implications for growth. invert again, people will be -- already talking recession possibilities, but people will be ramping that up a challenging time for the fed and clearly for investors. another painful day to start the week. >> certainly is. pain with 4.22% being decline on the nasdaq that does it for us. "techcheck" starts now good monday morning. welcome to "techcheck. i'm carl quintanilla, and following with bear market territory. market plunges to a low on the year who is best positioned in mega caps breaking down angles of volatility what stocks from chips to software to krcrist crypto on ao avoid pain kick off with a massive sell-off seeing in today's trade. meta down 4.5. amazon down 6.

similar story across the mega cap tech names today's moves heading from last week's losses and come as yields push to new cycle highs. investors awaiting another rate hike from the fed come wednesday. get into the outlook with senior markets commentator mike santoli. pain added to pain so far this morning. >> carl, yeah. striking about it in the first hour and a half of trading how comprehensive and systematic in terms of selling every stock in the s&p down at some point almost all stocks in the russell 1,000 also down. this shows you it's a massive repricing based on mostly what's happening in the bond market this idea that we thought we might be able to see several months ahead to where the fed got to where it wanted to. was able to restrain inflation in the economy without necessarily doing a lot of harm. then where the revaluation of the market is hitting the hardest, of course, the case all year, is where the valuations

and absolute terms were highest. why you're seeing the nasdaq give more back, deeper pullback. i look back to see where you have to get the nasdaq 100 index to go back to pre-covid highs. the peak before we got that crash. still down 14% from here valuations, interestingly, are below the pre-covid peak you've kind of obviously grown into that to some degree with these companies, but that explains a lot of what we're seeing this morning. >> mike, good morning. great to be talking to you first. i am most focused on risk assets this morning, because they seem to me to be defining the story whether it's bitcoin what we saw it do over the past 24 hours i believe it's at the lows right now. what it's down below 23,000 right now. those last remaining kind of meme stock poster children gamestop, amc down 10% this morning about, and growth tech

is really taking a shellacking even among larger names. right? the ones considered to be growthier, maybe alphabet, amazon, suffering more is this -- is the risk and attitude toward it a big part of the narrative you're seeing? >> right, jon. anything that relied a lot on people's faith or confidence that longer-term values were going to kind of justify what you're paying for them today that's pretty much been the story. now, when it comes to things like crypto, clearly there's much more of a grab for immediate liquidity and something cash-like turning a kind of conceptual asset into one i can actually touch and feel that's part of it. i think the ill liquidity of the overall financial markets an issue. that's what happens. volatility up, liquidity down. same thing mirror images of one another. yes, exactly what's happening. it's been a sense out there, i

think some plausibility to it, which is the stuff most aggressively valued, the spacs and ark innovation that stuff, a year and a half ago have already bled out to a fair degree. maybe that's true, but this feels a little bit like the real speculative stuff after the 2000 peak had you to get down to cash on cash values for it to make sense. >> mike, the flip side of that, relatively safer places to hide in this market many investors go immediately to consumer staples hasn't been all that safe, though looking through some tech names and keep going back to legacy tech, held up remarkably better. a name positive on the year, goes to that model of returning money through dividends and buybacks and of course, a stock that hasn't run up over the last few years. >> right almost nothing to do with the fact ibm is a tech stock has to do with the fact you have

identifiable cash flows. obviously they have massive shareholder return one example of that. hp another one, i guess, as well in terms of relativity >> all right mike santoli, thank you. a rough morning for folks long well, let's talk about some bigger stocks. today's losses adding to what's already been a tough month and year for some of the biggest market caps in tech and might be more pain to come. joining us with more, the challenges ahead. >> mega cap stocks keep sliding. a good time to break down these key problems, each of these companies facing, before we can even start to see a turnaround kick it off with apple down around 22% so far this year. big concern, of course, how much impact covid shutdowns in china are having on sales. now, apple warned, could be up to an $8 billion impact and looking for signs the covid surge in china is ending and

whether or not they can maintain demand for the iphone. amazon the laggard of the group down more than 6%. challenge here is to rein in costs after spending way too much in the middle of the pandemic to increase capacity and warehouses this is similar to what other retailers talked about the need to manage that inventory and a report last month saying amazon is already going to sublet about 10 billion square feet of that extra warehouse space. meta, another rep down nearly 50% so far and sliding at least another 3% or 4% today they reported during last earnings losing users first time and have a lot of competition with tiktok, plus headwinds with ios privacy changes making it harder to benefit targt adds and struggling to monetize tiktok and doesn't vep sheryl sandberg is leaving the company soon, their money person microsoft all about cloud, of

