in the media, in the story, because the fight that they are having in ukraine, according to him, is the world's fight, and they are really trying to lobby the message here on the world stage in davos so didn't want to leave without playing that i think it's important and it was powerful to hear. >> it was. and i'm glad you brought it to us, sarah. good luck with what's upcoming that's going to do it for "squawk on the street," let's send it over to "tech check. >> i'm carl quintanilla with john ford, today, the bottom falls out on snap, revealing sharp deceleration in the business shares down 40%. the rest of media, social media feels the pain, pinterest and meta get hit the hardest is there more pain to come especially following the negative prints from walmart, and target, and the last piece of this puzzle, layoffs, hiring

freezes across tech. snap today, nvidia, uber, the one out performance story is zoom pretty strong guidance, stocks higher but that's of course after the 85% drop snap right now, 83% from the 2021 peak with the nasdaq down another 3% this morning. a lot of discussion about to what degree snap would be company specific but then you couple it with everything else we've gotten over the past few weeks, and it's hard to look past. >> it's certainly taking down all the other digital advertisers. to see alphabet down 8%. the session is pretty remarkable, but you summed it up, carl, in that opening. it's not just snap it's only the latest sign. if you think that the likes of amazon and walmart, and target, some of the biggest, most efficient businesses are having a hard time with profitability, growing their revenue in this environment, and just dealing with all of these uncertainties, john, how do you think the others are going to do snap obviously being one of them that is much smaller, so you got

to ask how many more are out there. are we going to see these guidance revisions from other companies? >> to take a step back, dee, this is about a lot more than just the ad market, a lot more than just marketing budgets, the market action that we're seeing right now. roku, for example, down about 16 1/2%. app loven, which has a $12 million market cap, higher than roku is down 16%. affirm down 13 1/2 unity, and rasana and stitch fix stitch fix, less than a billion dollar market cap right now. those down 10% it's not just about ads and marketing. it seems to be about this question of the overall slow down, which is what you expect when you've got this inflation and the fed is raising interest rates to try to slow things down, but there's been this market shift since the end of q1, and even since the earnings

reports a month and a half ago, and we're seeing that play out. >> what do we say about advertising and marketing, often it's like canary in the coal mine if companies are scaling back, that's usually where it hits first, that ad spend are we just at the beginning of this i think that's a key question for investors with the nasdaq down another nearly 3 1/2% today, john. >> yeah, dee, and by the way, we have talked about how easy it is to cancel an advertising order, versus an order for hard goods, turn that spigot off, but john, it is that proximity, and we saw this in target, the proximity between the last bit of guidance and this one, and how jarring that was when brian cornell was on squawk, and certainly no different today with evan spiegel's comments. >> and wise comments from art cashin about the levels we're watching on the s&p. i believe he said 3815 we're a ways from that, getting back toward the levels, we are under 3,900 where it shows that

investors are nervous. let's talk snap, and how its earnings are being felt across tech with julia boorstin, hey, julia. >> hey, john, what a dramatic decline for snap, and the thing that i'm most focused on here is the fact that it's been just about a month since snap gave its guidance for the second quarter, and not only do they guide between 20 and 25% revenue growth in the second quarter and now they're coming in and saying it's going to be below 20%, but i want to go back to the kind of insight that evan spiegel gave to revenue growth at the beginning of the year. at the beginning of the year, he said they were growing revenue 44%. then that slowed down after russia's invasion of ukraine, and all the market volatility there, and then they gave this lower guidance for the second quarter. the fact that we're seeing such dramatic change from 44% growth at the beginning of the year, to perhaps 15% growth in the second

quarter, really a dramatic slow down, and it seems, guys, like the analysts think this is going to be an issue for the other social players as well any of the ad supported stocks. >> yes, the ad supported stocks, but what about the subscription supported stocks, especially given that the tide seemed to be shifting from, you know, just a focus on subscriptions with netflix, for example, toward ads as well. i mean, if the consumer is being pressured, perhaps they're going to be choosier about how they spend all kinds of dollars >> yeah, i mean, there's this overall question of the health of the consumer here, and i think it's worth noting that when evan spiegel raised these red flags yesterday, both in his letter to his employees, his memo to his employees in the ak filing and also the conversation with morgan, he wasn't talking about targeting issues with apple's operating system for so long, that was the main challenge that was facing the likes of meta and snap and pinterest. this idea that these companies

