lot of reversion to the mean here because bridgewater has underperformed pretty dramatically in recent years and finally having a good year where you've got the tigers of the world seeing the opposite effect where they are performing quite well and now coming down to earth. >> yeah, tiger as we said, having a very difficult year keeping an eye >> leslie, thank you. >> thank you >> that will do it for us here on "squawk on the street." "tech check" starts right now. >> good monday morning welcome to "tech check." i'm carl quintanilla backing out of the twitter deal? more on the entire social media landscape. as valuations plummet, companies are skapg up beaten down tech stocks and why crypto will rise again. that's the title of one guest's op-ed. we'll discuss why the bus tells us nothing about cryptoo's future, jon. >> we'll start with elon musk

looking to back out of this deal for twitter setting up a legal fight in delaware courts he's not the only one separating himself from the social media company recently sheryl sandberg preparing to leave meta and jack-doers, of course, leaving the twitter board entirely, focusing instead on crypto and block, formerly square our julia boorstin is here it's not just the musk drama whether it's ad targeting, content monitorization, so much of the social media business is in question. >> that's right, jon, and i would say each of the social media platforms you ran through, they are in very different situations right now, but they are all in a moment of transition i mean, just to go with the smallest one first which is pinterest. they are in a movement transition of trying to figure out how to make money from commerce, and that's the big opportunity there. then, of course, meta, shifting to focus on the metaverse, managing all of these apple operating system changes that is making it harder for them to

target ads which is something they have been grappling with, and all of that while also competing with tiktok, transitioning to reels and with the ongoing metaverse investment and twitter, that's the big wild card here. we have to see whether musk is trying to negotiate for a lower price, or if he just doesn't want to own this asset, and depending how this haul plays out in the courts, it's not a good thing for twitter to have someone buy the company that does not want to own the company, so a very complex situation here. >> yeah. >> that twitter and its board needs to navigate. >> very few good scenarios on the board. bernstein rights if twitter understands the game musk is playing they would have deleted his twitter account over the weekend. are they joking? does twitter need to handle this the way of the game eamon musk might be playing >> i have to point out that the

tweets that elon musk posted late last night, i would have to guess that his legal team did not approve the posting of these tweets there was a chessboard photo there was another meme of him laughing and basically making fun of the fact that think told him he couldn't buy the company and now they are forcing him to buy the company and, of course -- >> yeah. so could they take him off. >> he committed -- could they block twitter? >> there's been so much destruction. yeah, he hasn't done anything illegal or against the code of conduct or ethics that they have, but i just wonder, you know they sit back and they are playing by their rules, you know what would that look like, and could they actually do something like that? >> among all the things the twitter board is thinking about right now, i think pulling elon musk off the platform is not one of them, and, if anything, i think that if he posts these kind of mocking tweets, sort of mocking the whole process, that

might help twitter's board when they are in court in delaware trying to show that he just changed his mind and he's mercurial. if anything he might be doing himself a disservice in posting those tweets. >> although, julia, one thing that's coming up a couple of times today was ev williams' tweet to brett fay lore saying if i was still on the board i would be asking if we can let this whole ugly episode blow over is that view widely shared because it certainly runs counter to hiring walkel >> yeah. i mean, the fact that they hired that top tier law firm and they made it very clear that they are taking this to court in fact, we can expect twitter to file suit in the next couple of days. i don't think blowing over at this point is really an option, and one thing that i'd have to point to is all of the analysts' notes indicating that the whole elon musk fiasco has been so negative for twitter as a company. if you look at the stock and if you look at the worst case

scenario which is maybe twitter gets a $1 billion break-up fee, of course, they would want to get more in terms of damages, but there's this question of whether or not that elon musk's bid to buy the company, you know, the whole process, has just created so much distraction that it's ultimately going to be really bad for the company. >> yeah. >> there are enough other macro industries that the ad industry is recognizing, competition, all of the pullbacks and all the other things that this is a company weakened by this process. yes, maybe musk, you know, has shown a spotlight on the fact that there's real value here, but if he doesn't go through with it, then twitter is going to have an argument that they should be able to get damages from musk so we'll see. >> a lot of value distraction in the stock down 7% and also interminally, right, julia a lot of employees stuck in limbo. we'll stick with twitter join us now is the tory fund founder dan nyles. i remember you talking about

