lowest on record since a lot of those that study said it home buyers are feeling down on the market they have every right to >> dianne olick, thank you. a final check on the market. the s&p is down 2.5%, 4019, moving closer to the 4,000 level, a key level that so many strategists and analysts are watching root now. that's going to do it for us here on "squawk on the street. "techcheck" starts now >> good monday morning, welcome to "techcheck," i'm carl quintanilla with deirdre bosa and john fort. the third day of a massive sell-off is under way. the nasdaq last a fourth of its gains since the record high. another 52 week low and session lows for stocks overall. is the climate investable? where is the bottom? which investments are the safest our first guest says this is not the second coming of the dot com

bubble despite the cratering valuations jim paulson is with us you write, this is a much more controlled and methodical manner than the dot com bust which makes it less likely to end in a bust can you expand on that >> well, i just think this whole cycle compared to dot com, carl, has been less substantial, less enthusiastic, less emotional and much more fundamentally driven inthat's important as you said, the liquidation cycle, even though it is nasty here of late, this is still, i think, much more, as you said, controlled and methodical. it's more of a rounded top rather than the dot com, which was a pure peak top and collapse this one, i think, has been much more slower to unfold. if you look at the relative price of s&p 500 technology stocks, they have been in a trading range, really, flat, for

the last two years rather than the spike stop of 2,000 and then collapse so the liquidation is a lot better i -- i also just find a lot of other differences. you know, if you look at the concentration that's already been taken out of this tech bubble, it's pretty substantial. if you look at faang weighting it was as high as 14% in 2020. it is down to 9.5%, which is the same weighting relative to the s&p 500, or first was in 2018. if you look at the arc fund, cathie wood's headliner, if you will, its relative performance collapsed to back to where it first was in 2017, almost five year's worth of no relative performance. then if you just look at the weighting overall s&p 500 tech index, carl, in 2000, that weighting was 34% at the peak. but the companies that made up that index, their sales only

comprised about 8% of nominal gdp. so the market cap weighting to economic weighting was four times higher today, the weighting is 27% of market cap, but 18% on an economic basis, much more fundamentally supported, if you will, overall. so i just kind of think, you know, the valuations reached 55 times future earnings in 2000. they reached 30 here they are back to 22 forward now. it just seems like a much, much different cycle with much less overexub brans small caps haven't had nearly the performance they had back then back then you didn't need earnings, you just needed a story and a dot com behind your name. >> sure. >> they haven't participated that way this time. >> i noticed this morgue, goldman's non-profitable tech basket has had its biggest draw

down ever, 68% off the peak. isn't one of the glaring similarities to that period the number of companies that were expending -- making profits expendable at the expense of growth >> yeah. i think that's the biggest difference i mean, this one is more fundamentally driven i just think there were so many companies i said that had nothing but a story and a dot com behind their name. and they were running ahead. and we have some of that today, but far less as i said, most small cap tech haven't really been the players. it has been mainly large cap tech and most of those have had strong fundamentals. for example, the relative price of s&p 500 technology index today carl is about where it was at the top of the dot com. but the relative earnings of those companies today are 60 to 70% higher than they were at the top of the dot com there is more fundamental gravitas here. >> jim, i'm just not sure -- i wonder if it is worth comparing what is happening now to

something so apocalyptic as what happened back then because i am not so sure what is happening now has completely worked its way through these stocks are more than 80% off their 52 week highs, affirmed, pell on the, roblox, roku, just to name a few tesla, amc, game stop, bitcoin, off the highs but not as much as they would be if their a total washout, right >> i think the comparison is important, in part, because people are so worried about it and it is affecting sentiment and whether they are going to own tech or not to a degree. i think it is a very different comparison sure, there are still some stocks that have more liquidation ahead of them. i agree with that. and there have certainly been some stocks as you mentioned that doesn't really have fundamentals and they have

collapsed like back in dot com but how much of the liquidation is already completed how much of the concentration we have already taken out of this market and now there is fundamental support underneath it which was not the case back then the collapse came when there wasn't any liquidation i think we are in a different place. >> jim, what about the compensation piece we know tech typically pace its employees in equities. this is an idea dan lowe brought up in his investor letter, the idea that as their shares fall companies are going to have to increase cash wages or increase dilution for future stock grants that could further weigh on margins. do you think the market is accounting for that possibility? how big of a risk? how could that weigh on future earnings. >> i think it has. i think it has part of being a tech employee, if you are going to take participation in the company ownership, you know, you are going to go up and down with it.

