all benefitted from. >> so maybe the potential is additional m&a, bulking up the return of the bundle for streaming. >> to a certain extent >> get a little bigger, share resources. >> but as those talk about netflix's takeover candidate, antitrust, would make that very difficult for any would-be acquirers. david solomon, tomorrow, "squawk on the street," that'll do it for us right here. "tech check" starts right now. that doesn't look right at all to me. that can't be right. >> time will tell. good tuesday morning welcome to "tech check." deirdre bosen has the morning off. a few minutes from now, a battle takes off between twitter and elon musk. >> twitter and elon musk lawyers are right now facing off in virtual court for the very first time as the two sides make their arguments about how soon the case should take place before this is all happening

before the chief judge of the delaware chancery court. now, twitter is asking for a four-day proceeding in september, arguing that shareholders and its business have been left in limbo, but musk says he needs until february to investigate spam and fake accounts, saying trial prep will, quote, be extremely fact and expert intensive, requiring substantial time for discovery twitter shooting back to that in a filing late yesterday, writing, quote, the earliest possible trial day is imperative, saying the very public dispute harms twitter with each passing day musk is in breach the chancellor who is hearing this, mccormick, could announce her ruling as soon as today. and the october 24th deadline for completing the deal, that will likely factor into her decision so john, i guess the question is, what can we read into the outcome of today's hearing, for perhaps insight into what we could expect for the trial itself >> well, it's a lot, right, julia? i mean, we were talking about this a little earlier today. elon musk's entire argument here

seems to hinge on this idea that he stumbled across a massive fraud and how twitter calculates spam accounts. and he needs time to do due diligence, even though he waived the right to do due diligence. so he's trying to get in a time machine and redo this, have the court re-do this deal and make it about spam accounts, even though his entire argument for buying twitter was that only as a private company can i deal with the spam accounts, and i'm the only one who can do it it's a riddle, julia >> kind of circular, yeah. and i guess, carl, we'll be watching very closely to see what comes from this hearing but if the judge rules very quickly that this is going to be an expedited case. we'll have in september and no pushback there, does that mean that she's likely to rule in twitter's favor? >> we'll see it seems like to john's point, there is nothing in the merger agreement that is contingent at all about anything regarding

bots, john but again, the hearing today is largely going to be about timing and the difference between how quickly twitter wants to do this and musk wants to. >> yeah, and i'm no lawyer and i'm certainly not a chancellor, but it will be quite a show, right, to see what gets decided here let's take a closer look at the case now, bring in verge editor in chief, founding managing partner, lil' tony welcome, guys. i'm trying to separate the kind of purient interest in elon musk's poop emojis and all the things he's tweeting versus what really matters two employees and investors and the business here. and overall, what i'm coming down to is, the question is, how much can billion naires get away with, rewriting history and in a

down market, you think people owe you money, but they think you can run, whether it's crypto or promising to buy twitter or whatever >> i think that's very much the case and i think the delaware chancery court, hilarious noo name aside, thinks of itself as the premiere forum for litigating contests between large pizs that's why all the companies are headquartered in delaware. they want to be taken seriously. that's their reputation. and that's what they're there for. so it's been 20 years since i was a 1-l in stewart mccally's contract class, but i seem to remember that terminating a contract requires two parties. so elon saying the contract is terminated they need to find a reason to actually terminate the contract. they've settled on bots. today's hearing is a pretty good indicator as to whether the court believes this is a contract dispute or a data and facts dispute. and i suspect very strongly that the court will pick contract dispute.

>> over the past several years, there's kind of been this floating issue, are people corporations are corporations people? right? we've been dealing with this as an american society. in this case, elon musk is so rich that he was able to sort of become a corporation and very quickly make the sorts of decisions that normally take boards, that take shareholder approval, and now he's trying to undo the consequence of that are there implications outside of just elon musk and twitter here or is elon musk so unique this is just an interesting case in and of itself? >> obviously, this is an interesting case, solely because elon musk is involved. but i think there actually are other elements that one should be aware of. in particular, i believe that we should watch the ruling very closely, because what we don't want is we don't want a bad precedent set moving forward, where these types of contracts are almost meaningless

