shorts on a percentage basis in june, we're largely related to crypto, digital payments and clean energy not too surprising, you can see those names there on an absolute dollar basis short sellers in tesla raked out the most profitable in june followed by apple and nvidia. that's going to do it for us on "squawk on the street." "techcheck" starts now good wednesday morning i'm carl quintanilla with jon fortt and deirdre bosa today the great rebundling continues. what it means for the subscription ecosystem as businesses try to capture consumer demand and rising rates from apple to disney, we'll talk about it finally we'll check in with the ceo of arm on what might be one of the year's biggest ipos. we'll kick off with am

soft's shift into food delivery or maybe back into food delivery it was here once before. just eat, the parent company behind grub hub announced amazon is taking a 2% stake in grub hub which could eventually grow to as much as 15% if certain metrics are met. in return, amazon prime subscribers in the u.s. will get one year of grub hub plus added to the list of benefits. take a look at the shares of grub hub competitors, uber and doordash dash down about 8% these companies have been moving into things like beauty, electronics, convenience that's amazon territory right there. so this perhaps is amazon saying i see you guys, i'm going to keep tabs on you and i'm going to help the number three player. >> indeed. it's somewhat of a tricky game though, i think. here is a service that amazon is adding to prime that they don't control, and grub hub hasn't done that great in this space,

so the risk to amazon is they add a number three and to consumers it feels like they're adding a number three, and the value of prime perhaps gets diluted there. it also highlights the strategic importance of consumer subscription services, carl, and inflation market eventually, perhaps even as we speak, there's going to be pressure on all these services to show value either by adding more things to what they're already charging they want to be able to raise prices if possible how much do they team up with wireless carriers, with apple and amazon, with the other players out there in the market, peloton, whomever, that has a loyal base, that's able to charge a subscription fee. >> it's interesting. i wonder to what degree we go back to some of amazon's earliest days where it really was about price over convenience and whether -- we were just talking about inflation and increased costs for companies

and consumers. but what if you wound up with a price war in this area, we'd be talking about margins in no time. >> we would. once you get to a certain size, churn itself being able to reduce it by a fraction of a percentage point has its own value, dee if you can add the right thing that satisfies your user base, that can be pretty valuable. it's got to be the right thing and your partner has got to perform. >> carl things up the idea of price wars that is already going on in food delivery remember that this business is not exactly profitable yes, we're seeing some free cash flow doordash is adjusted ebitda. now you have a player like amazon helping out a player like grub hub, but for doordash and uber that's going to up the ante

on competition, right, john? >> i don't think it will. >> you don't think so? >> i don't think so. even though we're looking at overall profitability and all that, it's a market-by-market game the fact that amazon is partnering up with grub hub doesn't change their economics grub hub has to get the right kind of scale, have workers willing to deal with them. they've got to deal with that labor game on the right level. it doesn't really change the operational landscape so much as it changes the overall subscription competition amazon could play with grub hub an unprofitable game, but the operations have to work the right way. i don't think there's anything that amazon is doing in this deal yet that helps grub hub get better at operating. >> it's a good point, john my point is that these other companies, uber and dash, the competitors, are moving more into logistics you have doordash with the dash mart trying to do convenience by itself that's capital intensive they are going up against amazon we don't know what this

partnership is going to look like in the future, if amazon is going to use grub hub to bring more users into the prime fly wheel and say you can already get your beauty or convenience with us, you don't need to go to doordash or uber. >> speaking of beauty and conveniences, the blowouts they're givings in london, maybe they can use that. for more let's bring in needham's bernie mcattorney anyone i wonder what you think of this and in this economy particularly, what sort of value subscription players have to be prepared to deliver that perhaps they didn't a couple years ago >> thanks for having me. i would say the one thing i would add to the conversation is the fact that grub hub, it's a variable cost model. so it's not fixed costs where verizon adding disney plus, it

doesn't matter if another person is watching another episode of obi-wan kin nobody by. we're wondering how aggressive amazon and grub hub will be with this deal. certainly headline negative for uber and doordash. the actual results really depend on how aggressively that amazon pushes this. really the devil will be in the details in terms of what's the split, how much is amazon actually subsidizing we think grub hub is coming to amazon from a position of weakness grub hub got marked down from $7 billion when they purchase id two years ago, now the asking price closer to $1 billion remember that grub hub did a big $15 free lunch not too long ago, too. they're being incrementally aggressive we're wondering what that split is and that will in turn inform how aggressive amazon will be. granted they've got the 2% equity stake in the company.