meta not long ago. you liked it valuation what do you think of twitter right now trading at $34 and change >> it's just too much drama for me so i'm not involved at all, and i plan on staying that way. >> so even the drama will make you look past a good valuation, if it is >> i don't think it's a good valuation. i never said that. i just said the drama is keeping me away from it. i think one big mistake people are making in this market in general is assuming because a company is down 70%, 80%, the downside is still 100 it is. it can always go to zero, so i think you need to kind of remember that right now when you're looking at a lot of these valuations where just because it's down a lot doesn't mean it's cheap, especially if you're going into a recession where numbers need to get to cut a lot more and don't forget twitter along with google and facebook and all these ad names they, depend on advertising revenues in a recession the last one we, you know, real size, '08, you

know, ad revenues went down for the industry about 18% or so, so you've still got a lot of estimate cuts in front of you. >> hey, dan, i'm always trying to figure out in these kind of exciting, distracting narratives what the lesson is for the retail investor, and it teams to me that this is about elon musk trying to get out of a bad trade. i mean, he signed a teal to buy twitter at 54.20 a share and now it's 20 bucks less than that also at the same time you've got vcs these days, and we'll talk about this in a bit, trying to buy beat u.n. down growth stocks here, for example. hashiicorp did a series e at a $5 billion valuation it's only 6 billion here so what's the lesson for the retail investor about the so-called smart money and buying high versus not? >> well, you know, you have to remember, we entered this year saying the s&p is down at least

20%, and then in may we changed that to down 30% to 50%. i think the thing that the retail investors needs to remember is the last 15 years were not normal. you had the fed every time the market went down a little bit going ahead and increasing stimulus you have the government doing the same thing that's not normally how this works. during a recession it takes you at least a year, sometimes closer to two and a half years if you look at the tech bubble, for the s&p to find its ultimate bottom from its ultimate peak, so there's a time component of this that i think people are forgetting is what is normal, and what the fed now actually in the mode of cranking up rates despite growth slowing, it's probably going to be worse than normals so i think -- the lesson for the retail investor is you want to have some fun like going to vegas, go ahead, sure speculate on twitter on crypto or something, but if you're trying to make money over the long term and you can't afford to use it as entertainment, you need to go back and study

history, look at valuations and look at earnings and try to find companies with good cash flow and recession resistance or just sit in cash. i think, you know, i've said this multiple times on your show you know, losing 5% to 7% to inflation is way better than losing 30% to 50% to a stock market correction unless you're just doing it to have some fun. >> yeah. you're not kidding about the 30% to 50%, dan. i'm wondering. goldman today plays out a recessionary scenario 14 times 225 gets you to 31.50. why is your i guess hypothetical target much lower than that? what numbers would you be using? >> well, for me, i do it pretty simply saying, well, during recessions, the ones i've looked at, you can have earnings go down 20% from where the estimates are currently. if you look at the s&p for 2023, that's about 250 in eps. haircut by 20% gets to you 200

put a 15 multiple on it. gets you about 3000 on the s&p that's my thought right now probably where it ends up which is in the 30% to 50% decline rate from peak to trough sometime in 2023 in the middle of a recession when the fed is almost done withration rates and by the way, those aren't aggressive targets the down 20% eps, no, that's about average, and the 15 multiple you could argue is actually too high because when you've had cpi lying above 5%, the multiple is closer to 12 times and closer to 3% it's at 15 i'm not sure we get to 3% in that time period i hope so, and i'm trying to be optimistic and saying 15 times on a $200 eps. >> dan, as we get into the thick of earnings season perhaps the next catalyst for where stocks are go, i know that you've noted that the likes of intel, microsoft, target, they cut guidance okay, you know, guided

