companies with barriers to entry like aes and sun run also reiterating the buy rating on sun run but downgrading sun power and sunova saying a more selective stance on the group is warranted given heightened inflation and rising rates a lot of things to watch here. >> certainly we'll be watching closely. pippa, thank you that will do it for us on "squawk on the street. with s&p 500 turning positive, "tech check" starts now. >> good monday morning today, can socks continue this bear market bounce all the major averages coming off their first positive week in the last four. we're going to talk about where to search for opportunity in tech plus, as crypto firms search for bailouts one company doubling its valuation. is this the time to get in at the bottom or another example of fraught in the market. >> frank slootman is with us, the company a prime example of a growth stock that has come way

off the highs, and frank definitely, jon, tells it like it is regarding the business and the outlook. >> he does tend to we're just a couple days away from the end of the quarter, end of the half, and i'm feeling queasy we got our ankles broken, a lot of investors, at the end of the first quarter. you might remember stocks were rallying into april, and people were like, oh, maybe this isover now, the second quarter was absolute chaos, and really rough for a lot of people. a little rally at the end, people saying again maybe this isover well, maybe. maybe not, though. >> definition of a bear market rally, if you listen to people who come on the air, like dan niles, he's often warned of this i guess as we head into the second half of the year, has anything fundamentally changed i know we have had weakness in commodity prices and some analysts are arguing maybe the stock market has done the job of the fed, that the pessimism has been baked in and spending has been pulled back, that a

recession that we may get or are in as some believe will do the job of bringing down inflation >> definitely more downgrades to global growth forecasts. imf cuts their forecast to 2.9 s&p global did the same this morning. we'll talk more about what the year ahead, and especially what 2023 may have in store for us. let's stick with the marbt a lot of focus on who will survive this moment. here is john dohrr talking about the market >> we have too many unicorns for some companies don't deserve and will not get more capital, but the excellent companies will be able to access the capital they need to grow. >> joining us this morning, delano of new street advisers. especially this week when we're going to wrap up the month and wrap up the quarter, is this rebalancing sort of confusing the picture, leading us to think there's more optimism than there

really is? >> thanks for having me. in some ways yes you mentioned the downgrades we're seeing all across the globe. we're talking about gdp, especially in the u.s. as well i think investors could be caught in that kind of that bull -- that bear market rally we're having, but longer term, there are opportunities for investors to get in. picking those opportunities, that's obviously the thing that investors have to watch closely, what metrics they're following i think there are still some in this kind of bear market >> all right so be more specific. which are they and why >> so one of them, you know, we have been looking at is meta you look at the pullback in growth picture for growth is less rosy over the past several months, but with the guidance for revenue on meta, that's obviously been lower, there's still some opportunities if you look at what they're doing with cash as you mentioned what john mentioned, the companies that already have capital, they don't have to worry about accessing capital.

meta has a strong balance sheet. you're looking at their longer bets with reality labs that's a longer shot for investors to look add and watch closely as they shift to the metaverse. it's been severely downgraded and there's opportunities for investors to look at meta. >> you hear a lot here in the bay area that companies are looking for at least a two-year runway to get through this pe period i wonder, though, is there an opportunity if you're an investor with a younger investor with a longer time horizon smin of the newer exchanges like coinbase or robinhood. we got that goldman note, an upgrade of hood, a downgrade of coin do you agree with that >> i have held both of those companies and stild hold a little bit in coinbase and robinhood. they're both going to struggle they both have something that volatility plays a part in both of their businesses. and obviously with coinbase, you have seen the price of cryptocurrency go down you're seeing money coins and tokens move from exchanges into

their individual own wallets that's an opportunity, not a good sign for coinbase on the robinhood side, you know, that company has also been in trouble and struggling less volatility in the market. i would like it long term for investors. i think there's some opportunities there just because of the way it downgraded robinhood down 53% year to date, but very volatile in the near term >> i'm thinking back to what john doerr said about too many unicorns in one sense, how could that be if you have all these companies that are really worth a billion dollars or more, that's great, but i think the implication is they're not really worth a billion dollars or more. that's why they're not going to get more cash, because their future is not as bright as the rosy valuations would have suggested. but surely, there must be a parallel in the public markets where there's some group of stocks that doesn't deserve the valuation that they're getting and all of that is going to play out probably in the public market as it does in private so hear what you're saying about

