sellers of the automobiles as well, or should i say the makers of them are up, lucid, rivian, ford, gm and tesla all nicely higher with a market that has the s&p 500 up about .25%. that's going to do it for us on squa"squawk on the street." "techcheck" starts right now. >> good wednesday morning. welcome to "techcheck. i'm deirdre bosa in san francisco with carl quintanilla and jon fortt out east today a breakdown of the consumer across the ecosystem. the top gainer on the s&p as small business demand proves stronger what peloton's new partnership with amazon means for the d to c names as names across the space get a boost. finally, is tiktok ruining the internet more on how it is changing the digital landscape? that's all later this hour. >> we'll start with a read on small business drengt. intuit shares popping on an

earnings beat. strong outlook, dividend raising, you can see there, up more than 5% so far this morning. it's the top gainer in the s&p so far this is a prime example of a pandemic name where the fundamentals are continuing to work and the stock -- the stocks aren'tnecessarily the ones tha are going to continue to perform. intuit has benefited over the last couple years as small businesses went digital to survive. it didn't chase trends instead aggressively invested in its core mission, buying companies like credit karma and male mail chimp those are closer to becoming what i would call the next microsoft for small business and consumer back office we'll break down the results with ceo sass san goodarzi in just a moment. >> not the same story for peloton, shares are surging on news of this new partnership with amazon.

some calling the move a last gasp from a retailer struggling to meet post pandemic headwinds. lauren thomas talked to peloton's chief commercial officer, broke the story today lauren, fascinating piece. shift in strategy. talk about how it came about >> absolutely. you might recall back when peloton shares started to tumble earlier this year, it was a point in time where rumors were swirling there washington reports that amazonhad been looking at peloton more as an accusation target that hasn't evolved and didn't bear any fruit here we are today and the two have struck a partnership. when i spoke to kevin cornelius, he said this is about peloton being more accessible. they want to get a bike in the hands of as many consumers as possible there's going to be accessories and apparel starting today peloton said its main goal is to

sell more hardware through the partnership. again, it's starting with its original bike industry and product. kevin core kneels told me that already about half a million searches are taking place on amazon every month for peloton products so the company believes the consumer is there, but again, ceo barry mccarthy's main goal right now is to get the company back to profitability, get the company back to free cash flow positive and this is certainly a move where they're hoping the grow their audience and, in turn, that's going to boost the business overall. >> lauren, clearly investors like this. we just saw a chart of peloton shares up some 18% but in the long run, do investors have to, is peloton doing this out of a position of strength or weakness we know other direct to consumer brands have been wary to put their stuff on peloton one, they kind of lose control of the customer and how the brand is represented and additional to that, amazon

is ambitious they're going to health and fitness themselves now they're going to have access to who peloton's customers are, how they're selling, what they're buying a >> all great points. we've seen companies including nike test it in the past and ultimately choose to leave the platform and focus on their own b to c operations. i think this is a test to learn. kevin core kneels, the chief commercial officer, told me peloton really wants to test the water. this is its first partner, first partner for distribution up until now it's been solely d to c you can only buy the bike or treadmill on peloton's website or in its showrooms. important to point out a few days ago peloton announced they're going to aggressively close their stores across the country. it's interesting timing, leaning into amazon who relied more on them for distribution while at the same time closing brick and

mortar stores. the company believes the consumer is on line and they're shopping on amazon they believe that pattern is here to stay. >> lauren, is peloton having an identity crisis? it looks like to me one of these classic hardware whiplash situations where they sort of don't want to love hardware, but they're living and dying by it they have high-priced hardware they have to sell it for cash flow they're talking about moving more into services and being this online company. and yet months ago there were stories about rusted-out bikes and manufacturing issues but instead of optimizing their designs, they seemed to be outsourcing that i'm not sure from a technology hardware perspective the strategy is that clear. >> right i totally see how you can see that, especially with all these changes that have taken place since barry mccarthy took over as ceo in february they've gotten out of last mile