were just being pushed back in terms of their ability to reach consumers because of those issues now they're talking about macroeconomic issues, and he specifically cited supply chain shortages, labor disruptions, rising inflation, and geopolitical unrest. they are presenting challenges for a wider array of industry verticals in the prior quarter there's a broader question of what's going on with ma macroeconomic advertising. streaming advertisers, in terms of the companies paying them to advertise were actually a growth factor, so i think this question of whether the overall consumer is going to be strapped is another one to watch here, and whether we'll see consumers shift from the ad, i'm sorry, subscription only services to ad supporting streaming so they don't have to spend as much money, we're expecting that shift. this question of how much brands want to pay when there's so much uncertainty and which of these various companies, whether it's you tube or amazon that could

really feel the hit here >> yeah, thank you for saying amazon, we're looking at a board at the social media companies, but maybe we should be looking at the broader ad market we are talking about this before alphabet is down 7% right now. amazon, which actually has a bigger advertising business than twitter is down more than 3 1/2% you would think, though, that they are far more insulated, yet they are getting hit harder in some cases than some of the stocks we were looking at. >> i think we don't know how these companies will be. the analysts with notes out are pointing to you tube as a piece of alphabet that certainly has exposure here, and of course amazon as you mentioned has an incredibly fast growing advertising business they have so much data, so much ability to target. if we're going to see consumer products companies really dramatically pull back, that could impact their ad revenues as well. we want to keep an eye on all of

these companies. i believe google is going to have one of their executives speaking tomorrow, and that's going to be another thing we're listening to, ahead of google's business, is going to be given a keynote on wednesday morning a little bit of an indicator there. google never gives official revenue guidance another thing to listen out for. >> julia, that's a good place for mike sto weigh in, not just on alphabet and snap, but where ecommerce fits in this discussion >> a lot of dynamics we knew were in place. yes, tightening up a bit, but also the shift away from ecommerce intensity back to physical stores, and then maybe the exhaustion of pent up demand for goods and the shift to services, so all of that is visible here if you look at the leisure and travel etf this is held up relatively better a lot of hotels, restaurant companies, and travel and things like that.

obviously this is the equal waited retail basket that's changed stores and gotten blasted. not addss much as the ecommerce space. it's a question of people giving up perhaps on the idea that it's priced into these valuations right now. a lot of effect that iswe knew were going to happen, and the market has struggled to figure out exactly how we have priced it all in. >> the idea that leisure, entertainment, vacations in other words, are a longer lead time you might have your summer vacation booked, come the fall is there a hangover that arrives then >> you probably should anticipate something like that on the other hand, i was seeing that even on monday, this past monday people talking about like flight search traffic was high so i don't know if, in fact, that's just kind of a little pick in the pipe that we're going to get through unclear. it's becoming a little harder to say that, yeah, we have this pent up savings and we have this buffer it's the aggregates that the economists are looking at.

it's not on the day-to-day the stocks are going to overshoot in both directions no matter what the longer term trend is. >> we have the cruise lines at 52-week lows, and marriott saying it might be hard to avoid a recession. we'll find out later, mike, thanks mike santoli i guess the knee jerk response is to say what went wrong with communications, but i guess there is the possibility that not even corporate guidance can keep up with the swiftness of this decline >> yeah, i am curious about that i think a lot of people see when you have fears of recessions, ad budgets are the first thing to go it's surprising that the ad supported companies weren't a little more barrish this last

time around that stuff gets booked now that's the stuff going away now, is your q4 advertising spend it's all on pause because i think none of the cpg companies, brand advertising companies know how things are going to go if you're an auto maker, you have no idea if you're going to have cars to sell, why on earth are you spending ad dollars on them right now that stuff is in a huge wait and see period it might come back, but i think if you are an ad supported business, you're really looking at, well, i don't know when those dollars are going to come in i have to forecast for the worst case scenario. >> right and internally, these companies in snap space have to wrestle with how do you manage staff, right. how do you manage hiring we have seen a bit of disparity between those actively laying off, and those trying to stay stable in their head count but that's very tough calculus given everything you just said. >> yeah, i thought the labor disruptions line in spiegel's letter was really interesting. it doesn't say where the labor disruptions were

