sarah, we'll have to pay attention to the markets in the last hours of trading today. >> dollar just turned weaker and things are improving in the markets, they follow it. industrials are positive and so are materials and so is real estate off the lows and the nasdaq is positive. >> it is, as it has been in recent sessions as well. that will do it for us on "squawk on the street. "techcheck" starts now happy thursday welcome to "techcheck. today amazon buying into the doctor's visit amazon bidding $4 billion for one medical as it pushes further into healthcare. shares are on pace for the best month since the pandemic and later, we're talking tesla stocks up despite the declining margins as the company dumps most of its bitcoin holdings the ceo of binance, exclusive this hour coming up. we'll kick off today's feed with amazon's big bet on healthcare this morning. the company announcing plans to acquire one medical for $18 a

share, in all cash deal valuing the primary healthcare provider at almost $4 billion shares of parent company one life healthcare are skyrocketing on the news, up more than 65%. the deal expands amazon's growing presence in healthcare, adding depth to the company's offerings, like its online pharmacy, which launched after its acquisition of pill pack, and telehealth service amazon care but most notably yet another example of the company putting dry powder to work as tech valuations slump if this deal is approved, it would be amazon's third biggest acquisition, trailing only its purchases of whole foods and mgm. in all this news coming, of course, as amazon is seeing big gains recently, now on pace for its best month in over two years. dom chu joins us now with a breakdown. >> it is also a cash deal and not a stock one. maybe not as much of that reaction in the stock price today, and by the way, in just the last few months, we have seen amazon take higher into

green. you see they're up one quarter of 1%. this is a stock that has seen to julia's point here a nice run-up off the lows, just over the last couple of weeks here and months, we have seen a rally off the lows to the tune of around roughly 20%. that's not too bad considering what we have seen. but, remember, from these current levels, to where we were just in the fall, we're still down roughly 35% in that time. so it is not been a great go for amazon right here. but is it a compelling buy right now? that's the kind of battle playing out. and the reason why is because the valuation may not be as compelling even with that kind of a stock pullback. here's what i mean this is the forward price to earnings ratio for amazon over the course of the last five years. at one point it kind of pushed that 160, 170 area as you see here on balance, over the course of the last five years, this is roughly the kind of average line here it is about 81 times next year's earnings we're currently right around 75, so call it a 7% discount to where it has been over the

course of the last five years. so it is a discount, just not quite as much as some of the other stocks out there, especially when it comes to megacap technology and communication services that's what the forward price to earnings tells you what we are looking at right now is a stock that does have a very big influence on the overall markets. that's the reason why a lot of investors care, because when it reports earnings next thursday, it could have an outsized efebt on the market. in the s&p 500 in the etf world, it is roughly 3% of the spider etf. it is the single largest or nearly 24% weighting in the spider consumer discretionary etf, ticker xly. when it comes to the amazon story that valuation argument is going to be a very compelling one, especially when investors see what those results are come next thursday. that's the reason why everyone is paying such close attention, even right now, even without that proposed one medical deal back over to you. >> it is a big deal, dom

thank you. our next guest going to talk with us about it, asking whether the deal makes sense for amazon as a tech company, whether one medical can truly grow as quickly as some expect, given its smaller user base, here to discuss, adrian aun, founder and ceo of primary care tech company forward. good to have you i want to start off from kind of the competitive perspective. i was just chatting with aaron bally a few moments ago, ceo of carbon health, who is also in this primary care, you know, tech-driven business he says he thinks this is a good thing for the whole space. do you think regulators should look at this or is this something that you welcome >> yeah, it is a good question so at the end of the day, i welcome more people being in tech, but in some ways more people being in healthcare, but in some ways i'm fairly disappointed in this when we look at, like, the preeminent tech companies of our generation, and they say, we're going to come join the fight for

