along with the price because europe needs it. normally this many people on one side of the trade is a tell you're supposed to go the other way. i don't think so i don't think so the supply-demand imbalance is stark, both in natural gas and crude oil. >> okay. brin >> viper energy. mineral and royalty interest, natural gas and oil. still has about a 10% distribution so go oil. go energy. >> good stuff. i'll see everybody in o.t. "the exchange" is now. >> thanks, scott here's what's ahead. the rally continues to fade with tech leading the declines. nasdaq's down 2% so should you bail on the growth trade or stick with it two banks out with two very different views on what's next we will debate and ask our market strategist how he's positioning now. plus the latest meme stock moves banking a billion from the crypto craze and will dragons or hobbits win the streaming wars we will have the story and the stock impact on today's biggest

talkers. and palo alto, macy and is zoom video on deck with results after the bell we're going to get you set up for all three in earnings exchange but we begin with the markets and dom chu with the numbers >> please no spoilers because i have not watched the first episode of "house of dragons" yet. i'm just keeping a close eye on it but anyway, to jon's point, this is tilting toward the lower end of the range today it's been a decidedly down day for pretty much all of it so far. we're down 505 points, the dow industrials. 33,2 hupp the last trade there 4156 for the s&p 500 down 72 points 3/4% decline there and the really underperformer has been the composite index for the nasdaq 12,441, down 2464 points 2% plus down side there. and a lot of this has to do with some of the fears, concerns about interest rates, what's going to happen from the fed with its commentary at jackson hole later on this week. all of that weighing on the government bond market, specifically for u.s. treasuries where prices have fallen in the 10-year benchmark note to a

point where the yield is back above 3% you can see there 3.03 the last trade there. and that solid kind of move higher shorter to medium term that we've seen over those yields, remember about 3 1/2 plus was where we saw the peak in the cycle high so far so keep an eye on that 10-year note yield that's driving a lot of the tech valuation story there. and speaking of those tech valuations, these stocks are the ones that are having the most adverse impact on the markets overall and specifically for the nasdaq composite microsoft, apple, amazon, tesla, nvidia, knows names are not unfamiliar to our audience and our listeners out there because they're the most heavily weighted or amongst the most heavily weighted in these market cap weighted indices like the s&p and the nasdaq but jon, to that end, microsoft down 2 1/2%, apple down 1 1/2% 3% for amazon. tesla down 2%. and 3 1/2% for nvidia. these five stocks account for more than 1/3 of the daily losses so far today in the nasdaq so keep an eye on those names. i'll send things back over to you. >> all right, dom, thanks. the nasdaq getting crushed today

but still up about 15% from the june lows. two of america's biggest banks have very different takes on where the tech rally goes next, though jpmorgan says there's room to run. perhaps through the end of the year while ubs today says you should take the opportunity to trim excess exposure before the next downturn so who's right joining us now, david bonson, the chief investment officer of the bonson group david, welcome i've been off for about 12 days, and things are roughly where they were the day before i left. so i mean, i know there's been a lot of action since then but what's the sense to make of this market what should you do >> well, is hopely have a longer timeline than 12 days. that would help. because you're right, things are going to move around quite a bit. and over 12 days and sometimes over 12 weeks we can expect what is effectively a flat line even if there's a lot of volatility in between you mentioned the nasdaq being up 15% from its lows, and yet we know the math of it is how far down it still is from its highs.

that a 15% recovery if you were down 30 doesn't get you back half not even close and that's kind of what people are dealing with it's the danger of being overly invested in excessively valued things as the recovery can be very, very difficult >> it's tempting to look at where we were with the june lows and think that that was a bottom was it or is this a situation where for a long time people were saying don't fight the fed, don't fight the fed. but now aren't we fighting the fed in the markets right now >> no, i don't think that we are because what people believe as i do, that the fed is going to capitulate, they're not fighting against what the fed's doing they're fighting against what the fed is saying. they have a different opinion as to what the fed will be saying in january or in march or whatever point at which the fed breaks something, which hasn't happened yet why would somebody think that? why would someone not believe the fed is credible here, that they're going to keep going and act like this volcker-like