i think a lot of those employees realize that it's not like it's any different anywhere else. a tech companies have come down all the way around the world where are you going to go that's going to be better in terms of compensation you know so i am not sure that's going to be a major obstacle for tech companies overall where they are forced to raise cash earnings because everyone is deal with less equity currency than they were earlier. >> great start for us on "techcheck" today. thank you. >> thanks for having me. let's turn to uber, the ceo unveiling plans to slash costs in an ooechl to employees. he is looking to keep up with shifting investor sentiment and achieve profitability on a free cash flow basis. one of the first areas he is targeting to reach that goal, new hires writing, quote, we will treat hiring as privilege and be deliberate about when and where we add head count noting

he is looking to cut -- spend as well he says the market has lost patience with unprofitable companies. shares getting pummelled under the broader sell-off i believe that's a new record low and it is trading at nearly half of its $45 ipo price. let's bring in emil michael. what do you think? is this a ceo trying to get ahead of what's going on in the markets or trying to catch up? >> it is definitely frying to catch up if you look at last month, go puff, meta and robinhood all did layoffs or hiring freezes in anticipating of this market. this notion of adjusted ebitda being a new thank that's not in favor isn't right. i think the market has been telling us for four months now

that they are going to be more focused on free cash flow, profits, and profitable growth. >> jordache has already had two years of free cash flow profitability. you bring up go pop and robinhood. they use these different metrics as well. could you give uber's ceo credit for coming out and saying we are not going to use it anymore? i haven't heard it from other companies that use it? >> yeah. i think it's the smart to do i think it was smart in the beginning. it is smart now. because ultimately that's how companies are going be the valued in lot rung, whether in bull or bear markets it seems like the market got ahead of itself in 2020 and 2021 and were focused on not the real financial met tricks i think he does deserves credit for that. >> are you pushing some of the companies that you are invested in to start looking at those metrics? what are you telling them, that the market is dplandsing different things, especially a company like go pop, which is an

ipo candidate. it is going to be tough for them. >> absolutely. i started to feel this way in early february when we started to see real declines in how the market was valuing these high growth companies that were burning a lot of cash. my message to them was do it sooner rather than later look hard at your notice of, your cost structure. make sure everything you do from a unit economic standpoint is going to be profitable and really ring the bell on that making sure your balance sheet is fortressed and so on. i think you are going to see a ton more of that in the next 60 days. >> emile, final question what is the disconnect, do you think, between what wall street thinks uber is worth and where it is trading? i have to note that 0% of analysts rate it a buy, mean price target of 50 dollars, where it is now. what's the disconnect? >> it is funny when you hear uber talking about wall street doesn't understand us. they have been public for three

years. they had a big analyst day wall street understands the company. like when you are in a relationship and you are like, it is not me, it is you. maybe it is you. the company needs to do better they lost a lot of market share to door dash losses across the board. investors look at that and say, hey, it is great that the analyst says that but what i am seeing is market share losses in the credit card data that's being published all over i think the disconnect is in management not the investors. >> shares down today mikele a, thank you very much. with uber looking to cut costs it has other folks wondering which other tech companies might need to take a closer look at the bottom line joining us now with his outlook and perspective,lo tony. good to see you again. last week i was asking the

question, was it a historic opportunity not to buy anything? i guess maybe was it also a historic opportunity for companies not to spend much more >> yeah. thanks for having me great point. i think everyone is now realizes, whether it is the earliest start-up or publicly traded companies that balance sheets need to be strong, cash is king, making sure that if there is growth, it's very efficient and really focusing on unit economics because, you know, no one is going to escape this unscathed. >> and yet we hear from companies like qualcomm, like service now that had strong earnings, maybe we don't need to buy anything we need to to keep growing but we are looking to be opportunistic about it so there are some companies that seem to have enough resources to spend. is there an increasing bifurcation here between the ones that need to raid the