2% on a billion dollars isn't moving the needle for amazon there has to be a larger play here. >> bernie, you're touching on something we did mention which is this doesn't necessarily help grub hub operationally they still have to make money eventually, keep drivers happy as well as keep costs for the end user low enough to drive volume there's only so many free lunches you can give away. what are the metrics you'd watch to see if this is working. >> the way they'd help them operationally is if subscribers go higher. so the more subscribers you have on the platform, i would think the stickier those are there's a reason why uber is pushing uber one, dash is pushing dash pass. that benefit of having a more sticky customer relationship where you're not having to go out and reacquire those customers constantly that's one of the reasons we're

bullish on uber. doordash, we think they have close to $12 million dash pass subscribers right now. for grub hub -- for this partnership to really move the needle for grub hub, we think you're talking about it needs to be in the millions of subscribers, not just a couple hundred thousand to make a dent in the industry. >> amazon has 100 million-plus prime households, even if they convert a small percentage of that, that's a win for grub hub. why would you think amazon needs to subsidize this? could this just be a way for them to keep track of uber and doordash as they move beyond their core competency and into amazon's space >> someone has to pick up that check for the $10 a month. so grub hub -- >> that could be amazon. >> at least part of it grub hub could say free

promotion for a year for everyone they don't need to limit themselves to prime membership they already have a partnership with amazon with the college students get i believe a discount or free membership as well, too, so kind of picking back off this relationship somebody has to pick up the $10, if it's just grub hub doing all of it, they could do it themselves. >> they could cut expenses somewhere else like marketing now that they have access to the consumer base. what do you think the long-term gain is for amazon it was in restaurant delivery. closed that a few years ago. why is that getting back in right now? >> that's the million-dollar question we don't cover amazon, thes our colleague laura martin who covers it. from my perspective, what i'm most interested in, if amazon tries to make a home run play here, what's going to incrementbly happen in delivery. again, my starting point is i'm thinking grub hub is approaching them from a position of weakness

if they viewed grub hub as an undervalued asset with couriers, some sort of consumer demand, a relationship with restaurants. all of a sudden could you parlay that into an even bigger thought beyond whole foods, but having other ways of advancing your gresry strategy. if this is a piece of it and they just got a sweetheart deal because of the position that grub hub is in, so it's maybe not the order of operations they would have liked it to happen in, but nevertheless, it's an undervalued as set or underutilized asset to have a relationship with. >> bernie, a couple questions about the future of online grocery in a recessionary scenario, you've done some poll work that asks why would you stop ordering online grocery a quarter say too expensive. 46% say actually it's quality control. what does price elasticity look like if things do get tough for the consumer >> carl, thanks for the question two pieces here. one we picked up on an e marketer survey that asks people

in an inflationary scenario, where are you most like lip to cut. dining is actually the thing people are most likely to cut. groceries towards the bottom in our discussions of doordash and uber, food delivery is closer to grocery than it is to dining out right then we think food delivery is more sticky than we would have originally anticipated. the second piece is that we surveyed -- i believe we spoke to about 37 albertson's stores, both of which have partnerships with uber and doordash, and so over half commented that they're seeing increased order value for delivery what we picked up on really interesting is this albertson's to-go product and that's curbside delivery. what's so significant there is someone else is doing the picking and packing for you. we think that movement from having someone doing the picking and packing to someone doing the delivery for you isn't that big of a leap.

