only 13% -- actually, still up but significant fall in those shares of course, you have got to go the math to answer the question as to whether musk is still the world's wealthiest man or whether bezos is back with that title. that will do it for us on "squawk on the street. "techcheck" starts now good friday morning, william welcome to "techcheck," i'm carl quintanilla with diedra bosa jon is off delivering the commencement address at his alma mater. >> today we are bargain hunting for tech names, the small and mid cap names to target. what to watch within software. what's up with apple the stock having its worst month since 2020 some bull and bear case. later, a big beat and then a surge for palo alto networks why cloud and cybersecurity stocks may be too kmeep to

ignore. >> we will kick off today's feed with some opportunities within tech cnbc did a screen of relative cheapness on a number of metrics. dom chup joins us with that screen what are the names you have got? >> a multifactor screen if you will, our analyst team over at cnbc on the market side of things wanted to find a relative value deep value hunting type at least stock picking screen here's what they came up with. if you look at the s&p 500 overall, not just the nasdaq 100, but the s&p, a broader measure. you have got those s&p components a forward price to earnings ratio on a pee basis is below where it has traded on average for the past five years. the stock also has to have declined at least 20% from its recent highs expected earnings growth of 20%. trading at discount, and a discount valuation

and then at least half of the analysts who cover that stock say it is a buy or equivalent rating a lot of different factors but a number of stocks passed the test we will focus on tom of the tech names right now. maybe no surprise that when it comes to value and profit growth and everything else with regard to kind the overall pullback we have seen, semiconductor stocks, many of them, made that list amd is now trading at at 61% discount to where it normally does on a forward price to earnings basis over the last five years qualcomm is 38% below its valuation. micron, 35 western digital, 28% discount. nvidia also trading at a 28% discount when it comes to value hunting in technology, guys, it comes down to whether or not some of these names have been punished unduly and still have profit potential. those are the names we are talking about. many of them in semiconduct snoorsm do, it is a good

spotlight. i think we are hearing more of this over the last day or so some of the first in, first out, some of the names that have been beaten down. i was looking at chinese stocks today. they held up relatively well this week. they have got to be part of the list as well, in terms of how far they have dropped and some of the macro factors, beijing potentially easing up on regulations, covid restrictions eased as well. >> i am sure if you look at the nasdaq 100 where some of these u.s. listed chinese tech companies trade, they may meet some of these criteria as well you would have to lock at the profit potential i would also point out that if you look at some of the bigger names outside of technology, it is brand names that have been punished on the list outside of technology, diesny is on the list, chipotle is on the list. the top of the list is a couple of home builders, pulte and dr

horton when it comes to the s&p 500, it's not just tech but tech is big part of the discounted stocks >> really dramatic thanks for that. our next guest has been miing meta making it his portfolio's largest tech holding saying he is looking to pick up apple if the stock falls further. jing us, wedgewood partner's cio, david rolfe what's the motivation behind the meta buy >> we think it is durable. it has been through tough times. the stock has been slaughtered i think at the valuation down here, if you are a bear on the stock i think you have to really make a case that the business model has been disrupted, it can't grow, that the share buybacks, large share buybacks down at these valuations which are at free cash flow yields that are very acreative, you

have to take apart all of those elements of the story, at least in our minds, not to own meta. and again, as you mentioned, we recently bought it we suffered through it it is now our largest holding. >> are you interested in the long-term play of metaverse and reality labs is it more a function of if we are going into a dramatic slowdown that advertising the way it is targeted at meta is something that corporates are going to try to spend as much as they can that's certainly the number one element of our bullish stance. everything else on -- that you had mentioned, that's on the come hopefully, they don't spend too much on that but i mean, it's one of the best advertising platforms out there. and as you mentioned, as advertisers rationalize their spend i doubt they are going to cut it too much from meta. and even alphabet, which we also own. >> yeah, we are looking at list of your top holdings, meta

