future final check on markets, it looks like we'll open in the red, dow off about 148 points, nasdaq off 170 points, s&p 500 off about 30 points, and crypto -- should we show people crypto, guys what do you think? flip the board around, bitcoin at -- right there -- $28, 298. make sure you join us tomorrow "squawk on the street" begins right now. good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer david faber on assignment. futures trying to stem further losses as core ppi comes in lower. sentiment around disney, apple, downgrades with the automakers and credit card companies, tesla below $700 inflation fears fueling relentless selling on the

street saudi aramco taking the title of world's most valuable company. and disney warns subs could slow in the second half we'll begin with the markets under pressure, especially when it comes to the tech sector, jim. apple is interesting you have technicians looking at support at $133, at $118 what do you think? >> apple came out on that conference call and said this could be $4 billion to $8 billion. and china didn't open, which obviously hurts them i know that the phone companies that are providing their phones are still doing well i think that it's just part of an overall malaise of the stock market where we're cutting the price-to-earnings multiple on everything we could pick on apple there's a negative piece of hsbc about meta, about facebook today. it didn't say anything new i think these stocks are going down the same news over and over again. it is interesting if you had told me five days ago that the 10-year was going to be well under 3, i would say we should

buy apple. but the moold of the market has turned dramatically. and we're frying i ing -- tryino figure out the an log. i went to costa rica and i had to wreck my vacation with family it wasn't going well anyway. i take that back the multiple had shrunk from 16 to 13. we're not there yet. it's at 17 to 16 so, i mean, everything is selling down as we crunch the multiple and that includes apple. i don't think anything really different is happening in apple other than the fact that china continues with its miraculous zero-covid policy. we didn't think that we didn't wake up this morning in finland, historically a country that says they beat us in world war ii so we're not joining nato they want to now putin circled. china sticking with a policy that's not working and apple is hanging out

people don't want to pay as much for it as they did two weeks ago. >> yesterday was the highest volume day of the year on apple. a friend says when they start selling generals, it doesn't usually happen for one day >> the jennings get hit for a while. what happens is that they should take down oil, i like oil, but oil, the problem with putin. >> opec cutting demand forecasts today. >> at the same time, we keep pumping from the spr and we'll run out. the oil companies are not producing more oil i had diamondback. they were one of the most fervent properties in palm beach. they have total discipline they're not to ding much pumping at all if you're looking at a place to go, i'd go food, drug, oil all those are -- now, tyson had a number which show yould that food was rolling over a little bit. i thought that was fine. the drugs are hanging up incredibly because they don't have a lot of recession risk i had a great company on last

night, global founders they're working 24/7 to meet any sort of semi demand. they cannot meet they're sold through 2023. nobody wants that. why does nobody want that? because it has cyclical risk a guy who down graded ford today fro from buy to sell why at 24? he probably feels it's never too late a lot of people feel it's never too late to sell, carl sometimes it is. >> the call out of welles, both ford and gm, targets go to 33 and 12 >> they're not beyond meat, for heaven's sake. don't jerk with the cash >> you mentioned food. beyond meat and dutch bros >> let's talk about dutch. i had nice conversation with management dairy up gigantic, gasoline, labor costs up jaigigantic, same-store sales down for the first time they have not recorded that. that's confluence of things that all of a sudden makes so it

dutch bros goes from being a great situation and one you can't touch and it also shows you what's happened with starbucks. the dutch bros guys are honest they opened a lot of stores. they had dairy spike their midday had been very strong but got weak. there is a trade-down going there. people aren't drinking the i v anigh lay or the in the afternoon. once in the morning and that is hurting their numbers. did they overspend too fast? what i charged them? they said no we had never seen this kind of dow downturn we didn't think it would happen. the new stores cost too much to open but they're sticking by their game plan. the only thing i didn't like they said is they're stick big the game plan because everyone is sticking by the game plan if you go to rh, that was the seminam conference call, he said i'm not sticking by my game plan, it's not working >> right. >> we thought gary was panicked. everybody sticking by their game

plan has no clothes. you can't stick with your game plan the battle has changed >> sticking by it at meta, for example, might be getting a tweak as reuters says preparing employees for staff cutbacks >> mark has been saying we don't need all these people, we're starting to do better is zuckerberg going to say we're doing badly? john riccitiello was saying -- he calls it omni verse, they're calling it that, metaverse is mark's name. mark is a little further along trying to develop what he needed in terms of his -- everybody has -- everyone is saying there will be billions of dollars that are not going to do well here. facebook said billions of dollars. i think that facebook is ahead of the game. i think tiktok, i don't know if you used it, reels has almost caught up with it, it is

expensive to the do the meta we know that from john riccitiello, who's doing free unity. at the same time, unity is doing a lot of things that are right it's just they'll have a second and third quarter that are bad because of apple changing its allege rhythm for more privacy and they had a self-infliktded wound. you look at unity and say i loved it at 100, hamted it at 29 does it go to 20 riccitiello is pretty good >> he was very good. he talked about the metaverse and how we think about it now versus 2000 when 5% of companies had a website. >> everyone has one. >> he said this about that self-inflicted wound >> after multiple 40% reporters, top of guidance, 36% quarter, but brought the guidance down. what that's about is self-inflicted wound we did some things on the advertising side of the business that reduced the accuracy of our

models it's going to take us a couple quarters to fix and we'll have slower growth for a couple quarters ws while we fix that. >> i've done a panel with him. he had some galactic thing that was bad, a lease i said it at the time. it was an unpleasant conversation this is like our 17,000th rodeo. he was telling the truth by the way, roblox said i have $3 billion in cash, i have good cash flow, if you don't want to be with me, you don't have to. >> are you and they on your list of things you're nibbling at >> he's not as interested in making a profit as i am. by the way, i'm not being facetious. i think he's a great man he's developing a long-term plan as long as he has the cash, it's fine the people who are sticking by the game plan and don't have the cash, they're going commando and they're just commando. i'm not talking about commander

like the team that is carson wentz, i'm talking about commando i don't want that. i said i wanted to buy your stock if you're going for profitability. he said i'm going for world domination i like that. >> this morning adam jonas from morgan stanley says it's trading like people are expecting it to raise money in the future. aren't we thinking about that? boeing mentioned that yesterday, no need at the moment. >>, for instance, talking to dutch bros, i said guys, you need money they say no. coinbase says they don't need money. you know, there's that line with coinbase which i think so far is the conference call of the year, where they say, look, we want to take off the table, bankruptcy i said, shoot, it was on the table? i didn't know it was on the table. i thought there was pepper and

