state of connecticut. >> thank you, sara and david, good to be with you again. >> nice to have you as well. >> the nasdaq is down about 1.3%, weakness, of course r as sara mentioned in high growth names, although, you know, a mixed picture, despite the fact that we are down across the board. that's going to do it for us on "squawk on the street. "techcheck" starts now happy monday and welcome to "techcheck," i'm jon fortt with deirdre bosa carl is off. we've got to start with this market, six straight weeks of declines for tech stocks, nasdaq has lost a quarter of its value since its 52-week high, and while friday's bounce might have provided some relief, we're starting off this week, yet again, in the red. tech and consumer discretionary underperforming today. the xlk, tech sector fund, down -- let's see, how much? about 1.5% right now dee, i get the sense that -- there's got to be some bargains in here, but it's hard to know which ones, you look at shopify,

it is off, oh my goodness, like 11% today alone, downtrading at levels from late 2019. but then coin base is also off 10%. there's a lot of that leverage to crypto. and we've got the questions about crypto right now it's hard for investors to know what to do. >> yeah, we sure do, and something we're going to be exploring throughout the show is some of those similarities or not, spoiler alert, we are not there. but also, jon, we're going to look at enterprise spending. we think about the last few weeks of earnings, microsoft has held up relatively better, at least its results were could that be the next shoe to drop we've seen a hold-up relative to e-commerce, relative to consumer devices and spending in terms of the tech sector. so what's happening now over the weekend we had another venture capital firm, jon, craft ventures, its portfolio, conserve cash, be careful about spending, comes on top of other

companies, public ones have said the same, uber, meta, robin hood that's laying off numbers. is this over it seems no, but are we going to get a dead cat bounce or a head fake, i guess that's what everyone's trying to figure out right now. good show lined up for that too. i know there's some good opportunity, she's been hit hard, her company, we'll discuss all of this. let's bring in mike santoli, now with more context on this and wall street, hierarchy of fears, how is that playing out, when a day like today, once again nasdaq underperforming. >> dee, very low conviction. i think a lot of good things about friday's bounce, people are looking to seize on but not a lot of follow-through right now, you mentioned the echoes, at least perceived echoes with that dotcom bust of 20 some years ago, that's one thing to get into obviously recession matters more than anything, whether we get one or not that's going to determine things, but this idea that we're deflating the excesses in a rapid way i do think has also affected the debate. take a look at the current

nasdaq it peaked back november 19th a 30% drop into last week's lows, that was 30% now, when does the nasdaq decline? a bear market in nasdaq, do much beyond 30% if you look at the numbers, and how this kind of mini crash has taken place, most of the worst instances was when, in 2000 and 2002 here's what that chart looks like essentially it was just sort of waves and waves of a cascade over 2 1/2 years of selling. the 30% drop we just got from november, that was done by here. right, it basically had two months, you had it down 30%. but there's important differences. one is, just exactly how aggressive the momentum surge it was into this point in 2000. the nasdaq was up by five times in the prior five years, 500%. we were up 200% into the current peak, back in november just to take one stock, which was here -- there then and there now, is microsoft. it peaked at 60 times earnings back then. it went down to 22

this time we peaked at 35, and we're around 24 right now. so yes, big important stocks went down a lot. but this trajectory looks a lot more like ark than the current nasdaq that's one thing people are trying to lean back on, in terms of making distinctions. >> there is, as you just referred to, a certain group of stocks that feel a lot more like the nasdaq back then, but yeah, it was -- it was a long, cold winter, and that sort of -- just a cold snap. like we were experiencing now. i seem to remember a week or two ago you talking about 3850, 3900 level on the s&p as being particularly important we sort of got into that space, and then bounced out of it how are traders feeling now about the significance of those levels, given the conviction or lack thereof, we've got here >> yeah, jon, that was about a week ago i don't think anybody thought we would necessarily rush to that range, down 5% from a week

earlier in four days that's what happened i think that the takeaway is, it was a plausible trading low. it's an area where it makes sense for the market to quit going down, s&p down just under 20%. so it's a point where you've built in a lot of the negatives. i don't know that there's a lot of people who think that that's the low. but for now, it works, and i think a lot of folks, like mike wilson talking about down into the mid-30, mid-3,000s looks more plausible. >> ouch, mid 3,000s, okay. next, a beyer at this level, hoping the rally continues dan niles, a beyer, a buyer, dan? of some things, maybe. of some things tell me -- i know you expect some bad things to continue to happen, but what are you interested in buying here, where are you seeing opportunity >> well, first, just to make sure everybody's clear, my view