first, alphabet second what you are laying out right now, you like the advertising story. but with increasing worries about the macro picture the likelihood of heading into a recession, ad budgets, marketing, typically the first things that companies cut. do you think these are better insulated from those forces or do you think the macro picture isn't going to be that bad >> perhaps a little bit of both. if we do head into significant recession, if the fed breaks something as they enter quantitative tightening, they are going to get hit on those budgets. the good news is is that these stocks are trading at pes of 35 or 40. when we consider the risk reward, we like what we see. therefore they are our two largest holdings >> we have been talking about the mega caps. what about the smaller more speculative growth stocks that

have sold off so much and might represent accept some value here are you fishing into some of those names yet? >> we pretty much avoid stocks that don't generate earnings interestingly enough in your previous segment one of our larger holdings is taiwan semi it is part of the s&p 500 or the nasdaq 100 as he went through that screening, that stock would qualify as well probably we are fans of the semiconductor space. our favorite is taiwan semi. you without tsm, the likes of amd, nvidia, apple -- the world revolves around at the high end tsm. we think it is one of the most powerful underowned tech stocks in the space >> david, on apple, you know, a lot of people talked about it, trying to defend 150, then defend 140 i think here this morning at 137 is roughly the 100-week moving

average which i know b of a was some critical support because the 200-week moving average is $127 how much cheaper does it have to get before you get interested? >> you have seen it time and time again over the past weeks, if a company reports earnings that are even questionable, it's sell and ask questions later all stocks are in the penalty box right now, given the environment. the stock has been hit pretty hard this year over the last year it has hung in there pretty well it has always been a very large holding for us i would like for it to get hit i hope i have a chance to buy more stock at lower levels so this is a time that -- we have owned apple continuously since 2005 we like to road root for lower prices so we can increase our weightings we wouldn't mind the stock the get hit further.

other stocks like meta, we have added paypal, they have been crushed. apple hasn't been hit as hard yet. if it does, it will cross the plate and it will be a batter pitch for us. >> it does feel like, whether it is apple or tesla for example, today, 666 a lot of it is pinned around what q2 is going to look like vis-a-vis china, right. >> right hao and whether or not the market can get its arms around what would be obviously a disappointment within the quarter. who knows what else comes? >> certainly if we get a really bad iphone number out of china that's going to department the whole case. anything negative on product side out of china is going to hurt apple obviously, our atennae are focused on that. but for a lot of tech companies china is a significant wild card and it is probably going to get worse before it gets better. >> just in the first few minutes of the show stocks turned lower. the nasdaq is now down .8%

as we talk about the china question mark, yesterday on our air it was brought up that once it does open, we don't know when that is, there is going to be a lot of congestion. the airways, the ports are going to be filled again do you think that the market has this priced in, that there is going to be another leg to this, that could be a ton of disruption once china does open back up? >> probably not. i mean, the supply chain -- you look at -- look at the traffic jam already in shanghai. can you imagine what it's going to be like if it opens up? i mean, we are going to have cycle through like we did about a year ago, all of the stories about supply chain disruptions coming out of china. and it's hard to make the case against better any time soon it's a mess. >> that's exactly what it is, david. appreciate the candor, as always w the dow now down 230 on this friday we will see you soon certainly, china plays into the chip story, dom also talked

about it at the top of the "the news with shepard smith," perhaps an opportunity demand for chips remains high. but those companies continue to face head winds. shares of applied materials. the stock is lower 4.5% after missing top and bottom line estimates for the quarter issuing aweaker than expected forecast for the period, citing supply chain issues amplified by covid in china what we were just talking about. here with his take on the case, stacey wrasse con. it is great to have you here today. i know you love the secular story, as do many. but the short-term head winds, what do investors have to endure here should they be getting in now because of that long-term story? >> we are at the point of cycle where investors are getting nervous. peak cycle versus stronger for longer debate going on i think from a fundamental standpoint the stronger for longer has been right. it is showing cracks but from a sentiment standpoint, people are in the peak cycle camp