long term, some of those plays that will be worth something, but what is the segment of the public market that's going to get hit as those unicorns get their horns shaved >> yeah, they have been hit hard already, and you're seeing -- you were just looking at some of the high growth companies that have been shaved off considerably from their performance, and i think there's still more downside to go. even in the private market, it trickled down. you see founders dilute themselves much more than they previously would we're also investing in the private markets as well. those companies and sectors that are high growth that aren't showing signs of cash flow for investors are going to continue to be hit. that could extend to all different sectors if you look add fintech, if you look at some of the high growth solar companies, those are still all being hit. now, i think the ones that have strong balance sheets, the ones that have the ability to generate cash flow for investors, those are the ones that are going to continue to perform and actually come out of this on the other side we'll look at those companies very hard and try to find the ones that we think we should

back, jon. >> as you look at the s&p and the names thet have come down this year the most, there's no name that's down more than netflix. and i know you thing it's interesting given the subguidance and the fact that q2 historically is not their strong quarter. >> exactly, carl we have been invested in netflix and that's something i'm still holding. yeah, it hasn't been a great picture. expecting another $2 million in this quarter but i do believe in their calculation of total addressable market and increasing. they're looking at 800 million people, customers they can penetrate, and i think it's really interesting they pulled forward the ad-supported tier they're going to add to the platform which will be a benefit for the top line and hopefully a benefit for investors on the bottom line. they spent $17 billion on content and i think that's obviously in past times been really good, brought a lot of people to the platform now they have to see if they can beat competition and continue to

add people to the platform as they get the best content possible it's trading attractively right now. been downgraded but still a lot of headwinds in this one >> last time you were on, you pointed to consumer sentiment that at the time remained fairly strong however the latest read from the university of michigan, the lowest on record going back to the late' 70s. where are we now in a broader picture? there was optimism last week we saw the nasdaq up 7.5%. what happens this week what's the next catalyst, is it ear earnings have those revisions come down enough >> thank you i want to rephrase myself. what we really saw was prior to that michigan sentiment, consumer sentiment was strong, and now you have seen it's degraded considerably. a lot of that plays into inflation and inflation numbers that came out were still hot in inflation and consumers are thinking about everything they purchase now and so this bounce that we're seeing over the last week, it really is kind of just a bear market rally here that we're seeing i think consumers are still

worried about how they're spending, where prices are going to go when it comes to renting renting price are going up considerably as we're seeing buyers pull back consumer sentiment is not in a great place in the near term, but i think investors have to look at how they can play in the long term. >> delano, appreciate it hard signals to read right now that's why we love to have you on we'll talk soon. >> now, citi says one stock to target as a defensive play could be microsoft the software sector etf has fallen almost 30% year to date but is up 10% in the past week so with valuation multiples hovering near multi-year lows, they think the sector's rating could be coming to a close joining us now, the co-head of u.s. software research tyler, good morning. so we're at the end pretty much of the first half, looking ahead to the second, and it seems like guidance and the overall economy are going to be an issue here,

even for these defensive software names how stable, how confident does the guidance have to be that they can sort of weather whatever we have coming? >> yeah, good morning. and thanks for having me so i think as we look at the second half of the year, clearly, the first half of the year for the software sector has been dominated by multiple d rating we have seen many of these high growth stocks off 60%, 70% year to date, but you haven't seen material weakness in fundamentals yet quarters have generally been above guidance range with a few exceptions we think as we look at the second half of the year, the market is likely to be volatile in the software sector, but it's going to be more driven by estimate revisions rather than the multiple corrections so as we think about the sector, companies that have exposure to large enterprise i.t. budgets that have weathered the storm