is that the s&p goes down 20 to 50% before this is all done from peak to trough that's the long-term view. this is a very short-term view this that last thursday we put out a tweet we thought things were overdone, taken our short positions down, on the average about 55% since we started the fund of our assets as invested short down to three and we thought the next 5% move the s&p would be up. to be very clear, we're viewing this as a short-term bounce. the you're willing to trade the market, stay in cash because we're not even close to being done with this market going down so with that as the preamble right now what we're looking at is spaces that have gone just absolutely decimated the nasdaq is nowhere near decimated. if you look at chinese tech stocks, for example, using the k web as an example of that, that's down 75% from its all-time highs 75 the nasdaq's down about 28%.

and a lot of these stocks are still egregiously overvalued even after having come down this much many don't have earnings or cash flow that's one of the areas where we think you might have actually seen the near term long, which is some of these chinese internet stocks. we're carrying that, still, with looking to put on shorts back again in, you know, tech in nasdaq for that reason the other space we like is a lot of what we call the reopening play, so travel and leisure. so we own some southwest airlines, for example, we own some uber, we own names in that hotel space, et cetera, where we're all going to go out, we're going to go on vacation, et cetera, whereas, you know, during the pandemic we were all at home, screaming movies, buying things off of amazon, off of our new iphone and ipad so spending is switches from goods to services.

>> shotgun that keeps running through my head. i wonder what you think of it. as hard as it is for investors to believe that good stuff is expensive when the market is up. snowflake, look how fast it's growing, must be worth more than here stock-wise, it's hard for investors to believe mediocre stuff is cheap when the markets are down are there deals in turnaround stocks or gross stocks that maybe they don't really have earnings, or cash flow to speak of now, but their holdings are working, too many investors, perhaps, overlooking that, and some of those will survive at what point is it worth taking a look at those edge plays for the value? >> i think you have to have a time component to this, what people are forgetting is for the last 13 years, the fed has had your back, ever since the global financial crisis so every drop has been small, it's been very short in time, and you've always made that back because the fed just kept stimulating. you don't have that anymore, in

fact, the fed is absolutely your enemy right now. and so our biggest case is, we go into a recession in 2023, and inflation is still higher than people expect in our case we think it's still 4 to 5% and at which point multiples just continue to compress. if you look at the 1970s as an example, the trailing s&p multiple was 20 times. it got down to seven times, and you lost nearly 50% of your money during that period of time and so i think you need to keep that in the back of your mind as the big picture, and i still remember 2000. i mean, i remember apple with nearly 4 billion of cash on the balance sheet losing, i think it was 66 million a quarter in cash flow, trading below cash value at its worst so if you think about that as the backdrop and the fact that we just started raising rates and the economy is slowing down. you're seeing companies missing numbers, estimates coming lower, and you've got whatever the

fallout is with the russia situation, with food prices, et cetera, and that still hasn't completely gotten baked into numbers yet. you know, you still have a long way to go. so for us, we're matching whatever we're buying on the long side with names on the short side, where we go, well, yeah, things in smart phone area, pc area, that stuff you had massive surges in demand, and now that's falling off, and you've got inventories building up, which was something we haven't talked about, so when companies get that golden screw or that one piece they're missing you're going to see a big inventory liquidation, too that's why we're being -- i don't want to lead your viewers astray here. that's why we're looking for a bounce, but the goal is to be short off the bounce and sell off of that while maybe we buy names down 75%. >> to be clear, it's a short-term bounce that you're looking at, you think the trajectory continues to be downward, dan. you like chinese plays because of the value, you said they're off 70% from all-time highs, do

you have to like netflix, which is down 70% plus from its 52-week high or shopify, 80% off its peak, are you bottom fishing for american names that have just seen valuation compression, what separates them from the chinese names? >> several things. number one, china basically has put a gun to hair head, and this is why this has happened they're continuing to lock down cities, et cetera, and i think eventually they're going to get away from that, especially as we go towards the fall and you had massive regulations as they tried to drive towards common prosperity they've taken these companies down based on things that they've done, that they can easily reverse the stuff that's going on in the u.s., that can't be easily reversed because the reason shopify was where it was in the first place was the fact that you have all of this incredibly easy money pumped into the market so you had the fed increase their balance sheet by