course high but flat. revised guidance earlier this month due to the strong dollar causing foreign exchange headwinds. might get another update end of this month then alphabet, battling covid like other companies and concerns overall in the digital advertising market due to consumer demand shifting from goods to services. back to you. >> steve a great setup appreciate that very much. stick with big tech this morning. if you have the powder to burn, where might you look next guest sees value in amazon. buyers getting domestic and international ecommerce sites for free joining us this morning, zillow co-founder, former ceo spencer radcough love to get you started. bernstein writes not argues aws will miss earnings growth expectations the next few quarters but arguing investors aren't worried about it nearly

enough given the tech resergs we are likely already in. what do you think? >> i think partly depends on the time horizon extremely bullish on amazon. may drop further the fact of the matter, every bill company i talk to is focused on moving their businesses to cloud and increasing aws spend yes, of course there's going to be left start-up activity and fewer start-ups moving to aws short term long-term trend is hugely aggressive and in favor of aws aws within amazon worth probably a trillion dollars you are getting u.s. ekmom, international ecom businesses for free amazon looks great for long-term investors. >> spencer, part of what makes your radar so good to you vie, what is your take on the way in ththey're embracing cost

discipline, reining in hiring and discretionary spend? you make a point, no one's happy with the price action all but the view is shared especially within tech >> a brutal environment, anyone can see. investors who watch the program, you think you're in a bad mood those that work in tech also in a very bad mood. only thing worse than being a shareholder of a company whose stock is at seven-year low, being an employee of a company whose stock is seven-year low and most compensation over the last seven years wiped out sheer pain between investors and employees. seeing across the spectrum fra from public to private, companies pulling back most companies reducing head count, closing open mediheads, battening down hatches private companies assuming won't get venture round run for two to two years. trying to extend the runway ideally 24 to 48 months and

pulling back today moving into a likely recession. >> and part of that conversation, what are challenges a stock-based compensation a huge topic here in the bay area especially, as you know many recently public companies dealing with that in the open. hering from ceos telling us having trouble with recruiting, retention. what do you recommend for your portfolio companies and do you think that that model itself, that compensation tied so closely to equity, their equity shares, do you think that will change in the current landscape? >> i tweeted last week stock comp numbers relative to market cap. pretty jarring you have companies that are giving out stock compensation 50%, 75% of the entire market cap of a company kind of mind-boggling. no i don't think that the long standing 30-plus-year tradition giving equity to employees is going away survived cycles. what will happen, happened in

prior, employers value eck kuwait less and presently surprised coming out the other end. i don't think it will change the way compensation structures work there's no question that the incredibly bubbly time for employees, in other words, the employees having all of the power rel tib to companies, that's turning very, very quickly. a lot of people are going to be happy to even have a job in 3, 6, 12 months see not necessarily downward pressure burt less upward presh other than compensation and good for companies and earnings. >> that said, spencer, where you want your equity price right here come into the company, have your next four or so years of equity priced right here. dow is down now about 865 points that's 2 3/4%. nasdaq down 500 points, now nearly 4.5%. s&p off 3 3/4.

ugly out there back to your point about amazon, because i don't want people to get the wrong idea you're saying there could be value here, but when you say aws is worth a trillion, benchmark against what right? i mean, like, operating in, 35 times operating income what if it really should be 25 times operating income what if operating income sort of ends up taking a bit of a hit based and what we hear from likes of snowflake, mongodb, about demand slowdown in europe perhaps extending beyond there i mean, got to be willing to hold on for years. right? >> you're right. these things, even some parts. these things give comps to other comp companies. other companies come down, reset the comps. there is historical baseline value thinking free cash flow from businesses, competitive mode, clearly aws has. size of the total addressable market, in the case of the cloud

is massive i don't think you'll see something like that. as big a mode and good margin structure, real cash flow trading at values much south of 20 or 25 times operating time. you're right bench marking it to 35 times, which comps at certain levels. an incredible business not talked about enough when people think about big tech. frankly, maybe through this down cycle many get spun out at some point. who knows? then see its true value in amazon. >> spencer, on housing obviously, people's perception of their home equity is a big bedrock to consumer spend. i wonder if you think sales, decline in sales, will end up becoming a decline in price? what implications that may have for consumer spend down the road >> so what's happening in housing is not really a decline in housing market. home values are still appreciating it's just a slowing in the