delivery, no longer manufacturing their own bikes. now they're leaning into other retailers for distribution i think bottom line what's happening they're going from an asset-heavy business to more of an asset-light model at the end of the day, the description, the content seems to be priority number one in terms of what's going to generate revenue for the business moving forward. you've got a ceo that had stints at spotify, at netflix definitely content is kind of his core area of competency. so that's what increasingly the business seems to be focusing on you and i know peloton very well as a hardware company. it could be tough to get investors on board with that >> i don't i only use the app, okay i've never really bought into the hardware quick question, lauren they're closing brick and mortar are they closing studios as well >> great question. so only closing a number of stores they're not closing those studios. so you can still take the experience as of now they've got a studio

in new york city you can visit and also in london i hear since those have reopened, classes have been booking up peloton has a loyal following. >> i can see it in my classes. lauren, thanks so much we'll get to tesla now the stock is higher ahead of its three-for-one stock split. the first split was a 5 for 1 basis in august of 2020. what does today's move mean? margin's co-founder ron john roy joining us a stock split isn't supposed to change anything fundamentally. but meme traders have different ideas. you see this latest split as a way to capture that 2020 summer energy when tesla did its split and the shares rose some 80% on the back of it it's not going to work this time >> i will admit in the summer of 2020 in august, i was very skeptical. there was a lot of chatter that a stock split is going to drive southwest and juice the stock. i didn't believe it. i was completely wrong the stock shot up 81% that month

after the announcement of the split of tesla if we think back to that summer, august 2020, that's really when the foundations of these last two years were taking place. that's when zoom was up 40% in the day. the word gamma squeeze started making its way into the financial conversation i think we can kind of look at tesla. 5 to 1 split is the first chapter in this whole saga i think today's split is going to be one of the last chapters i think this era of meme stock craziness is over. i think investors know and understand in reality this is not going to change the financial health of the company at all, and it's just a last-gasp effort at trying to juice the stock. i think tesla is going to trade in line with fundamentals and the market as a whole and the split is going to be irrelevant. >> ranjan, it never made sense in the first place you attributed it to meme exuberance all we've been talking about is

bed bath and beyond. >> amc and ape tried to get into that is a whole other thing. again, very quickly, amc introduced a tranche with the taker ape, a-p-e, and created a 2 to 1 split bed, bath & beyond is back dow to almost premium levels the main thing to realize is the compression of the life cycle of one of these memes, it's getting shorter and shorter. in the past this stuff could go on for weeks or months now the up-and-down move happens very quickly that's because i think energy and capital are gone the fed is hiking. there's no stimulus. people have been burnt badly already. so i really do think these are last-gasp efforts. i would put amc and the ape new preferred equity ticker right alongside the tesla stock split.

they're trying the tricks of the past they're not going to work. >> ranjan, i want to go back to d to c we were just talking about peloton. we'll talk in a bit about small and medium business. there's been this interesting thing happening which we talked about in the past where e-commerce trends are sort of normalizing to where they were before at the same time, the online customer has gotten harder to target for multiple reasons. we see peloton now going to amazon which could be kind of the embrace of death for formerly at least d to c brand how do you think this is likely to play out in difficult economic times to come, and what are the dangers for d to c brands that trade publicly >> we've all seen the absolute slaughter in d to c stocks, warby parker, rent the runway,

all of them down 70, 80, 90% i think peloton going to amazon, as you said, it's basically like giving darth vader a hug and embracing the death star the idea that they're giving their customer data, that customers are going to buy a $1400 bike for two-day delivery versus actually having a direct connection with the brand and a direct emotional connection. i, as a big peloton fan, have that and understand that i think this is all another example of e-commerce accelerated dramatically at the early part of the pandemic now it's essentially normalized. e-commerce is still well, well ahead of where it was in 2019. it's just the rate of growth is slowing because the last two years were so crazy. i think trying to have planned on the back of those two years of growth and pretend that they would extrapolate out another year or two or three was the mistake of the pelotons, of these other public company

direct consumer brands i think these moves do feel a bit desperate like peloton going to am son are real potential threats to their future. i think they're giving away the direct connection with the consumer which was always the true value it was something that really was only enabled by the data, the online presence, the experiences you can create giving that away to a platform like amazon i think is a huge problem. >> well, investors like it at least for now, ranjan. i like that, like giving darth vader a hug. as always, thanks for your insights we'll talk to you soon, ranjan roy. meantime intuit shares are popping. we'll talk to the ceo next stock came within a few bucks of a four-month high. "techcheck" is just getting started.