through previous downturns and have real platforms, multiproducts they can sell, pricing power, we think those things are going to be very important as we think about the second half. so service now, microsoft, those are at the top of our list in terms of our preferred names here in the near term. >> i hear you. i'm wondering, though, based on what we saw, at least the market reaction from adobe just a few days ago, i mean, it's off the very lows, even that it saw back in, i guess it was may, but the stock took a tumble based on the overall picture that adobe painted. also in earnings why won't we see more of that? they run a pretty tight ship over there >> adobe has been around for a long time. i think if you look at the call it the last nine months for adobe, they actually started having some issues in their -- in september when they reported their august quarter

they first kind of saw the signs of consumer slowdown they talked about elongated holiday seasonality, and that's kind of persisted the last couple quarters. so i think adobe is quite different. if you look at their core franchise, it's photoshop, their dirgetle media business. it's a very heavy consumer s & b or iented business. as we talk about the large enterprise names they have different demand characteristics. they have much more mission critical soft ware that's allowing these companies to run, so i think adobe is in a different camp just with that exposure to consumers, creative professionals that likely did benefit during the pandemic, and there's also some concerns for adobe specifically that there's incremental competition from >> right, a lot of companies to run or drive if you will tyler, you say the sector

derating is mostly done. multiples have falling below march 2020, that covid trough. what makes you think that is the right level? >> yeah, so it's interesting you know, we put out some work last week where we kind of looked at a measure of high growth multiples relative to the ten-year interest rate what we have seen thus far is a very strong correlation this year between rising rates and kind of falling valuations now, if you look at the ten-year today, we're hovering in the low 3s citi's inhouse forecast is for the ten-year to finish in the high 2s. i think 2.75 is citi's year end target so clearly, if we do go to a rate much higher than 3, i think there could be more valuation downside, but i think so far the valuation correction at least has mostly been driven by kind of this macro rotation and ten-year interest rate dynamic

>> one interesting dynamic of this rate cycle has been remembering that historically, the market always overshoots what the fed inevitably does i guess the question is whether or not this is truly different this time because of the way in which inflation has reared its head, in ways it hasn't done in a generation >> yeah. no, it's a good question i think, you know, as we think about the sector and the implications of various interest rates, i think what is still true is that software demand even through this six to nine-month period that we have seen recently of rising rates, it has remained relatively resilient. interest rates alone aren't enough to necessarily disrupt software demand trends so i think the key thing to watch for, though, is how persistent are these demand trends going to be, as companies

deal with higher debt costs, higher energy costs which ultimately impacts their purchasing abilities i think so far you have seen that more on the consumer side, with some names like shopify and adobe, but the enterprise segment has been a little less impacted >> tyler, when you talk about software and the idea that multi-product platforms are going to hold up better, who among the pandemic darlings do you think have been able to keep their foot on the gas among the zooms, the docusigns, et cetera have done a good job expanding their businesses and who hasn't? >> yeah. you know, those two companies, i would say neither of them has really demonstrated that they're more than kind of certainly they have more than one product, zoom has zoom phone, zoom rooms, and they're starting to build out call center, but the vast majority of their revenue and also the vast majority of docusign revenue is that single

product company. certainly, i think you could make the argument that some companies outside of zoom and docusign benefitted from the pandemic to a certain extent if you look, you know, the data management space, some of the cloud-based vendors such as snowflake and some of these usage based models saw really strong growth during the pandemic just because companies were pursuing digitization a lot faster, and so we think those companies have probably shown a little better kind of long-term durable growth trend by expanding into new categories. >> going to get some color on that in just a couple minutes when we have snowflake's ceo tyler, thank you >> thank you >> we want to turn now to the story that is dominating and has been dominating the news cycle since friday that's tech companies, among the most outspoken responding to the

reversal of roe v. wade. julia has the latest a long list of statements. bring it to us >> that's right. tech companies are condemning the ruling and speaking up about how they're protecting their employees' health care rights, by paying to cover travel and medical expenses to obtain abortions. microsoft, apple, netflix, meta, paypal, and yelp reiterated their commitment to cover abortions through health care and to cover those travel expenses if necessary. yelp saying the ruling threatens to dismantle progress made towards gender equity, saying, quote, business leaders must step up to support the health and safety of their employees by speaking out against the wave of abortion bans that will be triggered as a result of this decision and call on congress to codify roe into law meanwhile, uber saying it will reimburse expenses of any driver is sued for providing transportation on the platform to a clinic. and now, all of the tech

