he called it off so it will be interesting to see if he goes back on the road to raise more or if he can. >> if he can yeah as i said, again, if it were to get a price pay, he has to do it all over again robert, thank you. we'll keep a close eye on all things musk and twitter related. right now that, does it for us on "squawk on the street." >> happy wednesday welcome to "tech check," i'm jon fortt. today a broad tech rebound nasdaq up 5% over the last week. growth names like zoom and data dog topped double digits off the lows so is the worst behind us? we'll discuss. plus, it is thestock of the morning. the more on netflix and whether it is the end of an era of single minded spending this hour finally, don't think we forgot about twitter. will former ceo dick costolo is

going to jjoin us. the first interview since the news broke in april. >> we're going to kick off with netflix and a new era for streamers. netflix reported better than expected results the less bad than anticipated loss of about a million subscribers. and laid out where the future will lie the focus more on generating revenue and less on user growth. the two new initiatives that read hastings the co-ceos focus on, generating money from the 100 million people watching netflix but not paying, thanks to pass word sharing and launching a lower cost ad supported service early next year these two things are closely connected. lower cost service will give netflix a better chance at getting the pass word borrowing users to start to pay. and lower costs could prevent users from turning out as soon as they finish bingeing their favorite show. now netflix and all the other streamers are working to figure out how to lock people in and

minimize that churn. for disney, it's by keeping its bundle with disney plus and espn plus and hulu far less expensive than those options a la cart for warners brothers discovery, they're working to combine assets into a new stream bundle which we expect to launch soon jon, it all comes down to finding new because to hold on to cash strapped consumers >> yeah. i've been thinking about this for the past few hours what the real readout is for the whole media ecosystem. i think maybe the big idea here is the death of ala cart is which is different from a rebundling it's the death of this idea that technology and streaming are going to allow a new media company to targetpremium conteno the home so well that people will just subscribe. advertising is unnecessary and theaters and windowing would be unnecessary too we've seen both things crumble,

right? "top goun maverick" doing great the minions movie, in the theaters, doing great. right? pixar not doing as great a little bit more of that focus on the a la cart streaming option then netflix moving towards advertising, chasing that revenue. i wonder where it goes from here and how many business mod vels have to adjust >> it depends on how much you want to rely on consistency. i mean, putting all your cards on the likelihood of a top gun happening, julia, is not easy. it's a lot more easier to have an annuity business where you get that subscribe eastern advertising revenue. even with the strength of stranger things, they ended up with this relative weakness on subs in north america. and u.s. and canada. and that to some is what it was the real big red flag of the quarter. >> yeah. but what is interesting is that

netflix outperformed for q-2 losing one million instead of two million subs the guidance for q-1 gains was less than expected saying they expect to add one many i willon subs in q-3 rather than the 1.8 million that analysts expected ultimately this is all about netflix refashioning itself into a tradition alameda company. to are so long it's been valued as a tech giant. expected to grow like a tech giant. now we're seeing more of that media company angle. we're going to continue to talk about this with our next guest -- sorry, jon. >> well, maybe this question can wait does it need a more tradition ally b traditional library and theme park >> that's a totally different business although perhaps we'll see if the theme park business continues to be something that is resilient during the recession. it certainly seems -- or a recession. certainly seems to be the case for both disney and for nbc

universal. those numbers have been holding up but getting into the theme park business, that's a whole other ball of wax. our next guest is bullish saying that thshaurz can move 30% highr from here. let bring in our research analyst. you cover the whole media space. i want to get your take on netflix. let's start with your big picture. what do these results mean for the rest of the sector >> these results, i mean, i think you framed it accurately they were better than feared i think the big thing and in a weird way the trouble for the stock in the near term is right now netflix is a bit of an orphan stock and that growth investors aren't really animated about it they're known because of the ads. and there isn't enough free cash flow to justify the valuation. so it is stuck