4.8 trillion during the global pandemic you had checks going out from the government of 5.5 trillion that's about 10 trillion the u.s. economy is only 20 trillion in size so that's why we got all of these stocks all pumped up now you've got inflation running 8% you've got to take that all down as the fed has finally figured out that inflation isn't transitory, and it's going to be here and stickier than we thought. that's why i can't go and say, yeah, you want to get involved with a lot of these nasdaq theme. everyone's a little different. netflix, you've got tons of competition and they have one of the worst models, in my opinion, because you've got a disney that can send you to movie theaters, sell you merchandise, do all these other things, sell you ads to monetize their -- the amount they're spending on content, netflix doesn't have that. so each case is a little different. that's why we're not looking at nasdaq, nms they have a lot of cash flow and we think they're a reopening play, which is why we looked at something like an uber, for example, where we

think, yeah, they're going to benefit. >> so you're not buying these names, but would you short some of the nasdaq names that are already down 70, 80%, do you think there's more to go where are you shorting right now? >> without getting into specifics, smart phones, you look at that space, you know, you had four out of five years before the pandemic where unit demand was down year over year same thing in the pc space, where i think it was five out of seven years before the pandemic, demand was down in units year over year. but then we all had to work from home, learn from home, et cetera, you know, pc demand was up over 10% the last two years, in q1, however, it was down five smart phone demand, similar situation, where it was up, pretty strongry, it was, in fact, up 25% in the first quarter of last year, it's actually was down 5% in the first quarter of this year so those are the areas, those

are names more down like, you know, 30%, 20 to 30%, where we think there's another 20 to 30% of downside. that's what we're going after as we go from buying pcs and smart phones to going on vacation. >> okay, yeah, let's hope things hold together while so many of us are on vacation, dan, thank you. dan niles. still to come, upgrades for alibaba and netflix. "techcheck" is just getting started. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire lemons. lemons. lemons. lemons. look how nice they are. the moment you become an expedia member,

you can instantly start saving on your travels. so you can go and see all those, lovely, lemony, lemons. and never wonder if you got a good deal. because you did.

another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business, with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want—your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company.

bring on today with unbeatable business solutions from comcast business. powering possibilities™. . gut check on chinese spernt names. jp morgan revising its thesis on stocks like tencent and ali baba jpm specifically giving a double upgrade to alibaba, despite the fall from covid lockdowns. the bank notes it trades among chinese e-commerce names, to recover more than 30% starting in the fourth quarter, dee. >> seeing some opportunity like

dan niles just told us. meanwhile, shares of nextdoor, they're on the move, slightly higher following a volatile week, the company reported better than expected q1 results. however, its guidance for the current quarter, that missed estimates, it's forecasting an 18% adjusted ebidta losses, joining us, nextdoor ceo sarah friar. you're expecting net losses this year, but negative adjusted ebidta how do you dell your story in the current moment, has that had tochange >> deirdre, thank you for that we did come off a very strong q1, total revenue 51 million grew 48% year over year, our engagement, this is the third consecutive quarter of an acceleration in engagement we are still obviously investing. we raised almost 700 million last year, we came off a year, where we showed 24 points of ebidta improvement and we're still guiding to five

points of ebidta improvement of full year in 2022. we are trying to balance for investing for continued growth, local is on the rise, but making sure we are mindful and realistic about this current environment. >> yeah, so, sarah, that is the story we've heard from you since you guys went public i know you continue to invest. you have a hyperlocal model. but the question is, sort of, do you have to change that story, that narrative, when the macro backdrop is getting that much harder and ad spend marketing is typically the first thing the companies pull back on, we're already seeing that. so how do you tell investors that nextdoor is still a good bet in this environment is this. >> well, we are still benefiting from two megathemes that have not changed. one is this constant rise of local. and, in fact, often when times are tougher, that's when nextdoor really sings. so, for example, if you need to support your local business, because you want to make sure they stay in business, if you want to support your neighbors, make sure they've got a job, or we see people going to our for

sale and free section, buy ago second hand bike rather than a new bike for your kids, one, we're benefiting from that, in terms of montization, we sow really strong growth from advertisers in q1. that continues why are we seeing that we're a new platform we're different, we're all about community. we're doing very well with advertisers who may not have seen this type of avenue to get to neighbors before. >> sarah, it looks like you're growing about 50% year over year, both in 2021, and again in q1, and as a percentage of revenue your losses are sort of narrowing. so, i mean, i wonder -- it seems like operationally the right things are happening at nextdoor despite the stock falling from $13 to $3 and change right now how much do you really have to change if the model is working is it a matter of controlling costs in some areas, while investing in others? if so, what are the areas where you're able to control those

