late yesterday there was a real big rally, very end of the day, that kind of got the gains for the s&p up there, and that was a lot of it was in the big growth stocks you're taking some of that back, i don't think unfortunately this has been the most conclusive verdict on what's going to happen next. but clearly it mattered a lot. >> speaking of conclusive, that's it for us have a great weekend, everybody, "techcheck" starts now good friday morning, welcome to "techcheck," i'm deirdre bosa in san francisco with jon fortt back at headquarters, three big stories today, of course the fed and jackson hole, all eyes are on the markets as powell promises to lower inflation, the nasdaq is down about 2% at the moment live in wyoming this hour. later, a suitor for electronic arts, deals that took over the street briefly this morning, but does a deal for amazon actually make sense finally, we're going to look at a firm, the stock is getting crushed this morning, the

founder and ceo max levchin is going to join us later on in the show. the nasdaq is getting closer to session lows, tech and the growth trade, the obvious underperformers today, there was a thought going into the fed chair's speech that perhaps the markets had come into better alignment with fed speakers, what we've heard from them, over the past two weeks, but jon, maybe not anticipating this much hawkishness, markets still working through this, but powell used words like forcefully using tools to restore price stability and the takeaway seems to be like tighter for longer. >> yeah, the fed speak has been trying to deliver this message for a couple weeks now talked to mary daly a couple weeks ago, and so many were coming out and saying don't expect us to cut rates next year, we're going to hike them and leave them high for a while. now it sounds like the market maybe is starting to believe it this time. but we're coming off a level where things have gotten pretty

hidy but even apple is off 1.5% this morning. google is off 4%, better known as alphabet these days amazon, off 2. so even the larger technology stocks that had been performing pretty well are taking it on the chin this morning, you mentioned growth stocks. those are off as well. a firm, we're going to talk to max levchin in a bit that's off 19.5% coinbase off 7 peloton, down 7 as well. marvel off 6.5%. even though fundamentally it's doing well, still some supply chain issues that we see reflected in what's happening in the chips. >> maybe i would just add the arc innovation etf to that list, so indicative of that growth trade that's down almost 4%. of course, we've been talking about it all morning, jerome powell saying this morning, the

symposium in jackson hole, wyoming, that it will continue to maintain restrictive monetary policy until, quote, the job is done our next guest says as potential rate hikes loom to focus on long-term quality, fanamely i.t, health care, and energy names. joining us is scott wren thanks for joining us this friday what are your takeaways from the speech >> all i can say, it was short and sweet, and i don't know why any market participant would be surprised at what chair powell said i mean, it was basically reiterating exactly what the fed has been saying for months now you know, we haven't been buying into this fed pivot, and all those kinds of things. i think the market's really looking to next year, and what's going to happen. we've got a couple of hikes priced in. we think the fed funds rate after the 1st of the year, first couple of meetings it will be about 4% and we're certainly not looking for rate cuts next year. so i'm not sure, you know -- i'm

not sure what the market was thinking the chair was going to say, but at least in our minds he said exactly what we expected. >> yeah, he was certainly hawkish in line with some of the other fed speakers but does this come down to credibility? that's perhaps why some investors thought he might ease back they were talking about this on the previous hour. fed chair powell, saying he has a credibility problem. the word transitory hangs around him. is he restoring that credibility, scott, or do you think he's trying too hard, perhaps, by invoking history lessons that maybe don't apply as much today? >> the fed did have a credibility problem. they still do have one, deirdre, but i think the last couple of months, the last couple of meetings they're building that back, and, you know, clearly we have very, very high inflation that's going to take some time to come down the fed's more than willing, as they've stated many, many times, to give up growth to get there

we know that the unemployment rate's going to go up. we're looking for about 5.3% on the unemployment rate by the end of next year you know, the fed may not -- you know, they'll -- they won't say they want the unemployment rate to go up but they'll hem and ha around it with other verbiage. the fed has to attack demand they can't do anything about the supply chain disruption, they can't do anything about russia invading ukraine the only thing they can do is try to dampen demand. >> scott, call out session lows in the major indices down off 500 points, just over 1.5% the nasdaq down 2.3%, the s&p right about there in the middle at 1.8 but should we pay so much attention to the reaction of the fed, given like you said everybody should have expected this, and given i want to focus specifically in tech right now