the key is to launch that ad base tier. i think that has the potential to sort of help both potential constituents, growth and value potentially get interesting in the stock. >> what is interesting about that earnings call last night is they kept on stressing, emphasizing that the ad business is going to evolve over time it's not going to launch fully formed out of the gate and that consumers and investors should expect that to be sort of early days and the service will get better and better. is that a warning? and how concerned are you that ad business will be years before it generates meaningful revenue? >> netflix has a long history of sort of testing, learning, adjusting and so at some level i don't think it should come as a surprise that they'll go slowly. i suspect they probably launch the ad based tier outside the u.s. because the stakes are a little lower we know that the u.s. is the biggest ad market by far almost by definition it will be gradual. i don't think it's a warning though you know, as indifferent as

investors are today on netflix's shares, you'd be hard pressed to find someone on the institutional side that is bearish on the ad tier really just arguing about timing, right? it's not the magnitude it's the right strategy. i'm glad they're doing it. it will help subs and revenue and cash flow. >> so that's interesting if we agree that it's a matter of timing, not if, and if we agree that the sub guidance of near term is better than expected, does that mean we can prevent a return to $162 >> i sure hope so. you know, the risk is, you know, what happens in a recession? right? do we end up retrenching on the sub numbers? years and years ago i used to cover the telco stocks i was terrified that everyone was going to accelerate terminating land line voice subscription that cost $50 or $60 i thought for sure that was going to happen. the s&p 500 was sub-700.

unemployment rate was high why wouldn't they save $50 on a land line they didn't use? we didn't see it accelerate during the great financial crisis so i'm guardedly optimistic that the sub members out of netflix will hold up well. >> yeah, jason, i guess people don't churn out of their land lines when they stop calling relatives as often i don't know the equivalent. >> it's hard yeah, it's worse though. you can argue that the land line had no functional use and the mobile phone is a freeway to save $600 a year this at least people use it. so, you know, it is like a loss subscribing to land line >> how much internal change do you think netflix has to do to be built for the next era it needs to operate in? it seems like today's netflix is structured for streaming for

subscriptions, not for ads not for mondaymonetizing i.p how much work would have to be done to rework the existing agreements or get new agreements structured the way they need >> a fair amount you know, i have this old adage that says if you think that a management team is pursuing a certain set of strategies historically because they were idiots and you have the wrong investment thesis. right? and so my point is that for a long time people viewed netflix as disruptor everything that netflix did was right. everything that traditional media is wrong they do all the thing this is he do whether it is windows, sell ads, put movies in theaters, all that stuff why? it generates more revenue and more cash flow you're segmenting the marketplace. you're capturing all of the revenue under that demand curve. so it's going to take an

adjustment on the part of netflix to pivot from the disruptor that burns cash flow they're going to grow up and become something closer to a traditional media company. that is something that investors applaud because it's the rational thing that will generate the most cash flow for the assets they do have. >> yeah. so interesting netflix is more of a traditional media company and vam is valueds much now you have all of these other players competing head-to-head because we're seeing this disney push towards their bundle. we're going to see the warner brothers discovery bundle. we could see moribund willing of all of the other services. how do you that i is going to impact netflix's strategy. how is that going to impact the subscription that's consumers have a he year from now? >> one thing we learned in the

media industry is never want to give the consumer price visibility of in the old linear world, you didn't want to pay how much did you pay for cnbc or cnn? you say here is a package. everything under the bundle or no pay tv. what this streamers are all trying to do is essentially create a synthetic bundle. putting up in ip under one app that is creating the bundle again. it's just not quite as big of a bundle it is still a big bundle you don't want the consumer to know what "stranger things," how much value they ascribe to "stranger things," it's you get netflix or you don't what you are going to see is fewer apps and end up with bigger bundles so i wouldn't call that a lacart buying a single show is a la cart i would call it linear tv 2.0. >> yeah. i agree.

