ylan mui reporting on that for us >> we got a market that turned around a bit kind of funny. >> can we take credit for that >> i kiddingly talked about 10:27 on june 7th when i said when is this going to end? total joke 10:37, seemed to have a bit of a move there all right, that's going to do it for us on "squawk on the street." "tech check" starts now. >> good tuesday morning. welcome to "tech check." today, a deep dive on the consumer and what that means for your money targets warning of shrinking profits from that unwanted inventory. we have the impact on amazon and other retailers. plus, can apple reestablish itself as a safe haven for investors after that worldwide developers conference? we'll talk about where to search for opportunity. and then we're joined by the ceo of mongodb live from their investor day and gitlab. and that's not the only surprise

in store >> we have the perfect guest to help us break it all down this morning. jim cramer joins us on set in san francisco. i always love it when you come to visit >> i'm so honored to be on your show everybody knows around the office that it's my favorite show i love tech, and there's no better way to find this. i'm just delighted you have me >> tech loves you. whenever you come here, you have this amazing lineup. i watched "mad money" yesterday. the theme there was dis. i know your first day in san francisco was marked by san francisco. how has your second day gone and your third >> david faber was taking credit for a 10:37 turn >> you're not going to turn it around again, are you? >> when interest rates go down, people like tech this is nothing like 2008 and a crisis of opportunity. and then you may regard this oznegative, but i have crowdstrike, and business is so good, it's unfortunate, business is so good because it's the bad guys

all together, i would say when rates go down, suddenly every story looks good, including apple. >> and including some of the less profitable ones too i know you also had twilio jeff lawson on this is a company not making money. you said i want to talk to companies making stuff, making money. they have a plan to get there. when you see interest rates where they are, that has scared everyone off from unprofitable companies but you think maybe there's opportunity. >> well, i mean, jeff, i find, is a man of his word there have been a couple celtbacks, but he said i promise you profitability in 2023. that's close enough now, deirdre, that i think people say, you know, this stock was at $412 now it's at $100 let's do some buying >> jon has a question for you. >> great to have you big day yesterday for apple, right, and for the vision that they're laying out such an interesting company in this inflationary environment where consumers are spending more to get less but also the high-end consumer

still seems pretty strong, and that's apple's bread and butter. also interesting, though, that they have this opportunity to expand margins we saw them come out with the m2 chip in the macbook air and the macbook pro. you know, next, they want to expand into wireless as well what are your thoughts about how that positions that company to maybe have control over its destiny with this vertical integration in this economy? >> one of the features i love about you and the show is on the one hand or the other, on the one hand, i was excited about m2, all the things you talked about. particularly i also like buy now pay later, but on the other hand, jon, you know people are more concerned about the numbers, and yes, the wealthy people are absolutely spending, but then we have to deal with china, and i think that china, you think that china can be held within the $4 billion to $8 billion in problems they talk about or do you think it's even worse? >> i think it's potentially

worse. i just -- i wonder what happens in the back half of the year the consumer is spending on services because we wanted to go on vacation for so long, for a couple years now we're determined to do it, but i wonder what it does to all kinds of spending on the back half as interest rates are higher, people are perhaps more reluctant to tap into their home equity, and that has an impact perhaps across the spectrum, but regardilous of what happens, the loyalty that apple's consumer has and the breadth of product apple has tends to insulate them a bit. >> that's so true. deirdre, when i walk around, occasionally you see a phone that's not an apple out here, but i remember once when i went to my college reunion, now ten years ago, the only person who didn't have an apple was at that point, steve ballmer, but one of the things the analysts don't seem to get is on the one hand, they're all apple users, but they talk these are all