we just had pretty good earnings results from the likes of intuit, snowflake, showing demand for software is pretty strong, it's become a fundamental run the business sort of issue with digital transformation and even in a mild recession, they seem prepared does a dip like this then offer opportunity. >> for us -- it's underperformed, jon, and everybody knows that you know, if you think that technology -- in our opinion, you know, earnings are going to still be good there. certainly we're not interested in technology companies that might have a product somewhere down the road. they're not making any money that's not the kind of technology we're interested in we want the ones that have good cash flow and good products. so we do think it's an opportunity. and as i said, health care, you know, that's more defensive. energy, you know, we still think there's some upside here in the oil and energy complex, overall. we've adjusted portfolios.

we've downgraded industrials, consumer discretionary, real estate, financial. so we've gotten more defensive, and what we're trying to do right now is play capital preservation, rather than capital appreciation and that's probably going to go on, you know, until the middle of the recession we think one will start for real here in the next couple of months and last into the middle of next year. >> i understand that you're being cautious, and that makes sense, at the same time, so many growth stocks have come down so far, and we've had so much m&a, and rumors of m&a, both from large companies and private equity doesn't that signal that even if a company is still in growth stage where it's not throwing off cash, there are opportunities there? >> opportunities, and there always are, and, you know, this is not a rising tide lifts all boats when we do finally see growth names go back up. we're going to have to be

picking and choosing here, at least in the initial stages. and so that's -- that's the situation. and technology, i mean, if you're a tech company, and you're dealing with things like efficiency, and automation, i mean clearly this labor shortage we have isn't going to go away anytime soon, and those types of technology companies are going to gain interest, even the ones that are on the verge of having an actual product out there on the market so you can be selective and find some opportunities but in general, you know, we want good balance sheets, cash flow, own their niche, lots of products, buying back shares that's really the kind of companies and technology, really any company in any sector, right now that we're looking for. >> scott, what is your view on holding cash you saw a lot of hedge funds up there, allocation this year, and for the longer-term investor, maybe too difficult to play this market, some others have suggested that maybe they should hold onto more cash even with the rate of inflation.

>> talking to clients about on bad days, bad weeks, if you have a 2-plus-year time horizon, you need to have a plan. if you feel indigestion about doing that, that's probably a good thing the worst time to buy stocks is when everybody's happy about stocks one of the best times historically is when you don't feel very good about buying and neither does anyone else so long-term investors, bad days, bad weeks, we want them stepping in incrementally. if your time horizon is three months, six months big liquidity event, hold onto some cash. so i think it's a matter of -- once your time horizon in the next six or nine months we're going to see plenty of volatility. >> right, but you're largely seeing this as an opportunity, scott wren, thanks very much. >> skies are going to be brighter next year might take a little time, but we're optimistic. >> the fed's on it, okay, thank you. >> once we get away from this.

yeah thanks, deirdre. >> keep checking the markets want to mention the dow now down 525 points, taking a leg down recently the s&p off about 2% nasdaq about 2.5 we are also watching another interesting story, a swedish media report saying amazon was going to make a bid to buy video game maker ea. cnbc's david faber is shooting down that rumor saying no such offer on the table might mean no deal but there's certainly a reason that ea shares jumped. one could argue it's not crazy to think amazon might do this. let's bring in cnbc'ssteve kovach there's three trends that i'm watching in gaming right now one, giants vertically integrating. two, software bigs going horizontal, trying to get into mobile and then the combination of tools and data there's so much action something like this could happen, right? >> yeah, absolutely. and jon, amazon already has a