if one can sign a contract and back out, that's really bad precedent moving forward so i think we need to watch what the court says you know, maybe the court ends up saying, you know, hey, there needs to be a higher breakup fee if that is something that should be taken into consideration. obviously, elon musk needs to go back to the table and renegotiate. things are in a much different place. or maybe one of the sberinternst the high-priced law firm have said, you know, elon, you can actually get twitter for free in the app store. >> it's interesting, john and i were debating this morning what kind of precedent would be set by this case and i'm curious what you're looking at in terms of precedent-setting here and to me, it seems like it's not just about whether or not you can walk away from a deal, but whether or not you're allowed to disparage or not or what disparagement means >> i think elon is a very unique character here most people trying to buy a company don't -- and after signing the deal, don't run

around trashing the thing they're about to own that they say could be the light of conscious ness for humanity. that is just out of character for any company. i think here, i just keep coming back to the idea that this is a pretty simple contracts case and pretty simple contracts case have the weight of precedent, the weight of history, the weight of the credibility of the court systems behind them. and fundamentally, both parties will be making a huge mistake if they litigate this to the end, right? they should settle this is the classic sort of case that should settle in the meantime and the court is going to ask them, why aren't you settling this, at every stage along the way. that's what judges are constantly asking lawyers. why yoaren't you settling this why am i here? this hearing will push it in either direction and see how fast it comes through a settlement or if elon wants to continue to be completely unreasonable >> twitter answered that question, why are you not settling, in that they said that they think they have an airtight case here. in numerous filings. but the point being is that if

th they think they could get the $44 billion in a ruling by a judge, what's going to happen in the meantime so i guess the question is, do you think they actually will settle you may think they should settle, but how do you see this playing out? >> i've got to say, if twitter wants the $44 billion and for elon to run the company, that is one of the most craven and greedy moves by a board ever taken, right they're saying over and over again, elon cannot be trusted. elon has disparaged us elon is causing our employees to run away he's causing it to be hard for us to hire also, he should buy the company and run it if their answer is, we want $44 billion so this person that we are openly saying should not be trusted can move on to destroy twitter, i'm not sure that stockholders in twitter, investors in twitter, stakeholders in twitters should accept that deal i think this is a lot of posturing to bring a strong position to the negotiating table, but if that is the actual end result, that they sell the

company to someone they do not trust, that's what i keep saying, litigating this to the end is a bad idea for both parties. litigating it to the end for elon is a bad idea, because he's still got to stake tesla against twitter. there's a lot of complication here that should force this to a sell >> that's an interesting point what is a fiduciary's duty, right? is it about price or is it ability the responsibility of a new holdering? and either way, is the board open to all kinds of litigation from here on out >> yeah, well, we've talked a little bit about this in the past leading up to the offer and whether or not the board was putting their own personal interest in front of the interest of the shareholders which to your point is the a fiduciary responsibility of a board and one of the reasons of the governance for a board and i think that we're making some great points here look, this does not need to be played out in the courts this needs to be settled there's just a lot of posturing.

either twitter is going dom back and agree to a lower price or elon is going to guet forced to pay a higher breakup fee those are the only two scenarios that i see in this outcome this is not going to get litigated and played out entirely through the courts. >> right and if it's the former, the former of those two options, meaning elon does eventually take control, what do you think happens to the product if he truly is uninterested in running it >> i think the question is, what happens to all of elon's products, right? his level of distraction is at an all-time high the competition for tesla is at an all-time high he is betting a lot of his capital in tesla to buy twitter. i think what happens to twitter, the product, is almost irrelevant you look at the full scope of problems that twitter has, they're the same problems that every advertising-based social network has, and solving those problems is a full-time job. the problem for elon is he has

several other full-time jobs >> i would love to take twitter to a therapist, because if it were a person, it would have major abandonment issues i mean, a decade ago, its parents were fighting over it, you know, the founders, who was going to be in charge, now none of them want it, jack dorsey is l like, i would rather do bitcoin or block or square, or whatever you want to call it, i would rather do that than twitter. if this case does get expedited, there's increased pressure on elon to settle, but if it doesn't, there's increased pressure on twitter to settle, right? what's really getting decided here is who's getting squeezed harder over the next couple of months >> that's exactly right. which is why i go back to, i think this pretty much is a binary outcome either assist lower pricefor elon or it's a breakup fee that's a higher breakup fee than the $1 billion you know, i just don't see the courts pushing elon to actually go through the deal. he would take this thing and hire the best lawyers. he's already got scatten so he's not going to get forced