again, we've spoken to experts in the past who say the biggest hang up in this is consumers making sure they get the avocado that's ripe, the steak that doesn't have the gristle on it the pandemic being the accelerant to people saying, hey, i don't want to go to grocery stores anymore, let me try to have someone pick and pack for you the grocers realized that opportunity, make sure the consumers have a great experience and really going at that major pain point, which is that you get the right produce, the right protein that you want. >> yep quality has got to be there or they will churn. bernie, thank you. >> thank you let's turn to hardware this morning. spending and any signs of recession. should we expect more of a demand slowdown and how will that impact stocks yesterday evercore cut hpq let's bring in evercore's isi. great to have you back

thanks for joining us today. >> thanks for having me. talk about generally how you see the environment, if this is an enterprise story at large, a consumer story at large, a big pull forward, or is there something deeper going on? >> i think it's a combination of a really big pull forward, especially on pcs, along with a slowing consumer demand that you see. pcs for an example, a big part of the downgrade on hp, selling about 250 million pc units, that number shot to 350 million units last year at the peak of the pandemic the question is what does normalization look like. i think the reality that a lot of us, especially consumers and maybe enterprises have bought pcs, the desire to refresh them, maybe push targets several years versus not i think that along with higher inflation, spending on pcs seems to be a logical thing given that

the utilization rates haven't altered that much and you have a much better or newer machine than five years ago. i think pcs are more at risk it's a really consumer driven. >> the past couple months we've seen some calls from the street ash guing ibm is the place to hang out in the downturn, similar things about dell, you don't have any problem with that >> ibm has very high-end, very large enterprise exposure. if you need a mainframe and are consulting with ibm, it's a mainframe business i think the high end enterprise will be a lot more stable place to be in through a recession, if you have one, versus not the reality is technology and solutions that are ibm or del will provide you are probably the way you offset inflation and the way you offset labor issues.

i think it will not be a cost center this time around. it might be an enabled observation you have. >> speaking of offsetting inflation and back to the consumer, is now an ideal time to launch a hardware subscription service of a different type or an installment product if you are an apple, for example, with a lot of cash and with a high margin, kind of relatively high expense product? >> oh, boy apple needs to figure a way to drive iphone unit growth if consumers are going to be willing to pay less for it to go forward in theory, there has to be different ways to incentivize anywhere else. i do think having a subscription model or apple's own buy now, pay later for iphone is a way to do it. the other way is carriers and cable companies could start to subsidize iphones more aggressively through the iphone

cycle we have coming up. i think in apple -- inflation -- how much consumers want to spend. can i incentivize them to financial promotions or get carriers and cable companies incentivizing to buy the phone i think that's the map they're going to look at. >> good stuff, quite an environment, we're in transition of we'll see you next time, thanks. coming up, venture capitals shifting into the public markets. what that means and why some are calling it not a great thing we'll discuss next "techcheck" is just getting started.

only at vanguard, you're more than just an investor you're an owner. that means that your goals are ours too. and vanguard retirement tools and advice can help you get there. that's the value of ownership.

wanna help kids get their homework done? can help you get there. well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things we're gonna learn. through projectup, comcast is committing $1 billion so millions more students can continue to get the tools they need to build a future of unlimited possibilities. at xfinity, we're constantly innovating.

and we're working 24/7 to connect you to more of what you love. we're bringing you the nation's largest gig speed network. available to more homes than anyone else. and with xfi complete, get 10x faster upload speeds. tech upgrades for your changing wifi needs. and advanced security at home and on the go to block millions of threats. only from us... xfinity. let's get a gut check on rivian, up 11% after the company said it delivered more than 4,400 vehicles in q2 and saying they're still on track to build 25,000 evs this year, although those projections come after they cut their full-year production totals in half back

in march shares are still down 70% for the year, have fallen 80% from the all-time highs after going public back in november. dee. there's been a sea change in the tech investing world vc firms are reclassifying themselves as registered investment advisers, basically hedge funds which will give them more freedom to hold public equities than other asset classes. at the same times hedge funds like tiger global and may one have poured money into liquid private companies. those firms like tiger are having terrible years. our next guest thinks this is bad for both types of investors. joining us is martin tobias. it's great to have you on "techcheck." lay out the case for us. why should vcs stick to private earlier stage investment why doesn't their experience make them decent public market

investors? >> hi, and thanks for having me. the bottom line is they're two completely different environments the private markets are a low information environment with illiquid securities and basically you're trying to figure out -- find the next big thing from some young founder and you're analyzing the founder's experience and the product market fit public markets have a lot more liquidity, hedging strategies and a lot more information and it requires completely different managers in my experience. i've been doing this for 25 years. finding the next big thing is very different from managing the public portfolio >> martin, i think you bring up areally important point as wel on fees. why should vcs be charging 2 and 20 for public market investments? >> exactly i'm a limited partner in 17 funds and i like being in funds that find the next big thing i'm happy to pay 2 and 20 for