multiples have been collapsing through the year something that might be mildly encouraging, if you look at the degree of multiple compression we have seen, multiples came down by a third. you went from 21 times at the beginning of the year, to about 14 times if you look at the last eight or ten cycles over the last ten or 15 years that's about the degree that multiple compression you typically get as things are going into this period that's good. at the same time, however, we have not seen any earnings revi revisions. that's where investors are looking. they are hesitant to step in front of moefrs of these companies without seeing estimates come down. er with at that point of the cycle. >> isn't it wild that we haven't seen earnings revisions? last night they talked about all the revisions in china it was one of the later companies to report in the earnings season. we saw warn prosecution cisco as well why haven't they come down yet >> now it is starting to come down but it is not demand related

it is supply chain lack at amat and most of their pierce they have been having problems with the supply chain. perversely, the semiduct ar capital producers haven't been able to get semiconductors to build the tools and deploy the tools. for applied materials, those were starting to get better for them, but then the lockdowns happened in april. this is something new. not a lot to do about it what can you do? we are hearing different thing from different semiconductor companies, especially on the impact of china and the lockdowns. it depends on your china exposure, especially to the shanghai region. texas instruments take a haircut, others. amat as well. >> they reversed supply chain challenges in february and

march. went back from in reverse in april. we have notion that lockdowns being lifted willed create better conditions. cisco's point is everybody is going to rush to the bar that in itself, ports in shanghai or ports in l.a. will keep these things longer than we think. >> it has already lasted longer than people thought. every time something starts to get fixed something else pops up 678 it is like whack a mole. this is part of the issue. most of the conditions seeing impacts they are suggesting they are guiding like it is going to get better eventually i guess it has to we have had two years now where new stuff has been popping up all the time i don't know what's going to happen more constraints will it be ports who knows? i am amazed things have been frankly as resilient as they have been in the wake of these kinds of disruptions it is not surprising they are

cracking in some stats. >> as someone who covers an industry which is so notoriously cyclical how much of past cycles' experience is feeding your knowledge and your world view right now? >> every cycle is different. there are different kinds, supply cycles, inventory cycles. this is a major cycle. to be fair we have never had a cycle kicked off by global catastrophe before it was unique in that it was hitting every single end market and every geography at the same time, over the last year or two. yoke we have seen cycle this nature, we have seen individual cases, the tsunami in 2011, the floods in thailand we have had point examples of these things that the industry over time has managed. but we have never seen anything like this before in some sense, we are in uncharted territory. they kind of rhyme, but every

cycle is different this this one issior and unusual. >> i know we have been focusing on the supply side of this, amat and other semiconductor companies have been adamant that demand is if tact. do you think, stacey, there is any reason to question that going forward especially as the mock row backdrop worsens. >> we'll see actually, there are some signs of demand weaning, especially in consumer focused areas smart phones -- any stock that touch as smart phone has been death. smart phones, especially in china, have been very bad. pcs were incredibly strong if the wake of covid. those are starting to roll over. tvs -- target reported the retail industry has been in apocalypse, right? target was talking about weak tv sales. anything consumer focused has been weak. enterprise focus, data center have been strong, been holding up automotive, obviously, shrtages and production constraints, but

demand and everything has been strong industrials have been strong so far. throws okay. cracks on the consumer side we have seen. >> death and apocalypse, stacey u didn't put it mildly thanks for your insights. >> any time. the market weakening through the morning. all three indices in the red palo panging in there. we will get more on that as "techcheck" is just getting started.