gaming division, they make some first party titles with some hits and misses in between there with their first game that was actually cancelled but they also have this thing called luna, which is a streaming video game product, the netflix of gaming, you pay one subscription and stream hundreds of gaming titles. but, look, you cannot have a successful gaming product without good first party titles. the xbox wouldn't exist without halo franchise, nintendo wouldn't exist without the -- when i first heard the news, the first thought, amazon would want a studio like this because they need good first party titles, and ea has that. they have the nfl madden series, they have the sims apex legends, a fortnite competitor ea would fit nicely into these big plans that amazon and microsoft have to create this netflix of gaming and make it so

you basically i don't have to buy an expensive console or pc to stream it on top of it, we all know aws is a huge profit driver for amazon, where most of their profits come from, and these kind of services are great for the cloud business that's another reason why microsoft is about to drop almost $70 billion to by activision. >> they have big plans, also, amazon has twitch which has been successful for them. but notably you mentioned the blizzard deal, that's still in limbo. and you can see the price of activision blizzard isn't even the price they're offering skepticism there everything sounds good that's a big reason why amazon may not do a deal like this. >> absolutely, deirdre that was the big concern for microsoft when the activision deal was announced microsoft is taking its time to get that deal through. they're giving themselves 18 #

months to work with regulators to make sure the i's are dotted and t's are crossed to make sure they can buy the company amazon, despite the regulatory head winds and talk from the ftc and doj about m&a activity in big tech, they're going through with acquisitions, closed mgm just fine and they just announced a couple other acquisitions so, look, it could still happen, and big tech is still moving forward. and, again, gaming is such a small part of amazon overall, and so they can also make that argument, like, you know, this is not a -- this is more of an add-on, the same kind of argument microsoft's going to make as well. >> that's why i think it's important for us to try to focus investors on where the opportunity is in gaming, giving these shifting dynamics. we were talking a couple weeks ago about unity ion source app loving, trying to interrupt that candle lit dinner breakup, that engagement, and get this

but theoretically, it's about combining tools for creating rich 3d environments, many of which are going to be gaming environments with the data to insert ads or increase discoverability. where are the opportunities, do you think, stock-wise, perhaps things that are already public, where investors should look and think, well maybe this is something that comes into play that gets acquired or that's the sort of asset mobile gaming-wise that's interesting >> yeah, and you're exactly right, with that iron source, and app loving -- i'm sorry, iron source and unity deal is mostly about mobile gaming you want to talk about mobile gaming, talk take 2 interactive. they -- when i was talking about this first party titles, jon, how, if you want a successful gaming business, you really need those bang up first party titles, take 2 has grand theft auto, which is the -- grand theft auto 5, by the way, the single most profitable entertainment property of all

time, plus redemption. still driving a lot of revenue for those companies. take 2 is a company to look at if ea is in play, take 2 is as well. >> steve kovach. let's bring in the verge editor in chief neli patel, good to see you what is the most important strategic trend happening right now in -- i'm not going to just say gaming, mobile and app stores are part of that, this metaverse nonsense we're talking about less and less, but it was getting pushed a few months ago as part of that too. >> well, first, i want to point out, and steve's talking trash on twitter, i'm wearing a cooler jacket most importantly in gaming, though, the big trend is where the money is moving. gaming was on track to become

$191 billion business, people think it will contract to $188 billion. the piece of the pie that's growing is microtransactions games are free to play and you buy a lot of stuff in the games. fortnite, free to get it, lots of transaction makes all the money for epic what you're seeing from all these companies is right now you can buy madden i buy madden every year for $75. it is basically a roster update, but there's tons of transactions inside of it so if you're looking at a cloud a base like amazon luna or microsoft's game pass, you've got stable revenue, subscription business, but inside the games you've got the ability to make hit products that transact at a higher rate from consumer money. you can't do that in music, you can't do that in movies, no one's shopping during the movie. but people are shopping in the games, and i think that's where a lot of the tunt is that's where your app loving comes in with targeted advertisement, data comes in with tarting digital products to consumers. thatst the part of the market