salt on the table. that was a horrible call the potempkin village nature they're so calm. jack del rio used to coach in jacksonville and they came in and i think they were playing the steelers and they were 27-0 losing in halftime he said, you know what, we got 'em where we want 'em. coinbase has 'em where they want 'em. >> yeah. we'll talk more bitcoin after the break. >> you can't not to g bitcoin. >> i know. disney is down in the premarket. i of had it with disney. >> what does that mean nigh i think the people picking on her didn't bother to listen to her. she did not guide down >> the notes have been net bullish this morning >> some people came on our air stock fell down to 98,e 99

that was a positive call she did not mean to guide things down they need shanghai to get better no kidding who doesn't? hong kong. made $400-plus on a movie. they are doing so well but people decided disney is not any good and they seize on mccarthy, who frankly is maybe one of the great cfos, and she says it's ridiculous, ridiculous that people think she guided down she stayed after auger left. she's talking about a robust content lineup if you want to sell disney -- my travel trust is frozen but if you wanted to sell disney, and we tell people to buy, that was a great conference call. the stock was up then there was a second conference call where she also said things are good, but the misinterpretation at disney is part and parcel what's going on with the market right now. you literally could say that

beyond meat -- shay v say they'd done well, which by way of -- they did, people "people" say they did bad annually. but disney had a great quarter much better than expected. disney plus is going to do fine. the street has decided that disney said things that were bad. now, there are so many companies that say things are bad, dutch bros, i don't need disney, which didn't say things are bad, to be sold if you spoke to jim farley from ford right now, he would say now, now you downgrade me? how about at 25? i almost yield 4, the lineup is better than ever, we're sold through and now you want to take us down to a double sell the downgrade of capital one and axp out of wolf today is based on a now 80% of recession in their view that's what's changed. >> capital one raised their credit card rates. i don't care for that stock. american express is doing quite well and they have this big gen-z component.

i spoke to steve square rhee eight days ago and the numbers are great. in eight days it didn't go bad dutch boys did because gasoline went up -- dutch bros is not american express. steve is having a good quarter i was out with my friend tony yesterday from doordash. the biggest problem restaurants have is you take out, okay but the sign-up for cards for american express is extraordinary. so if you want to sell american express because of some analyst note, you have to dole with the fact that steve has done an amazing job and business is good right now business is good and businesses get bad that's where we are. if mark zuckerbergwere sitting there, which i doubt would happen, i would say i can get any senior engineer in the world. why should i hire five junior engineers when i can hire a senior engineer? we are in what i call -- we're

out of the great resignation period >> oh, yeah. >> that just ended now we near the great application period >> the great application >> people are applying everywhere when you're laying off 2,500 people at carvana, i got a car for you, partner >> claims at 203 still relatively muted >> don't worry it's wrong this is the beginning of the great application. jay, listen to me, i know you're jammed up, but this is happening right now, so get ready. it's not 2018-19 where you kind of said this will go in lock step, i don't know, like ellen degeneres, but we have to recognize the period of the great resignation ended yesterday, okay. it ended yesterday >> he said out loud he wants to reduce the vacancy ratio to -- >> jay is still my hero. look at the 10-year. i have to tell you, get used to the term the great application, which i coined this very

morning. just like when i came up with faang, the great acceptance. do you think there will be anything my mother was saint, but they never wrote a book about her >> we'll make sure you get credit, jim. >> thank you >> when we come back, rough morning for beyond meat, shares tumbling take a look at futures as stocks are on pace for the longest weekly losing streak in about 11 years. ckn miteba ia nu

beyond meat tumbling below the ipo price after posting that wider-than-expected loss in a revenue miss, facing stiffer competition. this is what the ceo, ethan brown, had to say about his strategy on the call >> i know there's a lot of hand waving and a little bit of wringing of the hands regarding some of our quarterly results, but what we're doing is managing this business to create the longest-term growth opportunity. and these are growth opportunities that i don't think investors want us to turn down it's just going to be noise in the near term. ism comfortable with that. i think the market will catch up with that. but we feel good about where we are and, you know, on pricing we're not going to deviate from that >> no. no >> yeah.

>> barclays comes out with a piece. as things go down, other things are becoming more -- >> intellectually rigorous >> lenny bruce don't jerk with the cash, downgrade the ew by barclays domestic and international food sales climbed 8% i had cisco on this week and those numbers are stratospheric. they're going up so much tony shu would tell you numbers are going up so much and unfortunately ethan's are going down so much it's not a good story. i wish i could say it's a good story but i said it's a good story, but this is one where the numbers didn't come back and they came back big for cisco. >> yeah. we've been talking about the differential between the cost of eating out and at home i see today evercore adds costco to tactical outperform >> i thought that was a great call the fact is that people are

spending a lot more time eating at home, they're ordering, they're ordering liquor at home. the younger, the people that co-work from 24 to 28 right now was spending that's -- maybe you know something i don't, the 24 to 28 group is buying the afternoon at dutch breauxs just slowing i find there's a lot of people going out, younger people going out and spending their heads off, and older people are ordering from doordash and ordering liquor, and there's kind of the new world. >> right >> v you said you can count the number of ipos last year and a half that you want to buy here on one hand, right >> i found one >> on some of these names like beyond, when we are going below ipo price, does that mean anything to you? >> no. it means nothing to me they should have had -- ethan brown said they'd pick up when you had the return to the office, but we never had the

formal return to the office. cisco had a big pickup mr. hurricane is the largest food service company and their business is -- that was the best upside surprise this week. why didn't ethan brown's numbers go up? >> you know, i don't know. >> is it one of those situation where is you put on the dog food can "new and improved" and the dog can't read i don't know i got to ask the guy -- i bought a new silver lab the you put on the can "new and improved" does that mean the dog likes the food more? no i like the caramelized i had the impossible burger. i posted a picture, san francisco in the oracle stadium. sorry, it was better i had gmos that didn't change a thing. i'm the same guy i was before and after gmos the producer, the sound guy, they don't care. we are doing temperature here! we are doing tv here! will you focus >> we'll get cramer's "mad

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laggards including the automakers ford and gm. underweight, cutting targets roughly in half. then tesla flirting with the 700 level. hasn't traded below 700 since august it has a chance this morning the opening bell is in five minutes.