into a corner to do something that he doesn't want to do, other than pay a higher breakup fee. >> well, we'll see what having billions of dollars in lawyers can get you in this situation. eli, lo, thank you >> thank you we're already getting some comments ibm is tumbling this morning. the pc maker down roughly 6% despite beating street expectations and on the top of the bottom line for the second quarter. revenue up 9 year on year. the stock slipped stemming from that cut to its full-year free cash flow guidance cfo jim kavanaugh placed the blame on a small dollar, suspending its russian business over the war if ukraine. the stock is mostly flat ye year-to-date, but obviously, the issues they're citing are issues that we will continue to watch, whether it's j&j or who knows what microsoft and other big

global players will say. >> 4x didn't help, but i don't think the real issue is that i think the real issue is, you've got the software business, particularly red hat, saw growth slow, right and the story behind ibm is that this business is going to grow up a lot faster and really help us you saw slowing growth there and then you saw the mainframe business and the hardware business that's, you know, not a constant presence in ibm earnings, but they have a strong cycle. now and then, that business, you know, the "z" business is still around, julia. that sort of made up for that. and then within the same time, within the people-heavy elements of the business. and i talked to arvin about this earlier this year, you saw margins tighter, shrinking a bit. probably because they've got to pay people more. because who doesn't have to pay people more. but demand also remains high so the top-line numbers look good, but the growth story, there were some questions there about how that pans out going forward.

eh, ibm can't catch a break. >> but john, i think you make a good point about the people part of the business, and kavanaugh made some really interesting comments about the inflationary labor market and i think we're going to have to see how that factor plays out in the other tech companies and other companies across the board here but, you know, kavanaugh points out that consulting is over half of ibm's workforce, and that they're starting to see the higher cost of paying people and trying to figure out how and when the best way is to pass along those costs. so we're definitely going to have to watch that inflationary labor market in the rest of the earnings season. meanwhile, still to come, a make or break moment for netflix today. plus, much more on the hearing between twitter and elon musk. we'll get live updates on that trial throughout the hour. "tech check" is just getting started.

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let's get a gut check on peloton. barclay's saying the stock is too cheap to ignore at this point, with peloton down 90% over the last 12 months, shares trading at below two times subrevenue, they think the stock may finally be nearing a bottom. the risk/reward here is attractive and they would add to positions if shares extend their losses post-print, as it could be another de-risking event, julia. >> let's turn to netflix the stock is the biggest laggard on the s&p, down almost 70% year-to-date, ahead of its earnings, this afternoon, netflix is fighting an uphill battle it guided for a subscriber loss of nearly 2 million accounts in q2 we will see in just a few hours whether that prediction was conservative or if the situation is even more dire than the company warned joining us now with his outlook on media and gaming and the metaverse is former amazon's studio head of strategy and author of the new book out today called "the meta-verse and how

it will revolutionize everything." matthew, congrats on the book. today, we'll start off talking about netflix. netflix is losing subscribers, reckoning with password sharing, introducing ads. all of these strategies show netflix becoming a bit of a more traditional media business has netflix just fallen behind the kind of innovation of the future that you write about in your book with "the meta-verse"? >> i wouldn't say they've fallen behind on the innovation of the future, but what we are seeing is the adoption of more traditional business techniques. of course, it was nearly a decade ago that reed hastings and richard plepler got into a scrap as to whether or not password sharing was going to be bad for the industry overall netflix's competitors have long expected advertising and we're seeing that as the service grows and saturates, as churn goes up while they try to maintain high arpu, they need to adopt a more diversified revenue profile. >> so matt, before we dig into your very exciting new book, what is your prediction for

netflix and what the rest of this year looks like are they going to be able to turn around their subscriber growth, or is this going to be a tough environment for them >> it looks pretty challenging when you take a look at the company's profile, antenna has published research showing that signup churn, or the share of new subscribers who churn within 30 days is now second-worst in the industry for the past five years, they were second best at the same time, their overall blended churn for the entire subscriber base spent most of the past three and a half years sub-2 percent per month. it's now nearly 4% and what that means, no matter how strong some of their top performers are, "stranger things" has broken most expectations, you're losing subscribers every month and it's becoming harder and harder to tread with your head above water there. >> so, matt, i think the question is why is netflix worth $87 billion or more, right the market cap right now at these current levels is around that and i guess people who are going to be long it obviously want it to be worth more