healthcare, this is one of the biggest problems of our country, and this is the solve? we're buying companies, where the biggest innovation is their waiting room and nice couches? i get fairly disappointed. so, frankly, i think the regulators look at it, they cannot look at it, i'm not sure it is going to make a big difference you're talking about a company where 15 years into the company, they're talking about hundreds of thousands of subscribers. there is 335 million americans, what are we going to say, another 100 years and we'll cover the state of california. we're talking rounding errors to zero right here. when tech gets into the game, tech needs to bring technology healthcare at one medical is the service, it is not a product, services don't scale if we're going to actually solve healthcare in this country, we need to bring actual technology to the point where we can scale it out to the entire country i think what's disappointing about this, amazon is forgetting their roots. when jeff was there, jeff would

say, hey, how do we bring technology to the point where we can change the game? he put packages on our doorstep the next day, he's putting rockets in space and all of a sudden our solve to healthcare is to just rebuild what has already been done and to me that's very disappointing. >> how do we know that this won't scale like retail in the sense that amazon's third party business and the technology that they're applying to that, that's actually a bigger part of their business than the core amazon first party part also, arguably, their whole cloud business, which is the biggest part of their profitability is about applying technology to problems outside their core how do we know that this just isn't amazon's foot in the door to direct patient care, but they do intend to apply technology after that >> yeah. so you're asking the exact right question, which is at its core you have to ask what is healthcare

and healthcare today is a service. by that, what i mean is it is hands on a body. it is the doctors, the doctors, the nurses, the medical assistants that are providing the care until amazon's going to show up and say, hey, we're going to take all of that, and we're going to convert it over to hardware and software, when amazon shows up and says we got a robotics team that is drawing your blood, we have a robotics -- we have a software team that is building ai to diagnose you, they say that, and i'm going to start getting interested right now, when i look at what one medical's engineers are doing, they're finding new ways to bill you. ask yourself why one medical, what they do, they work with your insurer, that works with your employer your employer at the end of the day, the incentive is not the same as your incentive just ask yourself, every year your employer will accept you, time to get your flu shot, time to get your flu shot, time to get your flu shot. why? is there a rash of people dying of the flu that i don't know about? no on the other hand, tons of

people are dying of heart disease, cancer, blood pressure. but your employer is not walking up to you asking, wait a minute, let's go ahead and let's talk about your blood pressure, your cholesterol, things that will really kill you and ask yourself why. those things, if you get the flu, you're going to be out some work, your employer will be out some money heart disease, that's going to happen in 30 years, 40 years, your employer doesn't want to know about that. >> adrian, i understand that you're critical of the one medical system, you don't think it is as proactive as your company forward is in terms of addressing some of these underlying healthcare issues that are so problematic, but taking a step back from that, now that amazon or assuming this deal goes through, now that amazon could have that in person touch point, to build upon their virtual healthcare work, do you think this could be a turning point and amazon could, in fact, innovate on that system and use it as an opportunity to really transform the field? >> no. because they won't have any --

they won't have any ability to scale it that's the problem as long as the reliance on the doctors, they won't actually have any ability to scale doctors. what they have to do is they have to actually build technology unfortunately, doctors are amazing, not just not enough doctors on this planet what they need to do is they need to find some way to scale that, right. but today their business model is they take the doctors' hours and they use billing codes to say, every time a doctor does a procedure, i make some money off of that. that's the existing healthcare system, that's how it works. if they truey and move away from that, they make less money this is part of the existing healthcare system. they attach themselves to the insurance and the employer model, they said, wait a minute, we removed any ability for us -- for ourselves to innovate. this is why it is so important that amazon goes back to the roots as a consumer company and says actually let's work with the consumer, so they have the incentive to do the right thing.

