we head you toover to "tech check. the last hour and a half we were up on the s&p. clearly in the red tomorrow we'll see you thep. that will do it for us on squawk in the street. tech check starts now. good thursday morning. welcome to tech check. later some gaming news from microsoft that could spell the end of counsel >> we'll start with meta, not facebook what is this company cheryl sandberg built the most profitable business and now she's leaving.

the street still loves it. is it a buy for you or are facebook's best days behind it >> we're going to try to frame it up for you and the viewers out there and listeners on sirius xm radio. in that span from the highs we're now down roughly 50% a half has been shafed off this stock. $1.1 trillion with a t to just give you an idea of that overall dollar value in term of the valuation discussion if you want to get away from the

dollar side of things, more int the relative side, that's where things get interesting for why the debate about whether it's buy or sell comes into play. what this is is meta platform. what you're paying in stock price today for every dollar of anticipated earnings over the last ten years you can see it's been volatile it's come way off the valuation it used to be. right now you're trading closer on 15 times forward earning. that's the bigger discount to its ten-year average it's maturing business that happens things get a little more compressed the more mature a company gets let's compare it to the overall sector and communication sector where it belongs in the s&p 500. if you look at the last ten years, that valuation gap on a forward basis was pretty big

on or about 2017, here, is where things got a little more compressed it traded more cholelosely to t index and during the pandemic, you can see things have gotten very tight with regard to the trading relationship here on a relative havuation basis what's compelling right now for some traders, guy, is the current levels that we're at on meta, you're talking about 15 times forward earnings right now. the overall sector trade at 16 times. given the vapuation compression we're talking about facebook/meta platforms trading at a discount to the entire communication services sector. that's the reason why some traders are getting interested >> this company still faces a on the of head winds from its peers

to d.c this is a name change. really the hard work starts now. >> they need to figure out how to grow engagement and ad revenue of its core businesses right now. that's facebook, that's instagram. i want to point out some of these broader issues they are facing there are ad targeting head winds. facebook, metaction and the other stocks did get a boost on monday when apple didn't announce any new changes that could further hamper their ability. there could be more coming in

and there's this broader question of an overall ad recession that could be in the works. then competition tik tok to grow in its engagement and regulatory head winds are another slew of lawsuits as well allegations that meta was using data the lure in teens and it wasn't good for their mental health >> i've been thinking about this and let's get into it because what's this meta thing really about. i think right now the meta verse is the least interesting thing about meta it tells you more about facebook's failures than it does about its potential. i think that's because facebook, m m meta's strength is the closest thing to a consumer identity

layer on the internet. the problem is they were the only major tech player not to integrate in some way. google built out android apple always vertically integrated amazon had third party and prime protecting it. facebook acted like they were going to do a phone and maybe an operating system backed away from that. >> they want to own the platform that's what all these things are about. john, i want to play a little bit of the jon fortt, there's always these untapped opportunities that meta has to explore right now. that's why analysts are so bullish. it has to do with the near term

of these different products that meta isn't making money on yet there's reels. they are working to make more money from that. then there's this whole what's a charging businesses to message with consumers and totally transforming the way consumer products and services interact with their customer. there's that opportunity don't forget about workplace i want to point out that just today mcdonald's announced it will be working with the meta workplace and mobile app in order to engage with that you are employees. you're seeing all of these different ways the company is starting to make money >> they've tried that before

though and dating thing it hasn't worked for them. overall i agree with you there's all these other reasons to like meta's potential they are changing their name and spending all this money on meta verse. it's tempting for investors to think it's the future. i don't think at the core of it, facebook is betting that much on the meta verse as they described it. >> they see that as a god tod tg over the long term. >> great frame work to our next conversation joining us, meta bear, he doesn't see much exciting upside in the company

