiquated systems that are not agile, they're not mobile enabled. >> cloud needs a $50,000 tam with oracle, sap

the biggest up side as interest rate pressure weighs on the sector and these stocks. sap down 28% in the last year. >> frank, thank you for that we have been talking e-commerce stocks leading the decline is this an e-commerce recession? we look at shopify the earnings show the same stru struggles hitting competitors. consumers returning to stores. jeffries says numbers are worse thanexpected, but see value in acquisition of deliver,. bulls see near term head winds to be transitory shares are down more than 17%, adding to year to date heavy losses there's a bear case to be made hit it earlier the idea that tobias is looking

for founder share is interesting. what did they call it, adam neumann-y. as you see more, it begs the question, is this what we want to see from ceos. >> okay. governance is important, but the idea of talking toby luke in and adam in the same sentence is ridiculous what shopify is doing is a powerful trend in e-commerce in digitization and transformation of small business. that was important in the pandemic i think businesses have gotten that i don't know what the right value for shopify is, not my job, but i think it is interesting to see which companies have the capital and vision to invest in the right things during down drafts in the market when people who are short term, some investors as well, pressuring them to do otherwise. we'll see. meanwhile, check the markets overall. the dow, near lows of the

session, down about 1,140 points nasdaq off fully 5%. the s&p off 3.8% the selloff is continuing. now we bring in bob pisani tracking everything. bob? >> i think the important thing, mr. powell may have repealed the idea of 75 basis point rate hike but hasn't repealed inflation. the ten year yield is up 17 basis points, jon. two year up ten. that's reflecting inflation concerns maybe productivity numbers were a real alarm it was way down, unit labor costs are way up, that's inflation. productivity is the speed limit for the economy, how fast can you go hard to get the economy to speed up if productivity is down the bottom line, you have to look at sustained inflation is eroding profit margins, will potentially erode earnings estimates, i anticipate they'll

be coming down as well, and it already eroded multiples multiple on the s&p 500, forward multiple has gone from 22 or 23 to 18 or 19. that accounts for most of the decline we have seen in the s&p 500, 15, 16% so far this year. what you want to do is figure out where is the bottom for inflation, everybody wants to watch cpi, that's next wednesday. if this keeps going for months on end, we'll continue to see multiples under pressure and then see earnings come under pressure jon? >> i wonder about catalysts, what, if anything, changes the direction. when we were toward the end of april, the question was what more will earnings tell us and will there be enough in there to sort of prop up the market there were some good things, good news, in a lot of earnings, amd continued to have share, raised outlook qualcomm also strong we are back where we were at the end of april

what does that say >> the second leg down can potentially happen when they start to take earnings estimates down dramatically. the think that happened, two things that move the markets, multiple which is how much you're willing to pay for future stream of earnings and then earnings estimates themselves. earnings estimates haven't really come down significantly, except for a handful of speculative tech stocks at all this year. they're steady it is the multiple that's come down when interest rates go up, the economy gets more uncertain, they pay less for a future stream of earnings if all of a sudden estimates start to come down dramatically, that's when there could be another leg down that i think you'll see that's what the market is starting to reflect. i think those are concerns you'll see now >> as we're talking, bob, we're seeing the nasdaq losses, 5%

bring in another spec of grain on the screen, endeavor. shares holding on to gains of eight-tenths of a%, up 15% year to date. perhaps reopening play on streaming. what a selloff during the program. >> a lot of reds, one of the days you don't promo the podcast, you watch it live the halftime report starts now welcome to the halftime report scott wapner the great give back. stocks plunging, yields are couraging. the investment committee is with me with steve liesman. the gang is here josh brown, carrie firestone, pete najarian. we can show you where the market is now it is ugly 1161 that's the decline in the dow. almost 3.5%. s&p down by