allah a la cart is about the streaming bundles. >> i was going to say one other thing. if you do the math on what a consumer pays for netflix stre streaming it's about half a cent a minute so how many apps are they going to have? they could have a lot of them. streaming is still cheap half as cheap as linear. >> relatively inexpensive. jason, thank you >> yes you bet. >> meantime, nasdaq showing some signs of life this week. the index is up 7% since the beginning of july. rebounding off the relative lows back above the 50-day moving average for the first time since april. >> starting to get a chase look here as it goes higher and clicking off maybe some of the little checkpoints that say that this rally has a little more behind it than prior bounces take a look at a one year of the nasdaq 100 you see the clear short term break higher as well that's very daunting kind of down trend that

we're fighting you see here there is a series of higher lows we have not had a retrace back to that mid june low what the we've done is both in the broader market and here with the nasdaq 100 is everyone is looking at this peak from april and down into june we broke it above that so obviously, definitely progress much doesn't mean it's obviously over this down turn. but it does show a little more sponsorship. the mark is a little more sold out at the lows. very defensive positioning and the growth store has a little traction here yes, short covering is a part of it it is part of every fleeting bounce as well as real bottoms it's not so much as saying that therefore can you dismiss what is going on. some of the breakdowns of what has worked over the last month plus since that june 16 nlth low here, apple will among the big heavyweights apple is a standout. still up 13% by the way, still 60% the high so you're seeing in there much more counter trend type of similarly with cloud

cloud sectors still down 50% this is the equal weighted nasdaq 100 basically shows you the typical large growth stock, large nasdaq stock had a nice move but nothing compared to some of the higher beta and that rush into apple. >> all right mike santoli, thank you. elon musk losing his first court battle with twitter. potentially walking away with billions in cash the former ceo will join us to discuss this since it all started. that's next.

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time now for a gut check juniper, arista and f5 are bracing for supply chain problems the other side, they still see

value in ararista. they're calling it one of the best protect networking games against the current macro environment, carl. zbll jon, let's it uturn to twi. the trial set for october following that court hearing in delaware on the heels of the decision, our next guest is finally ready to break silence having made no comments on the saga since musk first made the bid for the platform in april. joining us this morning to discuss former twitter ceo dick costolo is here. >> great to be here. great to be back here. >> first, just a comment on the hearing that we got. it's early days, obviously a general sense that better to win the coin toss than lose it >> yeah. i mean, like most people, i think i learned the word chance about 48 hours ago so i'm no expert in delaware chancery court but what seems to be in twitter saber, you know, hard to know. there are a bunch of hedge funds

that have taken a long position here one of the previous guests seemed to believe based on their knowledge of chancery court that twitter has the best case here. >> right what is your sense about whether twitter is being well advised at this point and how the board reacted. going all wait back to the initial offer. >> you know, the bored has to do what is the best interest of the company. so the fact that pursuing this legal strategy doesn't surprise me at all. and i mean bret taylor has been the chairman of the board has been pretty levelheaded and great and a great human being. i wouldn't expect anything else from him it sort of seems like the likely outcome here irrespective of the initial decision is he ends up being, you know, needing to pay a breakup fee. ignoring whatever the initial decision from the chancery court is >> so, dick, looking at what this means for twitter over the long run, how disruptive has

this process been to the company based on your experience having been there for so many years and how can you move on from this no matter what happens? >> yeah. i'm laughing because twitter is a hard nut company to run on a regular day to day basis you have product that everyone who uses it is pretty addicted to and has a very strong opinion about the changes that need to be made to it to make it better. and then you've got a first time ceo who has been ceo for a couple months and then this happens. and ramps everything up, you know, a 10 x from the normal noise volume so it's been extraordinary they have a resilient team around the ceo

the general counsel has been through everything she's had everything thrown at her pt of those people have seen it all so having that team around the ceo to be able, to you know, help him through this, if you will, they're all enthusiastic, generally opt manistic good natured people i think if you were someone that came into the role particularly stressed out person, you might have gone into coronary arrest some time around memorial day. >> yeah. certainly a high pressure, high tension environment. but it sounds like you think there is no chance that musk ends up buying this company. is that the case do you think that twitter needs to implement some of the changes that musk talked about i know a lot of people were really excited to see what a twitter under musk would look like before things fell apart. >> wale see whether he has to pay the breakup fee. i don't know what the court is