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days people are losing money i don't want to have a hangman's attitude, but there's a piece out of wu capital, which says sell bed, bath & beyond. there was a much heralded turnaround in october of 2020, but it's a definitive downturn they're saying that the punitive savior of gamestop, losing his ammo, is not a reason to buy this stock 9.8 position wu says the bloom has come off the rose and bed bath cannot be taken private this a leveraged buyout and the buyout is much more valuable than the entire company's valuation. they're saying reiterate sell as it's time to seriously start thinking about the end game. i have one nearby and the new ones look good, but the idea that cohen is going to ride to

the rescue of bed bath when they claim he has problems with gamestop, they say it's not going to happen. ethan cohen, we're talking about the final microstrategy, the ethan cohens, the ethan browns, we're kind of at the point where the great man theory is failing us >> yeah. we're definitely paying attention to microstrategy, down another 8% >> i didn't really care for ethan cohen's last move, but that's different from this >> the "mission" movies. talk about retail in general, jim, two names trading well are tapestry and dillard's the first april quarter print we get. >> people thought tapestry would have a good number they've done a lot of things that are right they have a very good manager. but the stock is down 34%.

>> one of the components that went down yesterday. >> jay has to stay the course. if it were 75, the conversation would be, you know what, let's not sell it. [ bell ] >> the opening bell here, realtime exchange on the big board. ferguson and microsoft with apple, as we said, because of google, we'll talk to people there. >> when you speak with people at google, they were shocked that anyone thought youtube would not be banned in central and eastern europe, almost as if people realized its business is not usual there. sometimes i feel it's too far from us to realize the impact. still a couple pontoon ridges

last night, ukraine, and i said, geez, what are they going to do, go after russia itself who knows? finland encircles. this morning phil lebeau passed me a note about ford we have to double down with ford bill ford says you can't manage the business for stock price build a great, enduring company. from ford, i like that i don't know if i want that from coinbase because coinbase -- am i picking on coinbase? of course. ford is a real company, and bill ford is saying the right things. they have this warranty problem. jim farley talks about it. they have the best car lineup. i don't want to sit here and say i want to throw out ford i will say that coinbase is not at an attractive level yet >> on ford, we didn't mention the reviews of the f-150 lightning yesterday from wired, from the verge calling it a great truck, good luck getting one, but it's a great truck. >> not that many i was in one and i think it is -- i was going to say electric, but that's too stupid.

it's so great. okay i have my maverick and i love my maverick i drive it around. everybody says, whoa but my wife did test-drive the hummer and she said that there were people saying you go, girl. now, she liked the term "girl" because when you get to her age that's a great thing to be called, girl but, i mean, that also didn't come out exactly as i expected but the hummer is cool unfortunately, mary barra has that new teletraveler shareholder, cathie wood, and she'll come out and i don't remember, you know, like whooo-whooo. no that's a go gi yogi berra image. >> a few of us got it. >> as soon as she got in, mary b barra said let's agree >> as for ark, yesterday worst

day since 2020, down 10. they did buy more coin yesterday, jim >> yeah. >> now their ninth largest holding. unity down double digits yesterday. >> the amount of what she's doing is unrivalled in terms of how little listen, she comes on and says everything is really just terrific take a long-term view. disruption is long term. but you know what, there is no long term in the real business there is no long term because ask elaine gaz really, she had an ugly call for the crash in '87. just, you know, you're kind of now out there. >> a lot of the travel reopening trade, jim, is fading today. >> very much so. >> carnival, disney, royal caribbean, leading the s&p lower. >> royal caribbean call was -- we jumped higher than on the

call for norwegian i thought that was odd and made no sense we're all on michael sailor watch because his cfo said is 21,000 is the margin call. >> right >> it's going to be very difficult. >> we got to 23-5. sorry. 25-3 overnight i see steeple has a new target on bitcoin at 15 k basically, their note last night was we found a use for bit coin. tell us when stocks are bottoming. >> don't forget about the pepsi deal now, what i think people have to recognize is there's systemic responsibility from tether i went on tether for ten nights and bumped into someone i went out and said please stop talking about tether i'm sick of it that was a major mistake it's a systemic risk in the

system obviously anything that is stable point is a risk gary knew this he was run over by all the people, you know, fears, what is it, fortune favors the sixers in game six no we have to be more honest. there are so many ads. they wanted me to wear bitcoin everyone is all in bitcoin and it's just not working. but they are so nice and compelling people that, you know, it's kind of like they say to you, hey, do you see how much merrill went for you can't sell a merrill, take a merrill into a gas station >> that was quite a price on that sale. >> 10 mill in 1988 >> fuller was asked yesterday about coin and he said it was systemic 75 was not the best case

>> i'm a bullard man people are lincoln men i'm a bullard man. my hair was so much like bu bullard's when i was, like, 19 >> really? i've seen photos i wish he were here too. i wish there were a lot of people here. i've got the molsoncoors ceo on tonight and i had cawfield and i shook his hand -- i didn't really, i fist bumped him, but we need that i have gavin hattersley. watch him tonight. i'm putting him at the top of the show in good times and bad times people drink beer. >> yes >> he's got this stuff, part seltzer, it's killer i told james quincy to do that a long time ago for coca-cola. >> you know the business >> you can take water up 8 bucks and the gen-s guy is like how

much is that water 8 bucks? i'll take five >> let's see how long that lasts. goldman with a new year end target on the 10-year at 3.30, jim. would you take that? >> really? >> would you take it, though ending the year there? >> two more rate hikes do them. we have to get this over with. but we're dragging it out. and that's what causes apple maybe to trade the 125 listen to deirdre, think it's so great, bile out there soon in that office. the numbers at alphabet are fabulous cash is great. it's big cap everyone likes to write now about how big cap was too big and now it has to get small. what does that mean? the 10-year has to be 3.30 people are saying things and ought to be doing more homework, calling more people, and realizing that we have layoff,

you don't get the 3.30 layoffs, the great application is here. the great resignation ended. some people i've been talking to about nbc, i only want to work three days a week, but if you hire me, i'll work six >> i was going to say, the labor cycle has not been repealed. at some point, the leverage will shift. >> i used to say in my hedge fund, there are a couple religions in the world and they each have a day off. you pick that one. otherwise you're going six, you know i know a lot of people working for me, we're going back to these days, believe me the great resignation over people at carvana, are they sitting around playing ing draftkings, who's picking the over in the sixers game? they're applying >> let's check in on disney real quick. down right around 100. amc is lower.

they suppressed it to keep attendance >> you have to listen. i don't know what people do when they go home they wreck my home life. i don't understand when i listen to a call like disney and sell it, i don't know what i'm doing. i mean, why do i do that you know, i can't eat an choefis. give me anchovies. there's craziness going on no one listened to that call if they did, it was a great call >> i'm thinking back to when the parks closed when covid began. dipped down to 79 or 80.