number of sales. so this is not 2008. this is not a credit bubble. not a housing crash. there's still a huge lack of supply in housing, why home prices are still appreciating. just that the rate of sales is decreasing or declining because there's not enough supply. it's a bit of a tricky market. i think it's sort of misunderstood. one. reasons i'm still bullish on a lot of companies offerpad, zillow, redfit in spite of the housing slowdown happens with consumer sentiment with respect to housing. a ton of equity tied up in home values, and you'll see some people tap that equity, of course, selling homes to i-buyers, also you see other innovative products. companies like sale lease back companies easy knock help people tap into equity of their home another way you'll see innovation drive well into housing. >> one of the reasons we turn to you spencer. huge, as they say, punches above

its weight in theconomy. things moving so fast, sure we'll talk again soon. appreciate it. >> thank you. >> spencer. >> stay safe out there. not just equities plunges this morning check out bitcoin hitting lowest level since december 2020 as dumping riskier assets 22k. br breaking down the headlines is kate a lot on celsius, right? people can't withdraw. however, this is far from the only platform offering these big yields talking about this before. how that actually works. it wasn't set to last forever but who else now is vulnerable >> interesting celsius, the big reason why a lot of retail investors were attracted to this platform saw 18% apy offered not a lot of transparency on the back end why the yield is so high you have to think the higher the yield, bigger the risk they are learneding out money out on the back end to hedge funds, now exposed to this others that would be at risk

other platforms doing this, but think about a company like coinbase, they were prevented. >> weren't allowed to. >> from doing this don't do this type of lending. other companies, not necessarily at risk because we don't know. don't want to say that, but companies doing similar lending u.s. based trying to make their name potentially the more compliant version. >> i remember the crackdown on block. met a lot of those customers that went to celsius not just them. i was on the finance website this morning offering 14% annual yield on its bnb, 12% on tether how does it play out >> think of the back end defy protocols they're called. essentially decentralized finance, put your money into one of these pools a mining mechanism and we won't get into this, but basically a way to lock up cryptocurrency earn pads of income and the way it's described meanwhile, if you have something

like we saw with tara and luna, another situation there was a 20% yield attached whole reason they offered yield was to get retail -- >> more money coming in. >> more deposits, more they can do business predicated on crypto prices staying stable or going up you see a run on the bank, it falls apart and seeing that play out in realtime in celsius biggest one. not to mention its ceo, been on twitter really hammering people who criticized this and question it >> kate, let's take a step back for a second i want to make sure i understand this i think when investors really need to be concerned about in krit crypto, it's a house of cards. had stablecoins, a few weeks ago showing cracks in the system the whole community, that was bad. get that out so the rest can be healthy. now this celsius and binance.

not giving you money now everything's fine but not let you trade or give you your money. these are institutions essentially promised, a guaranteed return. right? like, hold your assets with us, in crypto. you'll get this insane interest rate and weren't prevented from doing that and now that's potentially playing out for the whole market am i understanding it correctly? >> you are one of the things regulators will be laser focused on high-profile examples tend to about what the regulators look at and tried to stop certain companies, coinbase included, from offering these types of yields not the same as closure. the website says 18% apy as a regular retail investors my say sounds great 0% until now 0% interest pretty much on both bank accounts looking for that extra bump, extra yield. absolutely right historical example people look

at, one bankrupt, a messy, messy fallout. people retail investors had to sort of go into litigation and try to get their crypto back we don't know if it's going in that direction what people are saying at this point. that's the example historically and a decade or so ago before crypto really was a mainstream asset and hedge funds, and mainstream institutional investors involved if this company went under, cannabis largest pension fund one of the largest equity investors. high-profile mainstream investors getting into it and why investors say it's so much bigger at this point if there were to be fallout and contagion risk spooking crypto investors and not great for the asset class in terms of its reputation at this point. >> have you been struck by, looking back at prior dips and tweets from say novograd, bought more vtc at 66.5 in case anyone wondered.