>> there's no question they are transitioning. i think long term, again, the company is capable of $15 earning power. i think you previously mentioned the stock at 14, 15 times earnings if it get a 20 multiple, you're at $300 a share. it doesn't take much to get there based on where they are at remember they are still growing. you've got a good bottom line and good cash flow plus the $50 buy back i think long term it looks like they are in a good spot. be very clear they are in a pit stop and we have seen other tech companies, as we said whether it's adobe, microsoft go through these pit stops. i think that's the opportunity

or are we going to stumble for next couple of years that's the big question. right now it's a little clouded by the overall macro picture because remember this is an entirely ad driven model they seen downturn into the macro environment. hast first thing you can turn off in an macro environment. i think it's more of longer term call based in what we're seeing on the short term. >> where is your thought on this and knowing that as you point out, forward time 16 is fairly reasonable, wouldn't you say >> look, it is a reasonable price. i think you framed it the exact right way. let's think about the long term. i think like a vc and i think in public mark investing especially now, you have to have a five to ten year time horizon. think about the long term buys

you want to make i'm not selling you have to sell off facebook but you talk about frame work of 30 to $300 for adobes, is this a pit stop or a long term possibility. it's harder to see right now the core business is chugging along. they just lost cheryl. the person who built their ads business these all represent the moves where i think zuck is saying ads might not be the most important thing in the long run. could the next act be the meta verse but you're betting on a serious company like me and it's so hard to pick. you could bet on apple being the leader in the meta verse you can bet on oots company being the leader it's hard to say they have the winning recipe one little unity eco who came

out and said he doesn't think the meta verse will be about real avatars. >> is meta a growth or value stock? >> it's priced for value now the streets modelling single digit revenue growth >> so value. >> it will return to double. it's value today >> mike, what do you say >> i'm primarily a growth stock investor >> what is meta? >> i think right now you have to look at it as a value stock. the value looks atratractive

>> guys. it's moving it into the value stock bucket and it's supposed to make this big pivot to a growth industry, to the meta verse. what does that say about the company? >> again, i think you go back, there's amazing technology comes apple, adobe, microsoft. we talked about this you go through growing pains can they extend beyond this? we think they can long term. right now it's valueds a value name but it could go back to growth stock is going higher. i think it's that simple it's not that hard if they make that move, the sentiment is awful the sentiment is terrible. i think, again, back to -- there's better growth stories out there. there's no question.

>> here is my central question i hate the meta verse narrative as everybody watches this show knows. the main issue is who will replace facebook meta as the consumer identity layer on the internet right now it's not tik tok it's like a popular, global digital show it's not a powerful end to end platform you don't know who real people are in order to target them online and offline it is their somebody who is poised to replace facebook, meta there and if not, don't they vi -- have a couple of years to figure out the turbulence here and come back stronger >> i think it's a fair point they have a defensible ad and targeting business i think they got the exact platform and security that you

talked about where they are very depen dent on apple, google and other intermediaries google is an integrated ad and android platform that has end control for a significant number of users apple is trying to get in the game actually our focus is we'll be the real identity targeting platform that sounds great. take that to facebook, instagram and take the show on the road. that's not what you're hearing now from the management team maybe that will change another thing we have in d.c. is like believe in the picture sound tells you, not in the pitch you want them to do. >> we look forward to more color from them especially as the ad

market, we think maybe changing a bit. that was great appreciate it. see you. speaking of the meta verse, i don't know we mention one more time, jon's head might implode microsoft is expanding and business some are calling the netflix of gaming. the news this is about gaming. many see thiss a gateway to the meta verse this is so anyone can play it. >> this is microsoft vision for what i'm calling the fnetflix of gaming

it's $15 a month you launch an x box app and connect a game controller over blue tooth and stream from a library of hundreds of games you don't need to spend 500 bucks on an xbox microsoft overall vision, you play xbox games on any connected device with the screen and this boosts microsoft cloud business because that's what's powering this service they sell about a thirpdsd of ta year we saw google try and fail with their product and amazon is kind of doing it with a product called luna. sonny is just way behind

microsoft here microsoft plans are blocked by apple. apple would like to evaluate each game and rate them separately but it is allowed on android devices. that's a good boost there. until they can crack the apple code it will be hard to get a lot more players >> you got to have a nice, speedy connection in order to do this we'll see how it works out after the break, the analyst who sent intel shares down yesterday that warning many warnings from intel on the guide and on products. tech check is just getting started.