did he mean in china, which can't produce enough goods during shut downs. did he mean in silicone valley where the labor market is as hot as it's ever been. microsoft is doubling base pay to compensate for the drop in equity compensation. it's hard to pinpoint exactly labor disruptions there, but i think one of the challenges for all of these companies right now is that the labor market for tech workers is still red hot. and because the market is down, they're having to make up for it in cash. that's just a huge pressure on tech companies that really hasn't happened before because the market has gone up and up. they have paid everybody in stocks, and now they have to pay everybody in cash. that's going to be an interesting dynamic over the next few years. >> i wonder about that, again, nilay, what we're seeing in the markets is not just about the ad supported companies. square is down 8%, and we can go on down the line looking at high growth companies that are down a bunch, you know, tesla is down

quite a bit as well. nvidia down 5% look at some semiconductor names, qualcomm is also down a and d down 4 1/2, qualcomm down 4 so what does this do to tech worker psychology, right, and what does this to do innovation at a time like this. i know that the verge covers that, but, you know, management expectations and employee expectations through this whole time whether we're talking about compensation, whether we're talking about where you're working from, we've noticed this divergence over the past year or so >> yeah, i would say my view is short-term pessimism, long-term optimism in the short-term, the companies are disrupted, are they going to be able to put out new products on the cadence they want to. is every company that is downstream of advertising, strike is one of them, right, payments a lot of direct to consumer payments happen on stream they're all downstream in

advertising. there's going to be a lot of short-term disruption. a lot of people are going to leave. if you're getting paid in cash and you have a lot of cash it's a good time to leave and start something new. that is the case for my long-term soptimism this is when companies get founded and investments start to happen this is when the people who have spent a long time leave and start new companies and generate a new class of ideas that's what we saw last time in 2008 steve jobs famously said we are going to go through the downturn, and you have explosion of tech innovation, new products i'm hopeful that happens this time, and i don't know how long this is going to be. >> that's a good point that's when we saw sort of the last class of disrupters, air bnb's, ubers, liyfts there's pockets of short-term optimism we spoke to next door ceo sarah fryer, and she says that her hiring plans, investment plans are still on track, and we have heard that from some other ceos,

tony shoe at door dash as well do you think that's overly optimistic, and they're going to have to scale back some of those plans weeks later like evan spiegel has done or do you think there's room for companies that have built up better cash positions or recently went public to have that outlook. >> they're both intensely local businesses, nextdoor in particular but doordash has data about the local markets it serves and the big question for everybody is the market is down because people are taking cash out where is that cash and how are people going to spend it is overall the big question here. >> we will find out whether or not that plow gets plowed back into savings or what, nilay. appreciate that very much, nilay patel. another business scaling back, airbnb shares are down % shutting down its domestic china business all of the mainland chinese

listings, homes and experiences, they will be taken down by the summer, but the company will maintain an office in the country focusing on outbound travel, so why now, well, airbnb faces tough and growing domestic competition, plus sources tell me this segment was costly to operate, and the pandemic made the issues worse airbnb may be looking at a worsening macro backdrop like others, and perhaps china has been one of the areas that it's been considering airbnb launched its china business six years ago, and it accounts for 1% of total revenue. the company declined to comment. guys, 1% of total revenue is not a lot, but they were spending to actually get into this market, and i'm told that the connection between having a presence in china and then also targeting chinese travelers who do travel abroad, they hope will continue to travel abroad once the lockdown there ends wasn't that strong they're going to focus on that side of it, and put their efforts in the asia pac region

this is another company looking to cut costs. >> cutting costs, and maybe that's part of the bottom line here as investors are thinking about this market. i mean, besides being about travel and hospitality, airbnb is also thought as a gig economy stock. uber is down almost 9% this morning as well. so perhaps important to keep that in mind, carl, as we look at the context in which airbnb is falling. >> the final piece, the airpods pro 2 will enter mass production in vietnam in the second half of this year would be a successful case, they argue, of mass production going out of china and into a neighboring country obviously that's nowhere near being confirmed. it would be interesting to see if apple can find ways as we discussed yesterday to repatriate their manufacturing in other countries. >> the successors and losers in

the market, the problem is so great you have more hardware companies like apple and manufacturer like tesla succeeding, but the software companies, the tech companies, john, have had such a rough go in china. >> indeed. so who's buying in a market like this well, private equity for one orlando bravo is on the other side of this break, a big hour of "tech check" is just getting started.