still bullish. struck by the lack of defending the name sorts of statements today? >> yeah. there are these long-term holders that say, hey, this is a decades-long bet retail investors might not have the type of liquidity that someone like a novograd has or billionaire investors able to say, guy, it's okay. going to be okay haven't seen that as much this morning, but the other thing to think about is disclosures a lot of these high-profile either venture capital investors or billionaire backers of crypto and bitcoin aren't necessarily required to say when they sell certain tokens, when they get in, and that was something we saw with luna and tara example we talked about, there were investors taking profits before retail investors necessarily knew that's another thing that regulators are likely going to focus on when do you have to disclose an investment, and still seeing it play out a lot of high-profile investors. key an eye sure they're going to -- >> and companies

keep an eye on twitter, some companies make big bets on it. microstrategy. thanks for laying it out. and our next guest says despite the correction in crypto valuations consumer remains strong joining us, bank of america analyst jason great to have you. that survey, got to say. it did surprise me you did it recently. lots of interest still in crypto not only is it as an investment but a payment method can you first give details how you collected this data and who the respondents were ho you found them? >> sure. thank you for having me. a survey of just over 1,000 u.s. adults conducted at beginning of this month on june 1 st after collapse of luna and before today's headlines, but that was the sample size pretty significant, and it was interesting to see that 90% of respondents said they do plan to

buy some amount of crypto in the next six months, and that was actually the same percentage who reported having actually bought some crypto over the prior six months, for example. >> why did they want to buy it as a store of value? also i saw in the survey that a lot of folks expect to use it as a payment method even though we haven't seen that take off in major way? >> as a payment method is interesting. what that's highlighting, increased use of certain what we call crypto to fiat-type products for example, coinbase has a visa card that can be used anywhere visa's accepted and can enable a coinbase user to take their stored balance of cryptocurrency and actually spend it anywhere that visa is accepted. in that case, the merchant doesn't actually need to sign up to accept crypto, because the conversion of the crypto to the fiat currency is done before the funds hit the merchant's account. really a win-win for both

consumers and merchants, because the consumer, concern that store balance of crypto into a real fungible currency essentially. >> jason, go back to the narrative around crypto and bitcoin specifically we could certainly argue based what we've seen this year, it's not a store value, not inflation hedge. practically speaking, is it even decentralized? there are systemic risks within the crypto ecosystem moving the price more than anything else that was supposed to be in a positive way moving the price. i mean, is this, like, hypercentralized around every weakness in the crypto ecosystem? >> i think we can debate which adjectives to use. reality is our view has been there be too many crypto exchanges. there are too many cryptocurrencies and tokens. there's going to need to be some amount of consolidation. perhaps it's a little bit

analogous to back into the dotcom era too many dotcom stocks and a big shakeout and then clearly really significant dotcom companies that became extremely successful so we think there's some element to that in what we're seeing here we do think a company like coinbase standout is being a lot larger a lot more stable. >> jason, we've seen a lot of different charts trying to find correlations between bitcoin specifically, but crypto at large, some say it's correlated to stocks. some say correlated to, say, m2 money growth it it's the latter, then we potentially have a long way to get back to an upward trajectory kbhap what do you make of those comparisons? >> correlating with risk assets in general for example, hydro tech stocks look at the charts on crypto

versus some of those names they've looked very similar since november of 2021 so that's what we're observing at this point, and i think -- look, today's an example obviously bad headlines and not surprising to see another let down in the crypto stocks and in bitcoin itself. >> jason, should the failures or issues with south bsc been seen as bullish for coinbase? a high-yield product coinbase banned from doing it. absolutely killed. if this is a winter, some cryptocurrencies survive wouldn't that be bullish for a platform essentially already been regulated and will continue to be regulated? >> for sure. we agree with all of those points also say that the company's been clear they're going to cap their losses this year, and adjust ebitda no worse than negative 500 million. a lot of their slowdown in

hiring and firing has been well publicized recently. we think they've got balance sheet and management team whose manage through a crypto winter, i harkin back to the point made earlier. consolidation in this space. and more stable well-established players operating in the less risky fashion, like coinbase, should prevail on the other side. >> not to mention pretty decently sized cash file jason, thanks. bank of america. and i mention, swings going on in the dow in particular. up about 200 points from where it was a few minutes ago talk about an individual stock still falling. docusign wolf research downgrading it to underperform over the weekend. downgrades of several firms after shares fell more than 24% on a disappointing q1 earnings report that damage continues this morning. down more than 11%

wolfe saying after three quarters of sales execution getting worse they don't see the situation getting better as mack co concerns about expected to get worse. biggest largered on the nasdaq but has plenty of company. >> indeed. we'll get more visibility on software tonight in oracle another is datadog get more on the top names you might pick for your portfolio when we're back in three. erythg about furniture ...but with the business side... ...i'm feeling a little lost. quickbooks can help. an easy way to get paid, pay your staff, and know where your business stands. new business? no problem. success starts with intuit quickbooks.