>> while espn is better, disney plus is better, but they did spend $71 billion on fox now, by the way, that was not chapin he didn't do that. >> but you now regret that deal, don't you? >> i think it was one of the more stupid deals i've seen. >> you regret they did it. >> absolutely. we have to sometimes analogize to sports when you're trading three draft picks for carson wentz. that was just an ill-advised trade. that buy of fox, you cannot defend it as the need to have content with disney plus they paid too much murdoch was the winner and the balance sheet got wrecked by that deal that's why even if you have a good quarter they can't put the numbers up that was a horrible deal sometimes people do horrible deals. i know you like to talk individual names more than the indices, but we're at 3,880,

3,855 would be a 20% bear market >> we have to see that >> you think the headlines in the next few days will be bear market is official >> it is in 2011 we got to 19.9, in 2018, we got to 19, but then again in 2000 we have this bifurcated market where the s&p started going up the fourth week of april. the nasdaq kept going on that's more likely i'd like to see the financials stabilize and they just don't. they don't it's a really bad market, carl there's no denying it. i will say when you go around town it's not like people are in denial people just know that this market is bad. sometimes you have to ride it out. i think you ride it out. get rid of things with bad

balance sheets stop fooling around with bitcoin. robinhood is at 8 bucks not because it's doing well or stock split. a lot of people completely blown out, younger people like in april, may, june of 2000 who won't open up their statements you have to great application because people need jobs now the sea change is happening. can it happen as fast as we'd like for the stock market? no you have to have more people who liked ford yesterday and hate it today. those people have no shame, but they're not ridiculed by anybody so they just go do it. >> yeah. >> honestly, disney is the center piece because the conference call is very good, the aftercall good and nobody cared. >> coinbase down another 20% today. >> today >> yep down to 43 >> remember, they took bankruptcy off the table, carl >> yeah. >> they took it right off the table. in the credenza? where did they put it? >> and robinhood down almost 4

citi i think said they sell on a valuation around td ameritrade around 15. make sense >> 15? like a 200% premium? >> that was back when the stock was closer to -- >> they still have a lot of people a very good cfo, jason warner, very nice to talk to okay you can't throw away the disneys. coinbase i'm not calling a staple yet oh, staple that was bad i'm sorry. i didn't mean that >> watch alphabet today after the google io developer's conference deirdre bosa sat down with them. >> we did get lots of big announcements we were

anticipating, shiny new devices like that anticipated pixel watch. we also got an ar glasses protocol and more googley under the radar technological advancements in areas like artificial intelligence and language processing. as we saturday down, it was hard to ignore the markets. the nasdaq had just closed down another 3%, big tech hit hard again. so i asked pichai what alphabet is seeing from its data, how vulnerable it is to a potential recession. he said that they are uncertain, like everyone else, but true to that calm demeanor we expect from him, he said they will remain nimble. have a listen. >> we are continuing to invest, but, you know, we've obviously, given the uncertainty, paid close attention to it. as a company, we need to do something differently like we've always done. we do this responsibly >> the key word there, "responsibly." as most know, google has an

enormous cash cow, more than $150 billion, so they can't afford to lose money to compete in cloud, invest in moon shots, he still plans to hire employees this year and spend billions on infrastructure and security. alphabet shares have lost a fifth of their value this year against that tough macro backdrop and high inflation. pichai says it will take more time to work through >> i think it's going to take time to work through a lot depends on -- i don't think people are seeing relief in certain sectors, but then you have other new areas which are showing problems, maybe due to supply chain constraints >> so, guys, even as consumers they past the covid pandemic pichai says it's a growing concern for the company and the broader market to your discussion earlier about the big-tech sell-off, that speaks to why investors in these big names are nervous. that full interview will air late they are morning in "tech check. back to you, carl. >> it will be great.

he's a seasoned pro. listen to everything he said understand the way advertising works these days everybody does this. they try to figure out where to go and you come out of the subway or wherever you are and say i want the best mexican nearby and so say it sends you to my place. what happens is i get a run that shows you that blue line of how many people did it and came to it and you can get the roi it's so much better for google total faith in google. it gives you the best of anything i have ever seen. and ruth porat knows that. she's the cfo. you can charge me more for it. to that's what jokers do i think the world of those guys. that's the first of the faangs that we'll buy >> really? >> yes >> indeed, also news about a pretty hefty investment in infrastructure, clearly not done betting on long-term bets. i thought that part was so fascinating.

they're spending nearly $10 billion in infrastructure on this hybrid work plan, including physical office space as well as the cloud infrastructure, data centers to allow people to work in the office or from home and then you contrast that, guys, with a meta, right, that's spend $10 billion on the metaverse. we don't know what that is, but it is something that doesn't exist physically they're building the technology behind it. it's interesting to see where the companies are putting their money. i pressed pichai on whether or not they would have to scale that back, they said they'd remain nimble but no, they are pushing a head despite market turbulence and inflation on an economic front >> people need to know, great interview. 2 1/2 years i've tried to get that interview you are so good at your job. i always try to poach him. no >> you have so many of the good people down here they love you in san francisco anytime. >> i love coming out there to see you because you are so good at your job.