costs? >> yeah, to me it's always control what you can control, is what i tell my team. the stock will trade ultimately on fundamentals, and today it's trading on macro, which we cannot impact. we are still investing, so we are still in hiring mode, particularly in areas like -- we want to look for great engineers and great product people we tend to be more mindful of areas like our marketing spend and so on, to make sure we're doing the right thing to lean into the opportunity what i've learned going through multiple downturns, in different guises, is sometimes you want to lean in, in these moments, and be opportunistic, now is a great time for us to be bringing in great people to nextdoor, as you point out, our model is working. >> for example, on talent, then, one way i know that ceos sometimes try to leverage models like this is pointing to the upside for stock-based comp. how are you structuring those packages, are there certain things about the model that you

need to show prospective new employees to give them confidence that that upside is likely to appear >> yeah, there's really three reasons in my mind that people are coming to nextdoor, or come to a company like ours number one is actually purpose people want to have impact on the world and nextdoor is a great place to do that the second thing is they're looking for businesses that are still in growth mode and where they're still in an ability to build big i think the numbers that we put up are very differentiated, both for q1, and certainly even when you look to our outlooks, still growing at around 33% at the midpoint and then the third thing, of course, is that there's going to be opportunity as the stock recovers we think it's a great story right now, we're actually seeing it in our recruiting outcomes. and so just continuing to lean in to the purpose of nextdoor, the fact that we benefit from this rise of local, and the fact that social commerce is this huge tail wind for us. >> yeah, that's interesting. if you continue hiring, especially when some other firms are pulling back now

sarah, i wanted to get your thoughts, you were cfo at square when they pushed further into bitcoin and block chain. and you just joined the board of consensus in ethereum software company. what are you guys talking about at the board of consensus? >> it's a phenomenal company with brands like metamask on the consumer side, and on the build side, for the ethereum block chain areas like infura or truffle for developers i'm really excited where web 3 # takes us it's this new age of community it dovetails really nicely with nextdoor, the neighborhood may be the ultimate distributed autonomous organization or community. what we're talking about is, of course, now the opportunity we cheerium as we head towards the merge, it's okay to have things pull off because it gives people time to build wisely and build well and not just be chasing a very heated market. >> yeah, you said something

similar to me a few years ago. thank you very much, sarah friar, nextdoor. >> you're welcome. let's get a check on a few software cloud stocks, salesforce selling out of its stake in snowflake, the company had pre-ipo investment, read more on cnbc.com, more on other cloud names to target, coming up another crazy day? of course it is—you're a cio in 2022. so what's on the agenda? morning security briefing—make that two. share that link. send that contract. see what's trending. check the traffic on your network, in real time, with the next generation in global secure networking from comcast business. lunch? -sure. you've got time.

onboard 37 new people, with 74 new devices. does anybody have any questions? and just as many questions. shut down a storm of ddos attacks. protect headquarters and the cloud. with all your data on the nation's largest ip network. whoa, that is big. ok. coffee time. double shot. deal with a potential breach. deal with your calendar. deal with your fantasy lineup. and then... that's it? we feeling good? looks like we're feeling good. bring on today with unbeatable business solutions from the most innovative company. comcast business. powering possibilities™. (vo) for me, one of the best things about life is that we keep moving forward. we discover exciting new technologies. redefine who we are and how we want to lead our lives. basically, choose what we want our future to look like. so what's yours going to be?

(fisher investments) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how? aren't we all just looking for the hottest stocks? (fisher investments) nope. we use diversified strategies to position our client's portfolios for their long-term goals. (other money manager) but you still sell investments that generate high commissions for you, right? (fisher investments) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money, only when your clients make more money? (fisher investments) yep. we do better when our clients do better. at fisher investments, we're clearly different.