is it -- the streaming technology isn't that unique anymore, because everybody has got a streaming strategy growing the subscriber base isn't that unique anymore, because disney is managing to do that they're not solely subscription, they're diversifying into advertising, where they've got a partner with microsoft to make that happen. it's not like they've got unique capability there if netflix is going to succeed wildly from hear, and they have succeeded wildly up to this point, what is it that they're going to do that others can't do >> i've lost the audio feed. i'm sorry, i couldn't hear for a second at the end of the day, reed has always been clear that the tam, the number of addressable homes outside of china is 700 million. that number has been growing up yearly jason kirl, the exited ceo of warner media says he believes

there will be multiple services at the 1 billion subscribership level. when we take a look at netflix today, they still have 80% more subscribers than their number two, in disney plus. their net arpu is roughly three times higher i'm a netflix subscriber and a disney plus subscriber i pre-purchased disney plus for three years for $147 all in. they have a huge head start, but it's clear that the growth pattern from here will be strained, churn is going to be high, and the programming competition is getting intense but certainly, their tech staff remains leagues ahead of everyone else's. >> although, i wonder, matthew, whether or not you think the price increase at espn plus, and we're talking like some 40% price increase, is going to allow netflix -- is that going to provide at least some cover for any price increases down the road that would help offset that >> i think the challenge for netflix has to do with this current price hike they've done seven over the past 12 years only one of their competitors has done a price hike, and that

was disney plus. usually, netflix would encounter 1 to 2 months of elevated churn, z suggesting a lot of elasticity we have seen churn evaluate and go above the past three-year trend. that suggests that that pricing had room, competitors or not, has been matched out for now >> matt, shifting gears, over to the meta verse and your new book, i'm curious if you think that the economic pressures that we're seeing and the fact that companies seem to be pulling back on hiring or doing layoffs could really hurt the growth and the potential of the metaverse do you think the likes of meta will be shifting parts of their business to places that are more essential right now other than the long-term version of the metaverse. >> some form of that will doubtlessly be the case. we've bseen rumors of tiktok starting their own layoffs apple has been working on its

mixed reality head set for years and is starting to reign in. meta has already been forced to cut many of its more speculative projects, the portal, the video conferencing device, many of their watch wearables. this is a good effort that focuses us or the industry on the most productive investments. this may kick out one to two years of exactly what product is available when it's not changing the overall trajectory >> but in light of all of the different economic issues that have emerged in the past couple of years since you started writing about the metaverse and really became the leading thinker on the metaverse, do you think that all of the changes are going to change which companies end up leading in this m metaverse economy? do you think it's maybe not going to be meta, it's going to be microsoft instead what is the new outcome here >> i think it's important to recognize that every time we go into a new era, be it mobile or the metaverse or pcs in the internet era at large, it's

impossible to imagine anyone but the current leaders being the future leaders if thousands of engineers, hundreds, and now billions of customers, multi-year head starts and billions in operating cloash flows. but yet none of that seems to be helping today's social media services build large social gaming experiences so i don't doubt for a moment that some of today's leaders will endure, but i hope that many of the ultimate winners are companies we don't even know of yet. >> certainly a fascinating time for all of these different fields you cover, from netflix to the metaverse and gaming, and congrats on the book matt, thank you for joining us today. >> thank you after the break, what apple's possible hiring slowdown could mean for the broader market and are currency head winds the next risk for that stock we will discuss, don't go away

welcome back to if the tech check. we are continuing to keep our eye on the market. the nasdaq is rebounding nicely after a midday sell-off yesterday. in a moment, we'll tell you why apple played an awfully big part in that volatility and we're continuing to monitor twitter versus musk. the headlines coming out of that delaware hearing lawyers making the case for twitter first. quote, what we have here is a buyer looking to conjure an exit ramp for a deal that doesn't have one, arguing that twitter is subject to highly public criticism and that justifies an expedited hearing. we'll get more updates on that in just a moment first, a news update with our seema mody >> here is what happening at this hour. more evidence of a slowdown in housing, as interest rates rise. the government just reported june housing starts fell 2% from the prior month and 6.3% from a

year ago they had been expected to rise last month however, home builders have been warning of a slowdown in sales and cutting prices as well a break for consumers a to the gasoline pump. aaa says the average price of gasoline has fallen below the $4.50 per gallon mark. that is the first time that's happened in two months the average gas price had topped five bucks early in july apple has agreed to pay $50 million to settle a class action lawsuit involving keyboards on its mac book computers customers had claims the company knew that the so-called butterfly keyboards were defective and prone to failure the settlement covers mac book models bought between 2015 and 2019 in seven u.s. states including new york, new jersey, florida, and california. john, back to you. >> seema, thanks that's the most hated apple feature of this era, is those butterfly keyboards. bloomberg reports that the company is going to slow hiring