>> first for faang we'll watch for it >> tonight the stock that won't go down in a straight line there are things that look good to me. disney, the people who weren't on the call hated it those on the call, you know it like i do, it was a good quarter. >> we'll watch disney. back to 102. tesla back to 718. dow cut its opening losses roughly in half. a reminder, you can always get in on the cnbc investing club with jim, cnbc.com/getintheclub. >> the goldman call. what did i -- hey, that's like bob dylan. you don't need a weatherman to

know which way the wind blows. you do he got that one wrong. desolation row who wrote "wagon wheel"? >> who wrote it? >> i don't know. >> i know the darius rucker version. >> bob dylan but he left out all those cities winter blows who wrote "wagon wheel"? >> who wrote it? i know the darius rucker version. >> bob dylan, but he left out all those cities we'll be right back. ♪♪

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we're going outside this morning, and i tell you, one of the ones we'll be talking about is diamondback they're turnreturning a huge am of capital it's a simple faang, the only faang worth buying micron could be important. lamb research is going up. and moulsen coors had its first good quarter in many, many years, because gained hattersley knows how to run it. i went to dinner with him, and i said, i'll have a mezcal, and he said i'll have a coors light i've decided to go into overtime, do the show sunday

from my house. i have some friends -- >> like when squawk used to do squawk weekends. >> this is one of those moments where people hide under the bed and are scared or help people. i'm going with maxmo help, and so are you. >> the viewers are gtel.rafu everybody needs it. >> we're going to crush it. when we come back, more reaction from apple today, losing its title today as the most valuable company. dow is down 230.

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good thursday morning. welcome to another hour of "squawk on the street. david faber is on assignment today. inching closer and closer to an official s&p bear market, just 30 or so points away we're going to watch that as we continue to monitor disney, tesla, even as core ppi comes in a little cooler than expected. >> we're 30 minutes into the trading session.

here are three big movers we're watching, starting with beyond meat plunging. ceo ethan brown saying results were impacted by costs associated with strategic losses that will be paying off over the long term. plus coinbase extending its sell-off stocks down another almost 15% right now, down more than 80% year to date. and the auto, both ford and general motors getting a rare double downgrade gm is down more than 6%. we'll have more on the sector a bit later this hour. in the meantime, turning to the broader markets, on pace for a sixth straight day of declines mike santoli is here to monitor the action with us, talking about how this has been a drip drip, as opposed to a flush.

>> this is the slinky going down the stairs effect, i call it we're now getting into the zone where a lot of eyes have been for a while. you mentioned the minus 20 level. there's been a closing sidelines that culminated in pullbacks so in terms of the way, it's a soft landing, even if the fed has to not gloat as far as things go, probably looking at a summer of another full percentage point at height, even when some of the growth rate stuff is not looking good. also the portfolio stress from the biggest and best companies of the world for sale every day, i think has a lot to do with what we are seeing tactically, getting there, getting to deeper oversold matters that should

matter for a bounce, but arguably not quite there. >> which brings me to some of the leaders today, a lot of them in apparel, retail, housing. are those the things that conote value? >> i think they probably connote some value, but rates are coming in a little bit. i don't know if i'm that confident in extrapolating themes at this point if i look at the list of s&p 500 stocks, down less than 10%, it's very much staples, utilities, energy, and a smattering of that long-term quality stories. >> mike, i mean, it's not just equities that are tumultuous these days. >> it's also the bond market, fixed income, these incredible moves that we're seeing effects and currencies as well, and cryptocurrencies, playing out among these different markets.

i know i asked you these questions, but how much of this is tied to leverage, how much to margin calls, forced selling >> it's very difficult to pin a number on it, but in terms of just -- it might as well be deleverages/liquidation type of move it's behaving that way, but is it systemic? will it actually st ly stress t system i don't think that's the case. i think we're seeing capital buffers across all asset classes are getting shrunk, so therefore if you take less risk in crypto, you're in sell motor, taking losses there, it leaves you with less capital to rotate into something else it means selling the stuff that has held up better, because you want to plug that hole in your port portfolio. i think that's the self-feeding process that you get into, to some degree, and always point

out the co-ownership of aggressive earlier stage, with crypto, it's a lot of the same dyn dynamics >> as we watch the vix here, it's the seeming breakdown between vix and stocks some argue there could be more institutional selling going on than we think and those sellers aren't interested in downside protection >> i don't know how that would work to me it's more about the orderly nature and just the resignation that people have, i guess this is the market we're in we've been doing it for five, six weeks. over the course of six weeks people get hedged up when the vix is 30. there's also a variation in the index, meaning the stocks that were holding up, you don't get

one of those weeks where everything goes down at once when that's not the case, when you don't see the correlation go to one on everything, it suppresses the index volatility. i think people would love it to break one way or the other have the fever break or let's spike above 40 and get a cleaner signal. >> mike, good start. thank you. let's turn to apple this morning. stop is down double digits since the start of the week. joining us, tom forte, senior annual at d.a. davidson, talking about the last of these generals that are stand ing. is this more of a positioning story? >> on two fronts, what you're seeing right now is clearly the tide is going out and now it's starting to affect the big

boats. from a fundamental standpoint, which was significant when apple suggested a 4 to 8 million negative impact on the shutdown of manufacturing capacity in china. by way of compares son, they had -- and the december quarter, seasonally, a much larger sales. what kind of discounts did you put on your model when you had that incremental information on the china expense. although it's purely anecdotal, tapestry thinking they think the lockdowns may expire june, does that seem reasonable in the way you're looking at apple from here on out >> sure they said the good news is that the manufacturing pat had come back online, but i think when you think about stocks in general, and you ask me about what haircut or things of that nature, what you are

seeing is we're doing discounted cash flows, and in many instances we've had an interesting discount rately 1100 basis points with expected sales and profits, it could have a negative impact, even on apple. >> tom, the $150 level for apple share price is being watched so closely. we broke through that, now trading around $141 and change are there other names you would be buying at these levels? >> earlier this week, more of a spin name, when they reported excellent numbers, benefiting from pent-up demand for concerts, live events, things of that nature. i have other companies in that

space. i still think roku at those levels is quite attractive on the shift from linear television advertising to over-the-top. there's enough specific challenges at apple and amazon that have me nervous >> actually quite a few components are trading well. you mentioned roku, sonos is up almost 12, how do those things feel to you? >> sonos is a good example from a supply chain standpoint, but at a specific level, they initially added some capacity in malaysia, when the tariffs first came out now adds capacity in vietnam their core customers have slowdown a willingness to wait for the product, so more insulated from inflation i think that's why you're seeing