hawkish machine for months and quarters to come because they haven't done it in 40 years that's why no one believes it. because of greenspan and bernn kee and yellen and powell. there's a lot of history here that suggests once something breaks -- quantitative tightening's only been 47 billion a month. they're doubling that to 95 billion. the credit markets are still functioning. i think people rightly believe that there's some point -- i happen to think it will be around 3 1/2% at which point the fed at least pauses. maybe it doesn't start cutting right away but starts to pause >> why >> i would hope the fed -- >> why is the fed going to pause there and what does breaking mean to you in this market, in this context >> let me start with why pausing. because the fed knows what they can't say. that they have very little control over where inflation goes that the bulk of this inflation has been supply side-oriented,

supply chain disruptions, massive demand resurgence out of a reopening from the covid lockdowns. most importantly on the energy side a total lack of preparation for needed u.s. production the fed can't control that a fed funds rate of 5% or 1% has nothing to do with getting more oil fields producing in oklahoma and so the fed is limited. but they can't say it. they have to talk hawkishly, which i understand but the market believes that the fed at some point is not going to tolerate a real severe recession growing unemployment, which just hasn't happened yet so so far they're getting away with it. what do i mean by breaking something? well, first i guess if the unemployment rate were to shoot up above 5%, that's probably one element that would become more politically intolerable than inflation. but i think it's in financial markets. i just don't think the fed is going to tolerate a freeze-up of credit i've never seen it no one listening to the show has ever seen it when credit markets totally freeze up the fed says no, let's

just keep on tightening. 2018 may have been extreme when powell capitulated at pretty minuscule levels of credit tightening. relative to what could happen. but that's what i'm basing my precedent on >> so when do we see the cards when do we get the river in this game is it january you think when we're able to tell -- are you reading the fed and what they're going to do better than what they're actually saying? >> yeah, i think in 2019 it was either january 3rd or january 5th, i can't remember, but it was that first week of january when all of a sudden all of that fear people have in the fourth quarter of 2018. i remember having a dinner with ben bernanke where the talk was whether they were going to hike. of course he was not the fed chair anymore. but there was i aconversation of whether they were going to hike four or five times more. and two weeks later they started cutting. that's how severe that reversal was. that's not going to happen i think what you'll see in the first quarter of next year is a

pause. so i think you've got 100 basis points to go whether it's 50, 25 and 25 in the next three meetings or 50 and 50, i don't much care about the composition. they get another 100 and then at about 350 that's where i think they pause and start seeing the river, as you say, in q1 >> so about four months and a couple weeks on the clock, then. how should investors position between now and then >> well, regardless of what the fed is exactly doing for the next four months and into '23 i very much believe that the growth story is still overpriced, that the valuations on an absolute basis never got attractive and on a relative basis certainly didn't so i still would favor valuation and quality right now. this is just too easy of an escape for the expensive growth side of the market and nasdaq-oriented things we of course are dividend growth investors at my firm, and so we really favor where you happen to not only have attractive

valuation but free cash flow and so the free cash flow growth story speaks to higher quality, often speaks to lower valuation. that's the case right now in a lot of great names and it's performed a lot better. the last segment there's a lot of of guys talking about the energy story we love it we believe dividend growing energy is a great place to be. and by the way, if inflation is not coming down on the energy side, it does well if inflation does come down on the energy side it should still do well. those mid-stream pipeline operators. >> okay. david bahnsen, thank you >> thanks so much. >> one place in tech where we are seeing strength today is chinese internet names as the country's central bank continues to pull out all the stops to fire up that economy but more economic trouble could be ahead as the country deals with factory shutdowns eu eunice yoon is live in beijing early in the morning breaking down all the headlines >> thanks so much, jon

china has trimmed its benchmark lending rates after surprising the market last week by cutting two key policy rates by 10 basis points so today the one-year loan prime rate, which is a reference for new loans, was cut by five basis points and the five-year lpr which is used to price mortgages was reduced by a bigger than expected margin of 15 basis points now, these moves suggest that policy makers are looking to keep the borrowing costs relatively steady but at the same time targeting the struggling property sector in fact, the central bank had a meeting today where they called on the financial institutions, especially those that are state-run, to stable ooipz credit growth, particularly for small and medium-size businesses as well as for science and technology now, it also said that financial institutions should ensure reasonable financing for real estate developers. there were no details given as