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you can see palo alto on the top of that screen let's get a gut check on it. shares popping following results. frank joins us to discuss those numbers. >> palo alto having its best day after beats on the top and the bottom line. strong guidance. and the ceo laying out the opportunities for the company created by the cyber threat

related to the ukraine war >> deploy protection for over 3400 now indicators of attack different organizations from disruptive and destructive run cyber attack as you might expect we are seeing heightened interest from commercial and government customers in europe. >> really al strong quarter all around, billings, money collected from customers, up 40%. aurora also said the company has able to mitigate supply chain issues and have product when many of their competitors did not. the cfo added thecompany aims to reach the rule of 40 combined free cash margin and revenue growth by next quarter this quarter, just over 54 the results giving a boost to the cybersecurity sector, especially those companies specializing in zero trust architecture you mentioned what cyber stocks are too cheap to ignore, akta and descaler >> i found his comments on the

labor market fascinating he said that the companies' employees had been leaving to join start-ups six months ago but he said no more. that has changed now they are asking, wait, do i really want to make that move? what do you think is behind that is it security companies having an easier time, the sell-off in the public and private markets of newer growth companies? it is such a fascinating dynamic. >> you know, i think the sector when it comes to tech and cloud is kind of in flux right now i was speaking to a pe firm. he said companies are reaching a moment of capitulation, they have to accept their companies aren't as vaunl as they once were and can't spend as much money as they once did it might be slowing the moves from employees going from public companies to private companies that need an injection of private equity funds or get bought ought. >> capitulation. we will talk more about that

later on the show. every day almost, we do again have news about elon musk, this time, business insider detailing an allegation of sexual assault against the owner of tesla and spacex. >> elon musk responding on twitter to allegations of sexual misconduct a reported business insider claims that musk's spacex paid $250,000 in severance in 2018 to a flight attendant who accused him of sexual misconduct cnbc reached out to spacex for comment but has not received any response musk responding on twitter saying, quote, no. it was clear their only goal was a hit piece to interfere with the twitter acquisition. also tweeting quote they began brewing attacks of all kinds as soon as the twitter acquisition was announced. my entire 30-year career

including the me too movement, there is nothing to report but suddenly there is. musk calling the quotes wild accusations saying they are utterly untrue twitter had no comment but this isn't the first time issues of harassment has been raised with respect to musk's companies. this past winter six women filed separate lawsuits against tesla alleging the electric vehicle company fostered a culture of sexual harassment. musk was not implemented personally in those allegations. as to whether all of this impacts musk's twitter takeover offer, truth analysts telling us this is all, quote, likely to add yet more distraction to an already messy situation with twitter. >> distraction on top of distraction, on too much distr distraction. he wants this to be called

elongate tesla is losing its top spot in cathie wood's ark investments. recue now making up 8.7% of the fund she's not alone. 70% of analysts have buy on the stock with an average target of $161, roku tesla is the share's number two holding helping drag ark down 55% in 2022. carl, we follow her holdings closely. it has been a rough year but still seeing a decent amount of inflows >> as for ark, yeah, absolutely. as for tesla, i think it was joanas as from morgan stanley yesterday that asked whether or not first-time tesla owners would enter the arena at $500. that wasn't his forecast but it

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half past the hour two hours into today's trade welcome back to "techcheck." i'm carl quintanilla with deirdre bosa nasdaq is lower, hovering down 1% losing all the gains of the morning. an argument to buy growth and more speculative areas in the market in a moment first, seema mody. shares of ross stores are heading to their biggest one-day percentage plunge since 1993 and a two-year low with a loss of around 22% today

it is the latest retailer to warn that rising prices are slamming consumer demand for discretion father products look at deere down 12%, session lows sales came in lower as farmers experienced higher input costs due to higher fertilizer prices. supply chain issues resulted in partially completed machines and foot locker is up 2%, well off its morning high profits topped forecasts and it is hoping to hit the top send of its sales and product output for the year. the dow has swung 500 points peak to trough let's look at what is leading the moves. christina, what is working and isn't in tech today? some more speculative names getting a big mega cap mix >> yeah, we will get into it just within an hour it was in positive territory, now falling almost 1%.