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only from xfinity. nah. unbeatable internet. made to do anything so you can do anything. intuit is one of the top gainers on the s&p this morning. after strong results, they're up more than 6% joining us in a first on cnbc interview, intuit ceo sasan

goodarzi good to see you. let me set the stage, about half of 2022 revenue was from small business, a third from tax and the rest credit karma. tell me how things have changed over the past couple years because subscriptions and the stability of the business overall seems to be a big theme this quarter how has small business changed its relationship to running the business digitally >> thank you for the question, john great to see you and good morning. to build on your question, we're a very, very different company today than even three to five years ago where the majority of the company is subscription based. it's highly predictable business, and very specifically what's really changed in what we now do to serve small businesses, we now have a platform with mail chimp and quickbooks coming together where in one place we can help a small business not only be able to

grow their customer base but be able to manage their cash flow which are the two most important things that small businesses rely on. as i said earlier, the majority of them is subscription based. it's very pre disabilitiable we're delighted with the privilege to serve small businesses and with the performance we've had in the last quarter. >> you got incredible insight into how small business is dealing with the broader economy, down to how much money they've got in their bank accounts and outflows, linings like that. your business is looking strong. then at the same time you've got some changes like in credit karma, the understanding standards are shifting so revenue is a little iffy there. how uncertain is the last four months of the year looking you gave a mild recession scenario on the call and how the business will hold up. does it look like we're heading in that direction given the fatigue that the consumer is

experiencing >> great question. let me just break things down very quickly and i'll specifically answer your question about 51% of the company is based on serving small businesses about 35% is both our consumer and pro tax business about 14% is credit karma. so we really have sort of a very diversified set of platform services we use to be able to serve consumers and small businesses in general, when we guided to a very strong fiscal year '23, we've taken into account what we see in the business's trends today, and very specifically around small business. i'll break it down into two dimensions one, small businesses do worry about the economy. with that said, their businesses are actually doing well. consumers are spending at the same time their cost are going up, whether it's the cost of their supplies, the cost of

their wages. that's how the small businesses are dealing with the environment. now, when it comes to our platform, we are not a line item on the small business's budget we are the platform that they use to be able to grow and run their business more and more they're relying on their platform to do the basic things to run their business they manage all the money coming in and money going out they use our platform to estimate, to invoice, pay their employees, to get access to capital. with mail chimp, they use it to manage their customer base in a very competitive environment that's why we see the strength in our platform. at the same time, small businesses have to deal with some of the cost pressures and supply chain issues that we're all aware of. >> good morning, sasan, it's deirdre. speaking of mail chimp, it was one of the areas that fell a little short you said on the call last night that you guys yourselves pulled back a little. can you explain to our audience why you guys did that and how

and when you plan to ramp it back up? >> absolutely. we've got a few key priorities with mail chimp. one is to combine it with the quickbooks platform, our small business has a one-stop shop to manage their customers and cash flow also to go up market to serve what we call mid market customers. then we have a huge plan for international because it's a great opportunity with mail chimp. those priorities are in tact and we're accelerating our progress. very specifically what we did is we pulled back on marketing because we saw an opportunity to go after some product conversion areas which we believe are very, very important we pride ourselves on product innovation we pride ourselves at looking at our funnel to ensure our customers get the benefit that they are looking for, and we felt like we were in areas falling short. we doubled down on the product conversion and we're very excited with the busy season coming up which is the usage of the product in september to then

double down on marketing >> sasan, looking forward, services-based businesses make up the majority of your small business market. that has remained strong during the current economic downturn. we've heard from other ceos people are shifting towards services from products what are you seeing there, especially over the last few weeks or months? any slowdown or sign of a slowdown >> i love your question. when we look at the overall small business market, about 70% is service-based businesses. this is landscapers, plumbers, hair salons, professional services that 70% of the market is actually quite strong. that's where we have played as a company for many, many years the reason you're seeing strength in our results, not only do we serve the service-based businesses which is 70% of the market, but we're also very, very diversified. we don't overly play in one vertical or another.