incremental, but when you're on your apple, you're excited buy now pay later, i have a relationship with transfer money, but buy now pay later for younger people has caught fire gaming, they could make gaming, intel tried to make gaming chips that were fast enough. they mostly defaulted to nvidia and amd. anything that apple does that makes their universe better, including, by the way, the web cam. >> you like that one, the one on top of your computer >> i use a logitech, but when i'm more organized and my wife goes down to dell ray, can you imagine, i'm old enough that i'm a snow bird. what a terrible thing? what are you doing i'm going to florida >> you have to come to napa. when you talk about incremental, there were some people who were disappointed because everything we did get felt incremental. what comes after the smartphone? many people say it's this ar/vr headset. did they tell us enough about their ambitions in that space where meta and google and others

are experimenting in public and putting products out there >> the answer is no, but aren't they showpeople? to some degree, i didn't know buy now pay later, they suddenly do ar/vr, i would be excited about it they are technologists with an entertainment aspect and they get me excited maybe they don't get me excited for the thing i expected and carl, i have to bring you in remember when apple plus started and we said they don't know how to do it i now presume apple plus is my default. it's where i go. >> that was one of the surprises at least from some of the commentary, they didn't mention winning best picture for koda, but we had rod hall from goldman, long time neutral on apple, on the show about an hour ago. he thought car play was pretty intriguing if that is in fact the expansion, if that's how you introduce some new mobility

issues, i see uber freight and waymo on the tape right now. maybe mobility has some second legs as a story later this year. >> total addressable market there is the biggest i found a number of analysts excited about car play i tended to overlook that. then you say why did you overlook it? i'm not the driver in my family. i also know that i find that i always think i have everything everything i need in my car. i have a maverick, which is this great mini truck deirdre, i feel it has everything why do i need more one of the things apple is so great is, the answer is you don't think you need more, but we have more >> they give you what you don't know you want. >> i have two young kids they're always telling me, dad, if you press that, you can do something december you know, to me, this is the transporting to mars no, dad, press this button and you won't believe what can happen and that, for older people, is a big deal >> does it matter when we talk about car play that tesla doesn't have the apple play

system and that's the wise now, the number two selling vehicle in california. >> i remember when hardeman cardman was bought by samsung, everyone always has something new and different. i want good sale i'll tell you what's going to happen, this is what's most important. when i get the quality sound that i would get from a harman cardman on this phone, then i know i'll be really happy because that's the one thing i hope tim cook solves in your ear it sounds great, but it sounds tinny when we play it outloud. >> got to give a deep tease to later in the show, we have david from mongodb, we have gitlab coming up. both of these companies highly levered to not just the cloud, i mean, what is the cloud anymore? but this real digital transformation story, multicloud, you know, new types of databases both had earnings. gitlab most recently both have popped on the backs of

those and they're the sorts of companies people were running away from a few weeks ago. your thoughts on net revenue retention and the moats that some of these smaller, you know, best of breed, as they're called, technology companies have that maybe you have gotten tossed out with the bath water, at least a few weeks ago >> i'm so glad you asked about it first, dev is terrific i had given up on mongodb, because it was enterprise software that seemed to do what everybody else does. then they told their story, and people say, wait a second, the stock is down 43%. business is really good. they are doing a lot of things when i see that, jon, i say to myself, if interest rates go down, why shouldn't i buy mongodb? it's a darn good story that's why i think people are reassessing what they have thrown away, and there are hedge funds that have blown up that are now out of the picture so jon, i think the mongodb is

fascinating. i presumed it was going to be a nothing, nothing of interest, and then of course, it surprises you, and you make some dollars >> it does feel like enterprise software is the first ones that are unprofitable that get picked up let's say on the other side of the spectrum, you have uber and lyft coming up this week these are unprofitable companies that are not in enterprise software, that are tough, right? they go by adjusted ebitda >> you were kind to say, yes, i like companies that make stuff and do things that are valued not that expensively that return capital. and uber and lyft, even after these declines, do not fit that depiction. so it is problematic for me to recommend those stocks particularly lyft. at least uber has diversification into food. lyft will say, listen, we're laser focused on transport i don't know if it's good to be laser focused on transport >> and they have a smaller footprint, only in north america. it's interesting to look at the