that for public market managers, i pay my public market manager about 50 basis points. i really believe that vcs going forward are going to kind of go back to their traditional thing which is to give the public stocks that they have to their limited partners like myself, and hedge funds are going to do what they do best. i think going forward people will revert to what their superpowers are. i think hedge fund managers and vcs are very different in that way. >> i can see why limited partners wouldn't want vcs doing this but is this for the public market retail investor a sign of the times that these vcs see opportunity in companies that used to be private, perhaps went public and their values have tanked and some public market investors are leaving for dead now? >> i certainly see that's why they're doing it they see opportunity but as a limited partner in a

venture fund, that's not why i joined the venture fund. i joined them to find the next big thing. there's a reason why berkshire hathaway doesn't have a venture fund, for example. >> i get that, but most of the people watching don't have the opportunity to become limited partners so probably the best thing that they can get, that they can take away from this conversation is big picture, what is it that's happening in the economy, in the markets, in business that is causing this to happen in essence, some investors who are used to taking long-term bets expecting an outsized return are now looking to do that in some stuff that, hey, retail investors could buy, too, right? >> well, absolutely. i think there's incredible opportunity today for retail investors in some of these tech stocks that have gone public recently, and i think retail investors should do that on their own dime or find an index fund that's doing it well. for example, in 2000 i bet a

friend of mine that amazon would outperform walmart over the next 20 years i did 100 times better than he did. i think retail investors today, if they look at some of the beaten-down stocks, a lot of retail investors didn't like amazon in 2000, but if you bought it, looking at it through the lens of somebody that likes growth stocks like a venture capitalist, you would have done very well. my pick for going forward is -- in that category would be somebody like shopify. >> interesting martin, i understand what you're saying, there's a lot of opportunity in this market in the case of sequsequoia, the became an ira at what it looks like in the moment to be not a great time if they sold out of big stakes in doordash and unity, their returns would be a lot higher than they are now. how much weight should the average retail investor put into

what vcs are going in public markets? >> i think retail investors should see vcs in the public markets as a negative thing because that's not the vc's primary job. i think they should focus on what the professional retail investors or professional stock investors are doing. >> martin, it's great to have you on, thank you for your insights on this topic we've been talking a lot about. >> thanks for having me. despite consumer slowdown fear, chip design company arm still expanding. ceo rene haas will join us when we come back don't go away. when traders tell us how to make thinkorswim® even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary.

and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim® web. because platforms this innovative aren't just made for traders -they're made by them. thinkorswim® by td ameritrade hybrid work is here. it's there. it's everywhere. but for someone to be able to work from here, there has to be someone here making sure everything is safe. secure. consistent. so log in from here. or here. assured that someone is here ready to fix anything. anytime. anywhere. even here. that's because nobody... and i mean nobody... makes hybrid work, work better.

welcome back to "techcheck." i'm carl quintanilla with jon fortt and deirdre bosa

pretty choppy action within a limited range, 38.18 on the s&p 500, dow down about 95 oil continues to chop well below $100 a barrel. let's get a news update from seema mody >> here's what's happening at this hour. mortgage rates dropping for the second week in a row homeowners and potential buyers remain more reluctant to lock in a rate the average interest rate for a 30-year fixed rate mortgage fell to 5.74% new data shows apartment sales in manhattan fell a whopping 30% in the month of june, driven by recession fears and plunging stock values the fda has put its ban of juul e-cigarettes on hold allowing them to stay on the market while the company appeals the decision juul claims the ban would cause the company irreparable harm u.s. service businesses, restaurants and hotels are growing at a slowing pace according to the ism at the same time the labor

department reports that the total job openings fell in may, but still outnumber the number of people looking for work and remains near record highs. together the two stats could be a sign that the economy is slowing down we'll find out more about the fed's view of the economy at 2:00 p.m. today when it releases the minutes of its last meeting. john, back to you. >> seema, thanks turning now to chips, the semiconductor index down nearly 40% and challenges are not over, especially if the demand environment continues, growth slows. chip designer arm is still bullish announcing new chip designs across mobile and pc joining us to discuss is arm ceo rene haas. arm is an interesting part of the semiconductor ecosystem because you guys are sort of making the blueprints that pipe are going to use to make designs that are eventually going to get manufactured you can't get too caught up in the near term.

