to be able to deliver on that front, sara. >> got it. ge up about 7% still been a tough year for that stock. seema, thank you. coming up, 3:00 p.m. on "closing bell" an interview with geoff martha, part of the meeting with president biden and he'll join us with a push for funding. that does it for "squawk on the street." "techcheck" starts now good tuesday morning, welcome to "techcheck. i'm carl quintanilla with deirdre bosa and jon fortt cutting forecasts on weakening demand, what that means for consumer focus names like microsoft and apple. plus, is the cloud recessionproof a check in on the enterprise side of things ahead of results from google and amazon this hour and then finally, ever trade crypto on coinbase according to the s.e.c. you may have broken the law. that story coming up later as well, jon. >> we'll start this feed with

consumer weakness. walmart warning that shoppers are spending more but getting less because they're spending it all on food and energy higher margin items like apparel and tvs therefore not moving walmart shares plunging taking down names like amazon and etsy in the process and more evidence of a consumer slowdown logitech reporting a 38% fall in profit cutting outlook on slowing demand for webcams and gaming equipment, though keyboards and mice, things like that actually sell more and shopify shares also under pressure cutting 10% of its workforce, its ceo saying he expected surging e-commerce sales to continue, quote, it's now clear that bet didn't pay off. shopify shares done 80% since the high in november and reports earnings tomorrow. dee, it seems like we're seeing

signs of a scenario i've been concerned about for awhile, consumers racking up debt, spending down their savings to have a good time during the summer because we deserve it but then tightening the belt when the bill comes due, right? the bank said the consumer is still spending walmart backed that up same-store sales were up that's because everything is more expensive, not because people are actually buying more so now we're trying to figure out, it seems how profits shake out in all this and where it leaves e-commerce and tech. >> why maybe it doesn't necessarily feel like a recession at this moment people are still spending to go out and travel and do all the things they couldn't during the pandemic but eventually bills will come home when looking at the big tech earnings this week, that will largely determine the direction of the market going forward, amazon is a big question mark, right, carl? b of a in a note tried to look at walmart's implications for amazon and i guess i have to wonder has amazon already taken its medicine i mean nearly $4 billion loss

last quarter it has raised the price of prime first in the u.s. and now in europe as well will it be in a better position? i heard jim's comments this morning, kind of railing on walmart management you got to wonder if amazon was ahead of this, we're going to see over the next few days. >> b of a today says they expect additional gross margin pressure, maybe as consumers at the low end do trade down then they talk about the lower cohort of consumers, their online spend down 6 in q2 based on b of a's credit card data so we'll see whether or not aws can offset some of it that is walmart's warning mean for tech joining us is paul hickey. paul, really good stuff on walmart in the last 12 to 18 hours. i guess you did make the point this morning that the broader effect on trading today might have been a little bit less than you might have expected last night. >> yeah, i mean, i think it was somewhat surprising to see that

the market was, you know, holding up as good as it has given the warning. you look what happened back in may when we saw the warnings from say target and how that impacted things so to speak and i think it's just interesting with walmart, you were talking before about the comments of how did that go into amazon? it's really interesting if you look at walmart on a really long-term basis, i mean, since the start of 2000 stock has basically doubled. that's over 22 year, though so it's averaged about a 4% annualized return leading up to that period from 1985 to 2000. that averaged a 31% annualized return what happened in '99 and 2000? that's when you started to see amazon come on the scene and really in the online shopping take off so, you know, i think what's going on this week and in the short term is one thing but longer term, you know, a company like amazon is really i think,

you know, while they're facing a lot of head winds right now longer term their position is pretty well. >> i wonder what you make, paul, of this shopify memo and this mea culpa that the bet that the share dollars that travels through e-commerce would be leapt ahead by 5 to 10 years in their words it's now clear that that bet didn't pay off. i guess could they have approached it differently and foregone the expansion that was required to keep up with that kind of scenario >> yeah, i mean, i think companies, investors, everybody seems to look at what's going on in the present time and extrapolate it going forward and two years ago everything was going online so all these companies rushed to, you know, expand their online offerings and their online businesses and, you know, what we're seeing with amazon building warehouses, now subletting out some of those spaces, they may have gotten a