and spending for some teams next year that's a big reason why the market gave up early gains, which is weird for me, because isn't that the kind of growth slowdown that the market wants so the fed doesn't have to do too much so far this year, alphabet, amazon, and snap have all said they would also slow hiring. microsoft and meta are covering some back on apple, last quarter, ceo tim cook said that apple was seeing inflation, and this morning, analysts at goldman warn currency headwinds could be a major concern. they write, a worsening fx environment probably means currency headwinds in q3 were more severe than the three percentage points that apple indicated in its q2 earnings call they add, q4 could be even worse. now today we're seeing how those headwinds are hurting headwind like ibm and johnson and johnson. julia, the combination of the strong dollar and apple does a lot of business overseas, and whatever happened in china, over the past quarter, based on covid

lockdowns, maybe not panning out the way expected, i think those two things, likely to way a bit. >> yeah, and certainly building upon each other. but i think it's interesting just to go back to the last conversation we had with matt balls. this question of, if companies are pulling back, if they're not hiring, if they're laying people off, does that mean they're not investing as much in innovation? are they hunkering down and trying to protect their existing businesses does it mean that maybe they're not going to be working as hard to build out that product that could deliver in three to five years, or even ten years if we're talking about the metaverse, carl. are we talking about these companies, because they're trying to protect their core businesses, just focusing there rather than some of the long-term moonshots. >> yeah. it's interesting, b of a today points out that the seven largest companies in the nasdaq have all announced a slowdown in hiring in the past month, so a nearly 45% of the nasdaq on market cap, but because the

preannouncements have not been rolling in, john, we're sort of left to look at the memos, the tweets from elon musk about super-bad feelings or the likes of bill mcdermott coming on cnbc >> we've got to be real careful with these hiring slowdowns. more than half of apple's employees are in retail. and there is no way they are pulling back on investment in innovation just because of currency, things like that i mean, back when apple was relatively poor, back when, you know, the iphone didn't exist, they invested in a downturn then to create the iphone, i-pad, et cetera, they're not pulling back now. they've got plenty of cash >> we'll see, we'll see. micron and others have pulled out. >> i promise you apple is not -- >> that hardcare r&d stays in tact after the break, a cnbc investigation into now bankrupt crypto lender, celsius those details are coming up next welcome to your world. your why.

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another update on the hearing in delaware between elon musk and twitter reminder, this is just the first sense that we're getting of this trial and the issue today is about the timing twitter is asking for an expedited hearing. its lawyer just wrapped up their argument and the musk side is beginning now. bill sabbath says, quote, mr. musk has been and remains contractually obligated to use his best efforts to close this deal what he's doing is the exact

opposite of best efforts it is attempted sabotage, julia. he goes on to say that the deal doesn't include any caveats or contingencies about bots, it could have, he says, but it doesn't. >> and he also says that the october 24th date, which is the deadline, automatically extends to accommodate the trial and aides say, we are seeking to try a case that could be tried in three or four years, in six to seven months, saying, we definitely need this time, whereas twitter is shooting back saying, they're just trying to avoid having to make this purchase that musk's camp is just trying to avoid having to reckon with justice. really colorful language here, assuming this does go to trial, it will be a fascinating one to watch. >> whoever wins this piece is getting a big advantage, i guess, going forward that much seems clear. we'll, of course, continue to watch today's proceedings. meanwhile, celsius has gone from a multi-billion-dollar company

to bankruptcy in a matter of months what was once a leading crypto lender made headlines after freezing its customer accounts last month and then, essentially, went radio silent with no answers on when customers might get their money back the company broke that silence last week when it filed for chapter 11 bankruptcy. now for the first time, two former employees in leadership roles are speaking out, about what they say led to the company's downfall here's kate rooney with a cautionary tale for the crypto industry >> reporter: timothy cradle's career had been about making sure companies followed the rules. so he said he was alarmed about conversations at a celsius corporate events in late 2019. >> there was a bit of an odd thing that came up at one offer christmas parties. >> reporter: cradle, the former director of financial crimes said top executives were talking about deliberate price movements in a sell token, the cryptocurrency started to spike in early 2020. >> i don't know what better way to phrase it is that they were