what are the fundamental bets that you're making with these new products that you expect are going to drive the computing economy in the next decade >> we just announced a new platform for mobile devices. a couple of things really exciting about that platform, first off, people may not be aware of this, but over half of the $180 billion gaming market is done in mobile devices, so the experience really, really matters. mobile gaming is really important. we announced a new platform called immortalis, and we've upped the forms on the cpu and the cpu will be world class for laptops. in fact that cpu we've just announced is in some cases over 30% faster than conventional laptop designs today it's a great new platform for mobile and for laptops. >> the market kind of stinks for ipos are you still going to do that soon >> i'll go back to what was said

back in february when we announced the transition to the new arm, if you will that was the intent to go public sometimes between then and the end of our physical year which is the end of march of 2023. nothing has changed since that announcement. >> nothing has changed or are you white-knuckling it? >> i can't say much more beyond the plans we talked about back in february. >> rene, i'm wondering, looking at derivative industries, auto is a great example where we still have oems talking about chip shortages lasting into next year i wonder how quickly is that going to melt away is there a point at which we're not going to talk about chip shortages anymore? >> you know, john, i think it's a really hard thing to call. the pandemic really accelerated a lot of demand for all times of digitization in our world. at the same time we saw supply

lines fractured in ways we had never seen before, ports that were closed, ships sitting offshore for a long time, different areas of the ecosystem slowed down. when you think of an automobile and the amount of semiconductors that go into it, an automobile being a just-in-time manufacturing process, it really was almost the perfect storm, if you will, of supply challenges i think it is going to take a while to settle itself down. the world was much flatter years ago before all the things that have hit us in the last couple years. i think until we get adjusted until what that normal looks like, i still think we're going to see shortages >> do you think it's going to elongate the process by which auto has become even more chipper vay sive in other words, is it going to slow down the pace of innovation and the dream of what we thought the car may still eventually become. >> i don't think so. i think it's going to make it a little bumpier in terms of production and predicting demand and particularly as we're moving

into new technology spaces undeniably electric vehicles are great for the planet autonomous vehicles are great for the planet because they're simply safer for people. i think the long-term friend we're seeing relative to autonomous and electrification, that's going to continue i think the industry has to figure out how to manage that in terms of the new supply and demand issues we face. >> as industries like auto look to integrate chips into their own business, do them in-house, what is the argument that they should be designing a closed-source system, versus open-sourced like risk 5 offers. >> we will openly license to anybody on the planet. as far as companies looking to do something vertical or buying from a silicon provider, for us it doesn't really matter we work very, very closely with both we have very long relationships with silicon partners who supply into the industry. at the same time increasingly

we're seeing eems and not just in auto whether in hyper scale or other industries looking to do their own designs for us we're going to serve the market either wah i. >> so then what would you tell a company or an industry that does want to sort of start more from scratch, doesn't want to necessarily license but use an open source system what are the risks inherent in that >> you cut out for a second. talking about the risks in what? i'm sorry. >> in using an open-source system like the one like risk 5, which has gained traction over the last few years. >> one of the things that makes arm pervasive and the world's most popular -- we have over 50 million developers who work on arm. if you're designs a system, whether a cloud data center, mobile phone, whether it's a laptop, whether it's autonomous, the software ecosystem is so

important relative to the design choices, and that's what we think really makes arm the architecture of choice just last year we had over 29 billion chips shipped by our partners that's really driven candidly by the software ecosystem we've got great products efficiency is what we're known for. it's the software ecosystem unparalleled for arm. >> how important is being an independent public company to being able to drive that ecosystem? i had some sense that people were looking at options outside of arm because they were concerned about its independence a couple years back. is flexing that independence now an important part of continuing to feed the ecosystem? >> i'll go back to again, it's the soft wear ecosystem that makes arm probably one o of the most unique companies in the world regarding the openness of

its architecture and the fact that so many people use it in so many end systems there's always going to be competition and options that people look at relative to design a versus design b versus design c what we find almost every time, why do people choose arm, why do they want to continue to develop on arm, it's all about the developers and the software ecosystem. it's really knowing if you're going to develop an end product, the fact that the end user is going to have a multitude of choices regarding software that can run on it, it's because they know how to run it on arm. >> rene haas, arm ceo, thank you. >> thank you. coming up, media companies in cost cutting mode faces the prospect of what that means for consolidation. first, keep an eye on alibaba, citi forecasting more than 40% upside from here it's already up 18% in the last month. er72 price turn the. stay with us