going to decide. sounds like most of the hedge funds think that the court is going to decide he needs to go through the transaction. i do believe -- i think this -- people inside the company know this they have to expand the footprint beyond the advertising model. it doesn't mean it doesn't mean it's a user subscription base. it could be something like a bloomberg-esque feed that, you know, hedge funds, banks, others license in order to find out what is happening in real time and get information advantage over, you know, over others or competitors of the retail investors. could be a number of things. it's been a while since there is a new revenue line they need to do. that. >> take twitter to the psychiatrist couch with me if you will what's with the company's kind of weird co-dependent need for

huge personalities that eventually reject it whether it's the funders who have all found something else to do and don't care about twitter anymore and now elon musk. >> you attract an extraordinary amount of attention on the platform we call them followers when someone follows you, it makes you feel, you know, i have this many followers. it doesn't mean you're leaving them anywhere but makes you feel that way i think -- let me say this about ee lon musk. there are people that believe he is just -- he's being a troll and the people that believe, look, the guy created and two of the most amazing businesses in the united states. the interesting thing about elon musk is he's a different person in private and this may be overstating things and not totally fair but he's a different person in private than he is in public in public on twitter, you see him testing boundaries and poking and seeing how far he can go with things a lot of that is let's just see

what reaction i get from this. in private, he provides extraordinarily -- he's a really careful their and gives you particularly well thought out answers to questions you may ask. sometimes even beyond the bounds of what you would have thought anybody might have considered in that space so when you do think about elon musk running a company, again, you have to think about there is this different person. the executive is a different person than he is on twitter >> okay. and now a spam type question when you were running twitter, did you believe you had a good handle on what percentage of accounts were real people and what percentage were not >> yeah. i mean again, this has been discussed at length. and there are actually a number of great posts about this out there. when the company files its opinion about the number of spam bots on the platform, there are

a lot of bots, when the company files the spam bots report, it's based on statistical analysis that any university statistics professor would tell you is the right way to measure these things on basically a version of something called central limit theer yum. so, yes, i have every confidence in the world that they're still doing it that way. the way they say they're doing it and that's what any stats professor would tell you is the right way to do it >> your comments about elon musk are interesting and poking and trying to provoke a reaction the disparaging remarks he made about the company are now in his filings. what do you that i is about? >> well, i'm sure that's -- i'm sure his legal team doesn't think that is particularly helpful and had conversations with him about that. i don't know what it's about other than it's not necessarily the case that he's thinking about what this might look like in legal filing later. of he's thinking about what kind of reaction this might provoke or, again, i think a lot of cases sort of tests the boundaries of, you know, what will happen if i do this

>> what do you think the scenario looks like if they pursue specific performance and forced to buy? do you think there say possibility of that? and how does that company run? >> i just think there is very little chance that it doesn't get dragged out through appeals or further -- you know, reports yesterday that he's going to counter sue for something elimination. i g else i think ee lon us are being running twitter very, very different than the public perception of elon musk running it >> in a better way >> in a probable better way. >> because of his knowledge of ai >> yeah. >> he built these two great companies. i know that in private conversations we've had -- he's had with people, he's got enormously, you know, thoughtful remarks to make just like he does about the other two businesses where he's in, you

can't argue but that he's been extraordinarily successful and more successful than probably most people thought he would be with those two >> finally, you own any shares buying any shares? >> i'm an owner. i haven't been buying or selling in any capacity. over the -- best to step back and observe. >> right >> finally, give us a window into the way in which the alumni are discussing all of this all the people you worked with during your tenure at twitter? >> it's just -- it's a lot i guess the way i would summarize it is you know, there is a saying -- there's a saying among the twitter alumni, #twitter something crazy will happen or something crazy will happen to an executive or some -- something crazy will happen on the platform you ask someone at the company and they say #twitter. this is peak #twitter. >> i think everybody knows exactly what you're talking

about. it's stortthe story that keeps giving thank you for coming in. >> great to see you. >> your thoughts are valuable to viewers. julia? >> #twitter, we have to start using that one after the break, is netflix finally cheap here we'll discuss. don't go away. it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪

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kick pain in the aspercreme. welcome back to "tech check. i have your update here's what's happening at this hour more signs of a cooling housing market this morning. the national association of realtors says existing home sales fell 5.4% last month bigger decline than economists were forecasting and inventories of homes for

sale registered their first increase in three years. separately, the mortgage bankers association reports that mortgage applications fell 6.3% last week to a 22-year low macau plans to reopen the casino saturday after officials unwind the strict covid measures that have locked down the gambling hub macau shut down all casinos on july 11th. business is likely to be muted for several weeks as many virus related restrictions on residence do remain in place the u.s. postal service plans to buy at least 25,000 electric delivery vehicles as it upgrades the fleet the service expects that at least 50% of newly ordered vehicles will be electric. and says the so-called next generation vehicle fleet should start servicing postal routes late next year i wonder if it that's still going to attract dogs to chase

down those trucks, julia >> postal service truck is a postal service truck thank you so much. netflix shares higher today. up about 4.5% after subscriber losses were less bad than feared but the stock is still the biggest lagger in the s&p 500 year to date so is this stock cheap here? we have a look at. that. >> julia, it's always that debate, right? all relative based on what you think a company should be worth and what you're willing to pay for that kind of future stream of profits or earnings to kind of put that netflix move in perspective, at one point this was, again, a 300 plus billion dollar market cap company. if you just go back to the record highs that we saw in at the fall of last year, at its peak, again, roughly $306 billion we'll call it in it terms of overall market cap. but that 70% slide that we've seen since then has shaved a lot off of theirs. now we're talking to $94 billion

market cap in dollar terms now to put that in context, we often talk about streaming netflix versus streaming theme parks disney right? that comparison is made for quite some time, especially on netflix's asent to the record highs that we saw last year. so netflix versus disney in mid november of 2021, that $306 billion market cap topped the $286 billion that disney was worth at the same time and then today though, a lot less $93 billion. that market cap is again, just about half of what disney is worth today. so you can see that kind of big shift streaming of big part of that story now to your point about where the relative valuations are, is it cheap the reason why that is coming into discussion right now is because some traders and investors are looking at the relative valuation of netflix over the course of the history this is a ten year chart of the forward price to earnings ratio on netflix so how much you pay in stock price today for next year's

worth of expected or estimated earnings coming from netflix, it's currently sitting just around 19 to 20. around just five years ago, it was trading around 100 times forward earnings so it's a fifth of what it was on a valuation basis but the question that becomes whether or not that kind of dissent that we've seen over the course of the last five years is enough to make it compelling and, carl, that's the reason why some at least bulls on netflix right now are saying that maybe the carnage has been enough to say that it's cheap looking at a ten year chart of what it looks like but, of course, future growth is always going to be a big part of that story >> especially as the competition continues to come at them. thank you. speaking of netflix, we have a stock screen highlighting what could be the next surprise earnings winner. the criteria, greatly lowered expectations for q-2 seen through negative eps revisions, big fall in price, rebound the last month, and a long term track record of success before falling on recent hard times or

rather a better ten-year compounded annual return who fits the bill? four tech names with very different specialties, intuit, hardware player qorvo and finally, tesla interesting screen >> yes, speaking of tesla, more on what to expect from results this afternoon is next but first, check out this move on bitcoin headed higher today by about 1%, i believe. let me see more than that 3% above $2410. now up more than 25% this month alone stay with us (ted) after talking and texting for years, we got married... for the family plan. (jane) and then we really expanded our family... for the wireless savings. (ted) it seemed like the responsible thing to do. (jane) and then, just yesterday, my sister told me about visible. (sister) yeah, get unlimited data for as low as $25 a month. no family needed.