welcome back to "techcheck." here's what's happening at this hour warehouse acquiring smaller rival in a deal valued at $26 billion including debt this after they rejected a nearly $24 billion from la month. the deal will allow it to be a

high-quality properties in key areas. ev start-up last mile solutions is planning to file for bankruptcy less than one year after going public via a merger with a special purpose acquisition company, spac. the company unable to secure financing sinces founder and ceo departed in february, finding finance statements unreliable. amazon said customers in california will be among the first to receive drone deliveries, when thousands of items become eligible later this year the drone will deliver to customers' backyards, hovering to release the items and then flying away and the first time amazon makes drone use to the public >> i wonder if dogs will destroy these packages, or animals my thought process. >> you know, dogs will. >> or thieves. one or the other. >> indeed. thank you. turning to software names. goldman sachs says stable customer keys to riding out the

store. highlighting tech anies giants like salesforce and smaller tenable and appian joining with his top picks, cash rongen cash, among your top picks, mongodb. got a price target above $400. stuff you're neutral on has price targets significantly higher from these levels what are we to make of that? >> so first of all, thanks for having me on the show and conflict disclosures linked to gol goldman sachs can be found on our website. salesforce you mentioned happens to be a topic happy to talk about salesforce, jon. especially in light of the markets we're seeing you mentioned in opening comments stable cost of customer acquisition. i think after a two-year period the software industry opportunists, increasing margins

because of the pandemic and sirtural selling et cetera in a normal economy, brings this back and that initially took some margin expansion off the table in 2022. we're finding that as those investments are starting to stabilize the cost of customer acquisition is trending back to where it was a positive thing. >> okay. what do the price targets mean now? in this market, it's hard to understand, because the actual prices have come down so far the ratings, neutral, sure but a price target that's, like, 30% or 40% higher than the current level. how should investors think about the time period or themetrixs tt realistic? >> first of all, bigger forces you and i don't control. which the risk-free rate and how you discount your models a lot of unknowns there. a lot of fluidity. using 100 basis points 2, 00,

now 300. who know where is it goes. right? we're trying to do, we're not -- i don't think anybody really knows what the correct valuation is to pay for a software company or any asset at this time in the market there's so much lack of clarity. however, we do know this, and what we focus oun on what does life look like come ouflg this recession we're supposedly in and should we look at prior cycles? the idea own companies good franchises and inevitably we do come off recession, and hope we do with moderate recession, when grades stabilize and inputs that go into your -- stabilize, a clear discount, when you can start to focus on the things that matter for software companies. ultimate cash flow generation. every 100 basis points increases cost of capital can be offset looking at tcf track it over the years. cash flow generation in two extra years before this matures

offsets rate increase. >> similar to what we heard from spencer earlier, kash. all portfolio companies raising money to give them two years comes to software space, public companies, oracle reporting tonight. we've seen markets over the last few months move on individual outlook. i wonder, oracle its outlook for enterprise spending what are the stakes tonight? what does that have to show? or not show. to move markets? >> i hate to disappoint you. not oracle i have to pass on oracle happy to talk about others. >> talk about it in the context of enterprise spending and earnings revisions in that -- >> yes. >> more and more wall street analysts think that's the next shoe to drop not reflecting valuations at the moment. >> yes absolutely not heard of an investor, other than that people that want to go back to earlier times, 2020, rates significantly higher than where we are and a question finding out what software

multiples were back then could we go down there i don't think that exercise is relevant to your point. in general in software where do we stand with risk averts? ow call in april, investments, it was we need to see at least one quarter where earnings solutions is -- not earnings real leading indicator earnings is not a problem. the cost of customer acquisition is down and actually print a good margin. the question is revenue. our belief is that there needs to be a little bit of acknowledgement on part of management teams, monitor slightly to get tougher. june quarter an interesting earnings security. if management sees business conditions are tougher than expected that would be the first time because investors want to see this and we did that back in april. >> right. >> and these estimates, beat the estimates that has been investor -- in preventing we think -- at least a quarter away