cupboards and cut down on spending and the ones that might be on the hunt >> i think even with those companies looking to reduce spending to improve unit economics there is still the opportunity to be able to operate more efficiently bedeploying capital on it. t. spend towards enterprise software so i think it's a balancing act. every company is going to be different based on the cost structure of their business and their ability to compete in the industry so in some cases, you know, we will see i.t. professionals continue to spend money to buy enterprise software giving they companies a boost. i always say digital transformation is not going away but it depends on a company's business model and their ability to operate more efficiently. >> interesting, along the lines what have cathie wood tweeted over the weekend, she believes that microsoft and zoom would be the prime beneficiaries of what she called the first rip and

replace cycle since the '90s in global enterprise. does that makes sense to you, to the degree that clients are going to start to stack their vendors that they will be survivors? >> you know, i do believe there is going to be great survivors microsoft is definitely a company that we feel very strongly about because the composition and components of its business model and the weighting towards the cloud business zoom, on the other hand, you know, i think zoom was a beneficiary of covid kind of pulling some of those revenues forward. they obviously would have gotten them, speaking to zoom, you know, but i think zoom is in a little bit more of a precarious position whereas those companies that did deploy and bought licenses for zoom they basically probably would have done that and pulled it forward maybe one or two years whereas in contrast, when we think about microsoft and their cloud business, you know, when we think about these digital transformation and increasing the ability to push more thing

to the cloud, that's a longer -- that's a longer process. you know, probably several years, five years. and so, you know, i think microsoft is going to be a little bit in a better position than a company like zoom >> well, that's the worry, right, as well for slack, which was acquired by salesforce what is the risk for some of the smaller incumbents, with their share prices getting slammed it puts them in tougher positions to kiet with the microsofts, the afl gets, the googles of the world. is that good in the long term that perhaps those large companies get even larger and the incumbents have a tougher time and maybe even some of them go away? >> this is -- i am glad this point was brought up, because we always talk about the ability for the smaller companies to be very nimble in their movement around these larger incumbents that tend to plod along a lot

more slower. however, when we think about it, we really are thinking about it within the context of the past decade, where we were in a low yield environment, there was a lot of cheap money, everyone was growing at no -- you know, at any cost and now we are seeing that people need to pull back from this growth at all costs and really focus on the fundamentals of the business. so i think what that means is that, you know, we are going to go into a scenario where the larger incumbents that have the strong balance sheets and can really operate more efficiently for every dollar that they are spending -- you know, they might even be in a position to buy some of these start-ups and fold them in. >> right and i wonder, again, lo, if that's a good thing that leads to less competition. i know a harp a lot on the adjusted ebitda measure that's not gap that some could argue in the beginning stages of a company's life they need to

focus on the growth and opportunity. how do you think that plays out over the next years in the current environment. are companies going to be able to figure out their unit economics first? >> yeah, at the very early inception of a company we still continue to look for the best companies to identify solutions to solve big market problems or opportunities. but without question, the sentiment has been changing. it even started changing last year, i would argue, into the ability for a company to do it as efficiently as possible and really focus in on those unit economics. and, look, it doesn't happen overnight when a company is first getting started. but really having a solid plan in place to be able to make sure that when those venture dollars in the private markets are spent they are going to be spent efficiently. and look, this is no different than what we are seeing in the public markets as well the public market companies that recently went public, especially those focused on enterprise, plowed, those start-ups that went public, they are now facing a day of reckoning and

everyone -- look at uber uber is even looking at their cost structure everyone needs to focus in on making sure their businesses are profitable, free cash flow, unit economics, and strong balance sheet. >> lo, as we bring this to a close, get a little philosophical with me, if you will when stocks are running up, we tend not to ask what should investors sell here. we don't ask that over and over. when the market is down, we have this -- it seems like a reflex, you want to ask, what are the opportunities? what should people buy how do you think about that? are there cases where based on the market action, things are so far down, people shouldn't buy how do you determine when it is time to get in permanently >> i think right now we need to try to make sure not to -- i always sakic a falling knife the markets can continue to go down that said, i think as long as we are very focused on the moves that the fed is making, are they going to be able to navigate a

true soft landing? is inflation kinds -- has it reached its peak is it plateauing is it going to start to come down those are the signs we need to look for in the market will we in the united states be able to continue to grow will the consumers continue to spend or is this just a reaction to everything opening up post covid? i think there are some signs that are starting to come through. but nonetheless, i would still exercise a lot of caution, at least until we get into the back half of the year and have a little bit more clarity. >> yeah. we will see whether our consumers, whether uber, whether you a kinds of people open up their spending lo, thank you. >> thank you >> meantime, the worst performers on the nasdaq 100 this morning here on your screen the ndx down 3%. down 9% over three sessions. "techcheck" is just getting ard.