valuations >> not everything works. >> what about the free cash flow he says he wants to get to free cash flow positive >> i'm still a believer in dara. i think he can do it i talked to him about some of the things they have done. they have a liquor distribution system, competitor to doordash, and dara one of the things we forget is there's proven winners people have been able to pull things out yes, uber was too high the question is now, when we're in our uber, do we pick up the phone and say sell uber? i don't think so >> you like an operator, though. dara didn't found the company where john zimmer did.t's true,, he'll talk when i'm on today, but i want to go about how we get to chapter one, making money. >> you have zimmer tonight who else >> we have hock tan. he also ran a cybersecurity company. then we have a guy, tarang amin.

people buy lipstick even if we have a recession e.l.f. has probably done the best of any cosmetics company. i say that knowing the man that is so good, the king is estee lauder, but they have not done as well as mr. amin. >> we're looking forward to it a killer lineup for the rest of the week >> you know what a killer lineup is your show. you change to "tech check. carl is my partner, you come in, i have to listen the reason i have to listen is because the same reason i'm out here these are the companies that matter >> i want to ask you at the end of the week what your view is after spending a whole week there. >> i hope i'm not as disappointed as when i arrived >> jim, you know why lipstick sales stay strong when the economy goes down? because all the analysts have to put lipstick on the pigs >> i mentioned that at the 9:00. i'm not putting lipstick on a pig like kohl's. >> i'm late to that jake

>> never too late for that joke. it works thank you, guys. >> we have to turn now to shopify, which is hosting its annual meeting this morning. shareholders voting to give ceo toby lutecon more power through a founder share which means he will hold 40% of the company's voting power as long as he owns at least 1.1% of shares. shareholders also approving a 10 for 1 stock split. the stock was a major pandemic winner but has fallen about 80% from its 52-week high. carl, despite what the stock has done, still true that shopify has been visionary in e-commerce its run up operationally has been significant, and this perhaps gives them a little bit more headway to do what they want in logistics as others are trying to scale back >> indeed, and if we're looking at inventory gluts here in a number of categories in the first half of the year, jon just mentioned home equity.

there's a report out toot there's $11 trillion in untapped home equity at about $207,000 per borrower we can talk a lot about dwindling savings rates but there's a good chance the consumer will have access to funds in the back half of the year at lower prices >> what i'm most interested in the stock split is the founder share, which granted the ceo to buy special voting rights. it's kind of rare to see this after a company has gone public many years ago even if his ownership of actual shares in the company decreases, his voting power will remain dominant, and i wonder, jon, if that encourages some other companies, especially as the market goes through this rerating, to follow similar moves. interesting that it passed, even though some of the prominent advisory firms recommended against it >> don't try this at home, right? not everybody is shopify not everybody is toby.

again, i think the track record of shopify, going up against amazon and others, some people try to tell me they're not up against amazon yes, they are, and creating this new option for small and medium business to get online and control their own destiny, whether they want to sell on amazon or through google or through facebook, et cetera. that's been a real winner, and i think there's a real question, can they take that to yet another level, and in order to do that, toby would argue you need to give him the reins, keep him in the driver's seat >> why not let the markets decide, right? why does he need that? >> well, i think it's fair to say, if you look at apple and the doubts around the iphone early on, they should have licensed ios to others they shouldn't do vertical integration. retail is a boondoggle the markets don't know everything >> fair. long-term plans. >> meanwhile, mongodb, we mentioned, also hosting itsd investor day today that's where we find our frank