little overexcited here, but, you know, that's just all part of the cycle here and things have really slowed down. i don't think -- i think a lot of people underestimated the fiscal and monetary drag that we were going to be seeing coming into this year coming at the same time and how that's really impacted things. surely we have -- we point to the employment picture being relatively good in the u.s. economy, but, you know, when you adjust wages for inflation, workers are actually earning less and that's why you're seeing companies like walmart come out and say that spending is declining except for the necessities. >> as you said, though, walmart is holding up relatively well given the warning, it was down a lot more in the after-hours last night. we go back to last week as well. netflix and tesla not great quarters relatively, but the market was expecting something worse and the nasdaq is down about 1.5%

how much of the negative news, especially on a week we have the fed meeting is already baked in here what do you think the direction is and volatility is going forward given that we do have the big tech still to report this week? >> yes, so, deidre, when you have these megacap companies, alphabet, amazon and others reporting, such a large portion of the s&p and when you look back just historically speaking and look back at prior earnings seasons when they have reported in the same week, there's only been eight other quarters going back to 2015 and what we've seen is that historically the market has run into turbulence and weakness during these -- when they are reporting at the same time, the s&p's averaged a decline over 1% and on -- for the week and all four of these companies on the day -- on their earnings reaction day so the day after they report earnings because they report after the

bell, the only one that averaged a gain during this period was alphabet the other three have all averaged declines. apple, for instance, is the last seven times theyhave all reported in the same week, it's been down in reaction in earnings each of those seven times. you have to go back to 2015 to find the time when apple was up in the same week that all four of these companies reported and there's such a big portion of the market that, you know, it's very hard to have everything, you know, go right, you know, in the market and when something goes wrong we tend to focus that on the short term but this week also with the fed coming out, that meeting this week, that only just adds to things we have gdp on thursday and weren't even expecting walmart and that comes out of left field. this has been -- if we can get through this week relatively unscathed, i think that will be a big win for the bulls. >> i wonder, though, paul. it seems to me we've got all of

these pockets of trouble that have emerged over the past few weeks and months, you know, with some fintech, some of that crypto driven and the question is does that turn into a bit of a contagion? now we see trouble at the low end. consumers -- expressed by walmart, inflation getting to them that won't show up in top line numbers but hitting the margins and also overbuilt pandemic plays that's what shopify is the problem isn't so much their vision, which it seems to me, we'll see what they say, they seem to still believe in but overbuilt in the near term thinking the momentum what happened during the pandemic would continue and not fall back any one of those things could bubble over and cause a problem and so if you're a bull at this point are you essentially betting that they will not >> what my point is, jon, is exactly that, we have all of these things going on. if we can get through this week without, you know, a big decline in the market, i think that's --

we would take that as a win here you're talking about the pressure on the lower end consumer not just walmart that mentioned it at&t last week talking some delays in bill payments coming so the lower end consumers really are under pressure here right now. the economy is clearly slowing new home sales are down over 40% from their peak now. every other time that's happened we've been in a recession and here you have the fed we're talking about hiking 75 basis points on wednesday, so you have a really, you know, fragile economic environment with a, you know, the fed, you know, still, you know, moving, you know, full speed ahead with hikes and so it's a -- there's a lot of, you know, a lot of different ways things could possibly get off kilter here so you just want to, you know, take this -- take a cautious approach into this week and then if you do see some of