that's growing, and i think that's where fundamentally all the energy is. every other kind of entertainment product is moving towards streaming. >> so i wonder where can you isolate that opportunity because you've got bigger transaction players out there, that you can't necessarily play them for digital transactions. you've got the big app stores that are a part of apple, maybe a part of microsoft, et cetera, you're not necessarily going to get the lift off of that trend there. you've got the chip makers that are doing mobile chips or that are doing console chips. you don't necessarily get the benefit there. where can an investor look to say, okay, if i want to bet on these microtransactions increasing, here's a company that has ip skin in the game. >> well, so i would definitely look at the big players in games, like obviously microsoft is doing well. i think ea right now, regardless of the acquisition noise they just had their earnings, the ceo said, look, we're on

track to become independent. they've got some of the biggest transactions in the world. i really did get madden again. those franchises for ea are huge then i think not necessarily the chip side, but on the streaming side, game streaming gets them away from apple's app store rules. they can just stream the games to you over the web, which many companies are trying to do and there's a lot of providers in the chain that create that technology platform, then their revenue is going to increase because they're not paying 30% to apple there's a lot of opportunities for how they get away from the platforms, microsoft's trying to move directly into smart tvs now, and instead pass those revenues on to other partners, maybe at different cuts. >> all right, nilay patel. cool jacket, but go with a lighter shade. >> my mom wants me in colors, too. >> does nilay wear anything

other than black. back to the broader markets, close to session lows, the nasdaq is down 2.5%, the dow is off by nearly 550 points we're going to bring in dan niles. we're so glad you could join us last minute. you've been calling this, you've been telling us all year that the market has further to fall, the upside was a bull market rally. what did you make of the fed chair's speech, and subsequent market reaction? >> i mean, it's what i expected. it's nice to see that the market was, you know, actually interpreting this properly it's not normal to see a fed chairman, and i put out a tweet on this, saying that, you know, they will also bring some pain to household and businesses, and that failure to restore price stability would mean far greater pain you know, you put pain in his speech twice it was on purpose. i think, you know, a lot of people -- and it makes sense, right, for 13 years, every time

the fed has said well, we're going to try to stamp out inflation or raise rates, every time the market has dropped, the fed has been cut rate, start easing, think 2018 as an example of that. and so after 13 years of basically, you know, giving stock market investors everything that they want, and anytime there's a tantrum, saying, okay, you know, let me soothe you, it's going to take a while to break that mentality in the markets. and -- but i think the big picture that investors are missing is for the first time in 13 years you've got massive inflation. you've got the highest inflation in 40 years. and given the fed screwed up in the 1970s, it's easy to understand in the sense that they cut rates, they started raising rates. inflation came down, then they cut rates, inflation took off again, they -- things started

coming down, then they cut rates again, that's why it's referred to as the burns blunder. and i think powell referred to that in his speech that he doesn't want to repeat those mistakes so it's going to take a while, i think, for investors to believe the fed, but today was a good first step in getting there. >> certainly feels like investors are believing them now. meanwhile, markets at session lows, dan. how are you currently playing this, going forward? i think previously you had switched to more long than shorts going into the next few weeks or months what do you think? is there going to be more pain ahead? >> yeah, i mean, you know, we -- when we heard the speech, we were like, okay, you know, it's time to put, you know, more shorts on. we took about 15% of the portfolio, and put that on when the market rallied back to flat, which made zero sense to us. but, you know, i think, you know, i think we said this in a cnbc interview earlier this week, where, you know, you take

a $200 eps estimate for the s&p for 2023 that's about a 20% reduction from where it was at 250 at one point. and then you say, well, do i think cpi is above 3%? if so, over the last 70 years the multiple on those earnings for the s&p on a trailing basis is 15 times, 200 times 15 gets you to 3,000 on the s&p. so -- and that's being -- you could argue conservative because you could put an even lower multiple on that obviously that's down over 25% from current levels, and below the prior levels so i think you have to keep that in mind. but more importantly, or as importantly, i should say, the other thing you learned this week was that the weakness in the fundamentals is not just in consumer anymore it's not just pcs and smart phones you heard from salesforce, numbers came down, they're more than people thought. they talked about weaknesses at the end of the quarter