holland who joins us with a special guest. hey, frank >> hey there, carl i'm joined by dave, the ceo of mongodb, joining us today on your worldwide user conference packed house here in new york city >> great to be here. thanks for having me >> earlier today, you had product announcements. you also gavethe keynote address to this crowd. can you share with us the message you want to send to developers and also investors who are here today as well >> i think the main point of this conference is to show how far we have come as a company. what we have basically shown is a lot of people who didn't really think we could fundamentally change how data is managed have seen how quickly we have grown we now have 35,000 customers we have grown very quickly, delivered stellar q1 results, and this conference, you yourself commented, the attendance is huge we have about 3300 people in new york, and we haveshown what we're doing is deploying a developer data platform. that platform is enabling

developers all the capabilities to develop today's modern applications and move fast and innovate quickly >> your share is up 7% today up double digits since your earnings just about a week ago during the earnings, you raised your guidance, at the same time, you cited macro economic headwinds. whether it be the strengthening dollar, rising rates, the war in ukraine. is there one of those headwinds you see as the biggest issue in the second half of the year? >> what we said at the conference is our great growth was slowing down in europe, typically at the low end, so at the self-service business and the small and medium business, and in may, we saw a little show up in the self-serve business, which is why we gave the guidance we did. in terms of reasons, it's hard for us to discern what is driving the headwinds, but it was broadbased in europe we saw it in all seconders from northern europe to southern europe to eastern europe to even the scandinavian market. that tells us it's a macro issue. and what it really says is that we're seeing second order effects of our customers

i mean, people don't shut off databases but we're seeing the second order effects of their businesses seeing a little slowdown, but a slowdown in the rate of growth, not absolute terms. >> it's jon fortt, great to have you back atlas grew 82% year over year, which significant. in the latest quarter you reported, but at the same time, you're talkinguct these second-order effects from customers. what are you doing on cost do you lean into the business that is still working and growing at that rate are you hiring to continue to fuel that, or are you being more cautious as you see these second-order effects start to play out and perhaps not certain how they're going to continue for the rest of the year >> thanks, jon what i would say is that we're really focused on the fundamentals of our business and the fundamentals are strong. we think the secular tailwinds from the business in terms of

how software is transforming every business, how people are viewing mongodb as the fastest way to innovate, how more and more developers are gravitating to our platform is really strong so we're continuing to invest in the business we'll look at those investments and make sure we're getting high rates of return and we're pleased with our results so much so in q1, we delivered nongap operating margin, but also cash flow positive. we have shown a lot of fiscal discipline and operating leverage while we're delivering high rates of growth we feel good about our business and we're continuing to invest in the business, primarily both in r&d and sales and marketing >> tlas, over 80%, part of thi growth has been your partnerships with hyperscalers like aws and google cloud. do you see those partnerships continuing long term or see them encroaching on your business or you possibly encroaching on their business >> when we launched atlas in

2016, a lot of people thought we were crazy to partner and compete with the cloud providers because no one had done that successfully in our space. atlas is the where the majority of our customers using us, and frankly, it's been an inflection point for the company. we have great relationships with the cloud providers, and so much so that we're building deep technical integrations with all three of them. the reason they're coming to us is we drive so much business for them mongodb is so popular, we're the world's most popular modern data platform today, and because customers run their workloads on their clouds, they see other business, so they see a real win/win relationship with us which is why they're all here at our conference this week we had a great partner event last week and so much activity going on in the field around the world. >> dev, a strategic question for you. to what degree is the multicloud trend, customers not wanting to go all in on just aws, just

azure, just google, to what extent does that benefit you and how important is it for you to be the partner of choice that allows them to work across those platforms? not only mongodb, but also ibm with red hat, others are trying to make that first stop multicloud case. >> i think our multicloud st has been a key part of our value proposition. most customers will like the optionality they can always go multicloud when they want to, and they also like the option of starting on premise and doing the cloud, or moving the cloud back to on premise what we enable is customers to run mongodb anywhere, and that optionality to run anywhere is very powerful. smaller customers will typically run one cloud, but we have many large customers now running workloads on different clouds. the benefit of building on top of mongodb is youdon't have to rewrite the application nuv from one cloud to another

so that really gives customers confidence it is also frankly the broadest solution available, so you're seeing more and more developers build applications on mongodb. the fact they can run on premise, run the cloud, run multicloud, and we also have a bunch of other partnerships with people like alibaba and tencent and also european cloud providers as data sovereignty becomes more and more of an issue, they're choosing to run on mongodb >> we're going to have to leave the conversation there thank you for joining us dev, from mongodb world. carl, back over to you >> frank, thanks so much to you. that's frank holland >> still to come, texas is probing twitter. another change in the c-suite of peloton, and oua lot more from wwdc "tech check" is just getted started.