the exchange is almost 30% off its 52-week high the stocks having the biggest impact on the downside, tesla, nvidia, ross stores, and costco. it is about the retail trade today dragging down the nasdaq jd.com is up 3%. iqu is up. there is a slim number of fintech having somewhat of a positive week. lemonade had to be pulled. it was up and then went down nerd wallet off 70% from its 52-week high a big question, where should investors go shopping? big tech, meta, amazon, microsoft, alphabet, they have dropped more than the broad market average but morning star research is arguing these names are still

high growth stocks and valuations closer to value stocks definitely among the picks there. at the nasdaq, the seventh week of weekly declines, the longest losing streak in 21 years. >> christina, thank you. the perfect setup for our next guest who says the current interest rate investment isn't a negative for all stocks. he increased his position ms. block, swill yo, amongo db during the sell off. joining us, ryan jacob am i reading this correctly? you are seeing some of the best values in busted spacs which ones >> first, to your earlier point, given the fact that we are 13, 14, 15 months into this real tech bear market where a lot of those smaller speculative names, and a lot of these spacs were the ones that took a majority of the damage, and then only until

did it start to infect the rest of the market. then in the last four or five weeks did we see that move to the larger cap names if we are in the bottoming process, we will look back in a lot of ways this will be the textbook bear market the way it plays out. as for the spacs, obviously we saw a lot of companies come public last year that had really not much more than a business plan through that mix there were a couple of companies that we think are legitimate long-term buys here. >> which ones are those, ryan? how do you determine which ones are, from that spac wreckage >> there is handful. two that stand out, probably the largest is c bent, a stock we owned in 2015, was acquired, taken private by vista they came out in the spac format last year. you may ask, you know, for a company that's that mature, they lead the event management space,

technology they were hurt obviously during covid. there weren't a lot of live events they had to transition to a hybrid model for the events they are hosting, then a virtual model. the results were so poor they really didn't have that traditional ipo route to go. they had to give these longer forecasts that were allowed during spacs to show people as the economy went back to normal that their results, you know, should benefit we are starting to see that already. >> ryan, the elon musk twitter process has been confusing to a lot of people. but you have been pretty nimble in managing it so far in this process. talk about what your playbook has been. >> twitter has been a large position for us. we always felt it has been underappreciated and undervalued given their global reach as a social media company obviously, they have been unsuccessful in kind of figuring out exact low how to monetize the subscriber base well

so then when elon musk made the investment, we thought that was an interesting moving. and then when -- we did think there was a decent chance he would ends up trying to acquire the company. once that happened, the stock went over $50, we felt the risk reward wasn't that positive given there could be bumps along the way and frankly also because we saw some -- look it as an opportunity to redeploy. i think now that the stock is back into the mid 30s, at this point the risk reward is skewing the other way. we have a little twitter position we are considering adding to it. we do think the deal will eventually come through even if it comes in at a smaller discount than the 54.20. >> but you are not betting on a drawn out legal process? >> there could be, but we are talking months, not years. you know, it's still -- this is going to be, in essence, an all-cash deal. we would expect a fairly quick close once we get through some

of these legal issues. it is always a possibility i think it's well more than discounted, where the stock is today. i am not sure the stock would fall whole lot from current levels, maybe another 10% or 20% even if elon were to walk away in when you look at more of the beaten down speculatives, smaller mid cap names, do you like them because they meet might be able to get close to or reach peef peaks or do you think they are attractive as m & a targets? >> really, both. we have the lowest exposure in our history right now to large cap tech the reason why small and medium tech looks interesting to us here is we do expect interest rates to rise. we have gone through this period of really at least 12 years of relentlessly lower interest rates, which has boosted all of large cap tech and boosted multiples. they are the ones most at risk to seeing that compression the small mid cap names that we

favor they are growing 20, 30, 40% per year they are not going to be as affected by interest rates i think when people look at higher interest rates being bad for all growth stocks, i think they are missing the vast difference between the large and mega cap part of the tech market and the small and mid cap space. >> are you talking about profitable growth tech, then, ryan give us some names here. >> yeah, some of the names you mentioned we have been adding to, like a square, or a twilio they are probably more in the mid cap at this point, but valuations have come down tremendously here, and these are companies that are extremely well positioned, continue to gain market share. these are next generation technologies that obviously got a boost during the covid period but coming out are still able to put up 20, 30, 40% type growth to expect to get these companies at -- maybe they shouldn't be at

