>> opened the green. futures were in the red opened in the green, now back in the green. it is just a matter of low liquidity levels. >> it is ism numbers, shortfall and new orders. that is a pretty, you know, widely watched typical indicator of the business cycle. that is giving a new bid into the growth slowdown trades. you can see the 10 year yield down 3.5 a couple weeks ago. that is where we stand right now. that will do it now. fact check starts now. >> good friday morning. welcome to fact check. today, two bellwethers of the tech ecosystem with warnings for what might lie ahead. shares come under pressure. two bellwethers of the ecosystem. mehta and mike shares. those guys are under pressure. i just said thank you for guidance for the chipmaker. the company is still searching for normalcy in demand.

mehta ceo, mark zuckerberg painted a bleak picture. he says this might be one of the worst downturns that we have seen in recent history. but, that is not stopping one firm from naming the stock a pit. this hour, we will break down with the second half will bring for tech. potential buying opportunities as volatility remains top of mind for investors. and carl, it is a new quarter, a new half of the year. the market come under pressure with the nasdaq down about 6/10 of a percent. scott mike is on the call. very important. i think the question is will industry flood? >> certainly, a new topic of debate for the market we will start with matt has warnings to investors in this rare bit of commentary from zuckerberg. hello, julia. that's right. zuckerberg, giving that dramatic warning, saying this might be one of the worst downturns that we have seen in recent history. that, according to a report.

this happened in a weekly q and a where he told employees that the company has to cut its engineer hiring target for the year to about 6-7000 down from 10,000. he also is reportedly saying they are turning up the heat to weed out employees who don't need aggressive goals. he says realistically, there are probably a bunch of people at the company who shouldn't be here. also, yesterday, the team product officer telling workers in a memo that mehta must prioritize more ruthlessly and operate leaner, meaner, better, executive teams. the company is telling us this was an internal strategy memo attempting to build and what we have already said publicly in earnings about the challenges we face in the opportunities we have. zuckerberg and cox reveal a company rushing to cut costs in a challenging environment. two amethysts released notes today. big america listing mehta as one of the top 10 u.s. ids with a buy rating into hundred $33

price target. citing near-term potential for accelerating growth on the opportunities to make money from reels and e-commerce. and to make progress on and targeting challenges. mehta likely will see through and tick-tock is king of short form video within 18 months. forecasting $8 billion in global revenue for reels this year. up from $1.2 billion from reels last year. the question is how much matt has roughly 10 million advertisers, many with their small businesses, will pull back on spending in this new economic environment. guys? >> julia, two questions. one is that this was an employee q and a that borders got a listen to. and i wonder if you think it sets the table for some kind of preannouncement before earnings. the second is other anecdotal episodes about advertising for example, in the television upfront. they appear pretty strong. with that build more of a bull case behind facebook's stock

half of the year? >> a lot of questions in there, carl. just to back up, i would say i don't think this necessarily means we will get an announcement for earnings. earnings are coming up pretty soon within the next month. and all of these comments that zuckerberg has made are basically more granular versions of what they warned about in their last earnings. they warned that they would be putting up calls on hiring. there be much more cautious. now, they seem a little more aggressive in how they are communicating that to employees. i think it is just more detail. we will certainly get more on earnings and i don't think that necessarily means we will get anything before then. in terms of advertising, the tv advertisers have a very different scenario right now. then mehta and it's similar, knees. what is interesting is we heard nbc news parent company pose upfront a record amount of money brought in in the upfront over the $7 billion brought in last year. pricing increases.

i think what that indicates is the tv industry and nbc news have made a lot of progress toward better targeting, better measurement of the impact of their ads. and in fact, we are seeing the media companies become more like pet companies and the ability to give data to brands but on the other hand, you have companies that suck, such as mexico that are struggling with targeting in a way that they didn't four or five years ago. that is because of the changes that apple has made with its operating system. so, mehta is making progress. in targeting. they have talked about how they are making incremental progress. but, they basically had to change the way they target ads and measure their impact because of the changes that apple has made. so, they are in a very different situation right now. of course, the back side of all this is all the economic questions.? they sure are. thank you very much. we will bring in software investor and venture partner, and mail robinson. what is your take on the commentary? two major tech companies over the last 24 hours from express and quite a bit of caution.