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join over 3 million members and start enjoying rewards like these, and so much more in the xfinity app! and don't miss jurassic world:dominion in theaters june 10th. transparency regarding bots on the platform, the texas a.g. launching a probe over that issue. julia boorstin is with us and

has more on the latest in the saga >> on such a saga, carl. now the texas attorney general is getting involved in musk's takeover of twitter, and he's taking elon musk's side. texas attorney general ken paxton announcing yesterday his office is opening an investigation into the bot accounts on twitter. he's demanding details on 23 items including daily, monthly, and monetizable active users as well as inauthentic account numbers. he says, quote, it matters not only for regular twitter users but also for texas businesses and advertisers who use twitter for their livelihoods. if twitter is misrepresenting how many accounts are fake to drive up revenue, i have a duty to protect texans. musk does of course have ties to texas. he moves tesla to austin from palo alto and opened a new factory in the state this year this after moving his residence to texas back in 2020. truest analyst recommending

investors stay on the sidelines of twitter, telling us, quote, i think this is the texas a.g. clearly siding with musk and giving him more ammunition publicly to try to renege on the deal i don't believe it will have much of an impact on whether the deal goes through or not i suspect the valuation ends up getting revised lower and a deal goes through or it ends up in a messy protracted court battle. jefferies analyst telling us, quote, it's very clear musk is trying to negotiate a lower price despite saying his acquisition motive is not financially driven this all comes after yesterday twitter responded to musk's criticism and threat to terminate the deal twitter saying the company intends to close the transaction and to enforce the merger agreement at the agreed price and terms. and guys, of course, remember that price is $54.20, a lot higher than where the stock is trading right now. the texas a.g. will join "squawk on the street" tomorrow, so you

do not want to miss that interview. >> that will be a good one, yulia. one of the many twists in the saga thank you very much. after the break, more take aways from apple's wwdc event. >> plus, what new laws in europe may mean for future iphone degn n'goway.sis.

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profits will suffer as it moves to get rid of excess inventory by cutting prices on unpopular items. the ceo tells cnbc the retail chain wants to act quickly to make room for products its customers do want, like groceries and back to school supplies spacex's starling satellite internet business will not go public anytime soon. in an audio recording obtained by cnbc, elon musk told spacex employees he doesn't know whether there will be an ipo, but just guessing, three or four years from now three years ago, he told employees itted with make sense to take it public as soon as this year. you can go to cnbc.com for more on starling's shifting timeline. >> with a 5 cent jump since yesterday, we have another record high for gasoline aaa says the national average for a gallon of regular is now $4.91. in california, that average is even higher, $6.37 look at that

prices going even higher it hurts when you fill up, carl. >> and could get worse, contessa thank you. >> let's turn back to apple. the company made a number of announcements yesterday at the worldwide developers conference including software updates, buy now pay later service, and of course, the new m2 chip. here to discuss the verge editor in chief who attended the event. great to have you. it sure sounds like m2 stole a lot of thunder is that how it felt there? >> yes and no. i mean, the best selling laptop in the world is the macbook air. it's a product certainly drew most of the attention yesterday. the chip inside is great it's an extension of apple's a-15 chip, a lot of the same architecture apple's lead over the industry is so vast at this point that it's almost not worth remarking on anymore they're so far ahead of intel and amd that their performance per watt, their battery life is just so superior that, you know, the thing that most of us are talking about at the event