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time for a gut check shares of palantir plunging

today. the company posting a mixed quarter with earnings falling short of expectation, revenue coming in higher than expected despite slowing growth from its government segment palantir issuing soft guidance for the current quarter that stock is down 20% today, nearly 60% on the year, jon. >> meantime, elon musk's pitch deck on twitter making headlines over the weekend julia boorstin has a breakdown of that and some incredible i don't know whether to call them projections or dreams, julia. >> goals, perhaps? i would say elon musk has big, very big plans for twitter this. according to pitch deck that was presented to investors obtained by the "new york times." first, musk wants to quintuple the company's annual revenue to $26.4 billion by 2028. that's up from $5 billion last year he also wants to dramatically grow the company's user base from about 220 million as the

end of 2021 to 600 million users by 2025, and 931 million users by 2028. third, he wants to cut the percentage of revenue that twitter gets from ads from about 90% to less than 50% by 2028 now, this change would come from the growth of paid subscriptions, including twitter blue musk says he wants to double its subscribers to 159 million by 2028 and he wants over 100 million subscribers to a mysterious new product x by then as well. no signs of what that is yet now, this proposed dramatic transformation is part of must have's plan to take twitter public again in as few as three years. today twitter shares are down another 3% that stock is still trading well below musk's 54.20 buyout price. analyst mark mew haney telling us musk's goals seem very

ambitious, particularly that target of reaching nearly 1 billion users. noting that twitter's sbrand already very widely known saying, quote, and yet there are 700 million users. that's the rough delta between the goal and today that have decided not use twitter. now you have to convince them that there is a dramatically better, more fun, more interesting, more intuitive, more relevant twitter on the way. musk's new plan has turned around some skeptics, though his royal high nness a prince w initially opposed musk's offer and has a 4% stake in twitter will roll that stake into the musk buyout. musk certainly seems to have turned him around, jon. >> this isn't a plan, is it? i didn't see a plan. i saw promises this reminds me of that stone soup story from way back he is talking about a 5x revenue increase that looks to me like not reducing the reliance on advertising but he plans on

increasing ad revenue two and a half times and then doing a subscription thing on top of that that sounds different from what he was saying before he also seems to say he plans on hiring more staff versus actually cutting back staff. i mean, if anybody else but elon musk had put this up, made these promises, let's say, because, again, not a plan, i think they would be laughed out of the place. >> very ambitious goals. but you are right, this is a dramatic shift at first he was talking about twitter being a utility, something about helping people and free speech. actually, he said at first said this wasn't about making money but yes i can make money we will see what the subscription piece is, and the advertising piece, but project x, 100 million subscribers this is a company that's stag nated in terms of what the potential market size is this is a company that nobody

has thought until maybe we have seen these presentations from musk that it could possibly reach a billion users. a lot of work to be done there we will see if investors get on board. >> each some confusion about what the present day market size is in some of these metrics. nasdaq is down 3.5% this morning as the sell-off accelerates. we will talk about some opportunities in this down market as we are now just 12 points before s&p 4k

session lows for stocks. the dow down more than 600 points the nasdaq off by 3.5% it is half past the hour time for a news update morgan brennan has it for us.

>> inflation expectations remain just below all-time highs. the new york fed says one year expectations fell 176% in april. gas prices are expected to fall sharply. the president minneapolis federal reserve is confident that the central bank will get inflation back down to its 2% target but in a "squawk box" interview cash cary announced it is taking longer than expected and the internal revenue service is paying out billions of dollars in interest because it is behind on meteorologist of income tax refunds the "wall street journal" reports they are pay 4g% to tax filers at a cost of $3.3 billion just in the last fiscal year >> morgan, thanks. let's look at the nasdaq, and a check on what's moving