lower shortly after reported earnings as we head into the next group of companies to report, do you think they have a good enough view of the mac crow situation can we trust their guidance in a few weeks, in the next few weeks? >> look at it this way, right, as you've mentioned. you've had very big companies intel, soft, restoration hard weigh gave guidance at the beginning of june and cut it by the end of june, so things are changing so fast right now that i think, you know, it's a process as i've said before. nobody knows chug the company, yourself, myself, this is where it will end up and if fundamentals cope getting worse and the fed instead of cutting is busy trying to raise rates to slow the economy down, that just tells you numbers are going to go down a lot faster than what you think. we've got a few tweets on this look at the dollar the dollar on average in april when the companies last guided was about 101. today it's at about 108 so it's

up 7%. 30% of s&p earnings are from abroad so that's a 2% cut cut right there to the guidance that they are going to give for the september quarter, and then on an eps basis that's probably closer to a 4% impact. >> yeah. >> so that's just from currency. that's not even talking about demand, inflation, any of those things or inventory bill which walmart, target, for example, talked about that needs to be burned off that's on top of just the current schemes. >> that's the headwinds that companies are facing as we head no it always great to get your insight, dan thank you. >> big calls this morning. calls for meta to underperform warning that investors they'd to stay on the sidelines as the company pours money into the metaverse. flip side, a new cnbc pro article highlighting an outlook for alphabet say they see long-term value despite the pride target and our next guest singles out alphabet as a

leergsd bushel on church and a fan of meta data as well joining us now is eric sheridan, goldman sachs managing director. great to have you back thanks for the time. >> great to see you, carl. we were just talking a lot about a recessionary scenario right there. how does advertising, and i guess specifically meta, hold on if that in fact happens? >> well, i think we're going to see downside nods to numbers if we get a full-blown recession. i think equity investors believe that's a near certainty. the channel check work and the industry work we do would still you that's still a bit of a work in progress. what we look at this quarter of what they will be reporting in the next three weeks, we actually came away that the prior guidance given by meta did not have to be changed, and as a result of that, you know, we like the risk/reward of the stock other and going forward. similar to what dan just said in the segment before me, facebook or meta and alphabet can now also be valued on earnings

they both trade at reasonable multiples to growth on the other side of any recession we would see. they are both buying back stock, and the large-scale players typically operate better through a recessionary period, and we have '08 and '09 to look at as examples. >> do you think they are making aggressive enough moves on costs to where that growth doesn't outweigh revenue growth in the next couple of years >> i think there has been a steady stream of press reports in the last couple of weeks around meta aligning revenue growth with expense in a way that it looks like they are taking this fairly seer causely in terms of remaining flex ubl alphabet still talks about investing for the long term and if you look at prior periods in the first half of 2020 when he had the pandemic or other slowdowns, all of these companies tend to slow hiring and slow sales and marketing but

it does appear from what we've seen in some press reports coming out of meta, that meta might be taking that slowdown a little more serious and more aggressively, aligning costs and we have to wait to see what the commentary management is in two and a half weeks time. >> eric, from the investor perspective, i want to talk about what's broken and what's not in the social space because no matter which of these companies we're talking about, they are all affected by these questions of targeting, of attribution and even in twitter's case this bot thing is kind of about the real value and real growth of users over time who has really got value in the space? were those that thought that google missed the boat on social actually wrong since google's got youtube and that seems to be doing relatively well? >> well, i think there's a couple of things here. i think on social in particular, there were benefits from the pandemic as people were staying at home and looking to be entertained, and, frankly, a lot

of user growth happened. a lot of time spent happened you're burning off a lot that have as the world reopens, hopefully on a permanent basis and we don't go back to being more in a lockdown mode. that would be number one number two you've had a rise of competition, have an asset like tiktok coming out of byte dance in china seeing a lot of user growth, a lot of time growth and alongside tiktok you've seen the rise of short tomorrow video which could be cannibalistic of long tomorrow social media so what's happening for investors you have marketing changes, monetization over the short to medium term. i think you've had competition increase, calling into question the long-term furniture value and then some post-pandemic normalization themes people have to get comfortable with all of that when i go out and talk to a lot of investors, the lack of visibility into linear results