yesterday was the macbook air is no longer a web shape. it's an iconic shape and more of a traditional shape. apple is still going to sell a ton. at this point, the thing we're all looking at for their chips is they have to compete on the high end they haven't released the mac pro, and then how are they going to use these chips for their forthcoming next generation products like a headset, like a car, things like this. >> although we're talking about the performance of hardware now, what i have read a lot this morning is the second order effects of a faster pace of software innovation that can be applied to the hardware because of the chip. we got to some of that yesterday, too, right? >> yeah, we really saw it. apple traditionally has organized this keynote by its product lines, the mac, the ipad, the iphone but theytook a step back, everything they announced is coming to every product. so the new ipad window management system is coming to the mac. they announced a weather app,a though it was not 2022

the weather app is coming to the ipad along with the weather api, so really everything they're announcing is coming to all of their platforms kind of equally. there's a lot of blurriness now between the top end of the ipad line and its window management features they said they were adding desktop class apis there's a lot of blurriness between the ipad and the bottom end of the mac every time we ask about it, people say people buy a lot of ipads. their products are getting more seamlessly integrated. there are things they're doing to fascinating to see if the industry goes along with them. they introduced a version of car play that takes over every screen in your car i'm not sure any automaker ceo is willing to give up all of the real estate in their car to apple, but they seem confident they can push this out >> i also don't see them doing a lot of creative stuff with the odometer, so maybe their feelings about that have changed. two things bringing it back to

dollars and cents on apple that jumped out to me yesterday one, the iphone se is now a somewhat expensive but multifunction web cam, which i think is interesting how many people are going to buy it for a web cam they can take off and do other stuff with, and then the macbook air is tiered they're keeping the m1 at around $1,000 that's an interesting way to deal with inflation. you talk about a low end apple laptop, that's still a pretty high end consumer laptop by overall windows standards. >> we have seen discounts over time, so the real price consumers are playing is lower i think there's a lot of supply chain in here that apple is very good at it, but they never talk about it that m1 air they have been shipping a lot of them there's m1 chips in a lot of their other products they have scale there, supply there. they can keep it at the low price. they don't like dipping below $1,000 on a laptop, but they can

compete on the lower end the m2, they announced it in the air and a new mac book pro it's not going to come out for a while. having the m1 remain in the lineup and not immediately go away lets them even out the ramp-up that maybe in other years we might not have seen >> some are focused on what apple didn't provide an update on i wonder if there's any disappointment on your side, especially when it comes to not necessarily the headset, but what apple is going to do in ar and vr can we be confident apple is going to be a winner in this next phase of technology >> picking -- betting on who the winner will be in the next generation is hard apple is usually a pretty good bet. we saw a lot of the building blocks of what app developers and apple's developers will need to build ar feature in the future apple announced live text recognition and video. you can pause a video and you can read what the text on the

screen is. that's something you absolutely need in an augmented reality environment where you're trying to recognize what's in front of you. they announced additional voice controls these are the building blocks developers will need to build ar applications i think apple, what they like to do is announce complete products that's in contrast to virtually every other tech maker we can think of, including meta the quest2 is a great product. they announced an incomplete version. apple is going to announce a finished product with application ecosystem ready to go, so they're providing the building blocks for those developers i'm sure they'll have some apps ready to go, but i don't think that'll announce it for another year or so until it's ready. >> wi don't get a lot of teaser trailers from apple. they usually wait until the whole movie is ready to go on the topic of things that did not get mentioned as much, more privacy initiatives. i see cook today talking about being worried about the loss of privacy at time 100.