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predicting a miss in q2. he is bullish on other names in the space like analog devices and grow ball foundaries welcome. how bad is it with intel how much of this is sort of what you might expect as a reaction to the macro how much is products slipping, things slipping where you are worried about their ability to execute. >> it's bad. it's really bad. they have two problems they are losing share to their biggest competitor the big market, things get work. the biggest competitor and all we did was assume this downturn would be similar for intel

through 2006 to 2001, 2002 the last two instance where they are losing share to a and b. >> are you being generous with a price target that's 10% higher than where the stock is here and what are the next sort of benchmarks that they need to make deadlines they need to make to get you saying something other than it's bad. maybe it's getting a little better >> yeah, they are spending lot of money now they can always cut spending they are getting into these growth areas that we really don't think are going to work out. that will be an easy fix it's either delayed or hardly anything out there

it's going to be tough >> it's real departure from the discussions we had about intel a year ago i wonder if you're dividing responsibility between execution and macro, where are we? what's the mix >> that's a great question i would say that it's roughly two th-thirds macro. one is execution they did announce another slip in the product growth but really it's mostly the pc states and then a bit of a share loss >> sorry to interrupt you there, chris. are are you on intel ambitions if the chips act passes and that funnels billions of dollars into manufacturing and intel,

specifically, does that get your more optimistic? >> nope. we've been writing about this. it's not going the work no matter how much money you put it in you might as well light that money on fire. >> that was under very different management though, chris do you think pat is able to do this better than his predecessors >> yeah. i'm a big believer in pat and the rest of the management team from pat, cfo and on down. the problem is you need some taiwan semi folk and hire a couple of michael jordans out of taiwan semi and put them in charge then you need to fix your manufacturing. this is the biggest crisis intel has haed in history of the company. you need to fix manufacturing first and then go after foundry.

it's almost impossible we think there's a very small chance >> okay. we'll see if they need to do it all at once or if they can slow down let's talk about what you like >> yeah. something i like >> pick one and talk about how much you like i and exactly why perhaps in contrast. >> when we pulled the plug earlier this week, we elevated analog devices to our top pick i've been covering space for that long. 25 years of downturns, adi out performs in about 90% of the down downturns. they have history there largely performing to the business model. if we look at the end market, it's pretty weak i would say the data center is the best slightly behind that would be

industrial adi has a very successful track record that should provide some balance to, at least the margin side as we go through the downturn really from all angles, it just screams hot pick to us >> all right lots of great color for investors to look into further thank you. >> thanks, every one meantime, trying to navigate this growth dip. pick your spots. why he says it's time to buy door dash, etsy and uber, after the break.

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here's what's happening at this hour. some big names in golf have been told they can no longer play in pga tour events. they are competing in the saudi backed invitational. liv calls the move vindictive. the banned golfers will be able the play next week nearly two-thirds of chief financial officers who participated in a new cnbc survey expect an economic recession and the first half of next year even as more than 40% are calling inflation. top external risk to their business more americans are applying for unemployment benefits. first time claims increase by 27,000 last week the biggest increase since mid-january. total number of people receiving the benefits still remains at a 50 year low. that's the very latest back over to you frank, thank you very much apple announced it is getting on

the buy now, pay later band bag e wagon. details suggest it could be laying the ground work for full stock fj services. apple will extend the loans for the product. am l h apple has been making moves in fin tech this is apple telling us it can do financial sfrss on its own and could make it a pretty formidable player. first it can lean on its current apple wallet users secondedly, it can use it for data and under writing apple has nearly $200 billion in cash and marketable securities on its balance sheet we knew apple could do this but now that they are putting the pieces in place, it's more of apple behave like a bank but extending the loans itself that's a big move.