through two hours into trade frank holland has an update. >> tough day for the nasdaq. mercado little bit ray shares down 13%, having the biggest negative impact on the nasdaq 100 as software and cloud names are pressured by high interest rates and what analysts describe as rate anxiety. cloud is cyber stocks also continuing their free fall the wcld etf on pace for its worst month since inception. data dog coming off a strong earnings report last week. if you are looking for what's, would go, it is consumer staples, the only sector fractionally in the green on the s&pite now kraft heinz up mondelez and kerric dr. pepper

also high. moderna having a positive impact on the nasdaq 100 after completing its application for use use for a vaccine for kids ages 6 months old to 6 years old. amgen and gilead also in the green on the nasdaq 100. that's what's kinds of working today. >> we will take kind of working in this kind of market speaking of, is there anything worth picking up at these levels our next guest has a buy rating on amazon, alphabet and apple and recently upgraded netflix to underperform to hold joining us now, needham senior media analyst laura martin why now? i mean, things are headed down why do you think, at least for these stocks, this is a good price? >> you need somewhere to hide. if you are in equities it is a brutal market. we like amazon's monopoly on the 15% wealthiest people on earth they are hitting a record

install base every quarter their revenue is rising and they are hitting all-time high margins. as a company, 44% profit margins $28 billion of cash last quarter and they bought in $27 billion worth of shares. so you have a constant demand for shares, which is giving you downside protection. buy apple because they are buying in their own shares with all of their free cash flow. and huge amount -- they will do 90 billion of free cash flow this year alone. >> i guess i he get it people were talking about the last couple of years it is whoible to hold cash if you had, you would be able to buy a lot more stocks right now. isn't it worse to hold stocks? >> 20% more, the way the markets are going. >> if you are looking for someplace to hide, why not cash? >> i guess, but a lot of funds by charter cannot hold cash because people won't pay them fee to hold cash so funds have to be invested in equities. >> i get that.

but people if you are allowed to hold cash because your real fresh and blood person, why not? >> my answer works as they fall, so can they rise i don't know when this darkness ends but the day it does, the stocks will be up the same 20% they are falling every day it is going to be really hard to time that bounce >> laura, it seems like a million years ago, but netflix was a big print, especially since you had long been calling for ad supported service the market has obviously come around to your point of view it actually was relatively stable earlier this morning. it was green it is since now down about two and a half i wonder what would it take to get you -- i think you are at a hold or a neutral. what would it take for you to get more constructive? >> ride, i need to see them taking steps to add sports and news what's going to happen next is we are going to get consolidation among these streamers and some of their competitors, like peacock, owned by comcast, or like paramount

plus, owned by cnbc and paramount, they all have news, sports, an ad driven tier and a free tier in some cases. netflix needs to catch up to the competitors. first movers often become complacent they have become the incumbent, complacent now there are seven streaming services with deep pockets coming after them to take away their subscribe stheers further into the streaming space, i know you think youtube would be valued at $300 billion if it it was broken out however a big miss last quarter on revenue growth. i wonder if you think a tiktok is a growing threat? it feels like it is having more of an effect on youtube? >> i agree i also think that awedos are going down and movies finally dr. strange did business this weekend the point is, youtube does $44

billion of revenue each year tiktok does one. their rate is still 14%. i just could have been 25% and regulation is a real risk for all of these faang. in the case of alphabet, we like regulation we want them to break up u tube from search. we think it would happy the values of both so in the case of alphabet, we think government regulations of breaking up that empire could be good for shareholder value, not bad. >> given that you think the threat of tiktok is rising you wouldn't reassess that $300 billion valuation? it is not material yet >> i wouldn't, because tiktok, even if it grows 30% a year is adding 300 million year. with youtube we are talking about 44 billion tiktok has a long way to go to become a replacement for youtube as an advertising platform >> laura, finally, elon musk says he is going to quintuple twitter's revenue in six years

and add a subscription and payments business that's going to be more than half of that do you buy it? >> don't cover twitter i need to say that look, be careful counting elon musk out spacex was harder, what he did there, than what he's saying he is going do at twitter everything he is saying he is going to do in twitter is being done in the streaming space. to me, he is copying people's business models. he took on a harder thing with tesla electric car company and spacex taking on the government. elon musk feels innovative, i don't know if this will be his actual plan at the ends of the day or whether this is just what he is saying today. >> all right we'll see. a, thank you. >> my pleasure. meantime, look at the wos performers on the s&p this morning. about 15% off the record high. a lot of oil in here as energy,