to exactly what that means and whether or not these efforts would really convince homeowners or potential homeowners to actually put down money and buy a home especially with so many unfinished projects around the country and also people just generally feeling nervous about the economy. now, separate to that china's southwest, which has been hit by droughts, is now saying that they're going to extend power rationing until thursday that part of the country is very heavily reliant on hydro power and has seen its riverbeds dry up under temperatures as high as 113 degrees, jon >> eunice, is this going to work in boosting the economy? this makes me think of a video i saw online a few days ago of an official i think in hunan province encouraging people to buy multiple homes does all of this fit together in the policy that's being encouraged here? >> i mean, the government is

doing everything that it can i mean, as you said, it's pulling out the stops, not getting to the point where they're really pumping a lot of stimulus into the market because they're very aware of the dangers. but the expectation is that there will be some more moves to try to stabilize the property sector but just as you were talking about, there's a lot of questions about this because people are feeling kind of poor about -- about if they have most of their life savings wrapped up in a mortgage or in a real estate -- in an apartment. now they're seeing the price of that falling apart there aren't a lot of reasons to spend, even for this power cut there were hundreds of malls in that part of china that were instructed to cut their shopping hours. and then you throw on top of that the covid lockdowns, which has really been discouraging people from going out and traveling. it just makes it really hard to see where all of that growth is going to be coming from.

>> well, economic policy challenging around the world eunice yoon, thank you now, coming up, this year's back to school season could see deeper discounts than in years past as inventories build. what brands have the balance sheets to withstand the price cuts we've got the back to school playbook next. plus, macy's, zoom and palo alto networks are set to report results. we have the narratives, the trades ahead on "earnings exchange." we're back after this. >> announc: iserth is "the exchange" on cnbc. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery.

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welcome back to the exchange well, it's that time of year again. kids are heading back to school or already there this year consumers on the hunt for deals with rising prices and cowan is out with a list of stocks that could benefit. also withstand discounting oliver chen is senior analyst and managing director at cowan joins us now oliver, so how does this work? back to school i think of clothes, i think of supplies when kids get older, maybe you've even got some furniture mixed in but what doesn't get bought in an inflationary environment, or do people just trade down and buy cheaper? >> well, what's happening is that trade-down is happening consumers are looking for values we're calling it back to school

back to discounts. and what walmart and target are doing is very effective in terms of offering many items below a dollar $100 laptops with inflation being a big problem with the consumer. retailers are prepared for this. many more markdowns and more inventory than retail really wants. so we're cautiously optimistic we're forecasting back to school of down 1% the street's looking for down .5%. so we continue to watch the environment. our top ideas here are target and ulta >> okay. so what does down 1% mean? because i take it you're talking down 1% in revenue but people are having to pay more, right? for the same amount of stuff it seems like either they're buying less stuff or they're choosing not to buy certain things even if they are trading down >> that's right. there are definitely share shifts and there's inflation happening with gas and food and energy and that's impacting the wallet.

the back to school spending, though, will still be relatively flattish because people still need clothes and this is a back to school like no other in terms of really going back to school and back to work so cautiously optimistic in the overall season but inflation has been running at double-digit levels and the consumer is facing many cross-currents we have low unemployment at 3.5% and savings rates at about 5.1%. however, inflation is a big problem as well as consumer confidence is trending negatively as well >> okay. so you're saying to go low and to go high, meaning luxury as well as low cost but i also want to talk beauty you like ulta beauty as well i guess if people are like going back out to school they've got to look good, at least at a certain age. >> yeah, that's been very true cosmetics has had great recession resistance going out again, taking care of your skin, taking care of your face these are items that are

essential for many people. and ulta's a premier way to play it given that it plays across cosmetics, skin scare. it also offers mass and pr prestige we've seen consumers at the middle and higher income trade down, trade down into walmart and trade into lower price points so ulta offering all of this is quite possible and overall, we're more cautious on apparel or more positive on categories outside of apparel such as cosmetics and handbags and you're right luxury goods is also still working, ironically. luxury goods is getting great pricing leverage as well >> is back to school and how it ends up performing a tell for holiday and q4 at all or is there too much economic data to happen between now and then? >> for sure, jon historically it correlates quite closely back to school and holidays so it's something we'll watch in terms of how the consumer is spending and also retailers are working very hard to clear through inventory. inventories are about 20