as i mentioned earlier, these small businesses do worry about the economy, but they're quite healthy because consumers are spending, their services are unique, and they leverage our platform to be able to manage their cash flow and be able to grow and manage some of the cost pressures i mentioned earlier. so we do see strength which is really what is built into the guidance and, hence, the strong results we just delivered. >> sasan, finally i want to ask you about lightbox which i think is fascinating because you're taking data from people's financial filings an none mizing it and allowing partners to target i guess financial services that are fitting for that customer to them. correct me if i'm getting any of that wrong but part of the challenge right now for small businesses is that the targeting landscape has shifted so much with the changing rules on ios, the coming changes with google you've got a lot of interesting

data on, you know, who can afford and is interested in certain services are you going to become a data player in the broader advertising, targeting, discovery ecosystem for small businesses >> yeah. thank you for your question. first of all, our view is this is -- the customer's data, not ours we always use the customer's data only for their benefit and their permission in the case of light box, we're able to understand what does the consumer snead, what financial products do they need access to? because our financial institution customers put their credit models within light box and can specify what they're looking for, we can make a

perfect match. demand is quite high on credit ka karma. in tougher times there's a flight to quality. that's where light box comes in. it's being able to deliver personalized experiences to those we serve we're excited about being able to perform well in tougher times for those we serve. >> no interest in expanding that outside of that specific use case >> not at this point we want to make sure everything we do is focused on personalized experiences for those that we serve. if we see opportunities that would benefit our customers over the long-term, we will expand. right now we have so much opportunity in the space we play in. >> all right sasan goodarzi, ceo with intuit. it was about 6% earlier. we'll check in a moment. thanks for joining us on "techcheck." >> thanks for having me. coinbase shares are slumping this year. it's now the time to buy in. we'll break in both sides of the coin

i'm bertha coombs with your cnbc news update here is what's happening at this hour president biden expected to make an announcement this afternoon on student loan forgiveness. sources telling nbc news the president will extend a pause on paints until year end and forgive loans of up to $10,000 for taxpayers making less than $125,000 a year. pell grant recipients would be eligible for up to $20,000 of debt cancellation. pending home sales fell 1% in july. that's less than economists had expected but the measure of home sale contracts signed but not yet closed was down nearly 20% from a year ago separately home prices dropped a little over .75% in july from the prior month. that's the largest single monthly decline in 11 years. shares of petco taking a hit of about 5% today.

the retailer's quarterly profit report came in below wall street estimates. pet go didn't say why it cut the forecast the ceo told cnbc the pet category remains resilient apparently people are buying high-end food for their pets, but maybe not the fancy clothes for their pets >> you've got to cut back somewhere, bertha. thanks, bertha coombs. a gut check on coinbase. the stock flat today amid a roller coaster summer for crypto brian armstrong telling our own kate rooney he's not worried about the volatility >> we have this saying internally i like to repeat a lot. it's never as good as it seems it's never as bad as it seemsment one of the reasons coinbase has been so successful the last ten years, we try not to get focused on short-term ups and downs. >> investor jim chain knows less

confident, defending his own short position to our over scott wapner. >> you have a stock at, whatever it is, 75. that's excessive for a company that is in reality losing $4 or $5 a quarter that's it. it's a risk-we regard situation. investors are taking huge amounts of risk for what i think will be paltry levels of reward. >> dee, chain knows announced the position earlier in the year when the stock was about $100 higher >> the crux of his thesis is that the fees will get lower and lower, string brian armstrong admitted will happen to kate rooney he said he's going to offset that with more subscription revenue. i thought this was a great point. that revenue is flat this chart you saw bump up in q4 of 2021, it came from a very low