the weakness on some of these megacap stocks like an amazon or alphabet in reaction to their reports maybe you can go in there and pick up some stock on weakness but, you know, you don't want to be overly aggressive heading into these reports. >> yeah, i think b of a this week said this busy week of earnings often doesn't pay to be too aggressive, paul see what the next few days to bring. great to see you. >> you too have a good week. >> one part of the market feeling the slowdown online advertising after snap and twitter's dismal results julia boorstin has more on what to expect. >> it did prompt a number of analysts to trim their estimates for google which is now expected to report its slowest revenue growth in two years, 13%, reports after the bell today steeple warning, quote, we expect volatility in results and estimates in the near-term given the degree of current macro uncertainty and recession risk

guggenheim trimming its outlook writing, recent digital advertising revenue growth results from snap, twitter and iac reflected a more dramatic slowdown in the secondquarter than we had anticipated. and indicated continued softness into the third quarter but google may have an advantage in scale and search business which is expected by analysts to hold a better than the social and other platforms but in addition to those macro pressures, there is the question of competition from tiktok jpmorgan's doug anmath says they slow to 8% writing it's going to be impacted by tiktok engagement and tiktok's growing ad efforts. of course, the other tech giant that reports this afternoon, microsoft is looking to become a bigger ad player with its new deal to manage netflix ad sales. we'll have to see what it says about using that deal to grow its share beyond the roughly 4%

of the u.s. digital ad market that it has as of this year. guys, back to you. >> julia, just keying off walmart, they are having a markdown of stuff saying they're clearing out inventory suggesting to me they'll probably need marking dollar, digital ads perhaps to do that i wonder how that might be reflected in the earnings commentary if investors are trying to listen for, is this just a short-term spike clearing out inventory then once that's cleared out, boy, maybe they aren't looking to push to sell stuff or does the overall digital ecosystem for the scale players remain healthy. >> look, there's so many different pieces of the pie, jon. also remember that the fourth quarter, the calendar fourth quarter is the biggest and most important quarter for ad supported players because that's when all of the big retailers spend the most to try to lure in consumers. i think the overall challenge here and thing we saw with snap and twitter, it's so easy to turn on and off these ad

platforms. if you're doing some advertising on snap and you can turn it on and you can target consumers easily but can also just as easily turn that off, the question is whether those google ads particularly those search ads seem so much more effective and valuable and essential right now. >> the question which may make it go less vulnerable, julia, thank you. we'll keep the conversation going. joining us verge editor in chief and brent phil let's start with you, i loved this piece in "the verge." these two companies we've been talking about alphabet and meta based in the bay area. they have had this sort of culture over the last few decades that is now changing we're seeing that happen in realtime and the article essentially talks about how the days of coddling employees are over because of these companies looking at a slowing digital ad market having to get tough >> yeah, and i think what we saw through the pandemic is these companies got really big, meta

in particular, leaned heavily into remote work the employs happy because stock price was storing and seemed unstoppable and now the stock price is dropping and a lot of employees are making less than total comp today than when they were hired because so much of their comp is tied up in stock zuckerberg saying we potentially overhired. some of you should go. and trying to manage the big pivot to the metaverse which is where he wants to go against his immediate challenges of apple just hitting a button and slicing 10 billion off his revenue and tiktok gaining so much ground that he's saying to his own employees, we're 18 months away from even having a line of sight to competing and overtaking tiktok. an enormous set of present challenges all of which has to pay for the big pivot and saying to employees get ready. >> he has the kardashians and jenner coming after instagram. brent, when you look at

metaverse's, alphabet -- they have first party cookies and, of course, not immune to an economic slowdown in ad spend. where are you looking or what are you looking for from alphabet tonight >> yeah, i think ultimately every ad name has been leaked and everyone expects weakness. we're below the street in terms of growth, 11% the street looking for 13 looking for a straight miss from google and i think there's head winds for everyone in the tech industry and you're seeing it in the job hiring and seeing it when the co says they're not buying coke, our company is advertising in the face of that we're seeing the slowdown. so google is relatively better positioned, the stock now is at a ten-year -- the ten-year has been 12 i'ms ebitda on stocks trading ten times it so 20% below its ten-year average so a