>> yes. you guys talked about volatility and the second half of the year potential blowback. that is the name of the game. it is different from business models like mehta. they have a track in the index. these are companies not relying on, you know, advertising. really recurring revenues. imperative nasdaq, found that 30% near today for snp, down about 20% here today. the earnings are down about 43% near the date. so, with that said, we did have some breaks in the clouds last week. we bounced back during companies like consular. they all saw their stuff move smooth in a positive direction. they went between 20 and 30% in the last seven trading days. taking a closer look at the evaluation, the top 10 performing class companies regarding a 16 x evaluation. the average rating cloud index is somewhere around 7.5 ton. the most important insight during the conversation said the markets continue by vocation

for cloud performance. today, they're coming from the last few years. they have a clear pathway to profitability. ultimately, how they have tax lead generation is eight market and investors. >> you are the perfect person to weigh in on a discussion that we have been having this week. that is the role of data center reach, which is the latest short. the cloud index, as you have been talking about, looks at all of these cloud and software companies outside of the big three hyperscalers. what do you think? do you think that the future value is going to recruit to the big guys? the hyperscalers? and not necessarily the brick and mortar legacy centers that serve? they all kind of serve the smaller guys. but, what you think is the outcome for this industry? >> i have been following that back and forth that you guys have been having for the last couple of days. i think, in my opinion, i would say, in my own opinion, it is literally going to accrue to the cloud providers that have

the best technology. in the best services. if you look at ad revenue, for example, you know, that is an advantage that amazon has. it is all but gone. the ads are in supporting services. they have gone from 33% year over-year in the class earnings report. and if marketshare has shifted down from 15% about two years ago all the way up to 23%, it is only a couple of years before they take aws. if you look at that more legacy cloud providers, that value is going to accrue over to aws. google. it is just a natural maturation for the biggest, most important tech players. dr. elliott, you kept talking about mehta this morning to they say that a cap x cut at mehta would easily be the most negative single data point for networking data centers, far worse than mike runs inventory comment. although they point out that their guidance on the spending,

as they work their way toward a new era in the meta-verse, wouldn't employed imply that. how much risk dc embedded in that? >>? i mean, for us, we really try to think a little bit higher. and what are the bellwether companies in the cloud market? and what are they doing today? something like salesforce, service now, we talked about aws. to me, all of these companies can perform. you know, microsoft, he has recently talked about, you know, everything from inflationary pressure, foreign exchange rate pressure, but what he didn't talk about was that the underpinnings of the cloud market and the customization, those haven't pulled back yet. so, again, the bellwether is the underpinnings of the cloud market. those are still holding strong. for us, we have two floors overhead in the second half of the year. you still think there is a lot of room in this market sectors. >> so, elliott, i wonder, where does that leave off alphabet? honestly, business is still largely reliant on advertising

sales. but, it has put a lot of money into the cloud. not yet, across the ball. to think that it will face the same kind of pressure as some of the other add players? >>? i mean, totally different business models, that we have talked about. you seek he is now preventing itself as another free player in a public platform market. generally, with the bellwether will sully yesterday for the half of the year is pretty solid. under three and that market is not necessarily the position i would want to be in. your advertising business is already under pressure or moving into more pressure building economy. and your cloud differences and another three player market today, i would probably be a little concerned about what the second half of the year looks like going into 23.? that is interesting. a lot of very positive on alphabet. we should know, as well, a distant number three in cloud market share. elliott, thank you very much for being with us today. elliott robinson. >> thank you.

>> turning this morning. stocks under more pressure today thanks to that weak outlook. slowing consumer demand for pcs. slower demand for smart phones. obviously, the main concern today. joining us this morning, nate, who cut his target, estimates across mobile ntc suppliers, great to have you. 52, closer to 51 this morning. and $.40. nearly cut in half since january. was there, i mean, they, they telegraph that this thing directly was weakening. were there real surprises today? i think the magnitude of the down was pretty extreme. they missed the top line by 20% for the august guide. that is really into about 35% throughout the earnings. so, the magnitude was a little bit more extreme than we thought. we had cut estimates for a lot of our mobile suppliers the prior week. we were expecting a 10% cut. so they came in about 20% or more. i think the second thing that was surprising was, again, the abrupt nature of, of, of the