a double-digit move in sonos today. >> tom, thanks -- another down day for bi bitcoin, our kate rooney has more. the big thing crypto investors are watching this week, a collapse of a controversial cryptocurrency is having a wide effect, bitcoin fell below $25,000, investor sentiment is really shaken and there's fears of outflows from some of the bigger cryptocurrencies to prop up the price of the smaller tokens that are crashing now the one in focus is terra/u.s. that broke this week and has not recovered. it fell to a low of 23 cents

yesterday. a related currency called luna is down 90%. traders tend to use them to get in and out of crypto units quickly. tender, by far is the biggest one, as far as the -- that is losing the -- this has happened before, but the fear in this environment especially would be a run on the bank, if traders all rush to redeem their tether at the same time and whether tether can hold its -- is a signal of -- tether said it's honoring all redemptions without a sweat drop, quote. and a charismatic.

it includes galaxy digit at, pantera capital, coinbase, and finance labs as well sources tell me the fallout right now is -- the likely outcome is more regulation in this space >> it is spreading you've got this idea of stable does that coins, quote, unquote, breaking the buck. and you have it become pointed out by strategists between bitcoin and the nasdaq, and the spillover to the crypto-related stocks even tesla, to a certain extent, some strategists have suggested has been under pressure because of a correlation to bitcoin. i guess, in terms of the entire landscape, are there areas outperforming right now? is it just a free for all in terms of the downdraft

>> it really highlights the overlap between traditional markets, either holding bitcoin on their balance sheets, and the idea it's become a more main street accepted investment, at least in the case of bitcoin some strategists are looking at bitcoin's an indicator of where the nasdaq is going. it's actually outperforming, because of the institutional investors, there may be something that are waiting on the sidelines, seeing this as a long-term opportunity, so bitcoin is the outperformer, but dragging a lot of the crypto-related stocks with it. >> kate rooney, thank you. still to come, we'll break down disney's latest quarter, the blue chip stock slipping, looking at the major averages, which are largely under pressure

against this morning, though coming off the lows of the morning. the s&p is down, 3928, the nasdaq is moving between gains and losses, right around the at line. we have a big show ahead don't go anywhere.

welcome back to "squawk on the street." disney shares sliding this morning after reporting results, down 2% right now. disney plus seeing better than expected subscriber growth, but

forecasting the rest of the year might not be as strong theme parks taking a hit from covid problems you have a hold rating on the stock. let's start with your takeaways from the results we got yesterday. >> i thought it was a good quarter. it came in line. subs were better in the u.s. on disney best. hulu was a bit softer, but we knew parks would be strong >> so what would it take in general to move you off the hold rating >> right so, if you remember, they changed their strategy from a first roll-out investor day to a

second they have a bigger plan with more subs, more entertainment content, more sports i'm not convinced that's the best idea. i asked this on the call last night, if they're rethinking maybe their view to come out with such a huge idea, right they want to be above 40 million subscribers, and i'm not sure that's the best use of their capital, right i think they play to the super fans, maybe have a smaller target adjustable market, but maybe higher prices. that's probably a better outcome for shareholders, right? i keep asking that question, is this the right path for disney as the company keeps saying, we're happy with where we're going. >> so, rather than the race to acquire more market share right now among the streaming players, like disney, like netflix, other

media companies, it's more about path to profitability now? >> yeah, disney has a unique set of assets, right that's why they launched so well, why they have such great pent-up demands. my wet weather is further into hbomax, apple, their returns go down they pretty much unveiled the strategy, that makes sense to me i know it could result in lower subscribers, but probably a better business than where they're going today. >> the debate regarding the qualitative nature, michael, is the family-friendly disney umbrella an inhibitor. you're not going to get horror, or sort of adult content you get on rival streaming platforms obviously that's not going to change, right? >> carl, that's right, but look

how quickly they got to over 100 million subs maybe you can say some of that is from india, but they have a great hand my worry is their churn on investments needed to get to that next level, which may be more -- not as profitable a path as if they played to the strength, but to morgan's question, is the stock has come in tremendously. we can value it on more traditional metrics, so entering the zone where we can get to that zone we look for. in the meantime, the theme parks, the revenue doubled why is that not getting more attention? >> stay at home, return to norm at situation, where streaming is concerned, by the way, not just at disney, on the other hand, at

theme parks it's a reopening play >> no, that is we've seen theme parks before. we have an idea of what the margins look like. the move in the stock has been what's the value of streaming? it's really about how do you value streaming? what do you do to stay profitable >> that's not a surprise to us it's really about how the market is grappling with the end state of streaming looks like, and what is the return on capital of that business, right that is to me the volatility on the stock. it's not the park business it just is not >> michael, thank you for the insight. >> got it, thanks. you've got to be quick kristina partsinevelos explains. >> quick enough to outrun the shorts stocks with massive shortages

have the opportunity to pop in an upcoming rally. why? those investors will have to scramble to cover their short positions, and buy back the stocks we have a list of names and we're looking at three particular criteria. these trades i'd like to point out are for those constantly monitoring the markets top of this list, corsair, with shortages of -- this is a company that the street is bearish on then to meme mania stocks. of course they're in the top ten. gamestop has fallen the furthest, plunging over 70%. you can see shares right now at $99.75 keep in mind gme also announced plans for a stock split.

and then the other meme names, restoration hardware, rh/gap, and research for morgan stanley found that all pandemic trading games are actually wiped out as of friday, may 6th that's over six days ago, and maybe, maybe just shouldn't by holding these for two long even one lone solar power equipment maker worth 22% of its float is shorted i know i went through a big list head to cnbc pro for the whole list gamestop halted a couple times now, i believe, for a volatility the last trade up almost 25%, bounced off, now close to 100.

we'll watch it closely today. coming up next hour on "techcheck," don't miss our big interview with sundar pichai when you become an expedia member, you can instantly start saving on your travels. so you can go and see all those lemons, for less. (vo) everyone knows to get wireless savings, you need to be on a family pla- ...oh... (jane) with visible, i get unlimited data for as low as $25 a month. no family needed. (vo) i guess i spoke too soon. visible. single-line, unlimited data as low as $25 a month. you know, you hear a lot about celiac, but i never thought my dna would tell me i had a higher risk for it. i mean, i'm a food critic. i literally eat for a living. this can be a game changer. do you know what the future holds?