15 or 20 times revenue but we would argue they shouldn't be at three or four times revenue either in the case of a twilio. >> ryan jacob, thanks for being with us today, talk to you again soon. speaking of buy calls on growth names, emj capital's eric jackson telling the judge on overtime yesterday that we have reached a growth bottom and it is time to buy he likes twill yo, upstart, far fetch, open door and carvana and citi likes snowflake, says you are getting a big discount at this level versus its other hyper growth peers, the street trying to parse who is going to be a winner here crd at the opening today was the best performing dow component. we will see how much of the i.t. enter surprise gets compressed crm certainly is survivor. >> also, we brought this up

earlier in the week, enterprise software, the next sort of shoe to drop. we have all of these companies, especially in the start-up space pulling back on spending, on marketing. maybe software is next that is something to look out for. in terms of snowflake, we are going to talk about this later but the gap in stock based compensation to its valuation and its future earnings is something to consider for investors. we will look at that in the context of door dash's latest move and a few other companies what you need to be aware of. as we head to break, a reminder that cnbc this month celebrates pacific islander heritage here is michael. >> my heritage has really taught me how important it is to really be focused on results, to really be focused on trying to do the best i possibly can do every single day and i think that that contributes extraly to the success i have had in the business world there's a tremendous population

of investors that are looking for help many times, they are looking for help from folks that are understand their culture and their background i think there is tremendous opportunity for asian americs an to continue to advance in the financial services world

facebook's products harm children, stoke division and weaken our democracy. teens blame instagram for increases in the rate of anxiety and depression. it's not great when your customers are voting with their feet and deciding to kind of walk away.

facebook's parent company meta dropping more than 26% last week... that is more than $230 billion in market share value. when will there be accountability? how many more people need to be harmed before mark zuckerberg listens?

welcome back to the "techcheck." if you have been watching the mega caps this week, you are probably wondering what has happened to apple testimony stock is on pace for its worst months since 2020. now heading for eight straight weeks of declines. steve cowac vac has more on this terrible week. >> apple is off almost 25% from those january highs when it was at that $3 trillion market cap the last two weeks alone brutal for apple, down about 12%. analysts still searching for the bottom, but remaining optimistic web bush's dan ives had a note out this morning saying iphone demand is holding out better than expected despite the supply chain and covid shut downs in chinese. good news for apple about demand this week. meanwhile, apple's board got a demo of the headset this week. it would be the first new

product since the apple watch over seven years ago apple has been working on it the better part of a decade. here's how we know it works based on all of these reports. it is a mixed reality device, meaning it can do both augustmented reality and virtual reality. it has cameras on the outside that pulls in the real world so you can see it on screen in front of your face and puts those digital images in the real world in front of you. then you can ramp it up to full virtual reality experiences. it is also said to be using a version the m 1 chip that has been powering macs the last couple of years. meaning it will work independently from the iphone. think of it like an ipad on your face, content consumption, not creation or work apple declined to dement on the latest reports but me watching apple for the last dozen years or so, my best guess is we will get a reveal this thing in the foal with the iphone each and an launch in early '23.