percentage points higher than many retailers would like them to be. so watching the consumer, the trends, the volatility, it's really important and back to school will be a good bellwether for how holiday trends as well right now we're seeing pretty volatile trends in terms of store traffic, a july that was a little bit weaker than june. however, the end of july was quite strong too so many things happening >> all right well, we'll see how these retailers and these consumers do in the preseason we can call it the preseason ahead of the holiday oliver chen, thank you >> great being here with you still ahead, we will break down the top stories in tech and media today, including a look at the crypto rally's impact on ftx's bottom line and the newly minted amc shares. plus shares of signifies health are signaling amazon is joining the bidding war for the home health services provider details on what it could mean for amazon's home health push next and a look at the dow heat map right now.

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any specialist. anywhere in the u.s. who accepts medicare patients. take charge of your health care today. consider adding this. call unitedhealthcare today about an aarp medicare supplement plan. welcome back to "the exchange." markets right now close to session lows they're on the dow down about 545 points oil prices paring their losses after the saudi energy minister suggested opec plus could decide to cut production to deal with volatility in the oil market wti crude hovering around 90 bucks a barrel right now ford laying off about 3,000 workers, mostly in north america. the company said that it's aiming to cut $3 billion in structural costs by 2026

and cloud and enterprise names among the biggest laggards today. asana and coupa software down. smh down about 3% with every name lower intel falling to its lowest level in more than five years. coming up, palo alto, macy's and zoom are all over since january. what's driving the declines for each d e adhave the action, the story anthtre up next on "earnings exchange."

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welcome back, everyone it is time for "earnings exchange." and today we've got the action the story and the trade on palo alto networks, zoom and macy's first up, palo alto. the cyber security firm off nearly 2% ahead of earnings today. cybersecurity has been front and center with the ongoing war in ukraine. but names across the space have been struggling this year. will palo alto be able to come out on top this quarter? our own frank holland has the story and boris schlossberg joins us with the trade. he's managing director of fx strategy at bk asset management and a cnbc contributor frank, what are we looking at? >> well, jon, you know, palo alto networks has had a bit of a choppy august since a big

upgrade from wolf research on august the 1st and another upgrade along the way, but generally the sentiment for this stock is very positive all buys are overweights from analysts no sells at all. and in general, the street's expecting some big increases when it comes to both revenue and profit the metric the analysts will be closely watching is next generation security aar, this is the growth of decline in customer spend in these newer products including palo alto networks' next generation firewall guidance will also be key according to wells fargo as management really tries to balance the uncertain macro environment with the growing momentum for cybersecurity as workloads move to the cloud. you mentioned the russia-ukraine war. also just that transition to the cloud. another tailwind for this company. >> boris, the sort of bookings and backlog watch relevant here to palo alto as well >> yeah, i think palo alto is just basically getting a tremendous amount of tailwind from two very strong secular trends, which is the work from home trend, which i think is going be to be permanent in

many, many ways or at least certainly far greater than it was before cove sxipd secondly as the reporter mentioned, the war. the geopolitical tensions, which means there's always possibility now of state actors acting to sabotage corporate assets. so for all those reasons palo alto really looks to me like a very, very attractive buy on an 18, 24-month basis now, it is very expensive. but i think if there's one thing we learn from stocks in 1990s, from microsoft 1990s, is that a technology company that's expensive but constantly beats expectations, which is what palo alto's been doing consistently, is a tremendously strong buy so unless they trip up i think this is going to be a very interesting trade going forward. those who are a little bit cautious could try to sell the 500 puts it's a 3 1/2% yield in five days because of the volatility and earnings but overall to me this is a long-term buy purely on secular trend basis. >> so frank, if there are going to be surprises here, are they in the guide and the backlog i'm just wondering, expectations