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tesla is expected to report earnings to night. factory shut downs in china, supply chain constraints, those are in focus early tesla investor is looking to buy back in but sees the stock falling to $420 a share. joining us now, managing partner. welcome. i think you're saying you sold your tesla position when it was at about $1,000 a share. a what is tesla worth and what price are you willing to pay to get back in? >> yeah. i wasfortunate to see the company back when a private

company and invested in late 2008 i sold a big chunk in 2013 and the rest when it reached over a trillion dollars partially because i looked at the unique about that company which is that 37% of its shareholders are retail investors. and that confluence of the gaming of investment plus all that free government capital plus elon musk's constant reach out to the retail investors was boo'ing the stock to such a degree that i thought once the money ran out and the image of the infallible elon musk starts to wayne, a lot of the retail investors will also start realizing that 79 tombs imes prt earnings ratio exuberant that is too much for it. i believe the right price is around $400 and i'm going to wait until i pick back up that price. >> why $400?

put that in light of the challenge challenges we expect the company to be facing for this quarter and this year? why doesn't tesla get netflix, right? given that there are competitors who, i mean the threat is always competitors are going to get into the space and have success. they haven't really in a significant way yet when it comes to evs but they have been streaming and that eventually caused a rerating of netflix. why won't that happen to tesla >> it will happen to tesla i don't know if it will be crushed to that degree even if it does, i'm long term bullish on tesla even if it goes below $400, i'm happy to hold it for the long term i see it breaking through the trillion mark in the long term about it we're talking about maybe even 8 to 10 years ahead i'm happy to be a long term holder of the stock. there are several models of the entry to market votes on the low end and high end of the market so the association between tesla

equalling electric vehicles will start dilute over time as consumes have more options and as we know, you know, the battery division did great the solar division due to capacity constraints did very, very poorly. and those government subsidies that they sell over in europe will obviously also diminish over time if, you know, more manufacturers are producing evs. they need to bite government issued credits anymore from tesla which is a big part of the revenue as you know. >> looking at the issues of supply and demand. i know this quarter will see the impact of the shutdown and then, of course, on the demand issue, we have this question of how much consumer spending will pull back with the potential for recession. how persistent do you see problems that are similar to the shanghai plant shutdown? and how resilient do you think that the tesla consumer will be? >> i'm shaky on the tesla consumer long term

the brand is getting a little tarnished. the association of it being a symbol of the future is getting muddled with a lot of the erratic behavior from the founder. but regarding supply constraints, i can't speak to more variants of covid but byd seem to also suffer from shutdowns and still deliver a massive amount of cards beating tesla's model y and model 3 in china. so that baffles me a little bit. i'm curious to find out how that was able to happen the whole industry just so you know, like, is going to have a massive supply issue over time we're transitioning from a fuel based economy to a mineral based economy. so that means that there is a whole new supply chain that has to be built to allow us to build these storage capacities, these semiconductor that's are going to fuel this new economy and, you know, there is just -- i have done the math my firm full

cycle has don't math on this and copper, you know, if everything goes perfectly still have a 20% differential between supply and demand in the next eight years and that's one of the most simplest, most abundant minerals out there. but we can't -- we can't transition as fast as we want to without figuring out how to rejigger our supply chain and find new mineral capacity. >> right and that's an even shorter term though we're dealing with energy security issues in the eu. i wonder whether or not it's not just a tesla issue but to what degree manufacturing might be hinders if putin plays some of the very powerful cards that he still has. >> yeah. it's a very interesting time to be an investor this confluence of covid, the war in the ukraine, the transition from high carbon to low carbon economy and how messy

it's been in the different ideological political factors around, you know, some trying to keep it, holding it back others trying to drive it forward. it's a very, very interesting time very puzzling. my firm, you know, focuses primarily in helping us transition as fast as possible to a low carbon economy. so we are interested in being kind of the backbone of the -- of the global economy but the low carbon version of the low carbon economy for the next 30, 40 years thats what we focus on so we bump into the headwinds all the time now is a very interesting moment for us >> yeah. well lots of folks in that because going to watch the tesla earnings after the bell. thank you. >> very good to have you >> watching coin base this morning. we keep our eye on crypto. stocks up big. posting risk management practices in a blog post and noting it no longer has any exposure to celsius, three arrows or voyager.