acts as a headwind to this group. investors are defaulting back can i value it on a risk/reward basis on 2022 or 2023 earnings, then i'm willing to wade into a name, but the extent to which you move up further up with p & l on a multiple revenue, it falls out of favor. >> all the factors you just laid out, it feels like they are hitting the meta the highest, at least among the mega caps so when you say mega might be take the slowdown more seriously, more seriously relative to who, to google because google is in a different position alphabet isn't hit as hard from the privacy changes from a do you think they will have to walk back some of the investments in hiring this year? >> well, i think they will watch for the environment is what the history tells us on alphabet alphabet doesn't guide as a company. we have our set of results from q2 we'll see what the company

reports. meta has already guided q2 it's not a big hurdle rate they have talked about 0 to 5% constant currency revenue growth we think they can be inside the top end of that range based on our industry work. they have talked about only a modest acceleration in revenue growth in q3 even though they have much tougher costs. we're having the headwinds starting in july therefore, this could be some headwinds some actions are turning it into tailwinds of q3 and q4 of this year >> the "washington post," a consortium of immediate yanetity looking at early practices it of uber when they were trying to grow under travis. the company said we made mistakes we were a different company then any relevance to the fundamentals or the price action today? >> i don't think it necessarily bears on the fundamentals of the company today. there was a history of this

company. it's been fairly well documented if i believe books and tv series and movies about where they were sort of looking for growth at all costs, and it seems like some of the documents that went into some of the journalists over the weekend reflect that, but under the new director this is a very different company than the pre-ipo company reflected in some of those documents that's being reported by the presses as we can tell. >> a lot of news busy week of news swirling around on some very large companies, eric. good to get your guidance. appreciate it. talk next time eric sheridan, goldman sachs. >> thank you. >> still to come, we're still watching what it means when venture capital buys public tech stocks and the fintech name to stay away from "tech check" is just getting stte ard.

welcome to your world. your why. what drives you? what do you want to leave behind? what do you want to give back? what do you want to be remembered for? that's your why. it's your purpose, and we will work with you every step of the way to achieve it. at pnc private bank, we'll help you take care of the how. so tell us - what's your why? ♪♪

there's a reason comcast business powers more so tell us - what's your why? businesses than any other provider. actually, there's a few. comcast business offers the fastest, reliable network... the protection of security edge... and the most reliable 5g network. want me to keep going? i can... whether your small business is starting or growing, you need comcast business. technology solutions that put you ahead. get a great offer on internet and security, now with more speed and more bandwidth. plus find out how to get up to a $650 prepaid card with a qualifying bundle.

let's get a gut check on chinese tech alibaba and a tencent shares they are sinking after failure to comply with anti-monopoly rules sparking selloff names jake jd.com and baidu and the

hang seng is down close to 10% this year in what has been a very volatile few months, few years, jon if you thought some of that regulatory pressure was ending, think again. you don't know what beijing is going to do. >> yeah. i didn't think so actually we talked about this tradeable and investable are two different things also, we started this discussion last week with venture capital firms changing their structures and becoming registered investment advisers, and as expected not just holding stocks, the information they took a look at s.e.c. files and they acquired a million block shares of thrive and carvana most of the purchases are in the red so far hashicorp less than half of its ipo and carvana less than half of its fund. tiger global, tech crunch reporting it plans to limit new

funding through the end of this year, but partner alex cook has reportedly assured founders that the firm is still sitting on, quote, billions of dry powder, and they plan to raise a new fund later this year carl, i -- i really think that retail investors just pay attention to the signals, right? like if -- if hashicorp was at a $5 billion valuation when covid started and it was 5 billion a few weeks ago, 6 now, it sort of makes sense. the vcs kicking themselves, saying, man, wish we got in on the series "e. well, here's the series "f." >> we talked about the vc angle and leslie will talk about hedge funds and family offices with henning funds, a lot going on with different strategies. >> here's the problem, jon investors vc may not be as good as investing in the series of a, b and c.