lot of negative tift is baked into the stock they face a massive comp, 62% comp and the comps get a littl easier but still 40 plus percent comp next quarter so it's just a tough hurdle to pass through you've seen shopify lay off. you've seen the walmart news, you've seen co coke, there's a lot of head winds we're facing so i think we're starting to see a little more demand on our desk in terms of long only buy interests but i'd say it's still not a lot of conviction, even while these stocks are trading at pretty big discounts. so i think we got to get through this negativity and i think, you know, we're still talking about the fall before investors are really going to have conviction on tech as they look at 23 numbers and not the next numbers. >> so, nilay, it looks like across facebook and shopify, they're looking to cut maybe weaker employees and the fund

stuff near term so they can continue investing in the future for meta, facebook, the future is the metaverse, that kind of stuff, for shopify, it's the fulfillment network, i expect. we'll see what they say about that tomorrow. this is just an environment that a lot of employees aren't used to because to keep operating, they sort of have to cut employees over the last couple of year, okay, we'll give you your bonus, stick around, don't go away because we have all this demand coming in from people who need to buy online and people who need to advertise to the customers who are buying online whether meta or shopify but now they don't need that anymore >> yeah, i think there's also just a ferocious talent market over the last two years is every company went remote and your location especially for these high skill white collar coding jobs became irrelevant every company was remote and you could live anywhere and work for any company so you have that

explode and a lot -- we'll have meta days and everyone take days off and you're seeing zuckerberg saying, no, those are canceled now. i want fewer employees working harder with less perks because the pivot he has to make and you mentioned instagram, they've got to change instagram to compete with tiktok without pissing off the kardashians. a hard move to make and you can't do it if mark zuckerberg can't get everyone to a meeting in the middle of the workday and seeing that come out in almost every company. we've heard that from google and seen that at apple, right, they're tightening their hiring and want to get more focused to get through the downturn and i think the big question is whether the advertising market is going to remain at any level that will sustain them at this moment as opposed to going down even further. >> brent, for investor, especially as we look at alphabet, as we look at microsoft, this translates into what expense control so that

investors will trust these companies to continue investing in areas where they say that there's growth but in the nearer term they'll have to show discipline what >> it goes back to showing a bottom line. all the companies in tech that have bottom lines are outperforming. you look at oracle, you look at a number of these stories that have good cash flow and margin support are the ones outperforming. the ones just drawing and have no bottom line are down the most and so i think ultimately there's only one thing you can do in tech when the economics hits the top line try to save the bottom line and we'll see that microsoft has also said that they're slowing hiring, we'll see their guide for q1 which we expect to be pretty conservative so at this point i think the air brakes are coming on the top line and see everyone try to air brake the bottom line to get margins up in the short term no one knows what the same of the economic pullback will be

in '23 so in the interim, you know, there's a massive head wind, engagement from our investors, low on tech and in other sectors and until we see the stability come back, we see a floor, investors aren't going to come back to tech and i expect the next time they'll do a check-in is probably in the fall, if not early q1 of '23 where they feel they have conviction that these companies have their revenue and costs under control. >> yeah, which is why tonight is going to be so important getting alphabet and microsoft to kick off the big tech earnings, nilay and brent, thanks so much we'll talk to you again soon. still to come this morning, coinbase shares falling double digits find out why and what the s.e.c. has to do with it coming up next "techcheck" is just getting started.

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check out shares of coinbase it is ugly the stock is tanking this morning along with the price of bitcoin as the s.e.c. reportedly investigates the company, shares are down nearly 15%. the issue at hand whether the cryptocurrencies that coinbase list should have been registered

as securities. we'll break down the issue here, kate, there is a lot to break down coinbase is defying tweeting laws from the 1930s could not predict crypto they're referring to the howie task which they have used to say they are indeed securities >> yeah, absolutely. it goes back to the orange grove test people in the crypto industry have pushed back on that being the way to determine if it's a security guys, a source telling me the s.e.c. is, indeed, investigating coinbase in terms of listing cryptocurrencies that they say are unregistered securities. i'm told this probe predated that insider trading case last week which for a little bit of context that is where the issue got a lot of attention the doj looked into the case they didn't mention anything about unregistered securities. the s.e.c., though, when they came out with their statement said, by the way, guys, it's insider trading but there's about nine unregistered securities here so that's where it got a lot of attention.