and, yes, go ahead and scale. >> we'll see if they get this approved and see what, if anything, they can build on it adrian aoun from forward, thank you. >> pleasure. an update on the president's condition after we learned he tested positive for covid last hour kayla tausche has more. >> the president's physician just releasing a letter describing the president's symptoms saying that last night he began experiencing a runny nose, fatigue, and an occasional dry cough. and that beginning this morning he first tested positive via antigen test as part of the normal testing protocol. and he tested positive and that was later confirmed by a pcr test given the president's age and his symptoms, dr. o'connor says he has begun a course of paxlovid but said the president should be maximally protected because he's fully vaccinated and twice boosted. his second booster shot he received in late march of course, the president just returned from a lengthy trip to the middle east, where he

visited israel, the palestinian state, as well as saudi arabia we reached out to the national security council and the state department, which had many top officials traveling with the president on those trips upon returning to the u.s., he did test negative on monday, according to a senior white house official and the first lady, who is keeping her travel schedule, despite being in close contact, she is masked on her trip today, she said that the president is feeling fine, and many members of congress are wishing him a speedy recovery. john, back to you. >> as do we all. kayla, thank you. we'll continue to monitor the white house and bring you any updates. meantime, tesla shares headed higher we'll break down that stock and the inflation impact next. "techcheck" is just getting started.

- in the last two years, we quadrupled our team and the pace we're growing, i couldn't keep up without ziprecruiter. they do the legwork and they get my job posting in front of the right candidates. i love invite to apply. i instantly see great candidates and i can invite them to apply. we have hired across all departments, engineering, marketing, hardware, field techs.

you can basically tell ziprecruiter who you need, when you need it, and they deliver. - [narrator] ziprecruiter. rated the number one hiring site. try it for free at ziprecruiter.com try it for free at ziprecruiter.com

revenues miss street estimates higher costs and supply chain challenges hitting margins there.

ceo elon musk addressed the significant increased prices on last night's earnings call take a listen. >> we raised the price quite a few times, at embarrassing levels we had a lot of supply chain and production shocks. and crazy inflation. so i am hopeful, this is not a promise, i'm hopeful we can reduce the prices a little bit >> while shares are higher this morning, our next guest says the stock may already be priced for protection, for perfection with less room to run than bulls expect bank of america managing director john murphy joins us now. john, the stock is up almost 7% today, but it is still about $50 less than your price target. what is your outlook now that we have gotten these results? >> well, thank you for having me i think you went through the laundry list of risks and problems that went through the quarter being volume under pressure, issues with shanghai

being shut down, but the company still put up pretty good margins, 14.6% margins, positive free cash flow, so in the midst of all of this sort of deaf and dam nation that the company was facing and the industry is facing, they put up pretty decent numbers i think one of the big things that we learned is how fast they intend to increase the capacity, basically in the first quarter, they were highlighting about 1.05 million of capacity with shanghai ramping up, fremont expanding and austin and berlin coming on sometime late this year they're talking about 1.9 million of capacity. that gives you an indication they may be able to theoretically hit these 50% volume growth numbers this year. and next year. you need the capacity to drive the growth in this industry. but all things considered, not too bad a quarter. >> i want to ask you about that 50% annual growth in vehicle deliveries that they reaffirmed. it seems like that target is

going to be tough. you said you think it will be possible, but all of their forecasts are predicated on that playing out. are you concerned that they might not be able to hit those targets? >> well, we are undercutting those, we're up a little less than 40% this year had a lot of catch-up to do in the second half of the year, given what went on in the second quarter and we're only up between a little over 20% for next year. we're skeptical they can actually hit those there is two reasons one that capacity ramp is not going as well in austin, berlin as expected. and two, competition is coming in we have forecast all the product that is coming out in the next four years and a study we do called car wars and there is 110 ev-dedicated coming to the u.s. market in the next four years. we actually think that from a competitive standpoint, for the first time ever, elon is going to be -- elon and tesla will face real competition in the market for some pretty good

product. >> how much china exposure are you factoring in how much are you watching the state of the economy there and tesla production there >> well, it is huge. basically of the 1.9 million in capacity, 750,000 will be over there. some of that is for export but it is a very, very important market for tesla and all ev manufacturers. given you're in a similar environment where demand is outstripping supply, pressures on the economy there and even here in the u.s. are not necessarily top of mind for a company like this, particularly when you look at the pricing power they have at the moment. but over time, if there was an extreme deterioration or collapse in that economy, it would be a big deal for them for now, it seems like they can ride out that storm in china and even in the u.s. to be perfectly honest as well. >> how far out, based on the way demand is outstripping supply, the way prices are higher than elon would like, but certainly still able to move vehicles at