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bitcoin has been a major casualty of this market sell-off it is now at a three-month low kate rooney has more on what has gone wrong for crypto. it is a big drop trading at 32,000.

in that range. >> the big thing that's going wrong here, it hasn't been able to decouple from stocks. that's the big problem for bitcoin. namely the qqq the qqq tracks the nasdaq 1 money. fundstrat points this out. as a result, the firm is looking more towards its equity research for signs of where bitcoin is going. the crypto team looking for a bitcoin bottom around 29,000 si point and says it is going to be rocky in the near term they recommend clients buy one to three month puts for downside protection still bullish in the second half of 2022. what is causing it to drop below 33,000 today, arcman told me that consense success is bitcoin is trading like a levered tech stock or a 24/7 volatility index. poor investor sentiment, capital outflows, overall derisking as well and a lack of new buyers.

as for the weekend sell-off, gladstone analysts point to a high degree of urgency around recent selling that could be measured by higher fees. investors are eager to pay those when they are not as patient to wait to sell also look of concern of the so-called whale wallets and the shrimps, those holding less than $1,000 gladstone says it is not the result of a derivatives led deleveraging as we have seen in the past this is really causing pain for bitcoin investors, though. in the past month, another 15% of bitcoin investors fell into an unrealized loss in total right now b 40% of bitcoin investors are now underwater >> that's an incredible number, 40% of bitcoin investors >> even higher for some of the short-term holders f. you got into the market in the past -- >> 65,000, right. >> it is don't from the november high. >> talk about the difference

a lot of the retail investors got in, they were told about the promise on the technology side of it, that it was a long-term bet. but at the end of the day it is acting like a instrument that a lot of financial haven't had conviction in buying. >> you are seeing more long-term conviction on the retail side. there is a political tone of bitcoin being a sort of libertarian and anti-government side of things saying we want something that's free from the mainstream financial system. that's not turning out to be the case while it is trading exactly like a tech stock. i think there is disappointment there. a lot who wook lao at the ten-year chart as opposed to what happened in the last year folk at fundstrat would say if you are look informing ar long-term investment here that's the way to go. but also buying downside risk in the near term. >> find more content like this weekdays on our show, crypto world. more "techcheck" after this

quick break. stay with us joel, since kansas, we've taken our own path. we've never done what everyone else did. we took on the fear. we ignored the doubt. we loved the excitement. we believed. even when our path didn't make sense to everyone else, we kept going. we keep going. until our path is the one they wished they had taken. ♪♪

welcome back one of today's biggest movers to the downside, and i mean to the

tune of almost 15% s rivian. our phil lebeau joins us now with why phil. >> jon, we knew there would be some people who would sell when the lockup ended yesterday ford is one of those early inversors who waste nod time ford selling 8 million shares according to people familiar with that sale who have been talking with our david faber that sale went through ford still has 84 million shares of rivian. according to david, there is also 13 to 15 million other rivian shares being unloaded by unnamed investors. in the case of ford -- remember when this was a hot stock, when rivian was exploding out of the gate people said what a great gain for ford look at what's happened with rivian shares since that ipo when it got up to about $175 a share. at ford invested $1.2 billion starting back in 2019 in rivian.

that's how much ford put into rivian at one point last november, that investment was worth $17 billion. worth far less now given the fact that you have the stock coming down, what, almost 84%. so, for ford, this was just a portion of what they own and not a surprise it has been indicated. people i talked with at ford, rivian people knew ford was going to be unloading their stake in some capacity this is not a surprise that we are seeing this move by ford once the lockup expired. loose lack at shares of lordstown motors all the ev stocks are getting hammered today they have been under pressure for some time. lordstown reporting q1 results a lots loss of 46 cents per share. but the real news was during the conference call when they needed we will need to raise more capital and we haven't even completed the deal to sell our plant to foxconn to establish a joint venture with them. they have until may 18 to the make that hatch look at all the