we're back in two. has already been born. it could be you! wow. really? of course, you'll have to eat your greens, watch your stress, wear sunscreen... but to live to 150, we're developing solutions that help doctors listen to your heartbeat while they're miles away, or ai that knows what your body will do before you do. cool. introducing elevance health. where health can go. (heartbeats) inintroducing icy hot pro.h. ice works fast... to freeze your pain and your doubt. heat makes it last. so you'll never sit this one out. new icy hot pro with 2 max-strength pain relievers.

(vo) is three hundred and ninety-one thousand four hundred and thirty-four square feet... enough space for your ambition? loopnet. the most popular place to find a space. every search you make, every click you take, every move you make, every step you take, i'll be watching you. the internet doesn't have to be duckduckgo is a free all in one privacy app with a built in search engine, web browser, one click data clearing and more stop companies like google from watching you, by downloading the app today. duckduckgo: privacy, simplified.

every search you make, every click you take, every move you make, every step you take, i'll be watching you. the internet doesn't have to be duckduckgo is a free all in one privacy app with a built in search engine, web browser, one click data clearing and more stop companies like google from watching you, by downloading the app today. duckduckgo: privacy, simplified. sun valley always brings together the biggest names and most powerful leaders of media and tech this year they came to the conference facing a list of headwinds from subscriber issues at netflix to the risk of ad spending slowdown. julia boorstin is live from a

gorgeous live shot good morning, j.b. >> good morning. macroeconomics certainly looming large especially when it comes to the question of how a pullback in consumer spending and advising spending could potentially drive m&a. sarah sandberg is here fresh on the heels of her announcement of her plans to leave meta. meta is expected to suffer from that ad pullback there's one pending deal in focus here twitter's sale to elon musk. elon musk is scheduled to speak at the end of the conference the ceo recently merged with his stock down 38% since that emergencier closed in april. i'm hearing a lot of chatter among executives here about the pressure that company is under with its high debt load and saz

sof's imperative to -- >> when you look at the assets we have, what may be the most strategically complete broadest demographic's appeal of our contend, cnn, warner brothers motion picture, warner brothers television i think our assets are great and in the long run the market has been rough on everyone we're excited about the tuptd and i think we'll create a lot of value for shareholders over time. >> reed hastings and ted saran does are here two weeks ahead of the earning report some are speculating that if netflix subscribers continue to decline, it could become an acquisition target, and a buyer could be the likes of comcast, cnbc's parent company.

ceo brian roberts arriving here as well. another giant, disney ceo is here the predecessor, bob iker is also here. recessionary pressure will accelerate consumer shift toward add-supported premium services the more the market caps drop, the more different deals we're sure to seal another thing we're hearing is that tech companies such as amazon and apple, they're constrained as buyers because of all that regulatory oversight. guys >> interesting, julia, i also wonder what you're hearing and expecting about content itself is the bull market for content over there's a headline i saw yesterday about hbo max pulling back on original content in europe do they have to choose their

targets more carefully, spend less, and might that ripple through the market >> reporter: well, what i'm hearing is they believe they're still going to be able to generate revenue to fuel that content engine, but the revenue coming from ads more than just straight streaming subscription services if we do see more consolidation, if the likes of a paramount teams up with some of these other players, or if we see some of the really small players such as an amc or lion's gate, those companies really team up together, that could drive them sort of -- the overall amount of content lower. but i think right now the conversation is more about the shift towards ad-supported rather than an overall bursting of what has been a very robust content bubble, many would say. >> speaking of which, julia, the other interesting debate is whether or not the smarter thing is to drown the consumers in content, to keep them coming back, giving them tons of choice in the hopes they will renew the other is to make very

targeted high-profile projects, the likes of which warner brothers is pursuing that strategy which do you feel is winning out for the moment >> reporter: one thing i'm hearing is in light of all the talk about streaming is that the box office is back it's been so interesting to see the big numbers out from the new minions movie from comcast universal and the fact that you have movies like "top gun" continuing to deliver. there's a sense there's a robust demand for content a number of people have reminded me in past recessions content businesses have held up well typically in recessions the box office is incredibly robust because going to the movies is seen aris a great option when people are tight on cash it whether be interesting to see if this is different because consumers have so many streaming options at home. deirdre, when people are talking