you know, they're 7 billion of revenues a quarter snowflake is 500 million pay a lot more attention to what crm said about enterprise. and obviously this morning you had dell, and they talked about weakness in business as well. >> yeah. >> this is spreading in terms of the weakness fundamentally. >> are you sure it's spreading, though because snowflake actually did better than a lot of people expected i intuit was pretty strong as well saying the cloud platforms, the kind of data driven approach to running a business has become fundamental and operational as opposed to as much of a capital expense, and perhaps more optional should investors take some encouragement from that? >> no. and that's why i said earlier, jon, snowflake is 500 million in revenues a quarter salesforce is 7 billion. so you need to kind of look at all this stuff big picture

you're not going to have every company saying things are terrible at once it's a process i've said this multiple times. and it takes time for this to work itself out. the big companies can't get around a macro slowdown. 7 billion in revenues a quarter, they're the purest enterprise company out there. microsoft obviously, but they've got a lot of consumer exposure through their pc division, gaming division, which is why i focus on salesforce. the fact that they're saying that matters given it's purely concentrated in enterprise snowflake is small enough at 500 million, you know, they're not even a tenth of the size of salesforce where they might be able to get through niches much like other companies out there. and that's why i also focused on dell, where, you know, lots of enterprise exposure. if you remember last quarter, the stock rallied off the results because they said, yeah, consumer is weak, but enterprise is great this quarter they had issues

with enterprise. >> get to the other piece also, if you can, but i want to get your thoughts back to the consumer a bit inventories we saw, in some retailers, including gap overnight and then also nordstrom and macy's bringing down revenue outlooks for the year i know you're making your enterprise case, but we're seeing the consumer questions lingering. >> i think, jon, it's a fantastic point because that's your biggest risk for the last six months of the year i've said this multiple times. you had, during covid, people spent on goods because they couldn't go on vacation. they couldn't go, you know, to their favorite restaurants, et cetera, i think this holiday season you're going to see all that pent up demand switch from goods to services. that's why you're seeing such weakness in smart phones, pcs, peloton bikes, et cetera, all the stuff that we spent money on during the holidays. i think you're going to have a very large problem in terms of christmas, to your point, there's a lot of inventories

that have stacked up we've got shorts spread out where the first thing we're looking at is how much inventory has accumulated on the balance sheet. and that's what we're trying to focus our efforts in terms of what we're short and that's going to hit, really, i think in the march quarter if you don't sell it through on christmas, you're going to have to burn that inventory in the march quarter. that's why i've been saying for a while, i think this process is going to take into 2023, you know, mid to back half of it before it's completely sorted out. big portion of it is what you just brought up, the inventory piece of this. >> dan niles, thank you so much for joining us on short notice on this market day when markets are coming off session lows, but still pretty deeply in the red 'lbeacinwoines bubbles

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take charge of your health care today. consider adding this. call unitedhealthcare today about an aarp medicare supplement plan. welcome back, let's get to steve liesman at jackson hole as chairman powell walks out from his speech, a speech that has

enormous implications for the markets. steve, what are you seeing >> right now chair powell is doing kind of traditional walk for the cameras here and for the considerable media presence, and i don't know if we have that shot, but we have fed chair powell taking a walk with -- there he is with his two other vice chairs, that's john williams, the new york fed president, who is the permanent vice chair of the federal market committee and there's brainerd, the recently nominated and approved vice chair of the federal reserve board. she took office in may the idea here is this is classically the trica, the two vice chairs and the chair are see as the inner circle on setting monetary policy. typically, there is not a whole lot of monetary policy space between these three when it comes to the setting of policy they tend to be -- the three of them, pretty much in sync. even if they maybe disagree behind closed doors they don't typically do so publicly and today the speech obviously

a -- you know, something the market has to really take into account, the idea that fed chair jay powell talked about the idea of pain in the economy and really answering a question that's been out there among fed observers, which is how might the fed react if there were, indeed, a recession? and powell kind of suggesting, you know what, we might keep going with our strong medicine against inflation here, even if we -- people did experience pain out there. it isn't often you see or hear a chair in the federal reserve talk about pain coming as a result of federal reserve policy usually that's the signal that there is pain for the fed to reverse policy but that's not the signal that chair powell is sending today. there really was not much for the doves in there there was an expectation that perhaps there would be some -- a few -- the only one that was there is the idea at some point it would be appropriate for the federal reserve to slow the pace of tightening. but that came along with the idea that perhaps there would be