order cuts from a lot of the smart phone and pc customers. it was fairly abrupt. the industry has seen these abrupt cuts before. we saw this during the trade war with china. which started in late 2018. and carried into 2019. that impacted the semiconductor industry pretty significantly. so, we saw pretty good and inventory cut at that point. we saw it during covid. the industry ultimately rebounded and was resilient. but, i would say that the, you know, the main issue, really, for my corona, we have to make a distinction here, is that the china business, which is about a third of the revenue declined 30% year-over-year. so, that had a major impact on overall demand. this was very much a china issue. in the economy of china is still pretty weak. we didn't get a sense from talking to management that

china's economy is going to improve anytime soon. that is kind of spreading beyond pc into many cloud spending in china. on the positive side, data center business for them moved 50% year-over-year. auto group, industrial group, networking group. they are fairly positive about, you know, those trends going forward. so, with the stock trading at roughly 1.2, 1.3 value, we feel, you know, some of the down side to the starting to get prices in shares. >> right, i'm glad you brought up data centers. we are seeing some and price that we are wanting to pair brack the storage. compared to the comments on pc at the phones, it is much more bright. but, do you worry about the tone of their commentary on data centers? >> they may make the distinction of what was happening within data centers.

so, cloud hyperscaler spending, so, hyperscaler spending, cap x spending grew. through folks like mehta, google, amazon, microsoft, those trends are still robust. the and markets are robust. they are deploying artificial intelligence systems to compete with companies like tick-tock. so, there is a lot of advanced artificial intelligence put into these systems. that requires a lot of memory. that is a secular kind of technological trend that is not really going to slow down. where we saw some softness on the data center was small, medium size businesses. who could, who didn't have access to supply. they were having trouble getting specific components like net cards. and so the small site business, because of the scale, couldn't deploy some of those servers. there was some softness there. but, the trend is still very strong in data center as well as in auto and industrial. these are still pretty strong technology trends.?

but, still, much of the business comes from pcs and smart phones. and sydney was quite pessimistic on the outlook for those sectors. i guess the key question is that will this demand fuel and industrywide got with being a big player. how much are you looking to samsung and that possibility of a glut? >> definitely, you know, raises questions of a potential glut. again, i think where we are seeing the glut is primarily pcs, smartphones, and consumer electronics. in the smart phone market, they are expecting the market to be down in single digits. they are expecting it before the start of the year to be up. that translates to 130 million unit reduction in smartphones. there is about 30 million unit reductions in pcs. smart phone and pcs are still,

you know, 50% of memory. so, memory history is may be more disproportionately affected than the other semi conductor companies that are exposed to data centers and high-frequency computers or networking bravado. so, i think you have to make the distinction. as we look at omicron specifically, i think that they are going to be very disciplined in terms of their cap x spending . and optics controls. they indicated they can cut cap x next year. they will continue to op ex. so, the chances of them burning through cash from negative free cash is very low. so, the core value for shares is about 45, $46 per share. so, as long as the value per share stays in that range the downside is limited to about $45. if they can navigate through this and we can see more upsides. that is keeping us on the bright side of the equation as it relates to mycroft.

>> we have been talking about companies that have been and through and seen cycles. they are certainly one of those. i appreciate it very much. have a good weekend, thanks. >> you also. thank you. >> we will shifted to intel. the company is making plans for a $20 billion plant in ohio over the failure and congress to pass the tip act. we are in ohio as they get ready for the revealed of the annual top state study. but, -- >> yeah, that's right, the study, about a week and a half away. this was going to be the big story. it still is the big story of top states this year. effort to rebuild the american supply chain, particularly in semi conductors. and imagine, this was going to be a big part of that. a huge plant. the biggest in the world. east of columbus. it looks like we will have to keep imagining that for a little and maybe a lot longer.