ev start-ups if they are not 52 week lows they have touched it today or in the last day or two. they are all getting hammered here down anywhere between 6 and 13% as you look at these ev stocks, the start-up stocks. and the story here,john, is theo need more capital. almost all of these companies will need more capital they have enough for right now, but you're going to need more because you're a long ways from here to ramping up production to become cash flow positive. >> tesla also down more than 6%, but clearly not in the same boat as those phil, thank you. moving on, i spoke exclusively with ibm's ceo ar vin krishna, we covered a lot of kbro ground, a couple of data points on artificial intelligence and quantum that he's unveiling at think. what this macro env, he told meh believes ibm's consulting

business will be especially valuable in this labor constrained environment where enterprise software is a differ differentiator. >> when things become a competitive differentiator, even in tough times you use them to gain competitive advantage for an enterprise, but it is a lack of skills, either within your own company or in the real world, you got to ask somebody to help you. so hence i think consulting remain strong, even in a down market >> he also shared his own personal journey to technical and corporate leadership that journey informs how he leads, so i think investors are going to want to pay attention, and there's a lot more tomorrow. the full interview will stream out in the morning and investors you can catch some of the most rk relevant highlights here on catch up. on catch up. carl to maximize profitability. morning. i have quarterly numbers that are beautiful. and forecast revenue from every corner of your organization.

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and not just for my shows. get $400 off an eligible samsung device with xfinity mobile. take the savings challenge at xfinitymobile.com/mysavings or visit your xfinity store and talk to our switch squad today. with stocks lower yet again today, the conversation is shifting from opportunities on the upside to downside protection our mike santoli looking at some of those downside levels, mike >> this kind of a clustering of downside targets that come from very different approaches to handicap the market from technical to fundamental to historical precedent, and they all were in the 3800 to 3900 range for the s&p 500. when i wrote this up over the weekend, that was down 5 to 8% from where we closed on friday now it's looking more like down 3 to 5, 2.5 to 5, something like that and the reason for it is, if you just look at the trend line from the march 2020 low, there's just

a lot of heavily trafficked areas there where there seems to be some volume-based support perhaps or at least a gravitational pull also a retracement percentage of that whole rally. the fundamental side is where the value cushion for stocks seem to be rebuilt relative to where treasury yields are, you kind of have that on top of the 3% treasury yield. that seems to be the area, and then it's minus 20% from the highs. that's 38.50 that's kind of a cyclical or non-recession bearing market target level now, if you go through that, it actually historically means you kind of don't just go a little bit past 20%, so we'll see if any of that holds right now. i've also pointed out 19% oddly enough has been a very frequent place for the closing pullback to culminate now take a look at the nasdaq 100 etf. this goes back two years, too. last week looking at this, the relentless selling in the big cap growth stocks that have been driving this down was pointing here to that september, early september 2020, that huge kind

of momentum peak that we got off of the pandemic low. that's now been breached so on the qqq level, it's around 300. we're down below that, and same thing with the ndx. clearly still downside leadership here, it's been relentless you're seeing energy stocks get hit right now, another 90% downside volume day on the new york stock exchange. >> something we've talked about with cashen a while ago. see if we can compare that with the vix. here are the big laggards, a couple of hours into today's trade. plgoa esape t frh two-month low down to 152 and change "tech check" is back after one more break ♪ ♪ connecting to opportunity is just part of the hustle. ♪ ♪

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one more thing before we go, take a look at dish for our undervalued or over value segment. credit suisse has the bull case here upgrading the stock today that 20% dip the company saw after earnings they say is your opportunity to invest in the 5g network that they call is just too good to pass up. however, they also note that since they cannot lease out their network to the big three providers it could hit revenue and impact free cash flow for the next few years we know that investors these days love free cash flow, which leads to the bear case

jpmorgan downgrades to neutral noting that cash burn saying there is, quote, little path for investor excitement. carl, those shares holding up compared to the rest of the market today. >> that says a lot about where we are right now the ten-year yield, guys, from the highs today is off by a dozen basis points but hasn't done a whole lot for equities. bulls did defend 4k for now. let's get to the half. >> welcome to the halftime report, i'm melissa lee in for scott wapner another big acceselloff on the street how much more pain is ahead for the tech wreck, we'll debate that and the best strategies to protect your portfolio from the market turmoil our investment committee, courtney gibson, steve weesz and joe terranova, let's get a check on the markets major averages extending their losses, the nasdaq dipping below 12,000 and deep in bear market territory. we're now down more than 3% on the nasdaq s&p 500 actually flirted with the 4,000 level earlier in the s session.