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welcome back to "squawk on the street." the arkk rebounding after yesterday's 10% decline. it's up 6% right now, still down almost 60% year to date despite today's move the top three holdings, they're all down double digits for the week we're going to take a quick break right here and get a quick check on the markets as we do that we're having a midmorning rally of sorts the dow slipping between gains and losses, right around the flat line, the nasdaq is in positive territory stay with us ♪ ♪

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finland's leaders are calling for nato membership without delay, paving the way for historic expansion of the alliance neighboring sweden is. north korea firing three short-range ballistic missiles into the sea, according to south korea and japan. this is the latest of a series of demonstrations after is the country confirmed its first covid case evacuations are being ordered in california, as at least 20 homes burned in laguna nigel neighborhood

so far, there are no injuries to firefighters or civilians. carl, back over to you >> we'll check in on the broader markets. we did get a bowen dow had a loss of about 357. the s&p went green momentarily, a lot of the meme names are getting a bid this morning andrew, i don't mean for you to respond to every individual tick, but i wonder what you make of some of these bounces gamestop is up 33, tesla up 45 this morning i think ultimately lows is when the exhaustion is done in the high flyers, and no one wants to buy the diplomat

usually when bubbles burst, it ends with exhaustion, not with a desire to try to buy the low even though the drawdown has been -- >> sure, that's true, but i don't see the classic signs of could pit lace yesterday high-yield spreads blow out. those are usually compensatory lo lows i think there's plenty of reasons to be positive, i just don't think we have hit the lows yet. >> margie, how do you see it yet? >> i wouldn't be surprised if

the fed pulls back from the very aggressive rhetoric and targets something much more mild right now you have to like the equity market. outlook for earnings looks pretty good. even junk bonds look attractive here >> so, andrew, since you see things differently, at least in the near term, how would you be counseling investors to be positioning themselves right now? >> i don't disagree with ma margie has said, look, when you have a fed reducing liquidity, the tide goes out and brings out

the most speculative elements of the market you're seeing that inevitably, there is collateral damage that inflicts the broader market it's at that juncture that you have to go in and say, should this stock be down this much given the fundamentals so i agree that absolutely, this is a wonderful time to find companies where they're down a lot, but their businesses have not changed nearly as much that's the process, the bottoming process that we're going through. all i'm saying short term, i'm just not sure we're at the low this is how you make money you buy into companies where their stock prices short term have diverged dramatically from the fundamentals i think it's getting more and more attractive. we're finding a lot of great opportunities. >> you know, andrew mentions

crypto and stablecoins, margie, yellen is in front of the house now, saying this week has shown, quote, real-life demonstration of the risks of digit at assets. thos i wonder how much of a threat you think it poses >> i don't think it poses a big threat that's one of the examples like spacs andother areas where you will have excesses in the system it does not necessarily feed over into the real economy the real economy is in great shape. the excesses are really in the financial sectors. some stocks are too high some junk bonds are too high, so i think those are really irrelevant to what's going on happen you can't quite -- as being on the brink of a real collapse

that's why we like the market here >> andrew, that was a cliff-hanger of an answer. how about some names what are you actually buying right now? >> i've been rerunning core strategies, and we've been tilted more toward value stocks, knowing the growth area was overpriced, but, you know, in the process of bringing down these money losing, long duration tech stocks, they have brought down some quality growth stocks i think the area listing, taiwan semi, louis vuitton are two great leaders that have been obliterated and their estimates have gone up silicon valley bank is another stock we like. it's not necessarily in just growth or just value i think you find market leaders

that are generating good earnings, that actually their businesses are strong, and you've got to say, gosh, these multiples are attractive it's a combination, but you want to stick with companies that are generating earnings and cash flow even though some of these stocks are down 80%, if they're still trading at triple-digit multiples, they could drop another 80%. >> pretty interesting market day. thank you both for being with us. look at amc and gamestop and hood today, surging for various reasons. it was citi earlier in the week that said it is acquired for valu valuation. clearly there's some buying here

this morning >> definitely an interesting discussion well, after the break, tech names have come crashing back to earth, but not before executives scored a big payout. check out the laggards which are poised for losses. signature bank caesars, phrwegian cruise lines, and enase energy we'll be right back. to adapt in the changing world, you could hire a professor of theoretical mathematics. we all know this equation, right? he'd crunched numbers day and night. that's it. to maximize profitability. morning. i have quarterly numbers that are beautiful.

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what's it like having xfinity internet? it's beyond gig-speed fast. for a solve problems like a genius world. and it can connect hundreds of devices at once. that's powerful. unbeatable internet from xfinity. made to do anything so you can do anything. several corporate insiders and executives managed to avoid the current tech wreck with big payouts. robert franks has that story. >> good morning, carl. the stock fortunes falling for some, but some took cash off the table. peloton shares down 90%, but the

ceo cashed out $119 million in stocks, insiders selling over $700 million over the past two years, according to smart ins insider. carvana, the father of the ceo, they jointly control the voting shares they sold shares. ceo alex karp selling over a billion shares on his own. pe peter thiel cashed out just before the decline and coinbase, brian armstrong sold at $389 a share, cashing

out nearly $300 million in shares roblox insiders cashed out before the big drop. david bazucki selling out $260 million. these guys were not alone. 2021 was a record year for insider sales, with total insider sales of over $170 billion. so all of these very well timed. guys >> we did take note of it back at the time. this week we have seen a few starting to nibble, but nowhere near the numbers you're talking on the sales. >> that's right. larry culp and ge phiing about 5

million, uber's ceo buying about 5 million. so showing some confidence there, but nowhere near the hundreds of millions of dollars that we saw on the sell side. >> robert frank, thank you during may we're celebratingation american and pacific islander heritage, featuring some of our teammates and contributors here is the deputy cia, dan suzuki >> my advice to the community would be don't be afraid to stick out. prove to people that you're unique, and much more than your racial identity. don't forget it's a two-way striae just as you want to field included in all of society's circles, make sure you include others in your circles how do you expect them to see the beauty of your ctuulre and