in the market, they were actively trading and increasing the price of the token >> reporter: based on those conversations, you're saying that management was manipulating the price of the celsius token >> they were absolutely trading the token to manipulate the price. >> reporter: this echos claims in a lawsuit alleging the company was actively using customer funds to manipulate crypto asset marks to their benefit. market manipulation is one of the biggest issues in crypto and one of multiple issues former employees are now speaking out about. cradle and a former top human resources employee spoke to cnbc about what was a multi-billion-dollar company, headquartered in hobohoboken, nw jersey they say its downfall can be traced back to one theme >> the biggest issue was a failure of risk management >> reporter: celsius says it brought in 1.7 million accounts by offering a 17% yield on deposits >> because we allow it >> reporter: the crypto company and its charismatic ceo proudly claimed that banks are not your

friends. >> if youc think of a bank, thei job is to extract as much profit off you as possible. we reached out and have not heard back celsius was one of a few crypto companies to halt withdrawals as crypto prices plummeted. >> the compliance team was too small. >> why do you think compliance was so understaffed? what was behind that >> basically, we were sucking out money and not bringing any back in. they didn't want to spend on compliance >> reporter: cnbc obtained dozens of internal documents that in part show disorganization. in one instance, a top celsius executive writes that he's surprised by a document written by another team overseas cradle, who left celsius last summer, also said the company was trading customer funds the ceo has denied this on twitter. >> did it seem risky yes. >> reporter: he also says that celsius was putting them in controversial crypto projects without the compliance team's approval according to this internal document, these investments were clearly labeled as medium or

high-risk. the state of vermont echoed this in a recent consumer alert, saying the company deployed customer assets in a variety of risky and illiquid investments and didn't disclose that to customers. risk taking was also part of the hiring process, at least at first. >> i wasn't background checked, which i thought everyone did that >> reporter: nicky goodstein, a former member of the human resources team, says she wasn't aware of any background checks taking place when she joined in may of 2021. in fact, she said executives specifically told the chief human resources officer not to background check the income chief financial officer months later, he was arrested and charged with money laundering in connection with his previous company we made an attempt to find out the status of the case, but it does not appear to be public in the israeli court system >> everyone was po'd that he wasn't background checked, because then it wouldn't have brought such embarrassment to the company if that was a process that we had in place >> reporter: goodstein says she's speaking out on behalf of customers who put their trust in

celsius. >> i feel really bad for people in the community who put money in there with confidence behind this, and not only did they lose money because the market volatility, but now they can't even get out what they put in to begin with >> reporter: in the end, cradle says that celsius might be another example of a start-up that grew too fast >> it was just a bunch of mistakes that are ending up very tragically >> reporter: celsius saying in a tweet last night that it's now scheduled to appear in bankruptcy court august 10th it's one of a handful of crypto companies and funds filing for bankruptcy just this morning, anthony scaramucci's sky bridge capital suspended redemptions on one fund this was in due to the crypto crash. this is because of some of the investments reconcile liquid they have other funds that are more liquid. they're not suspending all redemptions, baa we do continue to see the knock-on effects of crypto's price weakness.

julia, back to you >> we do, indeed, kate what an investigation. thank you. now, on the other side of this break, a former justice of the delaware supreme court weighs if on the musk and twitter hearing that is happening as we speak. don't go away.

let's turn back to the battle between elon musk and twitter. the two parties facing off before the chief judge of the

delaware chancery court today to set a date for their trial joining us this morning, former vice chairman and a retired delaware supreme court justice, carolyn berger welcome back thanks for the time today. i know we're sort of reacting to these statements as they're made in realtime, but i am curious to know your thoughts, from earlier arguments, in their words, that musk is trying to build an exit ramp where there is none >> i think the arguments so far are going exactly as one would expect, and consistent with what their filings, their papers said, which is basically on twitter's side, we're not asking for extreme expedition, we're asking for a reasonable schedule, and it's important that we get this schedule, bec because, there's so much uncertainty and it's impacting twitter every day. so the sooner we can get a decision, the better

and so far, the judge has not -- the chancellor has not said a word which also isn't that unusual. i understand now that the other side is presenting their arguments which appear to be exactly the same as they put in their papers, which is to be expected and the only real interesting part, if it's going to come, it's going to come at the end, if the chancellor makes any comments, she can just say, thank you very much, i'll take this under advisement. that's not an unusual result it means, i'm going to come back to my office and i'm going to look things over and think about it for a while the other thing that she could say, without specifying a particular date, she could say, september may be a rush, february is really too far out, i'm going to be looking for something in between