>> the ohio governor, speaking with us exclusively, has big plans for intel. >> i truly believe that this is the midwest time. i believe it is ohio's time.? so does the premise resident of the ohio state university, just 20 miles from intel's site. >> it is something that we recognize we are creating a network in the midwest. research semi conductor network. >> intel calls it cinnamon. park plant, transforming what used to be rust belt. now, it is all on hold. the groundbreaking schedule for next month, delayed indefinitely. intel's ceo on cnbc this week. >> the idea of delaying a ceremonial announcement. this sucks. >> at issue, the delay in congress passing the chips act, including $52 billion in aid to the u.s. semi conductor industry. intel also stands to pick up $2 billion in incentives from ohio. >> is it right for a company that made $20 billion in profits to be holding everyone hostage over incentives? >> i don't think they're

holding anybody hostage. when we won, they told us we are coming. all the way through, they told us if the chip ask passes, we will accelerate extremely fast.? indeed, intel says it is still committed to this side of ohio. but the chips act is the difference between a $20 billion investment over several years and a 100 billion dollars much faster. >> i don't think we are in a position where the state of congress with breaking ground and economists still hadn't passed the chips act. >> indeed, he told us that intel is still conducting job fairs here. they are still meeting with homeowners. but, intel does not want to make it look like anything is going on here. have actually kept us away from their construct site as they try to pressure congress to pass what pat, the ceo, calls a perfect piece of legislation. >> scott, thank you very much.

after the break, the so- called jpmorgan of crypto looks akanother acquisition. the details are up next. fact check is just getting started. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without

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let's get a gut check on some of the biggest nasdaq losers. the netflix leads the pack down 70% year-to-date.

seeing no relief as the post pandemic headwinds and more competition in the streaming space dragon the stock lower. a couple of other familiar faces making the list six months into the year, paypal plunging amid the broader decline that has had intact. dr. sun, more than 60% on the year. down even further on the hills of that brutal q1 earnings for the former ceo, dan springer, stepping down. it has been one hit after another when it comes to the nasdaq. >> actually has. yesterday, reporting that the afghan beckman radar, dlc by crypto lender, with blurred great scoop. tell us more about it.?? so, really interesting. this is according to the resources familiar with the ftx lunch. i was told by one source of knowledge of the deal that the price can be as low as $25 million. they told me last night it could be closer to $50 million at the end of the day. another castaway ftx might consider applying options to exercise at a later date.

either way, it would be a fraction of the private valuation of $4.8 billion, remember sam beckman's creed. and companies also extending a $250 million line of credit. so, unclear how that would be accounted for in a deal. sources expect it to be signed before the holiday weekend. the ceo, pushing back on the $25 million number in a tweet. we have got no official comments from block phi or ftx. also, i am told offers were on the table. the company has raised almost $1 billion in dc funding to that equity, i'm told, by one investor, is now essentially wiped out. the writing off the value as an investment as a lost right now. the ftx ceo has really been seen as the backstop in the crypto space. he provided a $500 million loan to another lender, voyager, through his company alameda research. a fire sale here, the latest thing was a fallout from all

these situations in crypto.? he has been making a lot of moves with a lot of capitol. thank you very much. like i said, really great. let's turn to sam beckman. efforts to help the crypto industry, joining us now, patel, an investor in ftx. to have you on the program. what do you make of fts in all of this? does he have to do this to stem contagion? is this what you expect in your investment? >> it is a great question. thanks for having me on again. i think it is important to step back and look at the types of investments he is making, right? so, some of these best deals are very different from equity investment versus m&a deals. there are different reasons for each one of those deals, right? so, you know, as an example of the line of credit, in many cases, it is more of a defensive move. you know, in many ways, it inject confidence into the ecosystem. not only in terms of ejecting liquidity, but fps is seen as a

big figure in this space. so, injecting confidence with humors, ensuring that, you know, they have their wallet, you know, our, you know, still able to be withdrawn from you know, the crypto assets. that is important. on the equity side, you know, fps has a $2 million venture fund, right? on that side, they seem more offense of in terms of investing in areas that are in the purpose space or crypto space. on the m and a side, right now, you know, in general, not just for fps, but the whole industry seems very depressed valuation. you can kind of pick up some interesting assets that can really grow your business, whether it is used customer accounts, new monthly s access to wallets, that can help you kind of upsell your existing products, or even, you know, new geographic areas. >> you are saying that you can even be more offense. but, you i was going to ask

you, how is the ftx in the first place in a position to make all of these investments if it raised $2 billion to date. that is a lot. but, considering how much cash i would imagine you need on hand when you are a market maker in the crypto space, in the case of the investments, where is all this money coming from? >> look. i distinguish between two. basically a firm that sam runs and controls. the other is, you know, many of these exchanges are highly profitable. and it has been growing very fast over the past couple of years. they have got their own strong balance sheet and are able to get more offense. whether some of these guys decide to maybe delude themselves and raise future rounds of capitol, you know, that is still to be decided. i think it will be a combination of balance sheet capitol as well as, you know, other entities that are affiliated and others in the