base, but it's been flat over the last four quarters that begs the question, how are they ramping it up what is it exactly are they going to be able to transition from an exchange so tied to crypto prices? >> maybe a partnership with petco, dogecoin. >> fancy clothes. >> yeah, and buy some crip toechlt i think there's a fair and important question about where crypto goes from here. how strong was the hype versus the reality, all this talk about web 3 which armstrong himself seemed kind of vague about how much is that going to become a real economic force versus a legacy of metaverse-strewn moment that we were just anywhere everything that was said to be the immediate future wasn't necessarily so immediate. >> all good questions. i guess brian armstrong would tell you it's early. he's waiting it out. he's been here ten years we'll see how long he has to

wait this time around. they had a good discussion as well what's different about this crypto winter than the previous ones >> one of the differences is that many more people are paying attention and involved most people had no skin in the game, there was no idea of systemic risk necessarily. it was like the second life period where the metaverse is concerned. >> which is coming back, by the way. >> no, it's not. one company not finding it hard to reach consumers is tiktok we'll have more on why our next guest thinks it's ruining the internet and changing consumer behavior that's after the break "techcheck" is bacin fk aew nd . ...running on a big impressive wireless network. how are we different? well, we're made for people who do everything on their phone. like, everything so we exist...only on your phone. which means you sign up, get help, and pay, all right here. simple. so you get unlimited data and hotspot for $30/mo, taxes and fees included.

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twitter has certainly taken the spotlight this week. some investors say we should really be watching tiktok as rivals and regulators call for what could be a very turbulent fall julia board stein has more on that. >> take tok's growth and addictive nature could pose a headache for both rooichs and election officials recent earnings calls meta and snap talked about growing competition with tiktok for both consumers and advisers as youtube and pin interest talk about building out new businesses around shopping ads, all these social platforms will

see growing competition from tiktok promoting a whole product catalog to enable people to directly click and buy that's new competition for similar ads on the likes of zbram. it romd out a tool to share directly to instagram without tiktokers having to flip over and engage on that app concerns aren't just about ads and eyeballs, but also about election misinformation, this after according to a mozilla foundation report tiktok struggled to fight disinformation ahead of a presidential election in kenya according to first quarter date tax more than 60% of videos with harmful information were viewed by users before they were removed. the company notes it's a very small number compared to the total number of zip i don'ts 0.6% of videos they removed in q1 were flagged for violating

integrity and authenticity that's what's concerning for election issues. the company is gearing up for the midterms with a new election center it's partnering with independent fact-checkers to figure out which content they can pull down they can flag it if they can't verify it as either true or false. tiktok has a total ban on political advertising. in contrast facebook accepts political ads but does impose restrictions, particularly around elections. >> julia, how much information do we have about how tiktok really operates, influences people, converts when it comes to advertising versus these other public platforms plus it seems like tiktok, as much as it's risen in popularity, has really evaded the level of accountability and scrutiny that the other social

networks have. >> well, it is a private company, john. as you pointed out, there were reports on how quickly the ad revenue has been growing, in some cases tripling year over year we don't have a lot of data from the company itself they have made more recent efforts to be more transparent about things like election integrity. they issued this report for the first quarter. we're awaiting numbers from the second quarter seems like they're starting to ramp up the kinds of information they're willing to share it's a different situation than a larger company like a meta or twitter, they have a lot more transparency they've been around a lot longer and faced a lot more regulatory scrutiny with tiktok there was the whole thing with president trump trying to the sale of bite dance. there's been a shift over to u.s. servers. >> our julia boorstin, thanks.