platforms are reckoning with this question of how they will protect user data if law enforcement or prosecutors demand that they turn over data that could indicate plans to end a pregnancy. such as search history and geolocation. companies that access data that could incriminate people looking for abortion include google, meta platforms, amazon, and apple along with the mobile providers, verizon, at&t, and t-mobile, and data brokers such as axiom many of these companies alert users when their data is being collected, and apple recently made it the default to opt out of data tracking now, anticipating this ruling, four democratic senators urged ftc leader lena khan to investigate apple and google in particular for allegedly misleading users to collect and then sell their data we haven't received any comments from these companies about how they plan to handle data requests, but many of them do have lengthy reviews to push back on requests so dee, guys, this will

certainly be a key issue to watch. about how they handle these issues and also potential legal challenges not only for how they're managing data but also if they're paying for people to travel out of state to get abortions. >> absolutely. when it comes to data, this will certainly be discussed over the weeks and months to come, but it could have important implications for the whole landscape and how the data is handled. when it comes to the statements from tech companies, there are really some key nuances here you have some companies saying that they will pay for their employees to have treatment out of state, and then you have more sort of stronger statements. i'll give you an example uber and lyft. uber says they will pay for employees but lyft said the ruling will hurt millions of women. that is key, right some are having a statement on abortion some don't even want to use that word >> yeah, i mean, i think it's also notable that a number of these companies are saying look, we already pay for these services

microsoft saying they already pay for any services around reproductive rights including gender affirming care, and now they're going to make sure that everyone is covered if they need to receive these treatments out of state but a number of these companies saying they already help their employees get whatever care they need, but what has also been interesting is a number of these companies have been throwing out dollar numbers $4,000 to travel out of state travel $7,000 so some more willing than others to say the word aborg, but a lot of them really wanting to get out there and saying we're already doing this for our employees and a lot of thome increasingly remember, remember, they're increasingly dispersed around the country, so their user bases -- sorry, their employee bases may not be as centralized in states such as california as they once were >> especially post-pandemic. you saw large numbers of employees moving to other states, especially texas julia, thanks so much. still to come this hour, the ceo of snowflake, as we said,

plus an upgrade for robinhood, a downgrade of coin. "tech check" is just getting started. this is evolving from gym to global media company. this is connecting your people and content in one place. this is the system you built to transform your business. this is how. airtable.

this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app.

time for a gut check two retail favorites in focus. goldman downgrader coinbase to sell while upgrading hood to a hold robinhood has sold off enough to make this an attractive entry level. both these stocks are down 80% since their listings last year jon. >> after the break, snowflake ceo frank slootman is with us. "tech check" is back in a moment

welcome back to "tech check. i'm carl with jon and deirdre, and just a few moments, we'll be joined by the ceo of snowflake, frank slootman, on a day where the stock relatively steady. first, a newspidate with leslie picker >> good morning. ukrainian president zelenskyy is accusing russia of hitting a crowded shopping mall in the center of the country with a missile starting a massive fire. officials are saying at least two are dead and 20 injured. >> as president biden and his fellow g-7 leaders try to limit revenue, biden will also be providing an advanced surface to air missile system in ukraine. it's the same norwegian developed anti-aircraft system used to protect the white house and the capitol building >> and shares of digital world acquisition are down lps 10%

that's the spac that plans to merge with former president trump's social media company it says in a filing today that each member of its board of directors has been subpoenaed by a federal grand jury in new york there is already an s.e.c. investigation under way into the deal >> and pending home sales increased slightly in may, up .7% from april, but the surprise move may be just a blip due to a small pullback in mortgage rates during the month back over to you, jon. >> all right, leslie, thank you. >> and now, turning to enterprise software, the sector getting hit hard by the broader sell-off, but our next guest says the opportunity is big. unveiling a range of new products at snowflake summit the company's global user conference held annually, spanning cybersecurity, app development, and more. what's next for the space? joining us now to discuss,