those prices, how much time is there before you think there would be any sort of reversal and concern based on economic conditions over there? >> i think given where they are right now, it is going to be years. i think we can ride out the current storm. over time, if there is structural issues with demand in china where you ramped up auto production and fulfilled the fleet demand over there, not even just sort of the ongoing demand, there could be some issues but you have years of room, i think,to run on growth in chin for tesla and most of the ev manufacturers. ice manufacturers you would be more worried over there. >> john, on another topic, what do you make of the fact that tesla sold 75% of the bitcoin holdings >> well, i'm not a bitcoin expert, but if you look at a company that needs liquidity,

you know, and claims that bitcoin is very liquid, it is kind of curious they would change that into feed that currency the logic there that they needed liquidity doesn't add up because believers in bitcoin including elon believe it is a valuable store of value and is liquid so if that's the case, why would you switch that to feed that currency it is an odd logic he put out there. it is intriguing doesn't make a whole lot of sense, to be perfectly honest. >> yeah, intriguing indeed i was curious to ask your thoughts on it john, thanks so much >> thanks. and let's get a quick gut check on at&t, beat on the top and bottom line, but cut its outlook for free cash flow investors not liking what they're seeing this morning. that stock down 8.5% this is the first quarter at&t's reporting as a pure play telecom company after completing the warner media spin-off.

at&t had been outperforming this year, but it is down sharply this morning, and now it is flat year to date coming up, amazon announcing its intent to take a very interesting acquisition this morning. doctor's offices after whole foods and the mmgm movie studio what it signals for the company's strategies as a main street bank, pnc has helped over 7 million kids develop their passion for learning through our grow up great initiative. and now, we're providing billions of dollars for affordable home lending programs... as part of 88 billion to support underserved communities... including loans for small businesses in low and moderate income areas.

so everyone has a chance to move forward financially. pnc bank: see how we can make a difference for you.

do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance.

key bank out with a list of what clicks and what bricks this morning. luxury, calling revolve a value buy at these levels. that said, they remain overall cautious due to inflation and macro uncertainty. plus, more on amazon after this. don't go away.

your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire wealth is breaking ground on your biggest project yet. worth is giving the people who build it a solid foundation. wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life

with you, the party of a lifetime. ♪ ♪ wealth is watching your business grow. worth is watching your employees grow with it. ♪ ♪ when you need help it's great to be in sync with customer service. a team of reps who can anticipate the next step genesys technology is changing the way customer service teams anticipate what customers need. because happy customers are music to our ears. genesys, we're behind every customer smile.

time for our news update bertha coombs has that for us. >> hey, john so here's an update on the news from the white house just about an hour ago, president biden has tested positive for covid, the white house's coronavirus response coordinator tells nbc news that biden is tired, with a runny nose and a dry cough he's been taking paxlovid,

pfizer's antiviral treatment for covid. his physician expects biden will respond favorably. the president who has received four doses of covid vaccine will isolate in the white house residence, participating in meetings by phone or zoom. his press secretary will brief reporters about two and a half hours from now jill biden's office says she has tested negative today. the first lady is in detroit right now for an event >> my husband tested positive for covid. i talked to him just a few minutes ago, he's doing fine he's feeling good. i tested negative this morning i am going to keep my schedule i am, according to cdc guidelines, i'm keeping masked vice president harris is flying to charlotte on air force two. her office tells nbc no decision has been made yet on whether to alter her schedule

back over to you, julia. >> thank you, bertha. turning back to amazon, after the acquisition this morning, our next guest is bullish on the buy calling it strategically sensible here to discuss, head of internet research mark mahaney give us your outlook, why is this sensible for amazon >> well, okay, so amazon has been making a push into healthcare for quite some time they did the co-pack acquisition, they attempted to put together a consortium with names like jpmorgan. they had limited traction to date, but it has been an area of focus for them for some time what they were looking for was a partner with a relatively strong consumer brand, a differentiated approach, and one medical is a decent candidate for that. it is a tiny company they're only generating about a billion in revenue, but they are a premium growth model, 20 to 30% revenue growth they're not profitable it is a company in need of cash