welcome back to "techcheck," i'm deirdre bosa with jon fortt, getting a gut check on the markets, stocks are taking a leg lower today, energy is the big leader nasdaq continues to underperform with tech down 1.25% more on some of the names struggling to gain momentum,

that's next, first let's get a news update with courtney reagan. >> here's what's happening mcdonald's will sell all of its restaurants in russia after more than three decades in the country. mcdonald's paused operations after russia invaded ukraine they recently employed 62,000 people across 800locations in russia starbucks is the latest company that will start covering eligible travel expenses for employees seeking abortions or gender affirming surgeries, the benefit will apply to the company's 240,000 u.s. workers, and extend to any dependents enrolled in starbucks health care the coffee chain joins other companies like amazon, apple, microsoft, and sales force, preparing for a post-roe workplace. and dubai's emirates airlines posting a loss over $1 billion in the fiscal year ending in march. however, this is nearly an 80% improvement from the prior year's loss, the world's largest long haul carrier has resumed

flights to 140 destinations but the surge in fuel prices overshadows a recovery in the travel demand, back to you, jon. >> court, thank you. the nasdaq bouncing on friday, not today. but even on friday not every stock participated in that rally, evenly. dom chu has a look at the names still near they 52-week lows. >> because we like to be balanced about our reporting here, jon, the idea here, we talked about on friday, some of the big stocks that had bounced a lot off the lows that we saw late last week, as the nasdaq kind of hit those multi-year levels, however, with the nasdaq the way it's shaping up right now, there are still a handful of names that are kind of lagging behind so when we talk about the qqq trust, the nasdaq 100, you saw that bounce on thursday's lows, over the past kind of couple of days or so, a lot of stocks haven't participated, and just remember, in the grand scheme, that qqq trust still sits very far below that record high that we saw over the course of the last year. so we decided to run a screen on

which stocks were the lows now, we had a few criteria that we wanted to throw in there. first of all, they had to be nasdaq 100 components. and then they had to have hit at least a 52-week low or worse in the last one week period, and then from there, how many are still within 5% of that 52-week low? to give you an idea, 100 nasdaq component stocks goes down to 11 with that screen and here are some of the real highlights in brand names that are still languishing near their 52-week lows, alphabet, parent company of google, still within about 4% of its 52-week low, at least, and then cisco systems 3.5% above its lows, intel is only about 2% above its lows. and then both ebay and verisign, hovering just about at their lows of this past year, at least, just about .1 of 1%

ebay hits that low in one session. as we talk about this movement and the kind of momentum that we are seeing, we talked about the big bounces, maybe short covering from last week, maybe some fundamental value buying, those are some of the big names, guys, that are still languishing, despite the fact that we've seen a bounce send things back to you. >> fascinating screen, dom, especially seeing alphabet at the op of the list, the role mega caps have played in the market. the list of tech companies cutting costs, that's growing, meta, carvana, buber twitter. advice to portfolio companies to tighten their belts a welz a sentiment shared by a lot of tech will the slowdown spill into enterprise software, perhaps the next question. ggb capital managing partner jif richards, what do you think, is enterprise spending the next shoe to drop >> well, deerdia, we aren't seen that yet we've seen no slowdown to enterprise software spending

in fact, if you read some of the recent reports that have come out, surveys of ctos, gardener came out with their forecast enterprise was 400 billion forecasting 600 billion for 2023 as you know these shifts to the cloud are long multi year projects, often involving systems integrators, and so we think it bodes well over the next few years but certainly to the conversation you just had with sarah, smart ceos are making sure businesses are well run because that is how the public market is now valuing these software companies, we're seeing a much bigger focus on a multiple to free cash flow than we were 12 months ago. >> it's a good point sarah friar was optimistic and we spoke to sundar pichai last week but there is a separation between companies that can continue to do that, uber is an example of one that says they're going to scale back. robin hood as well

some of the others, so is this still going to play out, could that weigh out on earnings the rest of the year i know this shift is secular but in the shorter term there was a belief that as you said, enterprise spending was going to be kept intact maybe that softens >> i think it's somewhat sector dependent, uber obviously is heavily reliant on consumer spending, and in some ways, travel, and return to work, and major metro markets, you know, we see pockets of real optimism. you guys know we're a big fan of smbs, companies that sell technology to small businesses in america and we're starting to see a big rebound there. we forecasted that we would, coming out of covid. we're now seeing metrics for small business in america to be strong, and, again, small businesses, 40% of u.s. gdp, 60% of americans work for small business, we're seeing, i'm on the board of a company called home base, and we're seeing hours worked up 2% month over month, and up 7% in hospitality. so hours worked being a metric that says what is the help of these businesses, how likely are they to be able to attract the