tiger investors like softbank are getting soft in this market. silicon valley vcs thrive and investing in public market companies, if they are going to be successful. >> well, but i -- >> i don't know. where do the valuations land in. >> i'm not a typical retail investor, of course, because we don't buy individual stocks but i don't care about that. what i care about is in five to ten to 15 years, is this going to be a good asset in my portfolio? and if you can actually buy, if it's a solid company and i'm not saying anything specifically with hashicorp, people should do their own due diligence like elon musk or maybe unlike elon musk, but if you were able to get in at that stage which typically, you know, only elite investors in silicon valley are able to, if that business is as sound now as it was two and a half years ago, why not? discipline >> yeah. i hear what you're saying.

i just wonder if their tools are equipped for the public market like they are the private market, a series "f" as a series "c." i don't know, carl this is the whole debate we have every single day is the question of where do valuations settle? >> leads us to a discussion with our leslie picker with more on how helping funds have performed in the first half. >> speaking of crossover investors, carl, if you follow the averages, yes, all 28 strategies tracked by hfr are outperforming the s&p for the first half of the year, including tech funds with an average decline of 16.5% not great in terms of preservation of capital, but outperforming the s&p 500, including dividends, for the first half of the year by about 3.5 percentage points. some of the more well-known firms, especially those that invest in venture capital where you guys were just talking about the crossover funds as well as public equities, they have underperformed this year various reports showing that tiger global is down more than 50%. d1 reportedly facing big

markdowns in the tech portfolios a shrinking asset base both on real and on a paper basis is having an effect the fourth quarter quiged and slipped from q2. these invest vors been partially changing the supply/demand capital with the oak system helping to drive up valuations in the ecosystem in recent years with a reverse effect that seems to be playing out now as returns cause them to be much more conservative in deploying that capital. guys >> yeah, leasely, they used to be called tourist investors. >> they did. >> they became such a mainstay so now we call them crossover investors. after the break, more on the possible legal outcomes from musk and twitter don't go away. we'll be right back.

welcome back to "tech check. we continue to watch the broader market today pretty tight raining dow down 100 and nasdaq under pressure tesla, lucid down more than 5% more about the selling in a movement first a news update >> thanks, carl. here is your cnbc news update at this hour. the spirit airlines takeover saga may continue for a little bit longer frontier group, the parent of frontier airlines, has a spirit to delay a vet on their merger deal until july 27th wanting additional time to solicit stronger support from spirit hair holders who are mulling a rival offer from jetblue however, frontier now says it has no plans to increase its most recent bid. starbucks has stopped selling a new breakfast chicken

sandwich after only a week saying the sandwich which consists of chicken, maple butter and egg didn't meet its standards. the company wasn't anymore specific on the nature of the issue but did say it wasn't one that would cass any food borne illness and the latest marvel moving "thor, loving thunder" topped the box office with $141 million in domestic ticket sales, the third best weekend for any move since theaters reopened after the pandemic. the two movies ahead of that one on the list were also marvel movies, s.w.a.t. spider-man's no way home" and "dr. strange and the multi-verse of madness," all movies i need to see carl, back over to you. >> thanks. let's turn back to the twitter legal battle a game of chas set to take place in court it could go a number of ways to musk walking away from the deal or making the deal as agreed joining us is a law school professor goshen to read in.