from there. >> in software i couple things to get your take on one is mongodb seeing headwind demand particularly out of europe and expected that to spread saying they would be fine. a macro thing could be aware of. adobe and others expecting china lockdowns to ease end of june and guidance was based on that how big of an impact do you expect each of those things, china and europe perhaps spreading to have on software writ large >> china as a sort of negative and supply chain issue revenue comes from china as well for even some larger, mature companies. with respect to consumption, the street has blocked concern about the mongodb and consumption model, $34 million taken out of the forecast and your core business, snowflake, core business,

enterprise business is doing so well they could absorb negative of $35 million we do think the consumption business model is headwind in the short term burt things will stabilize at some point. enterprise versus consumer and when that -- the mix starts to be more positive, i want to acknowledge there be smb issues probably another quarter managing these would be surprised how conditions turned out to be more n reset process. it will take another quarter, and estimate should be more believable at that point in time. >> all right glass half full with nasdaq now down less than 4%. >> bullish yes. thank you. let's get to tesla this morning. shares are down about 4.5% did get to about 644 today company revealing plans for three for one split in's recent s.e.c. filing say the split would help reset the price give

employees more flexibilities in managing and tesla adding the move will make the share price for accessible to retail investors. is the stock a buy rbc thinks so saying the company's focus on supply chain and vertical integration give it is a competitive advantage that said, shares 48% often highs after today's drop interesting, on the heels after the upgrade from usb friday, share loss occurring as more kemp tigs comes to market, third phase of evs will be actually able to deliver. that's requiring supply chain and what tesla has done a good job locking up. >> absolutely. actually able to deliver is a key point that a few months ago seeing all of these ev companies go public by a spac sort of a given they'd be able to deliver. tesla has years and years of this same note, carl, said tesla has all positioning, and gotten manufacturing several giga

factories under its belt and they're ramping up now look at the money these companies raise. one start-up, ev vv company fig for bankruptcy makes you wonder about rivian and lucid. look at the money raised rivians $12 billion nearly. a big question is it actually enough to figure it out the way tesla has >> yeah. remember when $12 billion wasn't that much money? who else's stock is more accessible to retail investors lately, amazon, after that split. finding it and selling it this morning. off 5.5% this morning. careful what you wish for. >> meanwhile, guys, trying to navigate volatility, our next guest says keep an eye on the fed meeting and watch the two-year hitting levels last seen in '07. joining us new street adviser's ceo and contributor delano great to have you back

i guess you know someone pointed out, we got cpi followed by several sessions now that were in the midst of, very little macro. we'll get ppi and the feds left the bull wis nothing to hang their hat on. >> exactly thanks for having me back. you're exactly right the other thing triggers this panic sell justify seen on monday, looking at investors, will the fed be more aggressive than initially thought i have thoughts contrary on that thinking the fed will stick to what's been communicated, but i think that's what's happening. ten and two yearcloser to that inversion. obviously the market looking at a more aggressive fed as well. investors are spooked now and i think we're seeing that across the board. whether in tech stocks, whether it's in crypto market. you're seeing that contrarian view come into view, carl. >> and then, of course, impact on the dollar. dollar index near 20-year highs.

delano, a creeping conversation about the impact of 4x on earnings for the quarter and so now you're going to have the street on watch for negative pre-announcements with bank earnings a couple weeks away. >> yeah. exactly right, carl. i think one thing kind of interesting to watch is what's going on with consumer sentiment. one area of the market that you can kind of hang your hat on saying consumers are still strong savings rates still strong we did see the preliminary sentiment come out the index fell to lowest on record that's affecting everything across the board seeing bank earnings, or banks pull back as well. there's no place to hide in a market like this but i think it will get to, what an investors can do now, rotation panic sells will be the wrong move to make here, carl. >> talk about that rotation idea and start with crypto, because i think it's a poster child for risk in this market, and the

attitude towards risk has been so important people keep talking about crypto winter i think implies crypto spring is around the corner. what if we're looking at crypto climate change right? what if this is a wholesale shift in the way we're looking at risk. how are you going to be able to tell >> i think one thing you'll see is what happens to large caps. i think you generally in the cycle, obviously there's a down cycle in crypto winter everything pulled back large cap pulled back less than out coins. right now everything is pulling back tremendously. the projects that don't make it out of this will be some of the products people were heavily in. you mentioned, jon, very risky i'm still, still a believer in large-cap focus. obviously bitcoin, ethereum, having down days in cycles nearing the bull cycle well into the bear cycle this is typical for crypto if you look back at the history over a decade of the crypto market most people holding. look at holding percentages,