i wonder where do you think that is headed? >> you know, i think tim cook right now is facing a kind of barrage of legislation it's funny, there isn't actually a privacy build. apple could probably trade their way out of some of this antitrust scrutiny if they would get behind it in a big way i think there's horse trading and lobbying going on from cook there. on the other hand, they announced effectively a buy now pay later service. they did the cook apocalypse, they took out targeted advertising across other companies and now they're building targeting advertising on their own end the increased advertising business of apple is getting stronger, but at the same time, i think they want to make sure they're firmly in control of it and they can trade on the consumer trust they have built up over years to have that market exist in a way they're comfortable with i don't know that anybody on the outside of that adpreemgreementk that's a fair trade. >> there's wide space to fill in on buy now pay later, who

they're going to partner with and so forth we learned a lot yesterday, that's for sure. thanks so much >> thanks. >> and still to come, yet another leadership change at peloton. the details on the other side of the break. "tech chec iba itw k"s ckn o. is a journey for the curious traveler, one that many have yet to discover. exploring with viking brings you closer to the world, to the history, the culture, the flavors, a serene river voyage on an elegant viking longship. learn more at viking.com

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time for a gut check on peloton. the company is shaking up the c-suite again months after the departure of the founder

this time, cfo jill woodworth is on the way out replacing her, amazon web services vp of finance the former walmart.com and netflix executive looking to right the ship, with shares suffering heavy losses in the post-pandemic landscape. peloton taking on $750 million worth of debt to fund operations and also facing opposition from blackwell which is consiurging e company to consider a sale >> after the break, we're going to talk opportunities in software with the ceo of gitlab, you see it up more than 20% so far today. stay with us

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turning now to gitlab, you hurt us talking to david about multicloud we talked about dev ops on the show bank of america sees value in gitlab, calling the stock a category leader in enterprise software, naging it their top pick in the space. the company delivering on the call this morning. shares surging after beating the street in q1, guidance coming in above the street's expectations. joining us, gitlab's ceo, sid. great to have you. again, we were just talking with the ceo of mongodb about some of the trends driving this, and multicloud has got to be one,

right? as you at gitlab help the engineers within companies to efficiently work across different platforms, how much is that in particular driving the business, and how much room is there for sort of head count growth within your existing customer base? >> yeah, thanks for that totally agree. what we're seeing is customers, they want to have the same development practices, the same security, the same operational practices. they want to integrate that across the company and that's what gitlab helps them do. we're independent of any cloud provider, and we help them to be compliant across clouds. we have a lot of space to grow if you look at the market, it's a $40 billion market, and we believe we have the leading product there. >> so you saw good momentum in deals that were a half a million dollars, deals that were a million dollars, as well but how much is the macro environment going to affect that

even by geographies? >> we saw strong momentum. we saw the customers of more than 100,000 arr, they were up 68% from q1 of last fiscal year. so great momentum. we are very strong in the enterprise enterprise and public sector is 70% of our revenue and 93% of large enterprises plan to spend more on i.t. in the coming year. >> i noticed in your results that stock-based compensation, that expense increased nearly five-fold. i wonder what your hiring plans are this year, if they changed, and if you can talk about your ability to hire and retain talent in the current environment, especially with your shares down so much from their peak >> yeah, thanks for that we are very happy with our ability to hire. we are very happy with the people we were able to hire in the last quarter

we do have almost 200 positions open, so we continue to hire we have not waivevered from our plan we're very early in a big market so we're growing fast but we're growing responsibly. >> i know you argue we're in a period where companies are having to reinvent and that macro conditions really don't have that much of an impact on the trajectory of sales, but we have seen the corporate budgets do respond to shocks and if we get one, whether it's based here in north america or around the world, what is the bar right now for budgets to really start to decide, no, we're going to pass on that project this year? >> the projects that are going to stay in the budget are the ones that are mission critical, and the ones that are going to save companies money we believe we're both. it's mission critical to move to the cloud. at the same time, we can save companies money by consolidating their tool spend with one vendor, saving on the integrate costs, not having to make the