people started paying attention to what it could mean and implications are luge so by letting coinbase go public in the first place i'm told the s.e.c. sort of tacitly approved the way they list coinings on that platform. the biggest u.s. exchange and list about 150 tokens at this point. the question here is why didn't he come out and do this sooner if the s.e.c. had issues with the way they were registering securities in the free market, they have been pretty transparent about it on their website they have this process that other exchanges have actually adopted and started using, people are wondering if the industry why is this happening now so calls into question what coinbase has to do going forward? would they have to register as a national securities exchange or some sort of alternative trading system they have a license but it's not a broker/dealer or not an exchange could have regulatory implications for now no injunction or cease and desist order so coinbase can keep doing business as usual doesn't mean they have to stop trading or facilitating the trading of these crypt at the

curr -- crypto currencies. people in the industry have pushed back on and that seems to be getting pushback even further. the likely scenario there will be some sort of legislation in the script but the fall doesn't look like that's the situation at this point. >> great report, kate. as a watcher i'm thinking, give me a break, crypto industry. how long are they going to go, leave us alone this is totally different from what we've had in the past but tell me exactly what to do and what the rules are right now i mean, frankly, these things, many of them were pitched to the push much like securities with the idea, you sort of got equity in this thing that we're building and because this thing that we're building is the future of finance, the value of this coin you buy is going to go up i mean, they're pitched like securities, so it's weird to me that they're arguing that

absolutely not securities. >> the pushback, jon, has been from, you know, those who say that the industry is not on the right side here and is not following the rules and have said the s.e.c. has been pretty clear that everything other than really bitcoin and ether are unregistered securities so should be acting within that framework. some have said they have their clarity. they just don't like the clarity and they want to get around it or they want a new sort of framework. an updated framework for digital assets and have been plowing ahead in the meantime, and hoping that regulators will catch up here, the longer it takes it seems like, yeah, when this context of if everything is a security they're operating outside of bounds here and, you know, the uber analogy might be too much ofa stretch here but the idea that this exchange, these cryptocurrencies have gotten so popular where maybe regulators can catch up but you're right, at this point they are operating it seems in the eyes of the s.e.c. outside of bounds here. >> all right

thank you, kate rooney coming up, we are checking the forecast for cloud earnings. key risks you should watch out for, just how recessionproof these businesses might be. stay with us >> announcer: cnbc crypto.com is the fastest growing crypto platform

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good morning, i'm contessa brewer your news update general motors says it's not lowering its earnings expectations for the rest of the year though it reported disappointing second quarter profits this morning. a parts shortage prevented them from finishing and shipping nearly 100,000 partially made vehicles it hopes to increase production though in coming months. federal regulators opened a formal investigation into 26 reports of what's being called catastrophic engine failure in 2021 ford broncos.

causes them to lose power at highway speeds those have not caused crashes or injuries. they want to restock the petroleum reserve in the fourth quarter of next year purchases will be made at a fixed price to reassure producers that investments they make now to increase output will pay off later. and a majority of wall street economists strategists and money managers who responded to our new cnbc fed survey say they expect the central bank's efforts to control inflation will result in a recession later this year. the fed is expected to announce another big rate hike tomorrow carl, that seems like glass half empty, not glass half full >> contessa, thanks very much. you're definitely right about people watching the fed. session lows right now, s&p is down a full percent, dow down 200 as we continue to watch for what the fed may say tomorrow. speaking of which yield, two-year backup of 3 and the