higher fon people holding longer than a year to their cryptocurrency a sticky point as well. >> delano, never seen crypto operate in this kind of an interest rate environment. this time is different >> yeah. yep. that's an environment that invest verse to take into account. interest raitts rates still rising you see a lot of liquidity taken out of the market because of leverage on some exchanges for retail consumers a lot of what's happening. people using their own capital, investing in projects they believe in, they're still holding on buying in october, november above 60,000, you still believe in fundamentally what you're buying, there's no reason why you shouldn't be buying at 22,000 >> what is a reasonable cash position right now, delano going into the back half of the year knowing we're in a period now of a rate shock, but if it turns into an economic shock, if employment really does roll

over, i mean, how much do you want to have in cash going into q3 and q4? >> obvious question, carl. we are actually in an economic cycle. i believe that looking at what's going on across the tech sector seeing job offers rescinded. seeing employment options tightened up and more of that i think is coming in the next 6 to 12 months certainly investors have to be aware of that generally, our cash position is using 0 to 10% range and obviously it's been higher i like dollar cost average into large cap tech and crypto. investors should have a sizable large higher solution at this point, but it doesn't mean that you shouldn't be holding on to assets that you believe will come back. if in dollar terms low around you believe in them lower term, we flush out of this environment, actually in a better position asset-wise.

>> important to look beyond these peaks and valleys we're seeing with even more frequency, delano appreciate it. as always. see you soon. >> thank you. markets still under pressure though claws back from heaviest losses let's get a quick gut check on silver bay capital, wells fargo initiating the name saying the company is carving out a niche roll as banker to the crypto eco st system stocks plummeting around 15% alongside the crypto broader sell-off we're back in two minutes. black excellence was booming. black wall street. it was a sight to be seen. until one day, it was all burned to the ground. but fire is no match for the fire within black dreamers everywhere. and so, new black wall streets rise. ♪ ♪

citi is committed to helping build black businesses through banking.

welcome back nasdaq clawing back from the depths but still down 3.75%. joining us to target at this level, managing director daniel flax dan, you take a brought look at technology market and so i'm wondering, with this combination of high cpi, china lockdowns, perhaps lasting longer, and i imagine affecting hardware names primarily. and then this sort of weakening in demand, perhaps, we're hearing out of the latest earnings, how is that shifting if it is, your view of the market for tech? >> good morning. focus remains on the innovation, and certainly none of these companies are in cyclical

headwinds. consumer impact, consumer rates a factor step back and think about what's happening historically, it's more about innovation than anything else in our view. look at a company like google or alphabet important, utility youtube, youtube, while maybe softer in the near-term, its very attractive growth prospects and the google cloud for enterprise customers is in very early stages apple we saw last week at the developer conference, they're innovating in key areas like silicon. nvidia another name we like is really a leader in artificial intelligence and i'll round it out with qualcomm, which is a leader in 5g and the internet of things so even in the face of difficult macro data, we still see innovation and we think all of those companies will come out stronger on the other side >> that speaks to strategy, but what about tactics i mean, we've seen, you know, certainly from qualcomm from these other names them laying out the broad reasons why they think they can grow even more profitably from here, but we're

also seeing those stocks continue to come down as the narrative shifts along some of the, you know, things that i just mentioned so how should investors put that money to work in these stocks cautiously or, you know, wait for a big dip in all at once >> we're buyers here we're buyers today and at current levels for those who can look past what is, of course, a very difficult environment, i think as we get into the latter part of this year and into '23 and into '24, these companies are going to continue to create value for their customers, which should help translate into shareholder value. we've seen throughout covid and the recession that a lot of these companies that are innovating are also executing well on key product cycles, and that has enabled them to do that even in what has been a challenging couple of years. despite the challenges ahead, we do see opportunities at current levels >> daniel, how do you judge innovation what kind of metrics should investors be looking at?