seem kind of high. >> the expectations are absolutely high. you mentioned this stock has a high valuation it's pretty expensive right now. and the price targets are to go even higher. if there's going to be a surprise i would think this t. might be that next generation aar. as more people, more companies search for solutions just to protect their networks and their data we haven't heard a lot about cyberattacks in the mainstream media but when you talk to people in the industry, i've spoken to amazon's chief security officer i've spoken to security officers for other countries. they say those attacks have happened, they just haven't gone widespread or haven't spilled out to the point where it's just back more widely known but certainly attacks are happening and the state-sponsored attacks, ransomware attacks continue to happen >> people only talk about those when they have to, right next up, zoom video. the pandemic darling has seen better days. shares are down nearly 47% this year options are implying a whopping 16% move for the stock back to you, frank, for the story here different from palo alto for

sure >> yeah, a lot different from palo alto. i think we all know zoom is very deeply tied to return to office. and just the future of workplace collaboration, and if we can dare say it post-pandemic america. i want to show you guys a chart. this also tells a lot of the story. when you look at zoom when it comes to business to zoom.us, the way most of us interact with the site here in the united states, you're really seeing the visits to the site have fallen sharply in 2022. you've got to look back at january. it's hard to remember this because it seems like forever ago. we had an omicron scare at the beginning of the year and a lot of people did not return to the office as planned. so the question here is can this company beat estimates on billings can they show some sizable growth when it comes to enterprise customers or guidance that's above the double-digit profit loss for the next quarter or for the fiscal year all that would be a big win for the stock. you're talking about that backlog in booking story also there are some questions about its product called zoom phone, which is an enterprise phone collaboration that also

incorporates a lot of things that we see and know of from zoom meetings. can that continue to see a lot of growth? right now estimates are for it to be 9% of overall revenue for the year so if there's a surprise to the upside when it comes to that, that could also be a big boost for zoom >> boris, what does zoom have to do here to sort of get past that big overhang during the pandemic they tried to do an acquisition that would have bulked them up in that core enterprise segment and got shot down. >> yeah. you know, it's a shame about zoom i'm really a huge fan of the product. but i think they've really run into sort of a brick wall here, especially because of microsoft teams. microsoft teams has been making a tremendous amount of inroads it's very hard to fight the giant like that. and that i think is going to be the biggest problem actually the zoom phone is actually an interesting app. it's kind of like a whatsapp for corporate in a way that allows to you create lots of voip communications all across the world and it's very much a ray of sunshine for them but i just don't think that's

going to be enough the stock is very close to its yearly lows. so it's certainly a much better buy here than it was a few months ago but the real question is how much growth can they generate. and that's pretty much been an open question. to me right now it's a pause and a hold primarily because i'm really afraid that microsoft is going to really just keep chipping away, chipping away, chipping away and that's going to make it much more difficult for them to really maintain market share >> to try to look for a silver lining here, frank, is there some point at which the comps get better for zoom or, you know, a different metric, particularly along enterprise when people start ignoring the consumer side of the business, which has been dropping since the pandemic, that could hearten investors? >> well, i think if the enterprise numbers improve obviously that would be very heartening to investors. that enterprise spend is very sticky usually when companies move toward a zoom they stay with them but i think boris really hit on it the competition from teams and microsoft is just growing. you have to remember microsoft obviously has a big enterprise

business itself. so if you have the choice as an enterprise to go with zoom or microsoft i think the competition for zoom there is very stiff >> all right frank, thanks. and finally, macy's, the retail giant also having a tough 2022 with shares off 28% this year. been a tough go for names in the retail space as inflation continues to impact consumer spending behavior. cnbc's courtney reagan joins us with the story we were just talking about back to school. how's macy's positioned with that and everything else >> back to school is an interesting season because it is the second most important season for retail when it comes to sort of the volume of what gets sold. if you're a player like macy's, you're selling less of the stuff you need right away like the crayons, the pencils, the calculators and more of the clothing and that tends to come a little bit later when you're talking about spending so yes, we should give some more early indication about back to school but i don't know that it's fair to expect the bulk of that spending to come from macy's commentary. what i do think is very important is to understand if