there's more to come here, i'm certain. >> i've been puzzling over this, as you know. i think there's something different here than meets the eye, carl. i think this isn't so much about buy now, pay later and apple being excited about that and there being a bunch of money in that apple will make more with m2 chips and make from being a fin tech player. i think this lays the ground work for apple to do a new kind of hardware subscription where it doesn't rely on outwear parties for the data and mechanism there. then they pursue even more the vertical integration strategy across retail with better margins in their store, offline and with products. i think that's really what this is leading to. >> yeah, just think about the way the conversation has evolved. earlier in the week it was about

software innovation. fed buy a more powerful chip now opening th leveraging their balance sheet old school apple is busy continuing to migratevietnam they have laid a lot on the line in the last couple of day. >> all the whmeanwhile it grows the service piece of the company. it's getting bigger and bigger this is helpful for the hard ware side but i don't think it needs it for company as powerful as apple with 1.8 billion devices out there. more and more people getting on apple pay. we talked about this earlier in the week as well this sprpresents a threat but to square, to paypal. perhaps even traditional banks the further apple goes into the space. we talked in the past other ambitions at other bank tech companies like amazon has so much consumer credit card payments data.

>> i don't think that apple wants to compete with visa. lowering the friction there carl and the other stuff is just nice i don't know they will go so far into it. we'll see. as we go do break, breaking news out of disney today tv content chief peter rice has been ousted. a source has confirmed to cnbc that rice is out replaced by top lieutenant dana walden rice came to disney when it acquired fox back in 2019. that move is described as surprising to insiders and basically being called a sonic boom in hollywood today. disney shares down chckn o. itw main is evolving from gym to global media company.

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. his top pick, uber, etsy and door dash. what is tieing to be making initiations on growth flames the mark has not been kind you see opportunity here

>> absolutely. thank you so much for having me. it's great to be here. yeah, it's been incredibly tough year for internet stocks i think we all know that. we launched with a select stance on the group we do see some compelling, longer term opportunities. we advise helmet wearing in this point in time. >> two of your picks, uber and door dash, can you be pullish on both of them >> we think when the buy is ex expanding, you can own the top two players in the space we like them for the long term secular growth trends that they offer. they are playing in very big categories that are still moving

online and consumer spending continues to be robust and mobility services and in food delivery while they are competing head to head, we just think the pie is growing and they can support both of them they are slightly different so with door dash, we think that they're going to continue to beat on top line expectations as we move through the year with ride share and uber, we ar really playing for the margin expansion story as we move through the back laugh of '22. >> is this door dash call your top pick about food delivery or is it about local last mile logistics which would be two kind of different arguments? one is broader than the other >> it's a bit of both. we think that there's still millions of customers that have not really adopted these services and continue to build this habit of ordering more stuff online

we would not underestimate the laziness economy we say this as someone who loves to order from the couch. we think there's still room to run there and the new categories that you talk about, the broader local commerce opportunity that really has optionalty to the story. that's not really baked into our numbers yet. it's combination of beth of those things. you see it in big tech as well kind of define gravity growing 15, 20% decades later. i think that speaks to the massive opportunitiesin these end markets at the end of the day. it really takes time to build that habit and get consumers to

shop more frequently through these channels >> it's notable that some of your picks are names that are losing money and the market has opinion very negative because of the trajectory of interest rates and the fed is not done here. door dash is positive today. etsy is a profitable model today. uber, we think is turning the corner and you will see that come good as we interrogatory through the year on the flip side, a name like wayfair where we are lot more concerned, we think the free cash flow burn continues we think it's very important this year and we tried to be selective about which names with work against the backdrop. >> thank you very much for being

with us. talk to you soon >> thanks for having me. robinhoods shares have been cut in half this year. could new rules send things even lower? that story is next don't go away.

twitter is turning on the fire hose. the company is offering elon musk access to its full data stream that's more than 500 million

tweets a day along with user device and account information for each the move comes after musk lawyers sent that letter to twitter general counsel. this said, twitter is still confident the company's top lawyer reassuring employees yesterday that the deal is still on and that a shareholder vote will likely occur in late july or early august pending scc approval if they are calling musk's bluff, it will be interesting to see not only how he processes all that data but how private he keeps it as well >> that meme was find of perfect, he will spend will the of time digesting it the key is can musk find something that twitter and other companies haven't been able the

find within this data? maybe. he's done some pretty incredible things look at it with an elon musk eye, he will find something. >> that's nod hard it's not heart ard to find some. it's hard to find something legitimate i fully expect elon to use this da to to make the case that twitter lied about bots and twitter will make the case, no we didn't lie about bots you're confusing inactive accounts or just spamy accounts with bot accounts. some people on twitter or obnoxious. that doesn't make them bots. elon wants to pay less maybe he wants to pay nothing. he will find, there's too much data, carl, not find something

this will be amber heard and johnny depp except with data >> at least that ended in a few weeks. this could go for a long time. you have to feel for the employees who are in the state of limbo and look to be for some time. at fist my mother was confused struggling with her religious beliefs, she told me if i had a child, they wouldn't be her grand child. it was hard to keep coming back