ecosystem. and others encouraging crypto players to invest in support of some of the struggling players. i don't think there is one man or one company that will save the ecosystem for many systemic issues. i think is about extending confidence and getting everyone on board. the crypto space has always been very collaborative, unlike the tech and ecosystem where people have been competitive. people invest in competitors all the time. i fully expect others to get on board. and really pop up any potential instability that may, you know, still feel calm. there is still a lot of tier 2 or tier 3 exchanges. >> always friendly and competitive. is that what you said? >> in the crypto space, relative to the silken valley technique ecosystem, where competitors would never come invest in each other.

they have all got their own corporate banks. that is very different. the traditional tech ecosystem, you know, you would have a lot of issues, a lot of conflicts of interest with multiple clients and things in multiple type competitors in the space. we are in the early days. you have to remember this reminds me of.com early internet late 90s. you do need to kind of expect volatility. i think people in the crypto space, a lot of these funds, how have that more collaborative outlook rather than a sharp elbow. there is not a winner take all. lamech >> especially as we undergo this crypto winters. i don't know how long that will

last. but point taken. stomach let's get a new update. >> good morning, the u.s. economy may already be in a recession. the atlanta offense gdp now gauge designed to give a realtime reading on the econom . it recently turned negative. now, show's second quarter output shrinking by 1%. gdp fell by 1.6% in the first quarter. so, the atlanta offense numbers accurately reflect what the government officially reports later this month. well, then we have two consecutive quarterly contractions. that is the generally expected in formal definition of a recession. shares of kohl's are plunging 21%. the company says the economy and the retail environment have gotten even worse since it began seeking bids, making it impossible to do a deal. general motors says it is having so much trouble getting

semi conductors and other parts. it has 95,000 vehicles partially built and waiting to be finished. that is contributing to a 16% drop in the second quarter. but, that wasn't as bad as wall street having infected the stocks now of less than 1%. carl, 95,000 unfinished vehicles. >> we see where that shortage is biting. this drop in consumer confidence and the slowdown in ad spend is a big theme of the week. coming up, we will talk to a former google executive on what it might mean for names like alphabet, meta-, snap, and twitter. when tech check returns.

stomach turning back to meta-. taking a closer look at its

main revenue source. digital ad spend. it has been shrinking. everyone is taking notice. jmp securities cut their target for the fateful errand as well as the alphabet. insider intelligence notes the companies combined share of digital ad dollars is expected to fall below 50% by next year. google's former svp badge in commerce joins us this morning. he currently serves as a veteran partner and cofounder and ceo. in ad free search engine. it is great to have you. appreciate your guidance on a tough question right now for the market. because there are differences across the ad space given different ecosystems. there is the targeting issue. the difference between digital and television peer but, your main point appears to be that the macro is unequivocal right now. >> the macro is pretty hard. i think it is an unfortunate kind of double envelopment. obesity, they have got the total camelot. last year was a bone per year. now, with recession looming, i

spend is going to be down again. and they are struggling to be down. digital numbers are still very healthy. but, they will come down somewhat. >> and your broader point is that it is not going to be limited to say individual categories. it is not a travel and leisure dynamic for example. >> unlike in 2020, this is going to be across the board. but, there will be differences. you know, different advertisers, depending on their education are going to take a hard look at what is working. i expect that the smaller ad platforms, you know, the twitters, the centrists, they get affected a little bit more because their volumes are not as high peer proof is not quite as unequivocal that they're going to be affected. so, advertisers often look there. the smarter ones are not going to try to turn things off. they will look and go. i can get 60-70% of the volume that i'm getting for 50% reduction in accounting. so, different people are going to the access point.