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let's get a quick gut check on roblox. cutting target in half to 30 bucks a share. concerned with weakening app download trends say they see paying growth stalling, with usage across north america, and projecting extra pressure from a decline in the company's cash flow shares down 9 1/3% this morning, now down about 73% for the year. yet another pandemic darling hit big by the broader selloff and speaking of broader selloff, the nasdaq is down 3 1/2 right now, the s&p 2 1/3, and the dow,

1 1/2. >> yeah, another brutal market day, if you're long. we're going to check in on the state of m and a, despite a drop in overall activity from 2021. private equity firms have upped the ante, spend ago combined $291 billion in the first three months of this year, taking an unprecedented 29% of the total m&m market, according to refinitiv. joining us now, one of the biggest players in the space, orlando bravo. it is great to have you with us. since we last spoke, just six weeks ago, the markets have fallen further, the s&p is flirting with bear market territory, the nasdaq down another 3 1/2% today, are you still shopping have valuations become more attractive or do you preserve cash as the macro environment worsens and perhaps look for a better opportunity down the road >> well, thank you for having me it's really nice to be back and be here with you, and of course we're always shopping.

we use the one liner of the time to buy a great software company that fits our strategy is when we can that is regardless of industry cycles, regardless of a potential recession, regardless of a tougher macroeconomic background the thing with our states, the two really important things, and i have been listening to your show, and when you hear all the comments about advertising is the first thing to go, i heard that at tech could be in trouble, what's the consumer going to do. what's going to happen with travel enterprise software in difficult times is so resilient, and we have been there before many times for the last 24 years. because these companies or the customers depend on these companies to run the entire businesses and to protect the entire infrastructure from cyber security attacks you look at it that way. so therefore in a period of potential instability, these reoccurring revenue streams do

extremely well now, secondly, you mentioned buying these companies, not buying the stock of these companies. in enterprise software right now, what's going on is a big reevaluation of the sector because public sectors want profitability today, and most of the players in public markets are unprofitable that's one of the things that our industry does is it takes these companies private, and then you can actually accelerate growth while doing a business transformation that maximizes your margins, and we do that, once again, across cycles. we're always shopping, and we never stop >> and there's a lot of cash to do so in the bioindustry orlando, zoom also a good example of what you're talking about in today's market. it is higher when the rest, almost everything else is lower, in terms of who should or shouldn't be doing deals, private equity has made up most of us it yesterday, we were talking, he

was asked about interest -- he had skepticism. >> i don't understand the c conglomerate strategy in the technology business. in our business security, there is a buyer, and they are responsible buying a certain set of things. if i buy more things that fit that portfolio, it works if i buy decent things, i'm not sure how that works with the buyer, but i'm sure there are wiser than that strategy. >> is that a dig at a microsoft or. >> it's not a dig. you have to have things that one buyer wants. if you split your portfolio amongst multiple buyers in the company, you have a technology conglomerate, maybe specialist companies have better value to do that. >> orlando, what do you think here are lower valuations enticing companies to do deals that maybe shouldn't be can they do a job that sort of maybe pe has traditionally done?

>> so i heard the comments, and i never -- i have learned over 25 years of private equity investing in tech to never question somebody else's strategy because there are multiple great strategies that can work it depends on company, and it depends on what they're trying to build broadcom is a phenomenal and disciplined buyer, and if you look at the deal, there are reasonable multiple cash flows there. we subscribe to the view of best of breed when you look at our portfolio companies that are now producing an aggregate of $23 billion in revenue, we keep each one extremely focused and independent in being the market leader in that specific sector cyber, which nikesh, they put out a great quarter. it shows you the resiliency of these companies. in cyber, we have $6 billion of

revenue. in aggregate, making us the largest cyber security company in the world we keep each solution independent, more towards that view to provide the most value that we can to the customer, and to compete against solutions like, for example, microsoft, that provided many of them for free, and they bundle with the entire portfolio so in short, i would not criticize that deal because it's a good buyer with a great track record done at reasonable levels. >> orlando, let me ask you about your strategy and your filters for buying because i think public market investors right now can use, you know, some frameworks to think about. you just talked about market leadership as one, being best of breed. you also talked about opportunities in companies that aren't yet profitable because the market clearly wants profits right now. that tells me, there might be