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despite headwinds, he does not expect to see a significant downturn in housing. building products supplier, builders first source recording record sales dave, great to have you on the show. >> good morning. thanks for having me great to be here. >> why don't you see a slowdown in housing >> the demand is still very, very robust in our industry. we just reported earnings earlier this week, core organic growth of double digits, our single family organic growth outperformed the market by four times. i think there's a couple things going on here that people under-appreciate first of all, this industry has been underbuilt for the last decade or more, to the tune of 2 to 6 million units for single family if you take the midpoint and assume the starts were the same at 1.1 million for single families, it would take a decade to work off the backlog.

that's one factor. secondly, the underlying demand is much stronger than any time in the last 12 years the key reason we had about 82 millennial in the home buying market in fact, during the depths of the last recession, i think there were about 23 million people in that age range right now it's about 27.5 million, next year over 29 million. the demand is strong, and the capacity remains constrained >> so housing and real estate in general is one of the most sensitive sector we have seen a stark jump in mortgage rates just since the start of this year how does that factor in here >> absolutely. certainly interest rates are a challenge, just overall home ampable has made the headlines for a challenge. with rates up 250 basis points, though i see it dipped a bit on the 30-year this week, i'm not

saying there won't be a near-term air pockets as people reassess, but the couple factors i mentioned, and then the other side of it, you know, existing home inventory is very, very low right now. i think last month it was abou duoto buy something else, if you're facing hire interest rates, you know, maybe you're going to what it a while until you do that and that will just further constrain demand in the market that's what we're seeing. >> i think it was jp morgan earlier in the week looked at existing homes over the past six months it's dropping at an annual rate of 12%, and a lot of the survey work is showing traffic at open houses getting cut in half, no multiple bids. i just wonder what you make of the situation in exising right now.

>> yeah, i think if you look over the last 6 to 12 months, there has been a lot of bidding wars on homes that's made the news so interest rates, i think, are going to have an impact. but over the near term, i think the underlying demand is going to press through that. if you had ten or 12 offers for your home, and that gets cut three to four, if you're the seller, does that really matter to you there's a huge amount of demand in the marketplace and ultimately that's going to carry the day, not over the short term, but i'm very bullish over the long term, for the industry given the constraints we've talked about one of the things we haven't talked about yet is the huge supply constraints we've had on the manufacturer side. that really started with covid a couple of years ago as the demand started to ramp up for new construction, as people decided i can work from home, a lot of urban flight into the suburbs that really spurred a lot of new home construction at the same time a lot of the

manufacturers were dealing with covid issues, and they were trying to ramp up their production capacity and they just couldn't. they were having trouble staffing their operations. and we've been fighting that literally for the last 18 # to 24 # months here while supply is better than it was a year ago in certain product categories there are still a lot of constrained supply on things like exterior doors that are just difficult to get. structural components, you know, for two-story homes, separating the first and second floor you know, there hasn't been a lot of capacity added there in a very, very long time, and that's really constraining demand i hear from our home builder customers they're having trouble getting things like appliances and garage doors to be able to close on their new builds. so it's still a very tight market, and the supply is still very much constrained. >> that was exactly where i was going to go with you it took me 13 weeks to get my front doors in. >> exactly. >> when do you expect those delays and those dlajs to actually ease quickly? >> well, we are seeing, you know, a little bit of easing around that, you know, windows

are much more plentiful supply than they were a year ago. but some of these things, i think, are structural for the industry, and i think it's going to be a tight supply market for a long time to come, actually. >> okay, dave flitman, builders first source, ceo, thanks for joining us. >> thanks very much. we've got a big show coming up on "techcheck" this morning you're not going to want to miss our exclusive with sundar pichai which dee has, coming up in ten minutes. kramer this morning said alphabet would be the first faang to bottom. s&p is green coin is green. we're back in a minute

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double down grades but the argument from wells fargo, they believe this could be a year of peak profits for ford and gm, that's why you see both shares under pressure gm is close to the ipo price back in 2010 it is at a 52 week low earlier today during the ford annual meeting chairman bill ford was asked about the stock price. here's what he had to say. >> my strong belief is that we are building a great business, and we're making products that have created buzz that we've never seen before. and that the stock price will reflect all of that. you can't manage the business for a stock price. you manage the business to build a great and enduring company i believe that's exactly what we're doing. >> lshift gears. reporting q1 results, the reason for this pop today it reaffirmed

its production guidance of 25,000 vehicles this year. that's not a big bar or a high bar it had to meet but it's important. the analysts took note in their analyst notes, they came out today, a smattering, it was moderately positive. wedbush saying a lot of work ahead on the supply chain. baird saying we're encouraged by the firm's -- stabilizing expectations rbc, saying wiping away the mud a, number of of positives. they have $17 billion in cash on hand they say that will be enough to get them through the buildout of the georgia facility, and the yafrp-up to the r2 models, the next generation of models, not coming until 2025. it's going to be a while before we see profitability that's what the analysts are talking about this morning, and yes, the stock is getting a little bit, little bit of a bounce but way down from its

ipo. >> the stock is a bounce, speaks to what we've seen in recent months lucid is up 14%, leading the nasdaq 100 higher. we've talked about this before, phil, there are some fundamental issues facing this industry that will not go away battery supply and the materials going into those batteries. >> there's two points there, morgan, first of all, in terms of the raw materials that go into those batteries there's not enough mining that's going on around the world and the prices are going to stay high that is not changing anytime soon so that is one issue, the other issue is, you've got a build out a number of these bad manufacturing and battery cell manufacturing facilities that is going to take some time as well. by the way, this is not new. this has been talked about for months by analysts, when everybody was throwing out projections, morgan, the analysts kept on saying where's it coming from it ain't going to happen overnight. i think that's what we're finally seeing, investors waking

up to. >> phil lebeau, thank you. give you a check on the nasdaq right now, which is currently trading around 1.2%. we were down 2.3%, so you can see right there what a stark move we've had this morning, just in that composite that will do it for "squawk on the street." "techcheck" starts now good thursday morning, welcome to "techcheck," i'm carl quintanilla, with deirdre bosa and jon fortt. bit bitcoin touches 25 k this hour, a deep dive on alphabet you're not going to want to miss dee's exclusive with ceo sundar pichai recession risk, whether the economy that hass seen peak inflation. we'll start with the selling in tech an