macy's consumer is that same consumer that kohl's saw in the middle, the middle income consumer where inflation is having a very big impact in how and br they spend and what they're choosing to buy. macy's before had seen some pretty strong results when it came to sort of back to work and back to occasion wear. dresses, men's suits actually were pretty strong they saw strong sales of luggage as everyone was going back to sort of spending on vacations and traveling. so i think this is going to be a very interesting quarter to hear from maesy's because we know the consumer that it really targets is one that is pretty squeezed right now from inflation so is what macy's doing enough to spur them to spend or is it just going to be too hard to overcome, people not wanting to spend their extra discretionary income on apparel right now? we'll see. beauty has also been a strong category in the quarter and that is sort of part of macy's central core

important but likely not enough to offset the wackness in apparel. that's what we're expecting to hear >> okay, boris, we were just talking to oliver chen earlier in the show and he was saying to bet low or high in retail. macy's is kind of in the middle. so what do you expect? >> i think the best thing you can say about macy's is that the stock is cheap you know, it's less than 5 p/e, 3% yield it is definitely going to be a struggle for them in the near term i don't think there are any more skillful and agile than target inventory build is still pretty high i think it's going to be difficult for them to produce very attractive numbers this quarter. i do think there is an interesting punt here going forward, not just back to school, but if you sort of believe that the consumer has stabilized and perhaps maybe even willing to spend into the christmas season and they guide forward on that, i think that could be potential generally you think about macy's, it's been able to really roll with the punches over the long run the most attractive thing about it is that it is relatively cheap. so there's a chance here if you want to take a punt for 18-month

trade, it could be a 50% upside just simply as the consumer stabilize and goes forward but ultimately that's really very much a geopolitical rather than a -- you're basically betting on the fact things are going to cool. the economy remains at a relatively low steady growth that's going to be very positive for macy's if not i think all bets are off. >> and we'll see how well they've done at managing inventories. that's going to be a big one, continue for all these retailers. courtney, boris, thank you and still ahead, the travel trade. among the biggest losers today a closer look at who's leading the declines in that sector is next and a look at the nasdaq right now as it hits session lows. among the big losers, netflix, match, booking, align technology, and the dow now down more than 600 points "the exchange" bacinwok t

travel stocks are under pressure along with the rest of the market the away etf down more than 2% more than 8% this week seema mody has a look at the biggest decliners in the group in today's session seema. >> and jon, you might just blame amc for the move in cruise lines. according to patrick scholes he says the meme trade failure along with low liquidity and concerns ahead of jackson hole are pressuring the group royal caribbean, carnival, norwegian all down and are among the most shorted names in travel down about 4% today after closing down by a similar amount on friday. currently on track for their worst three-day run in a month and it comes as all three cruise lines have removed covid testing protocols and other requirements which analysts say will widen the pool of its customer base. but also increasing concerns about travel budgets going into the fall ubs today writing that ubs consumers are increasingly feeling their standard of living has decreased and they're not saving enough to meet future

needs. take a look at hotel stocks, marriott, hilton, hyatt, all three beat street estimates this earnings season, down about 1% to 2%. as are the rate sensitive hotel reits. the real estate investment trusts like pebblebrook and host hotels as they watch yields tick a bit higher we also see that the vacation rental names, expedia, airbnb and booking, jon, also caught up in today's sell-off. >> are these names benefiting at the same time over the last few weeks from energy prices easing off? i know at least on the margin side that might be good for some airlines >> yeah. absolutely among the groups within travel that benefit from lower gas prices, oil prices are of course the cruise lines they consume a lot of fuel to stay sailing across the sea. so certainly one group that benefits from lower oil prices as do the hotels those that have hotels and locations that are drive-to destinations for sure, jon so yes >> absolutely. yeah, i should have said oil

but yeah, gas for driving. for sure seema, thank you still ahead, amc's ape begins trading llnshbo max pouring biio into streaming we are diving into today's biggest stories, next.