over the weekend poem were reading the letter and trying to find signs what have could consider to be materially adverse. it doesn't sound like you found a lot. >> yeah. so the three arguments in the letter that the lawyers are preparing there is walking out of deal. the first one is in regard to one of the representations that twitter made which is that they have the -- the estimate that they have about 5% fake accounts out of their monetized accounts. it's very important to understand they didn't say we have 5% overall. the difference is awesome you had 100 accounts, they know for sure that 30 are fake, then they are excusing them. it's only the 70 that are left that they say it might be more here we estimate that it's going to be 5%. in any case, even if thrp

representation is false or is accurate, then the contract basically says it's not enough to walk away when needs to be shown is that this representation has a material adverse effect on the corporation meaning that the fact that they got inaccurate information completely changes the valuation of the corporation. it should be something substantial, and i don't think -- i think it's reasonable to think that this is what's going on, especially when they didn't provide any information over that point. they basically said my clients believe. >> yes. >> that there are more than 5%, that's it. >> yes so do you think there are tools that can force musk to close or not? >> so they have two other arguments which i think one of them is a bit stronger than the

other, but i don't consider either of them to be especially strong one is the claim that -- the requested information from twitter and didn't get it so from what i read i understand they did provide information and the contract basically says we need to give you the information as long as this is reasonably required to close the deal, and in this delays might be a suspicion that the formation is questionable in order for them to walk out of the deal, not stay in it and the third one which i think is the one that twitter could have been careful in handling is the fact that they fired two executives and heads of one of the department in the talent acquisition group. this is a covenant that basically asks that the company will stay in the normal course of bay so there might be some argument whether these changes are basically violating that

clause i don't see them as especially important, and if it's my judgment, then my judgment is that it's -- it's a normal course of business when there is a downturn of the economy to fire people and to readjust. >> yes. >> but these are the three arguments that they have. >> well, professor, understood that it can all be a bit fuzzy here's my big concern about this potential lawsuit from an investor perspective, and it keys off of the last thing that you said about some of those firings perhaps having an impact on the value of the business as twitter pursues this case, are they almost required to remain in stasis, not make any dramatic changes to the business even if economic conditions change, even if the competitive landscape changes, because if they do, in effect elon musk can say, hey, right there, i shouldn't have to buy this for

$44 billion because this is a different company now than the one i agreed to buy back in 2022. >> i completely hey grow with you, and i think that's the argument that they have to raise. this is the one that has some bite to it if the judge thought this was real out of the normal xhors of business, i'm not aware of anyone walking out of the -- there are cases where people made their decisions based on that so i think in this case twitter has the choice between asking for $1 billion termination fee or specific performance trying to close him to go through with the deal obviously they weren't go on to the specific performance train which i believe the -- for the

ability of them winning on the claim is much higher, but i see the manin issue on enforcing something like that. that's the hardest part. >> yes. >> because in terms of delaware law, it is normal when someone is in the court and they order someone to close the deal, to close the deal and no one has to consider what will happen if the other side says, you know what, i'm not going through this now what what are the tools that delaware has to force someone to hear the day. >> maybe we're headed that way we'll find out professor, the whole street is wondering about the legality of all of this. appreciate your guidance thank you. after the break, from crypto will rise again. that's the title of our next guest's op-ed.

we'll dig into it, and this morning, bitcoin, where is it, $below 24k it's 21.30 we'll be right back. (torstein vo) when you really philosophize about it, there's only one thing you don't have enough of. time is the only truly scarce commodity. when you come to that realization, i think it's very important that you spend your time wisely. and what better way of spending time than traveling, continuing to educate ourselves and broaden our minds?

(woman vo) viking. exploring the world in comfort.

take a look at upstart holding. ai indicator with a downgrade of selling at goldman, a 49% downside they cite a slowdown in revenue, heightened competition as increased funding costs are acting as headwinds. the stock is actually rebounding

a bit after a very tough year, wndo 81%. we'll be right back. ♪♪ ♪♪ take the world by cloud. accenture let there be change.