we know rivals will be coming soon facebook, slash, meta has been teasing a similar mixed reality headset that's going to launch this fall. zuckerberg gave an demo of it a couple weeks ago. >> that's going to be fascinating. as you point out, it has been so long since we have seen a new product category they are always met with a ton of concept kichl, the watch, about the services, the use case, or whether it is going to be large enough to move the needle >> that's right. if you remember when the watch launched seven years ago, it tried to do too much tried to be like an iphone on your wrist they learned we need to dial it back, make it more more focused, no more running apps on your wrist. can i see that happening with this, they might have to test it out in the wild a little bit before we really figure out what this thing is going to do. keep in mind also a longer term

investigation to eventually replace the iphone with glasses like the washi parkers i am wearing. turning to door dash, announcing buybacks. this comes as they ramp up stock programs for employees microsoft increased grants for 20% of workers amazon looking to spend $20 million on stock grants this year apple has been giving grants to top engineers. certainly, a buyback helps with dilution, helps to offset it i thought it was interesting because it never occurred to me we might see a growth economy, especially in the gig economy space which has traditionally been unprofitable returning money back to shareholders the question, is the money well spent, is the fact something

that door dash has a free cash flow that they can do this they are getting more market share but they have been kinds of easily able to win that from the other players that this maybe puts them in a position to do in this. >> it is a delicate balance. on one hand it might be seen and was seep as a welcome move earlier in the session but at what point do investors say what about the market growth in a market that's going to remain competitive and at some point relatively strong. >> there is other players out there to consolidate grub hub, just eat takeaway that may sell off that stake. i have a feeling that chu doesn't think that's worth big i was looking at other companies in this space that could do this airbnb had free cash flow of more than $1 billion last quarter, more than $9 billion in

cash and cash equivalents. is this something that could continue on that note, too, you always have to think about stock based compensation when you look at a stock's valuation. just because it has come down and seen that compression doesn't always mean it is time to buy barron's pointing out stocks this morning that are not as cheap as they look the names they identify include lyft, cloud stocks like snowflake, crowd strike, descaler as well as e-commerce players, shopify and paypal. >> it has been a tough ride for faang. and over the last month, as everybody knows, check out amazon down almost twice as much as apple and netflix. while citi takes its name off the focus list today, cramer suggesting maybe a bottom here what does that mean relative to other retailers? we will break it down in the outlook when we return in a moment wealth plan across your full financial picture. a plan with tax-smart investing strategies

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we are closing out the week with a look at amazon and today's edition of overvalued or undervalued. on the bear side, despite naming the company as one of their favorites, amazon has the most outsized risk for the back half of 2022 for good reason. free cash flow yield the last five years, trending the opposite direction versus mega cap peers. not quite the case for microsoft or alphabet where cash flow remained strong. not everyone thinks this is the case for long. credit suisse arguing that amazon can return to historic levels of capacity by '24, and c citi calls it one of the top picks in the internet sector it will be a push and pull there are things about amazon that are unique but to what

degree are they dragged by forces that take down giants like walmart and target. >> yeah. it is a great point. amazon has always invested all or most earnings back into the company, so they can still innovate, create, maybe it is undervalued. nasdaq down 1%, on pace for losses of 4.5% tech neck is back in just a moment ♪ ♪ connecting to opportunity is just part of the hustle. ♪ ♪ opportunity is using data to create a competitive 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...

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one more thing before we go. a lot has happened since musk made his bid for twitter he said the purchase is on hold. how did we get here? our digital team put together a piece detailing the timeline here's a peek. twitter referred to as society's de de facto town square >> welcome glad to see you too. >> the world's richest man publicly flirted with tying the knot with twitter, started to purchase shares in january what led to him brokering a $44

billion buyout deal to snatch up the social giant in three weeks. let's go through the timeline and fill in the blank twitter spaces >> watch that entire piece on the show twitter, follow us at cnbc tech check. carl, this piece may be 10, 20 minutes by the time it is over >> good stuff. have a good weekend, everybody let's get to the judge carl, thanks so much welcome to halftime report scott wapner stocks on pace for the longest weekly losing streak since 1923. when will the selling stop are we almost there? is it time to buy some of the most beaten up names we'll discuss and debate that with the investment committee. joining me, stephanie link, jason snipe, kevin o'leary, whitney wright show you the markets first and foremost 12 noon in the east. dow is dow