a 75 basis point rate increase in september, saying it could be appropriate to do that there was also some hope that maybe the fed would start that reduction in the pace of tightening in september, but not necessarily -- there he is talking to allen blinder, the former vice chair of the federal reserve board back in the '90s, a guest on cnbc, and that's michelle smith, the chief of staff of the federal reserve, and that completes the tradition of the fed chair, something that was started many, many years ago here at jackson hole, so that the cameras wouldn't have to stake out the fed chair to make it a little more civil this way, with no stakeout, we get the camera or the shots that we need in order to tell the story here without having to stake out the fed chair and that's how that tradition began many years ago here. >> a favorite to the media, perhaps, if you've ever had to stake someone out, long and arduous. powell really channels former

fed chair volker in his speech, referencing the '70s and '80s as well do you think that's a fair analogy? what's different about this time >> you know, deirdre, good question, because it is easy, and maybe a little bit lazy for some people to say this is like the '70s when in some ways it's not like the '70s at all people are trying to take that imprint or that hole series of events and say this is like the '70s when we had high inflation and volker had to go to double digits there wasn't a pandemic in the '70s there was a period of perhaps overfiscal stimulus, but not one that went on for decades for example, you can trace back the inflation to the '70s to the great society and the vietnam war. the spending associated with that this time, indeed, it's different. it's always a little bit different. maybe substantially different in that case. but what the analogy that powell reached for was the idea of you can't stop and start, and that was leaning specifically against

this notion that's been out in the market that the fed may rocket interest rates up and then, you know, come back down pretty quickly we have had several people here who start talking, fed officials we've spoken to, they talk and say they have hike and hold. we're going to get up to this rate and stay there for a while until we're sure we beat back inflation and that's really leaning against this idea, and powell embraced that language today, embraced that idea and that's one of the reasons he went back and used the '70s analogy of saying, you know, last time when we went up a couple times, then we stopped or came back down, that reignited the inflation in the '70s. that's the analogy he's using. >> all right, steven, and we like to watch this walk, i believe, because if the fed chair sees his shadow, that's six more months of aggressive rate hikes it's a sunny day, i don't know if he saw his shadow or not. >> right. >> no, but we've had so much fed speak over the last few weeks, and it's interesting the degree to which it seems to -- the

market didn't absorb it. i'm looking at a chart from late july when people interpreted the chair's comments as being dovish we're still up quite a bit. >> yeah. >> since then. is that -- is that normal for fed speak to fall on deaf ears that way >> well, it's a great -- it's an interesting observation, jon, in a couple different ways. the first is, all the fed reporters who were in that press conference walked ut, scratching their head, wondering what the market heard from powell about a pivot, that they didn't hear. because we're pretty good at knowing, did powell sort of unusually raise his right eyebrow compared to his left to make some kind of signal we're on tenter hooks on this stuff. most of us in the conference did not hear that pivot. and so we sort of came out and said, you know, we didn't hear it i wasn't there but the market embraced it and went for it. and then you'll notice, jon, there were a bunch of fed folks who came out that leaned against the idea that there indeed was a

pivot at the press conference. and what happened in that regard, jon, was the fed funds futures market, and to some extent the high yield or the bond market, became closer in line with the fed. i'm not sure if this is an issue of the stock market hearing and wanting to know or wanting to believe one thing, but the bond market has indeed heard it we went into this speech by powell, i thought, with the market and the fed at least from the bond market standpoint or the fed funds futures market a lot more in sync i don't know if you have it, but we were up at 380 now for the peak rate in april of 2023 that's exactly where the fed is. there wasn't much difference there. you are correct, jon, in pointing out there was a differential between the stock market and the fed. >> wow, steve liesman, watching those eyebrow raises and telling us what they mean, thank you, as always meanwhile, one stock taking a big hit in today's selloff is