or in the need of a strategic suitor and here is amazon. so i don't know how well this is going to work. this is not too dissimilar from the move they made into groceries with buying the whole foods several years ago, so i leave it as i like the strategically sensible setup this is not a shocking move by amazon now whether this can really move the needle for them over the next five years, i would consider this as an investor's part of an option package, you dent buy amazon because of this deal, but you consider it as part of the option value of the company. >> interesting the comparison to whole foods, one thing so key about that deal was the physical footprint of whole food stores. one medical is so much smaller, but the fact they have physical locations and could build on those and expand even further, how important is that physical footprint for this deal? >> well, for -- i think it is key. that's part of the differentiated offering that one medical has. so i'm leaning very heavily on

elizabeth anderson, our healthcare analyst at the firm, but this is a company with about -- well over 700,000 subscribing members. it is an interesting membership model, the primary healthcare. that's innovative to begin with, and then the number of locations, i think something like that is ultimately very flexible so if you want to put more capital behind it, that's easy to do. this is something that is going to be integrating digital, telehealth and physical health, the pitch behind this offering to consumers is you can get same day appointments at a variety of locations, where they got them set up it is going to be key, just like whole foods was to grocery delivery healthcare is always going to -- always going to need a physical presence. >> speaking of, mark, what are the things that investors should watch as we start to get more information about amazon's plans here seems to me that one possibility is that amazon builds one medical services into whole foods locations where it already

has a physical footprint another possibility is no, they don't think they can do that, they have to actually build brick and mortar in many more locations than they already have a presence, and that's going to mean capital outlay and investors, you know, sometimes need to brace themselves for those when it comes to log logistics. is this another area where investors have to brace themselves >> i think so. amazon is becoming more and more sophisticated, complicated, yeah, as a platform, as a company, and i think that's been a multiyear trend. the physical capacity requirements of a name like this, we're not talking about the logistics challenges that are associated with groceries. it is a different type of logistics challenges, but they're much less capital intensive than what you would have had with groceries. so this is all tbd i want to step back and say amazon has been making these kind of forays into healthcare, if they were going to do this, they could do it organically or through acquisition. if they do it through acquisition, find a

differentiated asset -- differentiated offering with a decent consumer brand. that's where one health comes in so that's why the acquisition looks strategically sensible in our eyes. >> in order to be a growth asset for amazon, to what extent do you think they have got to build out third party capability even as they have with e-commerce via software and infrastructure player, within healthcare, and perhaps offer that interface out, at point does it become interesting to you what do they have to do to give it that sort of either third party retail, logistics system, or even aws type enticement? >> you're asking a really sophisticated question, john i'm not sure i know the anser from a healthcare perspective. i'll give you an answer from amazon's perspective amazon if you look at the acquisitions they have done historically, i'll go back to zapos and kiva, the robotics company and whole foods, and

pill pack, amazon generally isn't the fixer upper acquirer they like to buy assets that they think have a differentiated offering for consumers that are reasonably well run and further capitalize them. they don't go in there to fundamentally change the strategy so i think the answer to what amazon is going to do with this acquisition is what the company operate the way they already have, give them more firepower to expand, if the numbers justify it. >> mark, i have to get your thoughts on snap report and twitter which is out early tomorrow morning these are two very different companies, but what do you think they will tell us about the state of the ad market >> well, we're going to try to find out, julia, over the next week and a half whether that snap blowup that we heard about a month and a half ago was snap specific or if it was endemic to all of internet advertising. my guess is we'll get a lot of noise to that answer and it will

be both. when we first heard the snap news they were going to miss the lower end of their guidance for first time ever, we thought that was probably the right call was macro, but as we looked into it more, in the last month, a series of connected tv channel checks, we haven't found that kind of weakness i think results are going to be midling this quarter for the internet ad names. it is more what is coming up in the next six to, three, six, nine months. if you will, is all of this hiring freeze, hiring slow down that you're hearing, the biggest companies implement, whether it's meta or google, that to me is the bigger read anyway, i think snap is going to have issues also it's a smaller platform, a little bit more exposure to brand advertising, twitter will have that, too, plus dislocation in the company. i'm sure operations there are undermined, temporarily impaired because of the dial dynamics you have fx hitting these companies, too it's almost like a perfect