digital duct tape, and being able to deliver more software innovation with the same number of people. >> sid, i just have a feeling that in the next two to three years there's going to be some kind of roll-up play in dev ops in multicloud, in these kind of best of breed software tools that make enterprises more efficient. either driven by private equity or driven by some of the hyperscalers who are trying to take out competition what is your plan if you have one for that eventual environment? are you planning to be an acquirer or what >> what's really important is that the platform is fully integrated gitlab is one interface, one data store, one comprehensive way to view your company, and you have to build that from the ground up. when we do an acquisition, we acquire the company, shut down the product, rebuild it within gitlab you can't replicate that by acquiring ten different point

solutions and calling it a platform a true platform has one data store, one dashboard into your whole company. we're leading there and we'll continue to innovate we ship hundreds of improvements in gitlab every quarter. >> okay, we will continue to track your progress. big bounce again, more than 22% afte 22% after earnings >> thanks so much. throughout the month of june we're celebrating pride month. here is "new york times" columnist, cnbc jim stewart. >> when i was coming of age, the conventional wisdom was half if not more career fields were closed off with someone known to be gay and i always took the assumption that that may be true, but i'm not going to limit myself, i will cross that bridge when i come to it. be ambitious think big. do not assume you'll be cut off of opportunities because you are of opportunities because you are part of a sexual minority.

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cryptocurrency trading in 2020 the rollout is available in the u.s. in a couple weeks starting crypto a couple years ago, you couldn't move any funds on or off paypal or venmo into other wallets, coinbase, and others this is controversial. sparked the term not your keys, not your wallet. other fin techs moved this direction. robinhood, coinbase as well. paypal appears to be catching up not a first mover by any means, but getting further into cryptocurrency as bitcoin is below 30 k. >> you answered my question. i asked if robinhood and coinbase had those capabilities. thank you. followand subscribe to our podcast, listen anytime, he, erer you download podcasts tech check is back in just a tech check is back in just a moment

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to daily digestive support. to more wellness solutions every day. get more with nature's bounty. welcome back one more thing before we go, that's uber and waymo teaming up on autonomous trucking they have exclusive details. i read this could be a game

changer. >> it could be, carl it is just beginning worth billions of miles. not saying how much. here's the agreement between waymo and uber freight they'll teaming up, there will be a safety driver initially as they expand in the southwestern u.s., they expect that driver to come out of the cab with the goal being nationwide expansion of autonomous shipping. >> even though we are launching on dallas to houston, we plan to follow and start to scale through texas, west towards l.a., east towards atlanta and start to build out a network where every leg adds value to our customers and those of partners. >> we'll be able to optimize the network as a whole much more efficiently. we think this will add a lot to underlying capacity shortage that the industry is experiencing today >> take a look at shares of

uber, this is an agreement worth billions of miles. how many we don't know also, if you look at shares of google or alphabet, the parent of waymo, they're working quickly with level four autonomous technology. they believe the shipping brokerage market underutilized, could be more efficiently utilized if there's autonomous shipping that's part of the opportunities for shipping goods. >> phil, i couldn't help but chuckle when i heard about the partnership. it wasn't that long ago in san francisco that the courthouse covering that very bitter battle between uber and waymo, to see them be partners does this clear the way for another partnership on the consumer side which would be a huge deal? >> possibly. i think for now they're going to say we're going to focus on this area and whether or not we see uber on the consumer side. waymo, hurdles need to be cleared before that can happen.

>> fascinating development here, phil we're going to see how it develops and certainly the types of carriers they get involved with to start and move along that's big news. phil lebeau joining us on that partnership. been around the block a couple times, for now, close to flat line. dow down about 18. let's get to the judge and the half carl, thanks so much welcome to halftime report scott wapner front and center, the great margin squeeze, target suffering the second rough day in less than a month what does it say about other retailers in the market overall. we discuss and debate with the investment committee jason snipe, jon najarian with me on the set, jim lebenthal let's check the markets. carl said it round tripped a couple times, we are basically flat nasdaq good for 16 points, dow down just about 12 it is target news, jason