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. the nfl's shift to streaming

getting into another gear that's light with amazon exclusively broadcasting its first game on prime video. julia boorstin has more on strategy julia? >> well, jon, we're waiting ratings from last night's game amazon warned advertisers ratings would drop from last year's thursday games which were on fox one source telling me the league would not be surprised if initial viewership of these thursday games on amazon is just half of what the games drew last year but over time the nfl expects viewership on streaming to exceed that of linear tv and this is all part of the nfl's biggest move yet into streaming, and amazon's big bet on the value of live sports amazon bought the right to 15 regular season games, which will stream exclusively on the platform starting september 15th this is part of its push to make amazon prime more valuable for it's estimated 200 million subscribers.

amazon is spending $1 billion annually on the nfl rights for the next 11 years and it will earn only about half that much annually on ad revenue according to morgan stanley with the potential for upside, if ads can drive transactions on the platform this investment is really much more about building the value of prime. morgan stanley writing on an absolute basis, the incremental ad revenue is likely to be small but the strategic rationale of the incremental content investment to buy and build, maintain the prime ecosystem is more powerful. rosenblatt is more skeptical, writing divorced from the pay tv ecosystem that drives hefty affiliate fees, we're not sure how this pencils out better for amazon than for fox. as we await ratings from last night's game the question becomes whether amazon will secure the rights for nfl sunday ticket they're currently up for grabs along with other nfl media rights amazon is bidding against apple,

google's youtube, along with disney's espn, and deirdre, there's no question that the nfl is the most popular content on tv, the question is how that translates for these tech companies. >> take advantage of that. julia, thanks so much. julia boorstin heading to break, shares of dell, another tech stock getting crushed in today's selloff after missing off revenue, the end of the pc sales boom weighing on those results. shares down 12% now. we're back in just a moment.

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so what else typically gets crushed in a risk off environment. bitcoin below 21 k, it and ether have been cut in half since the start of the year. coinbase is down 70% blank check deals have gone down every single month depots, home and office, down double digits year do date we've got a trifecta bitcoin debow announcing it will go public with spac. two acquisition, short of a billion dollars. despite the downturn in crypto and spac markets, the company sees growth posting record sales and ebidta, we'll see.

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welcome back to "techcheck." turning now to fintech, a firm share plunging this morning on the heels of the latest results, revenue beat, but that guide getting some attention, it is

cautious, and joining us now, in a first on cnbc interview, for a closer look at the quarter, the founder and ceo max levchin, good to see you, want to focus on the guide to start, because that's getting a lot of attention. what about the state of the consumer and perhaps the retailer is leading you to be as conservative as you are? >> first of all, we're actually not being all that conservative, if you compare on a two-year basis our forecasts o 60%. almost 40% at the midpoint. these are what i would consider, i think what most people would consider to be exceptionally strong growth company numbers. we are lagging a year when we launched amazon, and scaled up shopify to its fullest scale, you know, so far and so we're obviously comparing

some outstanding numbers, and the conservatism in my guide, if you want to look for that, isn't coming from our ability to continue growing a business, which we think extends decades, but the fact that if we were to open up the credit box is prude, we will probably see some pressure on economics and the single-most important thing i care about here and the team cares about is protecting the unit economics making sure we continue providing exceptional yield through our capital partners and most importantly not overextending the consume he were 'a conservative view in the sense we don't know what the credit future looks like i think the economy is not in the healthiest place, powell just spoke to that point we're being cautious of managing credit but extremely confident in our ability to grow the business >> that's whey wanted to get to is the macro and your expectations of it i also think it's interesting

given peloton's really bad quarter and the fact thaw used to get a huge percentage of your business from peloton speaks to the diversification over the last year plus, so tell me, what are the fastest-growing categories, and what is your approach to international expansion going to be, even as we have this somewhat murky macro picture? >> exactly so we see our growth coming from multiple different domains, and new merchant to merchant expansion. our fastest growing category is unremarkably general merchandise and that of course covers the very, very large-scale partners like walmart and amazon and target and so there's an enormous amount of expansion within their user base squarely into triple digits and we see wonderful things there. in addition, we are a product