labor they need to operate their business, and in particular we're seeing in hospitality is great, the hotel industry has had a very hard time with labor over the last two years. >> jeff, i was just talking to the ceo of toast on friday, kind of fitting into that small business narrative but part of what i'm wondering is, whether it's enterprise spending, small business spending, which spending is going to continue? what problems does the technology have to solve, especially in an inflationary environment, and how good does the model have to be in order for some of these either start-ups or newly public companies to get the capital they need to grow if they're not profitable >> it's a great question, jon, i guess a couple things i would highlight. one, they think you think about the technology that these tech companies like post, ring central, square on the private side electric, right wheel, et cetera, they're deflationary, helping business owners run their business more effectively, lowering their cost to capital,

lowering their cost to process payments on behalf of their customers, lowering their supply chain costs. we see that trend of s&p tech as deflationary for these businesses but as you highlight, rehead into a recessionary environment, it takes longer for companies to buy technology, it's hard to forecast, right now we're still seeing low unemployment, good growth as i mentioned in earnings, as you guys have covered, you know, q1 earnings for most tech companies were strong, we haven't yet seen that impact on the actual performance of the businesses. the biggest thing we've been trying to do is roll up our sleeves, dig in over the last few months, spend time with our founders and ceos and make sure that they're, as you mentioned, well capitalized and have the right underlying fundamentals in their business so they can ride out a storm if we have one, fortunately for those of us who were here in 2000, and also '08 and '09. we know how painful that cycle can be and try to leverage that experience and pass that wisdom along so folks can make sure to navigate choppy waters. >> how far are we in the space you deal in, from that kind of

psychological capitulation, where maybe you got really solid companies, with a promising future, but they've dreamed of an ipo, and you want them as an investor, to perhaps be more open to getting acquired, based on the type of company and the trajectory are they -- are they getting there when, perhaps, they ought to at least be open to it? or is there still that hope? >> i think you'll see more m&a this year, you're certainly going to see more capitulation folks that think it's harder to build a billion dollar company, if you think of all those companies that went public, most of them are well capitalized raised 250 to 500 million, they're set next five plus years and they will now become acquirers of some of these other private companies, one of the benefits of a vibrant and healthy ipo market is they generate the next group of folks that can become acquirers, it's an interesting year. obviously we have a whole bunch of things at the macro level

control what you can control the feedback for our founders and ceos has been, look, hunker down, make sure you've got plenty of capital and the right people around you, delivering a ton of value for your customer, if you're a tech business, make sure those customers love your product, high net dollar retention, high nps and you're doing everything you can to make sure they're successful in using your products and, you know, like i said, this could be a choppy year. >> speaking of ipos, the window has pretty much been shut this year so far. instacart filing confidentially did elicit some surprise, thinking who would go public in this market but i wonder, what do you think they're going to show what's a calculus there, and what could that mean for the public gig economy companies if they show good numbers, good or bad for them >> we're not an investor in instacart. they have a tremendous cfo i wasn't surprised they may try to break the ice in the ipo

market, at the end of the day, public market investors and even cross investors in the private market have a bevy of choices. with public comps down anywhere from 50% to 70%, the bar is going to be high for companies that want to go public i'm not an investor in instacart, but, you know, well run companies should be the first to get public this year when we do see a return of the ipo market. >> jeff richards, always great to get your insights, thank you. and after the recent selloff, is netflix still overvalued one long-time bear is changing his tune we will break down that call next next do stay with us. ♪ ♪ opportunity is using data to create a c advantage. ♪ ♪ it's raising capital that helps companies change the world.

it's making complicated financial concepts seem simple. opportunity is making the dream of home ownership a reality... ♪ ♪ ...writing new rules and redefining the game... ...and driving the world forward to a greener energy future. (applause) ♪ ♪ opportunity is setting a goal... ...and charting a course to get there. sometimes the only thing standing between you and opportunity... ...is someone who can make the connection. at ice, we connect people to opportunity.

if you are just looking at the top line indexes you're missing big moves in individual stocks, we're seeing datadog down almost 10%, and zscaler, okta, airbnb all sharply lower the nasdaq remains down about 1%. >> the eil comes off cnbc's annual disrupter 50 list tomorrow, a decade of growth for many top companies but a different story this year as rising rates hit valuations, julia boorstin the creator of the list joins us on set for a deeper look. >> jon, it's so great to be back here on set with you, cnbc

headquarters, the disrupter 50 list did indeed identify the next generation of tech driven public companies over the past decade the disrupter 50 index h which we launched -- the 80 companies that have gone public, it's up 170% since then, compared to the nasdaq's 130% gains in the same time period. so it has been a great decade for these companies, but it has been a very rough year in the past 12 months the index is down about 50%. compared to a 13% decline for the nasdaq as the broader tech sector has suffered, and as investors have shifted from growth stocks like the fast growing dis-rrupt disr. some have weathered the recent downturn and performed far better than others there are 20 companies on the list that have at least doubled their market caps since their ipos, the best performer, shopify. it's up over 3800% since its may