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time for a gut check on video gamemaker take-two jpmorgan upgraded it but slashed the target down to 175 bullish on the acquisition of zinga saying it will add that

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one more thing is the retail trade or at least the free one over as we know it, a little disruption between robinhood's chief and gentler. getting regulated. a lot of mess but a back and forth. >> since the gamestop we saw track trading firms gearing up for an overall of the industry and not happy about it s.e.c. chair gary gensler proposing rule trades that would affect robinhood and others would handle stock trades and how they make money. his plan would require them to send customer orders to auctions where brokers would compete for the best price instead of going to market makers like setta dell on the back end that's often called payment for order flow. you may have heard of that and

gensler argues that would boost competition and all sparked by the mean stock main i can't and whether they were getting the right price. executives pumping bake on that saying it's never been better to be a retrail trader. former s.e.c. commissioner dan gallagher saying there is nothing wrong with the status quo, no commissions and no fees and fast execution and kales it a good climate for retail and to go in and muck with it is a little worrisome he also points out that there is a very long road to getting this into law we'll likely see formal proposals this fall and has to go through a common period we could see potential lawsuit, dee. >> payment feels early 2021 for it everyone was worried about it. ant didn't know why but retail investors learned about it realized this is why they could trade for free and perhaps a lot

are in a different phase and not guying g-- buying gamestop does it make it more dangerous for them to stay in the market which many say overall is a good thing? you're not trading -- >> that could be an income retail traders have to go back to the way it was and pay commissions which 15 or so million people that got into the markets got into free trading. extremely unpopular if you have to pay a subscription or commission and robin and others would argue they're not a public utility. that they are a for profit business and they are allowed to make money off this and that is the model of brokerage firms, how it's worked and they would say we're not a nonprofit. we got to make money off this and they'll fight it. >> at the same time robinhood's reputation was so damaged with the confetti even they've done a lot to change the way the plat fop works and that sort of

distrust around it in 2021 is still playing. >> they took a big hit and have done a lot to correct that and say this is the brokerage industry just way it's been for years for decades before robinhood came around but were the poster child. >> we didn't get to its cash they have to keep it there in case anything happens again. kate, thanks very much >> ten years ago was good for retail investors would you rather have commission-free trading or buy apple at 20 bucks a share. the move on allialibaba. shares originally moved higher on a report that china considered revising -- reviving, i should say their ipo but they have since posted a statement on its we chat citing guidance from

regulators, shares down almost 7% china giveth and it taketh it away. >> some of the hardest headlines toprocess because you never know whether it's true or will be pushed back we got didi d-listing and amazing think china has outperformed the s&p over the past month. >> it is there is a trade here is there a long-term development. exactly what you said. so hard to digest. you don't know the reasoning when didi was up 40%, it's down another 5% because the regulators could change their mind on it as well, jon. that is the risk you take. i don't know if you want to bet onnant financial going public. may be interesting but there are regulatory force, beijing at work here. >> yeah, i mean, you said it, carl >> guy, meantime, there's going

to be more to process later on tonight. we'll get docusign had an interesting week as they expand the partnership with microsoft. on an index level we have been pulled toward 4,100 like a magnet three points below, dow down 121, with all the activity vix continues to hover near 24 it's time for "the half". >> welcome to "the halftime report." i'm scott wapner resilient or ready to break is the question as stocks remain fragile ahead of the big read on inflation. we are debating the road ahead for your money with the investment committee joining me josh brown, steve weiss, and with me on set once again is jenny harrington. the wall and check the markets red across the board as carl was telling you, not much conviction either way because we've been all over the map the vix as carl said 24, oil and nat gas, that'