snowflake's ceo, frank slootman. frank, good to see you want to talk a lot about summit, but first, first time really talking to you, major ceo in tech, since the supreme court struck down roe last week. so in your book, which you talked about earlier this year, you talk about aligning people and culture. you talk about building culture. what does that mean for leadership at this kind of a time of upheaval right now >> well, we may have a little bit of a different view. culture is not sort of a universal good like there's only one good way to do it. culture needs to support and enable and align with the mission of the company and you know, if you work in a government institution or a nonprofit, or you work in a large slow growth company versus high growth tech silicon valley, the culture is going to be very different because the culture needs to help the company in

achieving its mission. i will tell you that in companies like ours, you have super high growth, it's high pressure, very competitive, so the cultural values to dynamic will be different than in other companies, but it suits what we needed to do for us. and of course, our people need to feel good about that. and we take great pains during interview processes to make sure people understand what culture they're getting into and that they can reconcile themselves fully with that. actually, we want them to thrive with us because it's not for everybody, and we understand that as well we don't want to make mistakes either on their part or our own. >> okay. i'm not sure what that means in the context of what i was asking, but it sounds like you're focused with aligning with the mission and not what's happening in broader politics? >> that's correct. the broader politics, it is what it is. we try not to weigh in on that because it's sort of a no-win

conversation there will always be people who will be unhappy with that situation. we're in the business of running snowflake, so we're doing that to the best of our abilities no matter what's going on in the world. there's always something >> all right let's talk about summit. you talked about moving into a more application development space with data cloud. you announced specifically a native application framework how does this really affect your addressable market going forward? especially because there's this report about cios and you have a lot of loyalty and intent to spend with forward thinking cios out there. >> yeah, this is a huge conference for us. we had 10,000 people in attendance never mind the pandemic, et cetera, and international was not really well represented because they're not traveling yet. we were making announcements and showing things that have been years and years in the making. so it was very significant

now, just for this audience, we're really signaling an evolution, if you will, from doing strict what we call work load modernization, taking stuff from on premise data centers to the cloud and for people to enable all those benefits that you get from that. not that we're going to stop doing that that's certainly part of our bread and butter, but it's evolving what it's evolving to is an industry focused on very specific industry challenges, things that are very what we call mission aligned in other words, things that are important for those industries and those institutions, health care, it's huge, for example because they're aiming for predictive insights. in other words, they don't want to necessarily treat people for symptoms they want to predict when people are going to get ill with what disease at what time with what reliability and not to speak on predictive, but become prescriptive, meaning what are we going to do about that and what is the reliability of the therapies and protocols being

advised. that has the opportunity to completely change not just the economics of the industry but also quality of life, longevity of life. data is becoming so incredibly critical to the mission of institutions out there >> doesn't this put you in tighter competition with the hyperscalers, the cloud platforms themselves because this is a platform move for you. you've got the reputation. you've got the loyalty perhaps to pull it off but it's a new stage in the game, right? >> well, i mean, we're fully partnered with public partners we execute our mission through the public platform, so i would say we're joined at the hip. these are problems at scale, it's hard to put brackets around and even predict because this is the essence of what business is trying to do for their constituencies, so i think everybody needs to invest and figure out how to solve these

challenges because they're enormous i think that's going to play out over a very long period of time. it's not easy. if it was easy it would have already happened >> we talked a few weeks ago about some of the memos coming out of vc firmed to their founders urging extreme caution. you said it was a classic overreaction when the business cycle pivots i wonder since then, has the picture darkened to the point where that kind of caution makes sense? >> actually, i was at an event last week where they polled online a lot of early stage entrepreneurs, and asked them, are you going to cut back on hiring, reduce work force, or are you going to double down two-thirds of the audience said they're going to double down the mood is very much we're going to compete and play the game as opposed to we're going to cower and wait for it to be over >> frank, it's deirdre when it comes to startups, if they are looking at cutting costs, how are they thinking of suites versus best of breed?