negative cocktail of headwinds, perfect storm of challenges the companies are facing we will have numbers coming down today with snap and tomorrow with twitter >> perfect storm of different factors and also so much uncertainty. mark, thank you so much for joining us today. >> thanks, julia bitcoin and coin base the company giving back some of their gains today but up big month to date. coin base is up more than 50% of course it hit all time lows on june 30th. we will discuss the action and a whole lot more with the ceo behind the world's biggest crypto exchange bi-ncean

let's turn to growth investing in light of amazon's deal for one medical today and implications for private health tech 2022 has been marked by private tech companies cutting valuations, our next guest argues the old valuations made no sense to begin with joining us now doug clinton. doug, it seems like in a way this one medical attempted buy affirms what you're saying because 18 bucks a share looks pretty good based on where it was trading yesterday but it was trading much, much higher than that before and that's a public company. private companies still haven't entirely had that full

rationalization, have they >> they really haven't and i think clarna a few months ago was the first example of a company that has had that rationalization. we've been calling it the return to sanity where 2021 was very much a seller's market to the extreme and when you get sellers markets to the extremes you end up with bubbles and now investors are sort of coming to their senses, saying, look, with he actually have to buy assets not just on quality of business and pay anything, but we need to buy assets that eventually can justify the price we're paying based on future performance, that's investing 101 now that the bubble i think has burst we're sort of returning to that mindset. >> why should retail investors in the public markets care about this and i think there's a bit of ipo market in here, there's a bit of perhaps acquisition questions in here as far as what's going to be truly affordable for public companies to buy to fuel growth.

>> i think you have to care about it because no matter how great a company is, if you pay too much for it your returns will end up being disappointing. for us it all comes back to kind of thinking about the odds of looking at a valuation, when you look at a valuation it is that demand on future performance and given let's say a return expectation of 15 or 20%, something like that, is probably what a lot of growth investors really want to target. if you have that kind of demand for returns you can roughly calculate what revenue and earnings have to do and then say, well, how likely is that to happen when you're seeing things that feel unlikely to happen you should be saying even if it's a high quality company and try to avoid those and err toward quality companies where they are pricing in things that you think have a good chance of actually happening. >> so, doug, look into your crystal ball, if you will, for us and predict how -- what you're seeing in the market could impact the m&a landscape

especially in terms of acquisitions of private companies. we've been talking so much about amazon's acquisition of a public health tech company but what do you anticipate in terms of m&a going forward or even how the bc market might change considering these changes you're talking about. >> start with the vc side. i think that by and large we've seen a pretty severe slowdown in vc activity, probably not surprising to hear that. i've heard of a few funds that have actually just paused investing entirely and a lot of the funds we talked to that say they're still looking at deals, they're probably more closer to pause than they are actually trying to be aggressive and deploying right now. so vc i think has had a slowdown i think we will eventually see vc return to somewhat more normal activity now that the markets are reflecting what happened in the public markets maybe over the next 6 to 12 months on the m&a side we have seen some activity. t:mo bravo has been active on

the pe front, obviously we've seen amazon be aggressive today with their acquisition so i think there are some companies if you really go and you dig into the numbers and you get comfortable with the fundamentals and what they have to kind of do in the future, there probably are companies worth buying but i think there's probably moreland mines out there than absolute bargains despite the fact that high growth tech spots with down 70 to 90%. >> food for thought for in investors who have seen prices move around quite a bit. doug clinton, thank you. binance is up after this thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts

and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back.

at xfinity, we're constantly innovating. and we're working 24/7 to connect you ♪♪♪ to more of what you love. we're bringing you the nation's largest gig speed network. available to more homes than anyone else. and with xfi complete, get 10x faster upload speeds. tech upgrades for your changing wifi needs. and advanced security at home and on the go to block millions of threats.