opportunities in particularly nasdaq names that have been beaten down so badly, might have great technology in those point solutions but aren't going to be appreciated for a while. what kind of filters would you put on those companies right now to determine whether they might be of value if you're looking out, you know, two to three years. >> that's a great question, and i appreciate it. there's a lot of interesting things to say about that we feel that public investors, and maybe it's because of the lack of information they're able to get their hands on. they do a great job at adjusting multiples based on growth rates. but the public market does not do that good of a job at distinguishing quality quality of revenue, quality of market precision, quality of the value that you're providing your customer i think there are big pockets of opportunity where quality is being heavily diskcounted today, and quality now has a premium now that we're potentially getting into a very difficult

environment that you have been talking about during your show i would really focus on gross retention rates and why they are at 95% plus, for example something that most high quality names. the second piece of software that i think is really interesting right now is the subset of companies that are actually profitable. software companies are producing 20% margins. they are not that many, but they have gone down from 25 times ebita multiple to 18 the lowest versus the s&p 500 for companies that are growing three times as fast as the s&p and have much better business models now, the issue with the revenue multiple names that are unprofitable, that have come down from roughly 17 times to 5 times, next 12 months arr. the issue with that, when you buy the security is that you really can't control when they reach that profitability now, if you can really determine

that with conversations with management and the board, and learning about their past track record and their set of priorities, you might find yourself in a good place for us in private equity as a buyer and operator of software companies, this environment of five times forward revenue is the buying opportunity of a lifetime there have been cheaper times in and of ourselves, a global financial crisis, we're buying two times. after the dot com bust, it was one to two enterprise software is not where it was in the past now the industry is completely changing functional areas, and in markets as well. >> so orlando, now tell me how you look at some of these very specific niche plays like, say, smart sheet, which is in productivity software, but has managed to build a business there, despite microsoft

strength construction management bringing cloud smarts there a relatively new public company that's focused on, you know, cloud logistics and transportation, and then providing data intelligence there. how do you judge quality among those companies that are looking at very specific industry niches and serving specific industry problems >> i'm not going to specifically call on each name because then i'll get in trouble, right i don't think i'm supposed to do that, but i'll answer your question this way. first we really value buying the number one and number two player market leadership in sass, particularly in some verticals, is extremely important and carries a premium. especially when times get difficult, customers kind of all tend to go to the market leader. they take less risk in their buying decisions like investors do so. the second big piece of it is what is your gross and net

retention rates. you look at these great me tric of 95 to 97% growth. 120 to 125% net, and then what kind of a runway do you have with those customers over a long period of time, and who are you taking share from. are you taking share from the lot of old vendors, that's a great place to be. are you competing against a lot of new upstarts and demand is less clear that may be more risky but then third, as a buyer of these companies, do you have a compelling operating plan and buy-in from existing management to bring those margins the bottom line to best in class that is absolutely key for what we do, and we can employ that as an owner of the entire company versus the security. >> orlando, finally, i have to ask, there was a report that toma bravo was expressing interest in buying twitter in april. were you interested and if you

were, you got to love it now at 36 bucks >> i knew you were going to ask that for some reason, right. so look, we're one of the largest private equity firms in the world, and the largest in private tech equity now. we look at every large tech deal we have a fiduciary duty to our investors to do so, so of course we look at every deal, now, what ends up happening to us from time to time is by looking at other tech deals, we get even more conviction on enterprise software and applying that formula that we have used for 20 years over and over again. >> so you're saying that twitter gave you more conviction in what you already do which is enterprise software, because it's a better model? >> i feel and our firm feels that enterprise software within tech is by far the best business model if run correctly, and it's inspiring to see other great

deals with compelling business plans, and compare them to what we do. and it's also inspiring to know that we're in the right place for us >> well, i know a lot comes across your desk, orlando bravo, thank you so much for being with us today >> thanks for having me. >> dough is down another 440 >> here's the news at this hour, new home sales plunging last month, down 16.6%, a drop of less than 2% had been expected it's the biggest decline in close to nine years. record high prices and rising mortgage rates are making houses just too expensive for many would be buyers. another retailer is disappointing wall street. shares of abercrombie & fitch are down 30% after reporting an unexpected loss and a cut to its sales outlook for the year the company's ceo says expenses will have to be tightly controlled as it tries to offset rising freight costs.