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backing the bill, democrats feel confident this can get done before august recess >> i want everyone to know the final margin of last night's vote, 64-34. that's a clear signal that after a lot of hard work and after a lot of compromise from both sides the path is clear for chips plus bill to reach final passage. >> now that chips plus package includes tighter restrictions on companies that would benefit and can't use federal funding for stock buybacks or pay dividends. companies also have to notify the government of any material expansion of chip managing capacity in china or other countries of concern the bill also authorizes $81 billion for the national science foundation and $11 billion for the commerce department to create regional technology hubs and foster innovation and n. distressed communities but businesses lost a push for

two key provisions it doesn't include a retro actively reinstatement of r & d expensing and a 25% tax credit for equipment and doesn't cover chip design. that would have been a boost for companies like amd and nvidia. the senate still has to take another procedural vote on the bill this the bill this week, final passage in the chamber is not expected until next week where the house hopes to send it to the president shortly after that >> meanwhile, bernstein upgrading alibaba. and why a recovery might be harder than expected that's next. 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

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chinese tech stocks have been battered in the last year, hit by the government cracking down on the sector and business at large and there could be more trouble brewing for china's tech companies and their workers. our junis yoon has that story. >> reporter: investors may want to look at these offices in silicon valley many are empty regulatory crackdowns have undercut china's tech sector, which traditionally has attracted and employed many young chinese. it is now shedding workers

they have acknowledged layoffs executives and former and current employees told cnbc other companies are down sizing too. until a couple weeks ago, video sharing giant had multiple offices in this building including this one you can see the outline of its logo logo still etched on the wall. they declined to comment but trouble in china's tech sector is a big reason why youth unemployment is at an all-time high, above 19%. this i.t. worker says he survived two rounds of job cuts at his startup since the start of the year. no one is thinking about jumping to other places, he says everyone is putting up with their current job as long as they can, because it's too hard to find a job. a recent survey by a local

recruitment firm found that half of those looking for a job reported layoffs at their current company, and 70% felt unsafe in their jobs the companies themselves have been reluctant to discuss layoffs. the topic has become politically sensitive as the government tries to manage the job market and stabilize the economy, despite covid lockdowns. john >> great insight, junis. thank you. information that's hard to get our eunice yoon. >> bernstein upgrading the stock of alibaba they see the gross merchandise value staging a rebound. plus, they expect an ant ipo we're back in a moment

one more thing ever wanted to be an influencer at work? well, microsoft's new expansion for teams might help you out the company's announce being the launch of a new feature part of teams encouraging social networking in and out of the

office employees will be able to share video and photo stories at no additional charge on a platform that looks pretty similar to snapchat, facebook and instagram. i'm pretty old now but i subscribe gen x to that, i don't want to be that kind of an influencer at work >> i think it seems like microsoft might be trying to address the fact that we all, including myself, are mknown to check the likes of twitter, maybe instagram at work. maybe they want to convert all of that time over to their own platform i don't think it's going to work we already spend so much time toggling between messages on teams and e-mails, so many ways to communicate, i think it's too much >> the hybrid work environment's definitely being solidified. there's a bunch of notes out

today maybe arguing that the allure of one big corporate headquarters makes sense, and that's helping some of the higher-end reads meanwhile, close the session highs, only 30 minutes away from s&p 4k we've got tesla tonight. let's get to the half. >> carl, thanks very much. welcome to the halftime report momentum for the bulls do they finally have it? and if so, where can it really take stocks from here? we discuss and debate that with the investment committee with me on set is jenny harrington coming off the best day since june 24th. a nice little reversal here. we were negative early on. we're positive now dow's trying to get to a triple digit gain for the day 31,913 s&p 500 trying to get to