only from us... xfinity. three people have been charged in crypto's first ever insider trading case kate rooney has that for us. kate. >> this case coming out of the southern district of new york a former coin base employee allegedly tipped his brother and a friend off about crypt co currencies that were about to be listed on coin base's exchanges. historically tokens getting less on coin boys have seen a pop the day of, a sign of legitimacy and often boosts prices. in this case the former product manager at coin base is being charged with wire fraud conspiracy and wire fraud in

connection with a scheme to commit insider trading they say that he illegally used confidential coin base information about which assets were going to be listed. two of the men were arrested in seattle this morning, one person was charged but does remain at large at this point. the u.s. attorney in a statement saying today's charges are a further reminder that web three is not a law-free zone he said our message with these charges is clear, fraud is fraud whether it occurs on the block chain or oon wall street this the news comes a month after the first insider trading case moving nfts no comment from coin base. >> thank you. checking in on the crept toe space now bitcoin has lost about half its value since the start of the year, the broader eco sem has seen a major fallout this summer we've seen bankruptcies from hedge fund to voyager, digital and celsius our next guest one of those still standing, binance the largest crept toe exchange by

volume and the largest crypto currency by market cap joining us now binance co-founder and ceo changpeng zhao cz, welcome. first, i have to ask what is binance's exposure if any to these crypto lenders that are collapsing have you as an individual, has binance as a company lent to, taken loans from, made investments in institutions you're concerned about >> so very minimal thanks for having me on the show very minimal we are not involving any of the names that are public. i won't name them, but we don't have think loans to them, we don't owe them any money, so we have not been involved in that there are, you know, our name just never came up in any of those -- in any of those situations. >> and why not are you lucky? are you smart? did you see that these companies, these institutions in the crypto ecosystem were building this kind of house of

cards that was subject to collapsing if crypto prices were to tank? >> i think it's because we are dumb we like to do things in very different ways, at least i like to do things in very simple ways if we invest in a business we go i have that company am unand we don't take a loan out of that business again we don't have circular -- i like to keep businesses in very simple terms we run exchange and we're not in the loans business, we're not in the -- we're not in those other businesses so we keep things very simple. i wouldn't say we are smart, we're just very simple about it. >> well, cz, i have to ask, though, it's obviously a good thing that you are not involved in any of these issues but just from a reputational and trust perspective do you think all of these negative headlines are going to impact your consumers and make them just wary of being in the crypto space in general >> i think all those negative headlines definitely do have a negative impact, but guess what,

this industry has always had negative headlines we have not seen too many positive headlines about this industry and this industry has still grown because of the funda fundamentals this he do have a negative impact but overall i think the industry will be fine. >> fine. >> i thought it was interesting to see that you're launching a new social media marketing campaign and maybe trying to take this down turn in crypto prices as an opportunity what's your strategy now to really differentiate what you're doing from some of these other players that have been plagued with so many issues? >> yes, so i think many players have not managed the cash reserves well, and for many of the players this may be their first bear market. we have gone through a couple already, so we have managed our cash well. and now we have cash reserves that allow us to do more hiring, do more investments in strong companies today and also helping some of the companies that are

cash strapped if they're good companies. and we are able to lower fees. we are able to launch affiliate referral programs. so we can do all ofthat now. and we actually see a lot more opportunity today than a year ago. >> cz, here is my concern about the crypto market as it stands right now, and you talk about how it's never gotten good press. i would argue it's gotten a whole lot of good press over the last couple of years as the price went up. in some ways maybe too much. there are elements of the crypto ecosystem that seems to me have been guilty of the worst kind of financial rug pull, individual investor, the people at home, you're missing out at any price, you should get in. this is going to the moon. this is going for a million bucks. for some of these institutions people can't even get their money out. part of my question is if even you running binance couldn't see this coming, how much centralization, how much

oversight, has to be necessary for this to actually be safe for investors? >> there's quite a few topics, quite a few big concepts there number one, the markets go in cycles even in heavily regulated markets. we see stock markets go up and down just because of a heavy regulation doesn't make stocks a straight line up that doesn't happen. we're seeing stocks drop as well. >> but with stocks at least they have to make these reports where we know what the company is investing in, what its cash levels are, sort of how it's structured when an enron happens, and they do happen, it's supposed to be a bit of a surprise. there are so many institutions in the krip taupe ecosystem where we didn't know -- we still don't know -- who they're borrowing from, who they're lending to, whether they're solvent, and people put money into these institutions thinking they could get it out and more isn't that different