we're a short form video epidemic bernstein's mark smul lig joins us this morning. you know i know it's going to be interesting when you begin with an analogy to crack cocaine. what exactly is the point you're making here? >> thanks for having me. i think the point is this, is that short form video, namely tiktok and a lot on instagram reels, that form is here to say. some might say it's inevitable that we moved here we moved to something that gives you dopamine hits in 15, 30-second bites and leaves us wanting more it explains the rise of not just tiktok but every competitor building their own short form video product and effectively cannibalizing our own engagement and how we choose to interact with the internet. >> so you asked the question you say is short form video

dilutive to short form video content? >> the answer is tbd there are question marks we have if we go down the story line where we thinks everything migrates to short form video it's making up a quarter of time spent on instagram, if everything becomes video, we're moveing away from the click-based environment of how we've consumed social media to more of a leaned back consumption environment. youtube monetizes about a third per minute spent on facebook the if everything becomes video, does the way that advertisers kind of spend money and effectively drive returns on the platforms change and dilute as well >> mark, i would argue that it's not -- short form videos are not all bad. there's a lot of creativity in a lot of the stuff you see on tiktok it's this idea that everything

is so carefully curated and ed edited is the pendulum swinging back? look at the success of be reel, an app that asks you to take a picture at a random time of the day. does that tell you that maybe users are kind of pulling back, this nostalgia to a time when everything wasn't so carefully curated? >> i think absolutely. when we look at the space, everyone looks at users and engagement and advertisers, subscription for how they make money. the element often missed is the creators if i look back and say if i ever want to create a feature film, there's no way that would ever happen certainly i can use cap cutter or a similar editing tool and publish a video on to tiktok or reels. you've created an entirely new cohort of effective creators to effectively offer a new outlet for expression which they've never had before i think that's certainly a positive the question becomes how do you curate all that new form content and the volume of content

created. that's where the algorithm plays an outweighted role in that process. >> mark, the argument against the monetization potential of shower or thunderstorm video, is that similar to the argument made against mobil advertising, the ads are small and people are scrolling on their phone, and as tiesing on mobile -- discovery will never work. it did. >> there's some reference made to the early days of internet adver advertising, but i think what we saw emerge was frankly the likes of facebook which is so good at predicting and targeting what they think you'll like and they've driven that behavior where users did click on the ads and did purchase the product or download the application the concern we have is in short form video it brings you back from this lean-in environment. even something as simple as when you're consuming stories on instagram, you're clicking the the next story the second you're on tiktok,

you're swiping to the next video. you kind of get in the mindset of, maybe i just want to be entertained. i don't want to click out to do anything at the moment that's the concern we're highlighting. >> bottom line, mark, you go through the players involved, the implication for reels and instagram. who do you think stands to benefit the most or lose the most >> certainly everybody that's benefited from performance marketing stands to lose the most now, we think meta is probably most defensive from that front simply because of the effectiveness of their ad algorithm already, the social that they already own. it's certainly one we're paying close attention to certainly the company's highlighted early success of monetizing short form video wit north of a billion dollars revenue run rate, but it's certainly one we're watching closely. >> talk about something that's really just developed before our eyes in a hurry. excellent note, mark good to have you as always >> thanks so much. speaking of lagging stocks,

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let's get a gut check on farfetched shares surging after it

announced it will buy 47.5% of an online retailer they had been looking to offload the e-commerce business as it struggled to offload it will take a $2.68 billion write-down related to the deal we'll watch shares of far fetched which have plunged more than 70% this year a pretty nice rally this year. s&p up 25. back in a moment -had enough? -no... arthritis. here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

investors looking for a lead on cloud demand keeping an eye on salesforce and snowflake this afternoon how should you position your well, newly appointed coescity is joining us now to discuss sanjay previously served as president of s.a.p., chief operating officer of vmware. i want to talk to you about the new job in a bit, but first this broader ecosystem especially what we just saw from intuit last night bill.com a few days ago. there is strength in demand from small and medium business. we heard strength in some quarters from the enterprise as well what does that signal at least

about some players in this space? >> yeah, jon, good morning i'm delighted to be on here in my new role. and we can talk about that later. but hat's off to my good friend, i heard him earlier on your show i never thought the day would come where intuit is bigger cap than s.a.p yet here we are. a comfortable rule of i think 51, 35% margins, 15% growth guidance so amazing that they have transformed themselves from being a tax company to now a company with quickbooks and credit carmade&and so on so in the doubts of small immemedium sized businesses, is this is god for the sector and when you look back to the announcement of $150 billion of collective revenue growing 35% and earnings of cisco, data dog