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welcome back to "the exchange." let's get you caught up on a few headlines we've got our eyes on today in the media and tech world. it's the first day of amc issuing preferred equity units to shareholders as meme stocks are back in the spotlight. for more i'm joined by beth tindig, io fund lead tech analyst, along with our own kri kri kristina partsinevelos >> amc's new preferred equity unit, also the acronym is known as apes, could provide much-needed capital to the largest movie chainin the country. that would be amc. but today it's off to i arocky start. every amc shareholder as of end of day last friday were issued the new ape shares they were supposed to be appearing in their brokerage accounts today instead of a stock split, where amc would be split into two shares, instead shareholders should now hold one ape share

for every amc share they own both of which, though, are trading in the red today amc shares plunging, down 38% for several reasons. the first one is the ape issuance drag on amc as would be the case in a stock split. then you've also got concerns about cineworld possibly going bankrupt even the retailers disagree. retail traders disagree with that statement and overall meme stock sell-off that you are other seeing across the board. this after ryan cohen sold his shares of bed bath & beyond questioning confidence in said companies. and lastly the general sell-off in tech prompted by rate concerns at this point, though, this is the important part, amc shareholders are worse off based on the combined value of both amc and ape shares, and you can look at the prices that you're seeing on your screen. that's $11 and about $6.40 added together that's $17.40, which is lower than friday's close of 18.02 lastly amc ceo adam aaron is

pretty adamant that shares will not be diluted but the company still holds the right to issue over 480 million new ape shares when they see fit. >> all right kristina, thank you. beth, does this mean that it didn't work? and when you combine what's happening with amc today with what we saw happen with ryan cohen and bed bath & beyond what does this mean for retail investors in the meme trade? >> i would say it means that it sounds very xwcomplicated. we don't think now is the time to take risks or look at complicated stocks the market dynamics have changed. probably most importantly such high quality has been on sale. we have 30%, 50% discounts in heavyweights with beautiful bottom lines this is your faangs. you have a.i. semiconductor stocks that are 40%, 50% off their highs. for us we really encourage investors to look at quality it's very, very rare to get quality on sale. forget meme stocks the market dynamics have changed

drastically since this time last year and we just ultimately feel they're very unpredictable >> and yet the meme trade is back and the crypto trade had bounced back somewhat. it's struggled over the last few days it seems like at least some retail investors can't stay away >> many of these stocks are 100% off their lows, so that can feel very attractive for a short period of time but again, quality is on sale. and that's what's going to make investors wealthy over time. i think these short, quick gains is what can get people in a lot of trouble i would actually separate crypto from meme stocks to me crypto is quality. >> okay. next up, billions of dollars being thrown at streaming as hbo debuts the "game of thrones" franchise extension and amazon bets on their version of "lord of the rings." but is the money going to bring in eyeballs? julia boorstin has more on the continuing streaming wars. julia.

>> well, jon, we don't he know about the eyeballs yet because we are awaiting ratings on "house of the dragon" which debuted last night on hbo and hbo max. this is part of a high-stakes attempt to extend hbo the streamer's most valuable franchise, "game of thrones," with a prequel and it comes after the final season of "game of thrones" fell flat with fans a reported 15 to 20 million dollars an episode this series comes at a time when hbo max and the other streamers are fighting to draw and retain consumers, consumers who are expected to be cutting costs and perhaps cutting back on the number of services they pay for. warner brothers discovery shares are down about 43% year to date, and ceo david zaslov has said he's looking for billions in additional cost savings. this is going up against amazon's biggest content bet yet. in just a week and a half amazon prime is launching "the rings of power. this is set before "the hobbit" and "lord of the rings." the five seasons that are in the works are expected to cost over

$1 billion, making it the most expensive tv series ever made by far. and it's part of amazon's strategy along with the rights to nfl thursday night games to use big brands to draw and retain those amazon prime subscribers. so unlike netflix, subscribers. unlike netflix whose shares are down on a downgrade, both hbo max and am swoazon are releasing their episodes once a week as netflix moving away from the binge model which isn't working as well. >> one a week. that's like old tv. >> old school. >> julia, thanks you were talking about quality in stocks and does that apply to media and streamers, too what does quality mean anymore, if it does >> sure. i think media has really been beaten up in the market and i would keep a keen eye in the quality and amazon has a motivation and they're a

cross-sell and keep you as a prime customer hbo and netflix, probably more apples to apples on that note with netflix being down so much, we do not own netflix at this time and we're certainly watching it and this is a company that's always in the top ten for quality, highest-watched shows and with its recent move into ad video on demand and if you can take a global juggernaut mixed with 60% off its highs and add a massive catalyst, as a tech investor i tend to pay attention. netflix, when you talk about quality could become an interesting stock especially for early 2023 >> okay. >> finally, a rare look into the finances of the private crypto company ftx which saw revenue grow 1,000% last year. kate rooney has the latest in her scoop. >> hey, jon, that's right. i got a copy of ftx's audited financials the crypto exchange brought in a