>> i don't think super different, to be honest, because the regulations still apply to those guys, just those guys didn't follow it enron, as you said, followed some of the regulatory guidelines, and it was a surprise our industry there are many more projects still sound, any new industry, most nasdaq companies don't last ten years, nasdaq listed they get merged, aquirt, et cetera we're in a new industry. there will be a lot more failures and we need to do more to educate users and just because they're an institutional player doesn't mean they're less risky or less smart other anything they are big problems with institutional investors, too many are institutional investors, fairly educated so just because -- there's many different types of issues here nothing is perfect the industry is new.

so we do a lot to educate our users to the best extent we can. it doesn't mean we will avoid all problems markets go in cycles we need to be prepared for that. we do welcome regulation i don't think regulation will fix all the problems it's not a magic pill. >> you say the market goes in cycles i guess i want to ask you looking at the fact that your stock is down year to date, obviously bitcoin has been on a roller coaster, what is your outlook for cryptocurrencies going forward and just because you mentioned regulation, how could that impact pricing even further? >> so, first of all, it is not our stock, just a coin prices go up and down. bitcoin is one of the more stable compared to every other cryptocurrency out there so that's one part i do think with more regulatory

clarity and oversight this industry will be healthier with the healthier industry we will reduce the number of problems we see. we might not be able to eliminate it when we can reduce that, we will see more adoption into the space, and that's good for our industry that's good for everybody. so we very much want to see that happen that's why we're spending a lot of effort, i'm spending all my time talking with different regulators, meeting them in person, et cetera. we think this is a good thing. and, also, a connection is not necessarily a bad thing in the long run >> right >> six months ago there were crazy projects with crazy valuations now the market is much cleaner >> well, a tough time for the crypto market. you fielded all our questions. we appreciate that, cz thank you. >> thank you for having me even more crypto coverage don't miss daily digital series "crypto world" monday through fryiday at 3:00 p.m we'll be back in two minutes

(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. (vo) family plan savings without the family. get visible. single-line wireless with unlimited data for as low as $25 a month.

your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire tonight the january 6 prime time hearing what we're learning about the evidence and testimony, we'll cover it live tonight.

"one more thing" before we go and that's what to expect from snap results after the bell as investors continue to weigh how much a weakening economy and higher prices could impact ad markets. now worth noting snap shares are up about 4% today but down more than 65% year to date. now, jon, we have to remember ceo evan spiegel got out ahead of the quarter's results in may. he warned that they would have a tough time meeting their targets, so we have to see how conservative he was being and we'll also be looking to dissect those results to understand what to expect from the other ad players. >> yes speaking of the ad market, i think it's interesting shopify has been up all week, up sharply again today more than 4% part of that perhaps due to that announcement of a deal with youtube for shopability. all these strategies for monetizing content whether you're netflix talking about it, whether you're snap talking

about it elon musk has ideas. >> all of these players are focused on e-commerce and a big advantage for them there >> the e-commerce players speaking of health with the big amazon purchase that we talked about of one medical that will do it for us on "tech check. welcome to "the halftime report." i'm scott wapner the surging nasdaq ahead of earnings reports next week and why some are saying stocks are not just having a bear bounce. we'll see if the investment committee agrees with that joining me for the hour brenda, jason, josh brown right here on set is jim lebenthal a check of the markets today it is the nasdaq that's green up by nearly 50 points there trying to get to a half of a percent gain pushing ever so closer to 12,000 on the nasdaq the dow is a touch n