and glencore will make court appearances in the u.s. and uk to settle long running criminal investigations including bribery probes the "wall street journal" says the commodities company plans to pay total fines of 1 1/2 billion dollars, which also includes expected penalties from an ongoing investigation in brazil. back over to you, carl >> bertha, thanks. a quick programming note this morning, do not miss a cnbc special report, 6:00 p.m. eastern time, and this one could not be better timed. john is going to break down today's tech action. we're looking forward to that. in the meantime a lot more on snap which is down more than 41% and the ad market. tech check is back in a moment ♪♪ making friends again, billy?

i like to keep my enemies close. guys, excuse me. i didn't quite get that. i'm hard of hearing. ♪♪ oh hey, don't forget about the tense music too. would you say tense? i'd say suspenseful. aren't they the same thing? can we move on guys, please? alexa, turn on the subtitles. and dim the lights. ok, dimming the lights.

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got some comments from our parent company comcast, julia has that >> j.p. morgan's conference is happening right now, comcast ceo mike kavanaugh weighing in reports about electronic arts. they're not going to comment on m and a rumor but said quote we like the company we have we like the businesses we're in. we think they operate well together, and i think we have excellent strategies and plans and operators in place to go generate great value in each of those businesses as we're currently set up he went on to say, obviously it's our job to consider whether there's inorganic ways to create value, and the wbar is high to d other than the ads we have and weighed in, warning about its ad contraction, saying it's early to judge on the period but feeling encouraged and

optimistic and the demand for peacock has been quite high. comcast shares down about 1 1/2% >> thanks for bringing that to us lots to watch at the conference. the nasdaq is down over 3%, but it is off the lows of the morning. more on snap after the break don't go away. - in the last two years, we quadrupled our team and the pace we're growing, i couldn't keep up without ziprecruiter. they do the legwork and they get my job posting in front of the right candidates. i love invite to apply. i instantly see great candidates and i can invite them to apply. we have hired across all departments, engineering, marketing, hardware, field techs. you can basically tell ziprecruiter who you need, when you need it, and they deliver. - [narrator] ziprecruiter. rated the number one hiring site. try it for free at ziprecruiter.com try it for free at ziprecruiter.com municipal bonds don't usually get the media coverage try it for free at ziprecruiter.com the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time

to consider municipal bonds from hennion & walsh. if you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 1-800-376-4376. we'll send you our exclusive bond guide, free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years, and offers high-quality municipal bonds from across the country. they provide the potential for regular income...are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-376-4376. that's 1-800-376-4376 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, let's take another look at snap, an unlikely bellwether in the

markets today. shares down 41%, on track for the first day ever casey newton of the platformer news letter, casey, snap had been seen as sort of a best of breed performer in this market, especially back weeks and weeks ago. seems like an eternity, when meta alone was falling, but now, not so much. >> yeah, that's right. it seems like this company has been all over the place when it comes to predicting its own fortunes, you know, it's told us it was sort of going to emerge from unscathing app tracking one take away, i think they are much more dependent on brand advertising than they thought they were. >> so given that, and given what we're seeing happening on pinterest, too, last i looked, pinterest, i'm looking again is down about 24% also, i mean, not so much brand, i guess, pinterest a bit more transactional. what's this saying about the economy that we're heading into

and what do you expect the impact to be on how these companies are valued by potential acquirers, by their employees? >> yeah, well, we're already seeing the multiples collapsing in the marketplace, right? investors are no longer confident they can get the outsized returns that they have been counting on for about the past decade, and with fears of a recession, i think investors are understandably nervous that one of the first places that that is going to be felt is in the ad market, so these ad dependent social networks are really at risk of exactly this sort of thing. >> casey, we have some on the cell side today, trying to defend the name. truist, for example, thinks it is the brand segment that was seeing the greatest slow down. that's sort of cyclical, in his view, use of transitory, that in some ways, fundamentals remain healthy. how do we square that with the price action today >> well, i mean, i'm actually