about the shift in streaming options and shift towards ad support, you have to wonder what dynamic that will have with the box office which in in ways is a driver of the content on streaming services. >> julia, as we talk about the recessionary pressures, you say a lot of the chatter is shifting to the add-based models and some bigger players getting on board with that. is there a sense these recessionary pressures will grow and hit the ad market at this critical moment for some of these players like netflix going into it? >> reporter: yes as all of these players -- disney is getting ready to launch an ad-supported version of disney plus obviously netflix is rushing to get their ad-supported version off the ground one advantage those players have, even if there's an overall ad contraction, is that advertisers want to be able to target consumers, measure the impact of their ads and do so th premium content that's where digital, digital video, all the streaming options

have an advantage over, say, traditional television or the likes of traditional radio, some of these traditional players there's a sense that ad dollars will be shifting towards the types of spending that can be kbeft measured and have the highest return on investment if you're an advertiser, you might get more bang for your buck if you put a dollar into ad-supported streaming rather than more old-fashioned advertisin julia boorstin meanwhile, another crypto lender bites the dust. the latest envoy yajer digital's downfall is next as bitcoin heads lower this morning don't go away.

brokerage firm files for chapter 11 after huge losses in the collapse of three arrows capital that is rippling through the market alameda firm extended credit of half billion to the brokerage last month, listed as their largest creditor in the filing for now, boyne north of 20 k, down more than 50% year to date.

related names have fallen further, down 80% since the new year this morning, atlantic down grades coin to neutral, cuts the target in half a lot of concerns ranging from talent retention to misinformation over financial strain the down side risk is prolonged, more severe as crypto winter is worse than anticipated jon, hard to make parallels. maybe three home depots, that's the neighborhood we're in now. >> this is an incredibly different story. the crypto ecosystem to some extent is a house of cards, money that put money in certain currencies, unable to trade and get money back dee, there's a lender that has

also suspended withdrawals after saying three weeks ago that everything was fine. i think it is understood this is underregulated these businesses, even the likes of coinbase invested in are not standing on anything stable. what i wonder is even if the major currency, bitcoin, stay at the point they are now, how many more of these are going to freeze, perhaps go bankrupt. how far is the ripple. if they drop however many double digit percent, what happens then. >> underrated is key players were calling for more regulation, trying to work with regulators during boom times maybe you'll see some survive. i am fascinated, endlessly fascinated with sam bankman-fried's role it makes me wonder

does he have a responsibility to back stop like he does even at a loss to ftx. come talk to us. morgan stanley calling the stock coinbase now, calling the stock safe haven in the second half. we will dig in stay with us your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

as a business owner, match your bottom line istion. always top of mind. so start saving by switching to

the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.

gut check on cyber security. morgan stanley calls the space a safe haven shows no signs of slowing down some top picks, palo alto, crowdstrike, cyber arch. morgan stanley more than 20% growth elevated threat environment that continues. more tech check after the break. 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.

one more thing, microsoft $69 billion takeover of activision blizzard. they open investigation into the deal, whether it could hurt competition through higher prices, lower quality, reduced choice microsoft saying they'll cooperate and believe thorough review will help it close with broad confidence not surprising this is baked into stock price, below $79. jon, offer price for microsoft is 95 bucks. well below that. >> soft deadline to decide whether they're going to scrutinize this.

i am sure microsoft takes a close look but fast. >> yeah. cramer did express skepticism about that earlier on "squawk on the street." oil can't seem to hold 96. going to watch that. turn to employment in the coming 48 hours, with claims tomorrow and bullard and the jobs number friday halftime report starts now welcome to the halftime report i am david faber in for scott wapner stocks are down, holding steady. what will policy makers signal about inflation and rate hikes ahead. are 75 basis point hikes on the horizon, what should investors do from here we discuss that and more with the investment committee shannon saccocia, joe terranova, steve weiss, jim lebenthal a quick check of the markets we are down across the major averages nasdaq popped into positive territory earlier in the mornin