microsoft's chief commercial officer was with us a few weeks ago and he said best of breed is a luxury that some customers can no longer afford first, do you consider yourself more specialized, a best of breed company, or do you consider yourself with the announcements you made this week more of a platform and do you agree with that sentiment? >> we're the epitome of best of breed and we compete in the best of breed basis just have a long list of boxes checked. that's not the way we do business i understand why other people engage in that it's been true, by the way, since the beginning of computing, so that has already been there when you solve really hard problems you need to go for best of breed in other words, people want to settle for a suite and surrender themselves to a big relationship with a very large company, there are people who do that they settle for low risk relationship, cost, and so on, but others are solving for business impact. that's what we're focused on >> when it comes to the co

consumption model and some of the new products and services you're announcing, how should investors think about that, particularly heading into the back half of a year where the economy is pretty uncertain and maybe just overall people aren't going to be consuming as much as expected are you making a share of consumption play that even starts to play out in the next couple quarters? >> no, we are really -- i said this last time as well, jon. we're not really picking up signals of distress and duress in our constituents. it doesn't mean other people aren't seeing it, but i can only react to our experience. and the type of things, what we do, are still highly prioritized in large enterprises you're seeing that in surveys that were conducted by jpmorgan and other people that spending intentions are still incredibly high so we're not backing off of anything at this point in time

we see no reason to. >> okay. so talk to me about the partner approach that you're taking right now, particularly in this economy, when others are potentially cutting back perhaps investing less in marketing, less in salesforce, as you're seeing strength leaning in what sort of possibilities does that open up for you in markets that you can enter and companies you can partner with >> yeah, it's a really important question because we from the beginning, we have said our ecosystem of partners and all of the companies from the technology sort of standpoint can really build out the richness of the platform, meaning that customers have choice they have innovation there's new things coming to them this is in contrast to some of the companies that you talked about earlier. they basically have you buy everything from them it's sort of, you know, it's one flavor, one brand. and that's another strategy that's not a point of view

we don't take that point of view that's one of the reasons why we have been very careful not making acquisitions in categories where we crowd out our partners because we have a consumption model, it doesn't really matter to us whether we direct the consumption or a partner does it because economically, it adds up to the same thing. >> okay. now finally on cybersecurity, you're making a bigger push into that there's a lot of conversation about the need for coordination for more effective cybersecurity head nothing to the future so how does that approach not bringing everything internal, perhaps not acquiring your way into the space, affect your pitch on why technologies, software built on top of snowflake is more secure >> well, this is what's interesting, and there's so many examples like this but inthe case of cybersecurity, it's really being defined or redefined, however you want to look at it, as a data problem.

a lot of people in cybersecurity, they're paying i don't know how many data sources and analysts have to figure out how to reconcile that in their own heads. now, through data collaboration and through the data cloud, we have the ability to query across data sources and develop insights and train ml models that become much more accurate, much quicker, much more predictive than they have ever been so there's actually a real opportunity to take steps up in cybersecurity because of the data orientation of the challenge that it has. so we actually saw customers take off with this i wish i had the bright idea, but it was really our customers who saw it and went for it and we were fast followers >> we look forward to continuing to see how your results pan out with that. with that. frank slootman, thank you.t easy to diversify my portfolio!

♪♪ go to investor.gov today to learn about diversification and other valuable investment information. before you invest, investor.gov. this is redefining storytelling, at the speed of now.

this is tracking and publishing your content in real time. this is the system you built, captivating a global audience. this is how. airtable. meet jessica moore. jessica was born to care. she always had your back... like the time she spotted the neighbor kid, an approaching car, a puddle, and knew there was going to be a situation. ♪ ♪

ms. hogan's class? yeah, it's atlantis. nice. i don't think they had camels in atlantis. really? today she's a teammate at truist, the bank that starts with care when you srt with care, you get a different kind of bank.

just this morning, a major crypto focused hedge fund officially defaulting on a local, ftx is defaulting on a ln ftx is in reports to acquire stake in blockify after giving the company a $250 million loan. to clarify, when did the deal close and how much runway did it give you guys? >> good to be back, deirdre. the bank as recently as three weeks so it's a very recent round, and speaking about the runway, we have been profitable in spite market conditions, q1

has been profitable. we're really strong. >> when did that close, just to clarify?