ten-year back to 2.75, dee, watching some climb back a little here midday. >> absolutely and consumer slowdown is what we have been focused on but, remember, when alphabet and microsoft report tonight, we will be getting two of the three hyper scale cloud providers, amazon comes on thursday combined growth of 28% is expected from the three of them, that's an area of enterprise spend thought to have held up better than other areas but still that would represent a decent deceleration from last quarter and last year. so key question heading into tonight is the cloud recessionproof can it offset weakness in other parts of their businesses or could it be the next shoe to drop and what might smaller cloud players have told us the journal had a good piece yesterday, snowflake's comments on lower than expected demand from consumer facing companies and cqualtrix reducing it it will tell us about the state of enterprise spend. >> the cloud is not

recessionproof in part because a big part of the reason why q4 is so big for the cloud is u need it for demand spikes which q4 usually provides if the consumer is slowing down, if these retailers are thinking, boy, we are not going to see as much volume from a consumer who is strapped going in person buying food, buying gas, not online but in person then there's spending that is less online which shopify suggests maybe people won't use the cloud, carl, quite as much as they otherwise would be and then plus these things are priced for a certain level of year-over-year growth and can still be doing quite well but just not perhaps as well as they were a year or two ago and that could have an impact on the stock prices. >> yeah, we certainly expect nadella to reiterate prior comments from late last year that cloud my graig becomes inflationary over time but to your point we did get at least one downgrade out of jefferies

not so much because of the bitcoin bet going south but because the likelihood of big cloud migrations in a time of tighter corporate spending definitely gets dinged >> well, carl, let's take a closer look when it comes to the outlook here for the cloud, former vmware coo and former s.a.p.'s president joins us. sanjay, always love to get your thoughts on this and particularly how the business model of the cloud plays out in this slowdown environment, yes, there are people who are more on this kind of operational spending rhythm as opposed to capital spending rhythm for this stuff but there's also kind of this demand flux >> yeah, good morning, jon great to see you all yeah, this is a big week we have microsoft and google and then apple and amazon thursday microsoft's down quite a bit,

worse than the s&p, not as bad as the nasdaq. worse than apple but not as bad as seasforce and service now so we're watching this closely. i think, you know, they've always said it's the best inflationary post but there's pressure, rising rates, currency and also announced small layoffs. i'm watching the total cloud, microsoft is much more cloud company today than windows and inside that how azure continues to grow. can they continue that 43 to 45% growth rate? i think some of the companies you point out earlier, smaller companies in total size, so watching closely, can they continue the growth rate as would google and aws so far in the first two, three quarters, last two, three quarters there's been no abating of that growth and i continue to believe that on premise spend something shrinking and customers are much more willing to do it and the other thing to note often these are large

contracts done over multiple years. if you're going to see a slowdown you will see it in the backlog or remaining obligations sooner than regular growth this quarter. >> yes, and i guess to some extent for some of these companies in the guide not everybody guides the same way. i'm wondering about potential weakness in more personal computing where microsoft is concerned because of the overall pc industry weakness we've seen reflected in part of logitech's earnings just hours ago. and also in linkedin where if you don't have people out trying to recruit, right, advertising jobs as much that's got to hit revenue. what has to go right in intelligent computing in azure to counterbalance that stuff >> yeah, i think that's absolutely right ten years ago we'd talk with microsoft, they're exposed to consumer things. now they're much more of a cloud company so i want to see how is azure doing in the fortune 500, the global 2000 companies, will

they see a decent quarter, the stock would maybe dip based on guidance how is the guidance looking especially in europe you alluded to service now and comments and the straight comment, real comment related to europe and the effects, you know, will have a certain effect on the international revenue scene. inside the enterprise businesses i'll watch for security, they've signaled in the past almost 15 to $20 billion business. that cybersecurity has been strong and they've got a strong play they're one of the largest big plays in security unlike the other cloud players so there's a lot and the deal making that microsoft is doing is remarkable i attended the microsoft inspire conference last week virtually and to my surprise i saw larry ellison and nadella. they'd deal with oracle. you reported the netflix deal. nobody expected them to show up there in an ad tech platform when google and comcast were rumored so the deal making will have to see if activision is