i think smaller players will be affected most. all of them are going to be affected in a pretty big way. >> so, the smaller players are going to be affected. google is seen by many as a sort of the insulate or less vulnerable to these macro factors. certainly, we haven't heard any commentary from the company about pulling back in terms of spending or hiring. you think that that is in the cards in the second half of this year? >> i mean, they are not as aggressive in hiring. they're not as aggressive in the kind of offers they make. they will adjust. i think that is true for everyone. so, definitely, there will be drops in spending. there will be folks with no advertising. it is the biggest cash call that we will have. it will affect them. absolutely. >> it is fascinating that you were the former fc-tf ads in commerce at google. now, you are ceo of an ad free

search engine. explain that a little bit. why you think there is space for that kind of competition. >> i mean, first of all, competition is a good thing. it forces everybody to step up and do better. and from that perspective, i think of us as a national complement. i started it because i thought it was really important to go back to the basics of how the internet should work for all of us. i think all of us are sort of like a little bit numb to how much of our data is getting exploited. we want to go about creating a very simple service. we are paid by customers and customers only. we also have a premium product. it is noticed for folks. our bet is genuinely that we can create a better product over the long-term. tech scale is actually going to help you the more people we get, the more we are able to stay invested into the business. so, i think a product like ours has interesting counterpoints to the ad dominated ethos of

the internet. >> i wonder whether finally, whether or not some of these players who have the ability to offset this weakness with some subscriptions. how powerful of a lever is that right now? >> it is a slow burn. for people like google, you know, a company with 100 million ad revenue really doesn't call for very much. i don't think a subscription for these folks has any kind of immediate sign. but, there are long-term bets that they can choose to make. i don't think it is anything that is going to have a meaningful effect in the long- term. >> we have certainly already been through a wave of subscription fatigue. we will see how much they can stand. a lot of interesting macro factors heading our way. we hope you will come back. thank you. >> thank you so much. thank you. as we had to break, we will get a quick check on the internet action. nasdaq, down about 1/10 of a perct ahd eneaof the holiday weekend. more tech check on the other side of this break.

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stomach despite valuations falling, deals have fallen off a cliff with interest rates and the cost of debt going up. picker is with us and has look at the impact of some of these publicly traded private equity firms. >> you think it would be a really good environment for dealmaking. but, we have actually seen

buyouts. volume, cut in half this year thanks to an onslaught of macro factors. during the first half of the year, little more than 2000 deals signed according to frequent. that is less than half the 4700 from he same period in 2021. aggregate value is showing a similar picture with $208 billion worth of deals in 2022. so far, compared with $471 billion worth last year. volume held relatively steady during the first quarter. it was the second quarter that saw the big drop off. thanks to concerns surrounding geopolitics, volatility, higher inflation, costly debt. this is part of the reason why we have seen sizable declines in publicly traded private equity firms, especially those with more traditional via exposure as opposed to other alternate classes like credit and real estate. overall bidders surrounding less activity will likely play a role in bank earnings for a few weeks. the ce has become an increasingly large part of the overall mna environment. several banks have shared guidance that they expect the largest drop off in investment

banking revenue for q2. although last year concert was a pretty difficult in such a new year. becoming more challenging with the audio market effectively shut in addition to a relatively chilled market and outright sales of assets. here is the bright spot. they eventually valuations will stabilize per the value oriented buyout shop are hoping they do with these lower levels. have plenty of capitol to deploy with $975 billion worth of powder in the u.s. alone. according to cwc. additionally, with a back market, they have evaporated some competition for the buyout community, which has been a bit challenging in the recent years with some of the private equity firms seeing that back. it is just an all-around competitive. so, hopefully, they will get a little reprieve.? we have seen some more static activity on the downside today. i wonder, one thing i have heard is that although everything you are describing sounds like a classic cycle, we

have heard all this before. the one thing that is different is the nature of remote work. the ways in which startups, companies house their labor. maybe save a bundle on real estate. would that be a big difference? >> it would be in the sense that the real estate you mentioned is one less cost to have to consider. however, people are often involved traditionally in a lot of the industrial type assets. that has become an increasingly smaller part of the pie as they get more and more involved in kind of tech buyouts. so, that in and of itself could make it potentially more monetize about as they look for different ways to cut costs and consolidate it. absolutely. >> perhaps, i don't know, tell me if something different and this time around than regulatory landscape as well. we have got lida connell and kantor at the doj. could that potentially scare off some of the activities? >> it could potentially scare off some competition. because if you look at the sales, that could be more competition from the fcc. whereas private equity has

historically not faced that same kind of regulatory scrutiny. and for competitive measures, they are sponsored as opposed to strategic. so, unless they have a really, really big assets that they plan to merge and extract synergy, they don't get as much attention from the fcc or from regulators as they strategically went. >> it all makes sense. although we know there are survivors headed our way. we just don't know what they are. great set of peered as we had to break, a check on apple. gpm, reiterating its overweight rating saying they are not as worried about apples prospects. although those are price surrogate $200. shares, flat this morning. stay with us.