and without being specific about when, and then the follow-up to that would be a conference call w with, which probably would not be public, where the details would be worked out. >> part of twitter's argument on paper, earlier in the week was looking at historical ranges of timing, trial timing is that a fair framework to make an argument? >> sure, it's a way of reminding the judge that even with all the exaggerated language from both sides about who's the bad guy, the judge can take some comfort from the fact that other cases have been able to be finished in a similar time frame so especially twitter is

pointing out the various expedited cases where they were complicated cases and they involved a lot of discovery and still they were able to do it in about 60 days. >> carolyn, as we look at these headlines that are coming in right now, i have to wonder how much we can read into the judge's decision, how quickly the decision is made, and of course, what the decision is, about the hearing today, in terms of what to expect from the trial itself >> well, i think you'll find out two important things one is clearly, whenl ing to be? and the second one is going to be, how much time the judge is going to allocattrial, because twitter is asking for four days and musk is asking for 14 days. and, again, it could be that the judge will decide to find a number of in the middle, but to the extent that the judge issues

an order that sets the trial soon, may be mid-october, if not the end of september, or even early november, i would consider that soon, and to the extent that she also cuts down the size, so that instead of being the 14 days that like, it will be eight days, for example. that's a way of saying that she doesn't think it's all that complicated. >> i wonder under what circumstances does a buyer get to do -- a buyer who waved due diligence gets to do what ee han m elon musk does and look at this deal you know, are they that in april when twitter restated some things around the way that users are calculated i guess that opened the door is that unusual? under what circumstances do

these things get reconsidered? >> in terms of this being unusual, if there is a buyer who wants to back out, the buyer will raise every possible reason and asking for more information and saying that it's because i didn't know about x or y, that would be a pretty classic way to approach it. so it's not unusual. so you can ask for discovery or documents and depositions and all that to find out how many bots they have but first of all, the court may limit how much elon musk can do that and second of all, even if there is no limitation and they get a huge volume of documents and depositions and so forth, it doesn't mean that in the end

that's going to be relevant. >> we continue to look now at musk's response including the allegation of his team that damaging the company by sending out tweets, the idea that it's damaging is proposterous in their words. will we'll continue to watch it with your help thank you very much. >> thank you down here at session highs, up 1.5%. nasdaq up 2% still to come, the street weighing in on the digital ad market ahead of earnings those calls on the other side of this break

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nasdaq continues to gain we're looking at a lot of travel helping us to lead us here booking holdings marriott and others leading the charge today >> yeah. take a gut check estimates slashed this it morning. take alphabet. lowering targets bracing for decelerating stocks. that stock defying that now up 3% there is a similar downgrade story for snap morgue an stanley saying they will take a few quarters for the stock to reearn investors' trust. that is up .5% morgan stanley more bullish meta cutting the target to $208

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amazon fighting pay per views. they're buying a lawsuit against the administrators of more than 10,000 facebook groups created to coordinate reviews for exchange for money or free products it is operating in the u.s. and amazon sites in europe and japan. amazon's goal here to identify the fraudsters and remove the fake content which the company strictly prohibits julia, it's interesting. just on the stock, amazon is up 2.5% today almost 7% for the week almost 10% for the month heading into earnings season >> and i know, jon, we've been talking about precedence in this show it will be interesting to see how this kind of precedent, a company cracking down on problems that is seeing on its own platform is driven by things like a threat of regulation, the eu was looking into this kind of problem around fake reviews. and now we see facebook and amazon trying to crack down so

they're not regulated in this area >> i think it was burnstein that said investors are anticipating at least a minor increase in operating income because amazon doesn't want to have the headline amazon loses money again be out there but we'll see. we'll get netflix tonight. of course, tesla tomorrow night. and then snap the night after that busy week rolling ahead. let's get to the judge and the half >> carl, thank you very much welcome to the halftime report i'm scott wapner has sentiment got so bad in the market that it is good for stocks some on the street making that case today that means we'll debate it with the investment committee joining me for the hour today, my roundtable. josh brown and stephanie link with me on set let's check the markets. we have a good day going on wall street dow is good for 500 points over 31.5. 3900, a hill above for the s&p nasdaq tack,