2015 ipo, since mongodb went public and block, formerly square, went public, both of those companies have seen stocks go up more than 1,400% the worst performers, root insurance is down, blue apron is down 93% since june 2017 ipo and didi, which went public june 2021, down about 88% now, the drop in those public valuations stands in sharp contrast to the growth of private company valuations, the combined value of this year's disruptor 50 list will be the highest by a long sthot. that disconnect between private and public company valuations is pushing private companies to stay private longer, there waiting around until the public markets rebound. we will be revealing the list tomorrow in "squawk box" and on

cnbc.com/disruptors and a lot more on this show throughout the week. >> the issue for public ones, they get priced every day. private, once a year or every two years. reality checks to come there shopify jumped out at me you talked about how much it's up since the ipo it's 79% off of its 52-week high doesn't some of this have to do when these companies came public >> yes, how long ago, when these companies came public and some have just done a better job in the past year of being more impression in terms of -- as you'll see, a lot of these companies are sort in the logistics space, you'll see which of these companies have weathered the storm better than others, but yes, even the ones that have performed the best are still out there highs and that reflects what's going on in the markets. >> look at those disruptor balance sheets to make sure they don't get disrupted. make sure to tune in, 6:00 a.m. tomorrow, when the tenth

annual disruptor 50 list will be revealed on air and online "techcheck" will be right back

bonnie boon i'm calling you out. everybody be cool, alright? with ringcentral we can pull bonnie up on phone, message, or video, all in the same app. oh... hey bonnie, i didn't see you there. ♪ ringcentral ♪ in one second, sara. yes! will get a job offer somewhere sunnier. relocating in weeks. weeks?

yeah, weeks. gotta sell the house. don't worry, sell to opendoor, and move on your schedule. yes! when life's doors open, we'll handle the house. gut check on cloud names, baird updating its thesis on software with this recent tech selloff focusing on companies with strong global footprints and free cash flow, downgrading

twillio, along with ring they're arguing while they're generally favorable on long-term growth they expect limited profits to drag down the stocks in the near term for more profitable names they turn to axon, along with zoom and five9. zoom wanted to marry five9 what if. >> yeah, what if. in the midst of e-commerce, e bay and amazon have seen softening trends, what does that mean for the rest of the retail space? our courtney reagan has more fear on the market. >> it's good to see you again, dee, unemployment remains low with more available jobs than we have workers to fill them, home values have continued higher, though rising interest rates do hurt affordability stimulus payments are in the rear view, and perhaps so is some pandemic pent up demand spending, particularly online. so how is the u.s. consumer,

well kind of depends who you ask, if you mean today or tomorrow there's been mixed messaging with some retailers putting up strong first quarters, but then fear in the forecast it's not just profitability concerns as costs rise from continued supply chain snarls. sales are also seeing slowing, and mastercard spending polls show e-commerce sales overall have fallen the last two months compared to the prior year amazon put up the slowest sales growth rate in two decades and it doesn't expect the trend to change anytime soon. e bay is expecting a revenue slowdown, etsy also below expectations but competitors, walmart, target, home depot and loess have invested heavily in e-commerce, did any or could any of them pick up online sales share from these e-commerce heavy weights. decades high inflation could be pushing more shoppers to value oriented retail options from walmart to target to tjx and

ross stores. although secondhand thredup and poshmark put up disappointing foeshss, at times of inflation, you'd think resale would see an influx of deal seekers doesn't seem to be happening right now. lower prices for gasoline at walmart sams clubs might enticee consumers if fill their tanks and trunks sam's clubs comparable forecasts are expected to grow more than walmart's. as we get the results, and more importantly the commentary from execs. >> absolutely. courtney, thank you so much. you mentioned amazon as we head to break, take a look at shares of the company since going public 25 years ago yesterday. it is up, look at that some huge amount, thousands percent, you can see that under performance as of late stay with us, we're backn st mont iju (dad allen) we've been customers for years. (dad brown) we got iphone 13s, too. switched two minutes ago, literally right before this.