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stomach we have been watching closely this week. that is data centers wells fargo pulling no punches. the newest short, misguided. this morning, writing, they don't think he understands the market well enough. wells, arguing that his short call is nothing more than a temporary distraction. hyperscalers are outsourcing more, not less. the customer base is broader than they realize. the companies like digital realty, one thing to note, the information reported just about an hour ago that microsoft is

struggling to make enough cloud servers available. they have not publicly acknowledge the extent of the problems adjusting the demand for third-party data centers will remain strong. i asked channing for comment. he responded with the hyperscalers capacity constraints for current capacity needs, the data centers are showing declining rents and occupancy. what do you think happens, con. he doesn't perhaps have the same relevance as he used to have he struggled to raise money in this environment manages 500 million, down from billions before. then again, we are heading into more short seller's market, one we haven't been on in a while. >> jim has seen his share of cycles no doubt about it. after the break, elon musk and tesla hit with yet another lawsuit. some details when te ccks ckn montchhe i

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tesla hit by a new lawsuit alleging racial abuse against black workers. phil lebeau has more on this story. >> deirdre, waiting to see if they have a comment regarding the lawsuit. reached out to the company, haven't heard anything let me bring you up to speed with what we know. it was filed in california state court by 15 former and current employees. the complaint, racial abuse and harassment this is not the first time we have seen a lawsuit filed against tesla accusing the company of having an environment

where racism or discrimination is allowed earlier this week a federal judge ordered a new trial regarding a discrimination suit. we're not getting into all of the details there, but this is something that has been happening here now for more than a year that tesla has been dealing with these complaints. this suit comes a day before tesla finished the quarter, and they finished the quarter which means do we get q2 deliveries. when will we get them. unlikely today more likely we see them tomorrow most analysts drew down expectations for second quarter. not hitting the 310,000 delivered first quarter because of the lockdown and covid restrictions in china. that severely crimped production in that country. more likely we see something in the range of 250,000 vehicles. the other thing that will be interesting, what we might learn about production in austin and in germany how much do they go into detail

about that or do they save that for the q2 earnings report. >> we know you'll be watching and bringing it to us. thank you, phil lebeau if you missed part of the show, have a long weekend coming, chhe iba ito our podcast te ccks ckn a moment

in the latest episode of our digital series binge, i sat down with the show runner and executive producer of "the offer" on parliament plus. based on behind the scenes drama that went into making "the godfather. we talked about streaming wars and how they rely on algos for streaming decisions. the question about algorithms, a plat where one of the actress, thinks she has green light at studio or streamer and the algorithm didn't like it, her she is cancelled >> right. >> to what degree do studio chiefs rely on the machine and is it ever a deal breaker?

>> it is one more component that goes into decision making. i think some of the streamers are focused on that more than others there are some that are largely motivated by creative content they think people will watch superhero [bleep], sorry, anybody in tights, i think it is harder and harder unless you're on a platform like fx to do a small intimate character drama which they do very well. >> dee, we had a blast talking the interview is up at cnbc.com/binge and live stream of the uncut conversation will air at 12:45 p.m. eastern on tech check's twitter account. it is kind of a relief sometimes to talk about issues that aren't completely important to the global macro picture things we used to talk about before covid still important to companies that rely on sub growth for their financial future. >> absolutely. that conversation that you had

about the algorithm and how much it drives content is so important. you look at netflix, folks are saying their content maybe isn't as good as hbo max, don't have as many hits is that because it relies the algo. >> we get jobs next week enjoy the long weekend let's get to sully and the half. carl, dee, always a hit. welcome to the halftime report happy friday, i am brian in for scott. worst first half in more than 50 years. but that's behind us now the question is should you stick with stocks the second half, maybe go to cash just where is the best place for your money right now we discuss and debate with your investment committee today that is jenny harrington, rob see chan, jim lebenthal, pete najarian, co-founder of market