several prominent family offices still investing large portions of their holding in crypto and blockchain and now as prices tumble, how are they repositioning and what influence do they have for the broader market robert frank has a look at that. robert. >> a recent survey found three-quarters of family offices were investing or exploring

investing in crypto, and 20% of them are actually active investors. one of the most active is the wither family office, deese dance of done wither the ceo and co-founder sherry wither said crypto accounted for 40% of the fund's assets at the peak she has taken losses on the token and venture capital side, but her trading gains, they have been trading the volatility in crypto that has more than made up for the losses. she said big investors have remained believers despite those losses over the past few months. >> it felt like we were on a plane that was going down, and we were like all holding on to the arm rest and we were shaking and looking at each other and it's like are you going to pull the chute? no are you going to pull the chute? no so no one was bailing. no one was going to sell their positions. >> and wither now focuses on just what she calls the top ten tokens and a few startup companies like flare networks,

swap global and a company called homion which is a digital real estate finance company jon? >> all right robert, thank you. now crypto bulls, be careful according to the latest mliv pulse survey a majority of investors think bitcoin is more likely to hit 10,000 before it gets back over 30k, but our next guest is betting on crypto's big new future his latest piece for "the washington post" argues the selloff isn't indicative of how currencies will perform long term the real test will be whether crypto creates services that matter in the real economy joining us now is paul a. volcker with the economics and council on foreign relations and columnist sebastian malaby sebastian, how likely are the cryptos to create services that matter in the real xhirs an-- ra economy, and why don't the nfts

count in. >> the whole point about investing in the future, especially early stage tech, is that a lot of bets go wrong, right? i mean in, a parallel business like venture capital, one in ten bets going right is okay because the ones that do go right, go right big time, and they make more than 10x their value so the first thing to say, is you know, i'm not here predicting that it's going to work for sure. i'm saying it has a chance of working, and in a bet on a future technology like crypto, saying it's got a chance of working is good enough to be long you shouldn't be, i mean, 40% as the family office you were just talking about was going for. that's extremely he have betting. i would in the recommend that, but i think that in a diversified portfolio of bets upon the future which is some about clean tech and some about biotech and some are by software, having a bet on crypto is completely appropriate because it works. >> okay. >> it could be big. >> here's part of what i don't

get about that there are a lot of american companies have created enormous inventions in general that transability in millions of dollars and many american companies created fintech innovations that rely heavily on the dollar, up until this era, a lot of them do, but that hasn't boosted the value of the dollar versus other currencies, so why necessarily works you know, crypto innovation mean that individual crypto currencies are worth more money >> well, i mean, you're right to raise the question i would say that on the margin, the dollar value is higher than it would be otherwise because it's such a useful currency because there's so many good ways you can save, it invest it and so forth that's why it's a reserve currency that's why it's structurally a bit overvalued and why the u.s. is running a current deficit year in and year out because the dollar is a strong currency. but you're raising a good point,

that there's no certain connection between a project let's say, you know, final coin, distributed system for saving data on people's servers from they have spare capacity on their game server which you incentivize with a coin, it's not certain that just because that project works that the currency goes up, but if they are well-designed, they are supposed to be linked. this is very early, as crypto people will say. we're running a bunch experiments, but the thing is that you only need to use these experiments in using the individual tokens that come good for the whole thing to be vindicated i mean, it's less about just currencies it's more interesting i think to think about what can you do technologically which is useful for the world? >> yeah. >> when you have a digital token that you couldn't do without it? and i think you can incentivize the users in your community to get involved in your project it's like a united air miles, but much more advanced

>> so sebastian, crypto proponents love to say that it's early. they love to point to the first wave of the internet, but in that era, there weren't easy to understand use cases like radio. what is it for crypto? what's a use exists today? >> i think actually the first thing to be said is that even if it's purely an internal game where people are gambling on different tokens that have no meaning outside the token world, actually, gambling is a big business, and so that could be worth something. gaming is another big business, and we've seen how assets at times -- >> why is it better than gambling or gaming even if you're gambling with crypto what we've seen over the last few months is it's really hard to get your money back. >> if it's a system for gambling that people find attractive, people go gambling, or they go to a regular casino in las vegas. they exchange their dollars for