billion th billion dollars in revenue and as of the first quarter it was on pace for a similar run rate for 2022 and $1.1 billion and operating income was 272 million with 27% margins like other exchanges, it is all about the trading fees and derivatives whereby far the biggest revenue driver with most of the action happening abroad less than 5% of revenue came from its u.s. subsidiary and ftx and according to its documents it is 15% of revenue on marketing and ads and it plans to spend almost a billion dollars on that in the next few years. documents give us a sense of the growing global reach ftx owns companies in cypress, turkey and also acquired start-ups in switzerland and australia which may have been to get certain regulatory licenses. unclear, though how the company is holding up in the recent

downturn and shares of coinbase are down 70% year to date. jon, back to you >> kate rooney, thank you. beth, do you -- do you bet on companies that are involved in crypto or if you're interested in crypto exposure just stay with crypto itself >> we like crypto itself we are believers in bitcoin. bitcoin adoption has gone up exponentially similar to ftx has grown quite a bit. ethereum right now is about to go through its merge for a stake that should happen some time next month and that's the biggest catalyst in ethereum's history, and then, of course, in addition to ftx, grayscale had grown their assets under management from about 300 million to 43 billion and it's tapered off quite a bit and that would be another successful in crypto >> buyer beware, of course

many of the bitcoin included are down more than 60% from their highs. beth, thank you. still ahead, shares of signify soaring today on reports that amazon is bidding for the company and it's not the only one. we've got the latest in big te tech's battle to dominate health care that's next. just $30/mo, taxes and fees included. plus we have a new plan with 5g ultra wideband. switch today at visible dot com. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

the race to disrupt health care heating up with amazon among the bidders for signify which provides primary care and home health services shares of signify sharply higher as a result, to say the least, up more than 32% bertha coombs here with details. bertha >> it's quite amazing. one analyst compared this with the war compared to a thoroughbred race and the prize is a company that sits in the center of the move towards value-based care contracting with doctors to keep

patients healthy rather than charge for every little service when people are sick it's a big thing for employers right now and a big thing in medicare after not getting any traction with its virtual care service, amazon now appears to be in the hunt for its second big primary care deal after last month's $3.9 billion acquisition of one medical. signify has 10,000 doctors in its stable, but perhaps even more transformative potentially for amazon, they have value-based care data analytics which could boost amazon's business with hospitalses. cvs' karen lynch says they're looking to do a deal before the end of the year to build out the primary care initiative in store and its home health business to attract patients when they're discharged from hospitals, but this could be the second deal that gets away from them and goes to amazon and then there's united health. it already has 50,000 doctors in

its unit and already has one deal that has gone to court on antitrust issues they're awaiting a ruling from the judge. one source says unh might be just to sort of show, hey, we're the big gorilla here don't forget we're the ones that are really in this space health is such a big space it doesn't seem like tech is anywhere near dominating it. we have oracle buy in with cerner which is very different from what amazon is doing which is very different from what apple is doing with the apple watch. which area is making the most progress >> in terms of the tech giants, amazon is really the one to watch right now. they've made a lot of big acquisitions they acquired pill pack a while and never seemed to go anywhere. they did amazon care and their virtual primary care service didn't get much traction and last december they named neil lindsay to be the executive vp

of health services and here we are six months later, they had a deal for one medical and now potentially this deal for signify shows that this time they're much more focused and really mean business here. >> between the regulatory challenges and the technical challenges, we'll see if they're able to integrate and figure things out that will do it for the exchange "power lunch" starts right now ♪ ♪ jon, thank you very much welcome, everybody to "power lunch ". with courtney reagan, i'm tyler matheson markets are down across the board this day and the nasdaq getting hit the hardest off 2%, so is this the end of the summer rebound or just a pause on the way, perhaps even higher plus the interesting split in the energy markets oil well off its highs down today back below $90 a barrel, but natural ga