syntheti semp sympathetic to that view it has how much looking products in development, including a lot with augmented reality they have a drone coming out later this summer. i suspect there's still a lot of up side in snap for the future, but right now, investors are just really spooked across the narcotic. >> a-- market. >> to that point, it's still going to be a period of significant investment for the business that doesn't seem like what the market wanted to hear, but do you think that it can do that while being under so much pressure >> yeah, i mean, they ehave mony in the bank. it's clear that they're going through a rough quarter. i wouldn't be quite so doom and gloom with this particular company for the reasons i just mentioned. i think there's a lot of up side, but, you know, right now, the market is putting pressure on social markets to share short-term results, and most of

them don't have those to show. >> yeah, well, some rough action today for snap for sure. casey, thank you casey newton >> speaking of rough action, let's take a look at some top on the nasdaq told. a meta platform, docusign, and there's more market action still ahead. it's not even noon yet stay with us

let's get a gut check on magqeta, price target 15, they say the high quality customer base leaves it exposes to some of the highest growth trends in digital commerce, and with marqeta shares down more than 4% on the years ago they do see an attractive entry point shares down much less than the overall tape the dow is off session lows, down 262 "tech check" is back in a moment a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪

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today's action raises stakes for earnings tomorrow. we're going to get nvidia, box, splunk they upgrade snowflake to buy from 325 to 255. overall, bullish on the stock and like the momentum from the enterprise digital transformation they expect in line or better quarter. the key question for investors, is this another snap with weak demand or another zoom with a beat with low expectations shares down some 66% since november they say, jon, healthy i.t. spending and shifting of work loads to the cloud, they expect to update. operating margins flat around one year over year a lot of structural stories we talked about for a couple of years potentially remain intact. >> snowflake is weird.

it has been doubling year over year it has been a growth monster so given that, shows how much the market is just being a market back to the ipo day, he was shrugging what happened valuation wise, saying he was focused on the business. can't entirely ignore the stock, employees tend to be compensated with it. there are things that need to happen with that but even if the outlook calls for lessor significantly less than double year over year, some may take note. >> thank you for bringing it up. stock based compensation when we talked about it late last week, snowflake is one of the names identified as having a lot of equity pay employees in equity. meantime, look at the day in the market the nasdaq is down about 2 and 8-10ths of a%. dow down 600 points.

now less than 300. snap is having a huge impact across tech. we have some of the moves you may not have seen already. >> yeah, those are companies with heavy reliance on advertising. get getting slammed that they won't meet earnings. trade down 19% digital turbine, all of these down double digits advertising is considered cyclical morgan stanley expecting all online ad platforms to feel impact of significant consumer pull back. speaking of consumer pull back, e-commerce stocks are taking a hit. chewy, about a percent lower, 74% off the 52 week high shopify, wayfair, down over 6% etsy down over 6%.

chinese technology stocks have come under pressure. you have the usual reasons, persistent worries on inflation and rising rates covid lockdown adding more pressure, a wave of job cuts hitting ten current and ali baba and jd.com and pinduoduo some of the biggest drags. tech has one of the most volatile parts of the market more to invest on the sector, join me for another special cnbc report, anchoring tonight, 6:00 p.m. eastern for more on that. tech check is back in a moment another crazy day? of course it is—you're a cio in 2022.

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one more check on snap shares they remain down about 40%, but it is not just guidance. snap joins a growing list of tech companies announcing

layoffs. klarna and gorillas, and information reports that paypal is cutting positions nvidia, meta, twitter have hiring freezes crunch space put together a list of layoffs you have skills, netflix, carvana, robinhood, gopuff, and thousands at peloton jon, it is not a trend fun to cover. it is three straight weeks we have been doing this >> it has been tough carl, not just snap, the drop today is big who is the most off of 52 week highs, 86% for wayfair 87 for osana 87% for robinhood. >> those are names morgan stanley highlighted as stock based comp. the most underwater.

that's just 52 week highs, not even record highs. >> yes but when you talk 90% down from anything, ouch >> absolutely. it is amazing that wall graphic is something we could probably not have envisioned discussing three months ago but a lot happened as we have gone quarter to quarter. let's get to the judge carl, thanks so much welcome to the halftime report scott wapner gone in a snap stock plunging as you know by now. does it mean long awaited rally is doomed? we will discuss and debate with the investment committee joining me, stephanie link, pete najarian, josh brown, check the markets as we always do. s&p down one andwo