some kind of casino chips, right? think of that as a tokenment t this is like an online version of it. >> there already is online gambling. >> why not have some more? why not have a new kind? >> it's supposed to be better than the one that exists is gamabling through crypto better than an online platform >> i think when you see a new project go from zero to being worth 1.14 billion, it's now down quite a bit, but still in the multiple billions, it's telling you that people are using this thing the market's verdict on your question is, yes, it's better. people like it more. but i think, you know, the interesting thing is this goes bigger, right? this is also about creating, let's say, a next generation labor market for a talent market online, right? >> yeah. >> and you want -- to come to the platform and be hired by goldman sachs to do projects and you incentivize those to come on

the platform by giving them a token, which is generated by the platform it's a free to issue token when you're starting your company, when you're starting a project if the project goes well and the platform becomes popular, the token will be available in the future employee stock options can incentivize startup employees to come work as a new startup to take the risk of that, so a digital token can incentivize people to get involved in an online project, which they might not do without the upside potential of the token >> right, sebastian, thanks. and dee, remember when i compared dogecoin to chuck e. choose tokens, where a kid can be a kid. >> very prescient, jon. >> carl. after the break, we'll get a call on a few chip names stay with us

bubbles bubbles so many bubbles! as an expedia member you earn points on your travels, and that's on top of your airline miles. so you can go and see... or taste or do absolutely nothing with all those bubbles. without ever wondering if you're getting the most out of your trip. because you are.

let's get a gut check on the semiconductor space, the recession and rising macro risk. collin downgrading saying android weakness is weighing on revenue, margins and sentiments, pushing their medium term estimates well below the census. seeing some opportunity in the space, morgan stanley names taiwan's semiconductor a research tactical idea adding they see shares rising heading into earnings this week. that stock you can see is, let's

see, down about 2.4% we'll be back right that have. , pnc has helped over 7 million kids develop their passion for learning. ...helping us all move forward financially. pnc bank: see how we can make a difference for you. this is doubling production without doubling headcount. this is connecting all your team with a shared point of view. this is the system you built moving from concept to customer. this is how. airtable. ♪ ♪ connecting to opportunity is just part of the hustle. ♪ ♪ opportunity is using data to create a competitive advantage. ♪ ♪ it's raising capital that helps companies change the world. it's making complicated financial concepts seem simple.

opportunity is making the dream of home ownership a reality... ♪ ♪ ...writing new rules and redefining the game... ...and driving the world forward to a greener energy future. (applause) ♪ ♪ opportunity is setting a goal... ...and charting a course to get there. sometimes the only thing standing between you and opportunity... ...is someone who can make the connection. at ice, we connect people to opportunity.

. one more thing today, the guardian publishes this investigation kbased on 124, confidential documents on how uber broke raws, duped police and secretly lobbied governments in its rapid expansion it focuses on the expansion under travis kalanick. they're not making excuses for past behavior and asking the public to judge them for what they've done in the past five years and what they will do now. we talked with eric sheridan at goldman a moment ago it's clear that there was a period where it truly was growth at all costs. >> it was. it it's a complicated legacy. they broke some rules, did some things that were seriously questionable we also have to understand the taxi lobby was really strong back then. if you tried to get a taxi in san francisco or d.c. 15 years ago, it was an awful experience, and if we were going to get ride sharing, some things were going to have to happen. >> it was absolutely

complicated, but to see the legacy of the travis kalanick days, there were so many stories continue to sort of taint the image of the company today, but of course he's done a lot to clean up that image, carl. >> yeah, much different. guys, we're one day closer to cpi, pepsi, delta, and of course the bank earnings, which begin in earnest on thursday let's get to the judge and the half. carl, thanks so much welcome to the halftime report, i'm scott wapner, front and center, a huge week for your money, earnings, cpi, the much debated tech trade some pressure today and big time we'll debate all of that with the investment committee joining me for the hour today, steve weiss, jim lebenthal on set, joe terranova and lids yo liz young. the nasdaq down about 2% the dow's given back a little bit today, s&p down 1%, the ten-year note yield, and the russell off by less than 2%. we're focuse