was also phenomenal, they had 75% growth that is like rule of 90. so i think that the themes of cloud, security and data are definitely trend that's watching and those are the tail winds that will help in smaller companies like us. >> at what point does a slowdown potentially in u consumer spendg particularly the low end so far has been pinched by inflation, we'll see if that spreads as the year wears on, how long does it typically i take that to roll into affecting the enterprise? >> yeah, and generally we look at the last -- i've watched the last three recessions, lived through that, 2008 and 2000, and in general, what i expect to see happen is that there is some slowdown it is not immune you have seen some of it not just in the growth rates but also in the guidance but i believe that software is the biggest deflationary and despite recession and potentially even the war risk,

software companies that are best in that category should gain and even as i.t. spend slows down, software should benefit potentially even over i.t. slowdown and gdp growth. so my hope is that the software sector has less kind of risk to the other macro aspects of what is happening and some of that is starting to play out the last month in terms of the earnings results we've seen >> and that is something that we see often from kathy wood as well i wonder what you make of her move ahead of nvidia in order to buy zoom >> well, listen, nvidia is a great company. some of the biggest semiconductors, i think fifth largest in tech. so i'm a long term believer in their ceo. he is one of the greatest of our time and so whether it is gaming or sort of the crypto base that might be churning, i think long term they have got such a far lead in the gpus and the world is moving to ai.

and so my perspective on it is much more long term believer they are a customer and partner of ours so we like them. and i think in general all of these data trends when you take the long term view, that alongside things like security are just phenomenal. results were phenomenal. i think that those trends when you take the long term view are here to stay >> well, only time for one more, so let's make it on your company. yes, palo alto is doing well we've talked about okta and others tell me where cohecity right inflno and how far are you from going public >> we seek to be the data management security player one day to be like crowd strike. we are early in that stage i felt it was time do something smaller and we'll see when the right times are to go public

so we'll see how it plays out. from our spe pperspective, our product is called fort knox because it padlocks and security systems, bank walls were popular, this is now a popular way to protect yourself from ransomware i'm thinking about calling the next product "on the other hand." it will be copyrighted by someone i know so we'll keep doing it well and if we do, we'll be a great security company one day >> sanjay, great perspective as always on enterprise congrats on the new role >> thank you, jon. and still to come, it is the story that never ends, the latest on twitter after that new filing from the s.e.c., in a moment

before we go, check out shares of sofi, they are up on the back of student loan news from the president, $10,000 in federal forgiveness. during the second quarter student loans accounted for nearly 40% of sofi's total lending products, but shares down nearly 20% before today over the past week heading into

that announcement. so, carl, perhaps not going to be a hit to the sofi balance sheet that some anticipated. >> yeah, stock got a real move and one more thing before we go, twitter's lawyers heading to court this afternoon to defend the company against the s.e.c., the government agency asking twitter management to disclose the methodology that it used to calculate that less than 5% of daily active users were false or spam accounts in fiscal 2021 so it is getting a little more interesting. rosenblat goes to neutral. they were at 52. they go to 37 as they say the filing appears to open up a new avenue for musk to allege materially inaccurate representations and allow them to move on from what they call thephishing expedition on well hedged spam disclosures. >> and is it the right avenue? i mean, also the whistleblower said that the monetizable numbe

he didn't dispute, but will that help musk. the saga continues >> it is hard to predict what a judge will pay attention to. so i won't even try it but, yes, the odds are shifting, carl >> indeed. meanwhile, got a nice little turnaround to the up side on the market all secretors are green let's get to the judge and the half thank you very much. welcome, everybody, to the "halftime report." the state of stocks with jackson hole looming large and key tech earnings dropping in a few hours. we get you ahead of all of that with the investment committee. joining me today, shannon, jim, and right here onset, joe and our jim cramer, he is the host of "mad money." so let talk about what is happening in the market. we were kind of, you know, not doing too much we're picking up a little bit now. all leadin