banking, clearing, 24/7. and know no company, no protoco done this before a lot of value is going to be tokenized. we are seeing signs of that already. despite the market conditions. >> you guys also focus on institutional investors. falconx generates revenue by a trading spread you guys are essentially a market maker in crypto can you explain how that works and how your institutional customers can be confident that they are getting the best price when you guys are doing that >> absolutely, so falconx more broadly is a brokerage you're absolutely right. we focus completely on institutions we also offer credit and clearing so on the creating side, the spread is effectively our revenue, and the way we ag aggregate pricing, retail

evenings changes, market makers, and in some cases minors, so we aggregate pricing from all these different venn uses, clean up with a layer of machine learning and give a very strong reliable price on top as a result, reliable -- full liquidity is much, much greater than other places, and that's how we aggregate pricing on top. >> your point about financial clearing is a good one, and i've always wondered why the industry doesn't use that more as the tip of the spear, at least for the underlying technology, and i wonder if you think little bits of information we've gotten lately, reports of say goldman, for example, are wanting to acquire some celsius assets is a sign that fintech and legacy financials are trying to brace themselves or prepare for that moment when it does become closer to reality. >> i definitely think so, right? i mean, if you look at some of the recent -- in the market, over the last two months, there have been some systematic failures in crypto and what we learn through the processes,

aspects of crypto are becoming very strong. for example, when entire -- is panning out, what we learned from it through on chain analytics is incredible. for example, if you were sitting in 2008 recession and to understand truly what happened during that recession, it took three to five years to piece all of those flows and piece all of that information together, but using a combination of on chain analytics and also like in a crowd sourcing on twitter, the world actually learned much faster about how some of these are happening. now, this is what the traditional finance is also interested to your point i think some of the innovation that's coming in crypto is not just going to be limited to crypto it's going to be transcend beyond crypto all the way to tokenized equities in the future that is why a willot of legacy players are interested. >> how are you looking at the space at large you guys do your own clearing in house. how much cash do you need on hand for that? how much are you investing in

crypto yourselves? we had gary gensler saying there are are so many tokens out there but many are going to fail how are you looking at the space, and how are you running your balance sheet? >> one of the most important principles for falconx is we have market risk neutral our ethos is not to trade gu against the customer we are a clear point that is extremely important in these market conditions. over the last one and a half, two months, market players, market infrastructure providers that took directional risk are -- very, very badly. it is important, especially if you're a customer looking at a counter party that's not taking market risk neutral, that approach is very important as a result we are in a very strong place in fact, our balance sheet has been the largest it has ever been with regard to the tokens, we are very careful in terms of w which tokens we touch.

we serve all institutions. we have -- we only serve tokens that are very interesting to the institution. that footprint is much -- than the retail footprint. >> we're running out of time, but that is such an important distinction. i'm glad you made it before we went we'll talk to you again soonr, raghu. >> tech check has a podcast. listen anytime, anywhere wherever youowoa dnld podcasts we'll baa back in a moment cnbc crypto world is sponsored by crypto.com, the world's fastest growing crypto platform.

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

one more thing before we go, amazon shopping holiday may be past its prime "the wall street journal" takes a look at prime day, which takes place on july 11 and 12, finding that the event's growth is well off historic highs according to insider intelligence insiders' numbers show shrinking benefits for competitors like walmart and target which have been holding band wagon events for the past several years prime day might not even be your best shot at a deal these days with some of the biggest promotions being twice as large as prime days according to adobe analytics. that's one reason people think there might be more prime days

in our future than just once a year. >> we already have ha lot of amazon days, there was one for makeup, one for clothing i wonder if they're diluting that prime sort of day benefit for customers. >> i wonder with supply chains tight and inflation high, do you want to try for a big prime day, it might be expensive for you. >> yeah. or clear inventory let's get to frank holland on the half >> thanks a lot, carl, and welcome to the halftime report, i am frank holland in for scott wapner stocks trying to build on last week's big gains the major averages coming off their first positive week in the last four. two questions here, is this just a bear market rally, or could it be the beginning of a bottoming process. we'll debate that and the next move for your money. our investment committee today, joe terranova, steve weiss, coand right here with me on set, jenny harrington first let's get a check on the markets this hour.