getting close to closing it puts together a broad portfolio for microsoft. >> okay, sanjay, now the reason we care about these companies or the market does is not just their cloud businesses but the effect on the whole tech ecosystem, right the worry of a domino effect maybe there is weakness at the other hyper scalers but they're already cutting costs. if cloud disappoints at all more cost cuts could come and that can have a knock-on effect some of these companies are so reliant. >> yeah, absolutely. listen, no one is immune jon mentioned that earlier to recession and if there is a cloud slowdown it will affect everyone that would be the ominous sign of slowdown it will affect the smaller players even worse i think everyone, you know, i think microsoft small tightening of 1%, everyone is tightening hiring and, you know, when you can't grow the top line as fast as your last speaker talked about so i think the service now numbers tomorrow which is sort

of in between these two big sets of earnings today will be important to watch and next month you have a number of key folks like salesforce and palo alto and security we'll watch how that plays out in their sort of quarters. but i think i agree with you if there is a tightening, especially in europe, we'll begin to see that in these big hyper scalers and that will certainly have an effect on all the smaller cloud companies for sure. >> sanjay, i'm glad you mentioned europe a big part of mcdermott's comments were with regard to europe and longer lead cycles there and i just wonder if you think come the fall if putin continues to play mind games over energy security, i notice there's a bit on the tape of a hedge fund seeing the euro going to 80 cents. how hard is that going to offset with north america >> i think that's a significant concern. i've been watching very closely how these folks talk especially about the three or four key countries. some of the smaller cloud

players that are under 20, 30 billion in revenue, you know, it's uk, france, germany, the big three companies then, of course, southern europe and so son, so forth. if there is a slowdown this those countries and certainly head winds, everyone is going to be exposed to, it will certainly see a slowdown in europe for everybody. that will be something i'm watching closely i don't know bill's comments, whether a stray comment, we'll have to see when he talks about his results tomorrow but microsoft, how they aloud to the international scene and certainly google and amazon as it relates to the cloud business will be important to watch >> all right, you've told us what to pay attention to sanjay poonen, thank you. >> thank you, jon. speaking of the cloud frank holland sat down amazon's chief security officer and talked about the outlook for cloud cybersecurity in the second half and he joins us with highlights. hey, frank. >> hey there, carl with 70% of all business data

forecast moved to the cloud by 2025 amazon's chief security officer says it's important for companies to not only rethink but to reinforce their cybersecurity. globally amazon is the top hyperscaler. voting more than a third of the infrastructure as a service market with customers including verizon, vanguard and disney there have not been many reports on cyberattacks stemming from the russia/ukraine war but they are happening and at the conference today up in boston, the keynote is to cussing on the emerging trend of zero trust architecture to protect data >> when you're talking to customers are you advocates for them to move toward the zero trust architecture >> very much so. the implementation of zero trust and the way of reducing individual human access to data helps both in the ransomware situation but helps against those nation state actors as well if you look at a lot of them, their favorite way to get access to data is by finding the identity of someone who is authorized to access it already.

they do that for two reason, one, it's much easier than using a super sophisticated tool, the second reason is it's much harder to detect >> now, according to them only 10% of using zero trust on networks cloudstrike, one of the top stocks with the implementation along with zscaler >> thanks very much. ttig saying they're taking zscaler down falling more than 60% off their highs. we're back in just two how will your business adapt to change? you could hire an office full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha!