company, we're integrating products aggressively, debit plus my favorite project, spending an enormous amount of time of my own audits, unbelievably good engagement metrics, consumers are using it 50 times on average more per year than any other of our products give a sense of how much more engagement we expect and then the third leg of our expansion plan is international, on the record saying the next geography is united kingdom. we saw exceptionally good growth in canada. we served lots of our u.s. partners there we partner with some folks i think in canada exclusively and done really, really well for us. we expect to do the same thing as we head across the pond >> max, a diversification has cost new terms of your take rate or what you earn off of each transaction. i look back over your financial results on a quarter over quarter basis, revenue has been flat it's also as a percentage of gmv has decreased over the last

year so what are you giving up here and also, when you look at this amazon/peloton partnership, is that an opportunity for you or is it a problem? your take rate is so much higher with peloton, now that it goes to amazon. does that set the precedent going forward? >> so first of all, the take rate metric is a result -- it's an average and result of a mix and we talked about it before, but mix change for us is a really important driver. the fastest piece of our growth right now is coming from the split pay and it's typically and for us is no exception a smaller percentage of gmv that falls down to revenue and revenue lost transaction cost our long-term guide for revenue lost transaction cost is between 3% and 4% for a very, very long time now this quarter we kept it at 4.3, which is well north of our long-term guidance so in terms

of our bottom line metrics, we think we're doing extraordinarily well as far as amazon peloton, the announcement goes a little bit too early to report obviously, two very large partners of ours i would expect we should see incrementally new opportunities from this. it's fantastic peloton found themselves a great new distribution channel it happens we're already available in it. >> i want to ask about the debit plus, the debit card that you've got. there's a mobile digital component to that as well. you said you're spending a lot of time on that. at the same time, i notice that you've been a little kind of slow, conservative again on firm savings. at about 1.3% apr there, but didn't raise it really quickly after rates went up. why the focus debit plus, how

important or not is savings to her right now. >> we'll continue to monitor what the federal reserve does and we'll respond in-kind with our bank partner obviously this is not our savings. we are partnered with customer bank to deliver the value to our consumers and it is important, it is actually quite similar in its importance to a firm as debit plus is are using consumers are much more engaged than the ones that are not so it's definitely yet another thing we do to give folks a reason to return to the affirm app to check out our other features we talked about this before, we see ourselves as a financial super app. the debit card is an engagement device the savings product is important because it allows you to save instead of just spend which we think is important for consumer help, gives us incremental view and ultimately is what this entire business is all about if you strip it all down to what is a firm, where is our

competitive advantage, over time, people will see that underwriting and managing credit and risk is what separates us from the pack and i think so long as we continue doing well on all those towards that goal, that will go very well >> that focus is what led to th guide, max, thank you, with investors not taking that guide in stride, at least for today. stock down at the moment 20% max, thanks. >> thank you markets are off session lows the nasdaq is still down more than 2%. however the dow is still up by more than 500 points after that hawkish spee fm chrofed chair jay powell "tech check" is back in a moment

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full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. i just don't want to build something that makes people super angry. i think there's different charges to them. twitter i agree. it's like you're on it and it's -- you know, the plus side of it is that you get all of these people who are super witty and saying super inciteful things but a lot of them are very cutting >> yes >> and i find that it's hard to spend a lot of time on twitter without getting too upset. on the flipside, i think

instagram is a super positive space. >> that's mark zuckerberg on joe rogin's podcast. he hasn't tweeted in a decade. how does he know >> i don't know what to say here, kettle, pot, black, twitter, instagram a lot of people might disagree with that. >> session lows for a lot of the major indices. that does it for "tech check." "the half" starts now the judge. >> thank you very much welcome to the "halftime report" i'm scott walker new york stock exchange front and center where stocks are likely to go once the dust settles at jackson hole we'll discuss and debate that with the investment committee. tom lee joins us in a few minutes as well. looking very much forward to that conversation. joining me for the hour today, brenda vangelo, jason snipe, josh brown and steve weiss and here with me is jim lant