a few months ago, we talked a lot about our net revenue retention, but you see a lot of cloud companies very strong, putting up numbers above 100% that are still getting killed. what are you looking at? >> we're looking at a variety of things we're looking at the r&d investments. we're looking at the capital expenditures we're looking at the new products and services. if we take a company like apple last week, silicon has always been a big focus for the companies but with their m line chips, the m2 last week for the mac, they have reinvigorated and revitalized that product so there's innovation across software, services, systems, we're looking at it for all of these companies and really trying to determine which of them have the ingredients to create sustainable value for their customers, which we think can help translate into sustained shareholder -- creating additional shareholder value over the next one to two years. so we see a lot of opportunity at current levels. >> that makes a lot of sense,

daniel, but at the same time, don't you also then have to consider what components of corporate budgets are truly expendable in the short-term, and what would those be? >> so there is, of course, an element of companies or customers moderating, so in terms of their advertising budget, some of the companies are clearly going to have to moderate budgets they're going to have to cut back in other areas we're seeing travel really emerge from what has been an incredibly difficult period, asknd so our focus is trying to go through these companies one by one and think through how durable these revenue drivers are, and then, more importantly in terms of the stock price, what are the shares going to reflect 6 and 12 months from now and our focus remains on those that can innovate, navigate these, of course, very turbulent times and still be able to grow through them even if there's a tough quarter or two along the way. >> one of the things i've been wondering is about the relatively new software subscription business model and

how that holds up during difficult economic times is it more like, you know, the shields in star wars where, you know, eventually they get worn down and they take a hit or is it even more durable than that >> i think it is more durable. if you look at a company like microsoft, which has done a terrific job building out its cloud platform with azure. if you look at salesforce, which has also continued to innovate and grow and expand into new areas, they will see near-term impact from some of the customers not being able to spend as much, but the durability of those platforms, these platforms are foundational to their customers' businesses that in my view will matter more over the next one to two years, even as some of the near-term metrics could, of course, be soft. >> dan, you've talked a lot about looking for tech companies that are still innovating, but we hit on this at the beginning of the show. it's really the legacy names that have held up. you may not -- they may not be

trading exactly like tech stocks, more like kind of staples. how do you approach them >> we look at it from a variety of different lenses. for each one of these companies wer we're trying to balance where we see the growth and the innovation we try to think what they're going to become. so for example, a company like motorola solutions is an innovator in delivering solutions to the public safety, the first responder community. they have significant growth in areas like video, and that will get bigger and bigger throughout this procession. if we look at, you know, another company we've got cisco systems which is continuing to transform itself into more software and services, more recurring revenue. so these organizations that can continue to push forward, to continue to embrace the change, continue to become more important to their customers ultimately, we think that is what is going to be instrumental to creating additional shareholder value as we think about the back half of this year

into '23 and really beyond what is, of course, a very difficult environment. all right, dan, thank you. dan flax >> thank you. now, looking for some names on sale, they're all on sale some of the steepest discounts in the s&p are on tech names with netflix, etsy, and paypal more than 75% off their highs, could it be an attractive entry point? oracle set to roeport results tonight. what that could mean for t ote ines xthe

if you have this... and you get this... you could end up with this... unexpected out-of-pocket costs. so if you're on medicare, or soon to be, consider this.

an aarp medicare supplement insurance plan from unitedhealthcare. medicare alone doesn't pay for everything. and what it doesn't pay for, like deductibles and copays, could add up to thousands of dollars. medicare supplement plans help by paying some of what medicare doesn't... and making your out-of-pocket costs a lot more predictable. call unitedhealthcare now and ask for your free decision guide. medicare supplement plans also let you see any doctor. any specialist. anywhere in the u.s. who accepts medicare patients. take charge of your health care today. consider adding this. call unitedhealthcare today about an aarp medicare supplement plan.

call unitedhealthcare today about an aarp medicare ♪ ♪ [ maniacal laugh ] [ laughs ] [ laughs ] [ clucks ] one more thing before we go, oracle is set to report results after the close, and seen by many as the next big check-in by tech shares have fallen more than 25% this year, relative to today's market action, guys. it's okay, down about 31/3 of 1% with tech under so much pressure, if it exceeds so much expectation. that could maybe prevent some more selling pressures tomorrow? >> the guide is so important, so important, carl because this is

their q4 they're reporting we're looking into the next fiscal year. last quarter was seen as mixed top line was just sort of in line, so how optimistic, how aggressive did they get on the guide, it's going to matter a lot. >> morgan stanley today says pay attention to currency impact it's going to be a huge story for earnings but especially for oracle, and are they losing some share to some cloud first companies. s&p down 116 let's get to the half. >> carl, thanks so much. welcome, everyone, to "the halftime report," i'm scott wapner markets sink to new lows for the year we will debate the damage and discuss how much more pain might be ahead with the investment committee. joining me for the hour today, kari fire stone, pete najarian, liz young, joe terranova, let's do what we always do first let's check the markets at 12:00 noon we have new intraday lows, the dow, s&p, the nasdaq 100, very