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. welcome back one name bucking the earnings trend this morning, fintech player fiserv after beating top and bottom lines and one of the rare names rising guidance for the rest of 2022 fiserv provides technology for small and large businesses and financial institutions, not consumers so interestingly, the same inflation concerns hitting walmart and the rest of retail this morning just show up as top line growth for them fiserv results also giving hope for one key client set to report this afternoon visa, but, dee, it's not just whether people are spending, but what they're spending on that eventually has an impact on the

market. >> yeah, and certainly visa and mastercard, as well, benefit from more travel spending. visa down less than % this year, major outperformer you have to wonder if in this market is that for perfection? we'll see. >> indeed, and it sort of explains why you can have am ex-be so bullish on spending because of the travel exposure but yet get a warning like walmart's. goldman making a rare double downgrade on paramount we'll find out after the break don't go anywhere. 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.

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get a check on two bear calls in media paramount going down as the near-term operating environment and competition will be difficult. price target cut from 37 down to 20 bucks it's about 4 and change above that also roku, cutting to underweight, on concerns over scale and monetization new target of $77, meanwhile, the nasdaq near session lows of the day. we are back in just a moment don't go anywhere. (dad) we have to tell everyone that we just switched to verizon's new welcome unlimited plan, for just $30. (daughter) i've already told everyone! (cool guy) $30...that's awesome. (mom) it's their best unlimited price ever. (woman) for $30 a line, i'm switching now. (vo) the network you want. the price you love. only from verizon.

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all on the largest, fastest reliable network. from the company that powers more businesses than anyone else. call and start saving today. comcast business. powering possibilities. as if investors need another thing to think about, the u.s. dollar hit 20-year highs this month, which is going to hit tech companies that do a lot of sales overseas >> this could be a big theme with all these megacap tech companies reporting this week. and foreign exchange is a key concern going into microsoft ae earnings the company revised its guidance a bit lower in june, after seeing the dollar strength an little bit more than it had originally respected microsoft will be especially vulnerable in countries and regions like canada and japan, where those countries are the weakest against the dollar and microsoft does a lot of business

there, too and we could see this filter through many of microsoft's businesses from the cloud to windows licensing. and like i was saying, this is not just about microsoft, the strengthening dollar is expected to hurt apple earnings as well throughout the end of the year, b of a already cutting apple's price target this morning to 185 from $200, and by the way, there are two more things i'm going to be watching with the microsoft earnings this afternoon. first off, azure cloud growth, which is expected to be relatively flat at about 46% as it has been the last couple of quarters that's not to say the cloud business is in trouble it's still growing, just really rapidly. and microsoft, of course, sees a long run rate ahead. and finally i.t. spending a big concern. satya nadella sounded very confident about outlook last quarter, but we'll be watching for any changes to that sentiment throughout end of the year >> steve, thank you for that speaking of microsoft, we'll break down that name as well as alphabet and visa here on tech

check tomorrow and look ahead to meta results after the bell. meantime, losses accelerating, s&p down 50 points back in a moment i was having relationship issues with my old bank. it was just take, take, take. so i moved to sofi checking and savings. get 1.50% interest, and earn up to $300 when you set up direct deposit. sofi get your money right.

welcome back big story of the morning check out shares of walmart and shopify. walmart down about 8%. shopify down about 16. and that's got everything to do with inflation, and we're going to see how that affects other stocks with people spending so much on. do not tell that to the kardashians. instagram pushed out an update, testing features that makes it more similar to tiktok short-form videos, suggested posts to users are pushing back. kim kardashian and kylie jenner sharing a petition, make instagram instagram again, stop trying to be tiktok. i just want to see cute photos

of my friends. guys, remember the time snapchat saw almost $1 billion off its market cap when jenner criticized the app's redesign. that was back in 2018. not hurting them much. they've got a lot of other things to worry about. >> we'll talk meta later on in the week meantime, close to session lows. let's get to the judge and the ha half >> welcome, everybody, to the halftime report. less than three hours until microsoft and alphabet report their earnings the stock hanging on every word. so, of course, is your money the investment committee debates what is likely to happen how you should debate on the other side of that jim lebenthal, josh prbrown, and stephanie link great to have everyone in front of me for the first time in gosh knows how long let's check the markets. i'll show you what is going on at this hour the lows of the day, that walmart wallop i