(vo) now everyone can get a new iphone 13 on us on america's most reliable 5g network. for every customer. current, new, everyone. to show the love. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

welcome back, has held frozen over again. wedbush upgrading netflix, after holding steady at an under perform since 2011 that's more than ten years and that is where we will begin today's over valued, undervalued. bullish on the platform adopting ad supported subscriptions saying netflix is in a position to exceed its second quarter guidance adding that the company's staggered release of "stranger things" and "ozark"

could reduce churn as well live streaming for unscripted shows and standup specials, that first reported by deadline yet another potential business line, but on the other hand they are still facing a lot of post-pandemic headwinds, tough competition, slowing growth, falling subs that stock as you probably know is down more than 70% since november as the investor optimism on the netflix story, john has done a complete 180 it's more common to hear now, it's streaming even a good business, but where netflix was leading the way for so many years, all of these things kind of feel like it's catching up. ad-supported model, live streaming, even gaming. >> while this market tries to take companies from hero to goat pretty quick that's not always that simple. if you missed part of the show or you just can't stand looking at me and dee while we talk, we're not offended maybe just a little bit. we've got a podcast, you can follow and subscribe and just listen anytime, anywhere, wherever you download podcasts "tech check" is back in a "tech check" is back in a moment in green energy.

and also each other. digital tools so impressive, you just can't stop. what would you like the power to do? another crazy day? . you just can't stop. of course it is—you're a cio in 2022. so what's on the agenda? morning security briefing—make that two. share that link. send that contract. see what's trending. check the traffic o in real time,, with the next generation in global secure networking from comcast business. lunch? -sure. you've got time. onboard 37 new people, with 74 new devices. does anybody have any questions? and just as many questions. shut down a storm of ddos attacks. protect headquarters and the cloud. with all your data on the nation's largest ip network. whoa, that is big. ok. coffee time. double shot. deal with a potential breach. deal with your calendar. deal with your fantasy lineup.

and then... that's it? we feeling good? looks like we're feeling good. bring on today with unbeatable business ons from the most innovative company. comcast business. powering possibilities™.

one more thing before we go, turning to former president trump's future on social media, according to an s.e.c. filing for digital world acquisition corp., the spac backing the

former president's new social network, former president trump is obligated to first post any content to his new property, and he can't post the same content onto, quote, any site to which he has access for at least another six hours so that would apply to his twitter account should he be allowed back on that platform, which elon musk has signaled would take place if he takes control of the company, dee. but this doesn't prevent other people from re-posting what trump posts on true social right after he posts it. >> that's a great point. it may not actually matter i wonder what the fine is, too it does look like president trump may be allowed back on twitter, so it will be an interesting dynamic between the other social media companies the latest in the elon musk twitter saga, his deal to buy the platform apparently still on hold, and he might be on thin ice tweeting that twitter's

legal team told him he violated the nda by revealing they would sample the number of random accounts he and jack dorsey exchanging words on the time line musk tweeting out instructions to change the chronology on your twitter feed saying users are being manipulated by the algorithm. dorsey saying the algorithm was designed as a time saver john, i don't know how i feel about this i kind of like the algorithm it sums up what i missed chronologically. i get a lot of accounts that i used to follow that aren't necessarily that useful anymore. >> i don't love the algorithm, but i do love how careful elon is being to make sure this deal comes through. first he's checking for the spam accounts which he wasn't worried about already or anything, and now he's violating the nda you would almost think that he wouldn't cry a river if this thing falls apart. >> you might think, you might think that there was more behind this, john meanwhile, take ago look at market, the dow has actually turned positive. we're up by about 50 points.

nasdaq still lower it has recouped some of those earlier losses the s&p 500 just around the flat line right now we will be watching those retailer earnings this week. see what happens with tech after a very volatile week last week let's now get to wapner and "the half". >> welcome to "the halftime report." the bear bounce, is one coming is it already over we'll debate the state of stocks and your money with the investment committee joining me for the hour, jim lebenthal, also on set liz young and joe terranova. let's check the markets. dow is coming off seven straight weeks of losses. it just literally went positive a few moments ago. we're good for about 50 on the dow, not much conviction on the s&p or the nasdaq, or, liz, this much talked about bear market bounce now, we were up a lot in a couple of days s&p 500 was up 4% from thursday's low nasdaq cwas up 6% from thursday' low. is i