effectuate a slowdown there. diana, thank you speaking of which, the ten-year today trading about 3.2. nearer than we've seen the last week or so. >> a bit of a rally picking up with the s&p up 1% now that's going to do it for us on "squawk on the street. great labor day weekend to all our viewers. "techcheck" starts now good friday morning, welcome to "techcheck," i'm carl quintanilla, with jon fortt and deirdre bosa nasdaq seeing a first positive session in six what it means heading into the fall later on this hour. plus, a terrible week for growth names across cloud, cybersecurity as you know. we'll check in the ceos behind sentinel one, pager duty and smart sheets, three names sha have been caught up in the volatility about their outlook protect throughout the hour. dee, pretty interesting here as we were up 2.75. >> kicking off with that widely watched jobs number.

you've been talking about it all morning. markets heading -- some calling it a goldilocks report it's a good thing. as we look at treasury yields, the ten-year, around 3.2 that's obviously good for some of the names we've been talking about all week that have been feeling this pain, that is unprofitable tech, improfitable tech, the clou, the cloud etf down yesterday, a bit of a recovery today, not enough, only less than 1% jon, it will be good to hear from more ceos they're giving us a picture. they're still talking about lengthening sales cycle. >> some of the names we're talking to today are in that unprofitable type. but i don't so much care whether these are profitable or not yet because they're high growth, right, and they've got targets for when they're going to be profitable we're taking to pager duty specifically about that, smart

sheet, tightening some things to increase their margins but this is interesting dynamic we're seeing in software right now where things that are absolutely essential, security, for example, sentinel one, protecting against downside, those are still growing. devops still growing nicely, pager duty in that category, tools that developers need productivity, not necessarily as much, right, like if you're going for additional revenue it seems like customers might be pulling back on some of the hiring and some of the growth, therefore, in productivity, which leads to some of the conservatism we see from a name like smart sheet and that seems to be consistent, carl, across some of these names that we follow. >> although we have a guest who might take issue with that, jon, focusing on software, the wisdomtree cloud computing a sharp drop this week, leaving some to wonder is now a good time to start buying in. joining us today wolf research

director, talked about that exact topic. great to have you. are we in a period where companies are going to lean in to productivity, and hence rely on software, or is the trouble just beginning in tech >> we believe that there's definitely a drive towards productivity, and it's something that's been very important in the pipe labor market if the labor market does become a little bit looser we do feel that there will be cuts across the budget the first thing that goes is usually nice to have, rather than something that's day-to-day, important to your day-to-day job with. >> that sort of points to what tom siebel said, both on the call and on our air yesterday, that his consumer base is starting to run for the hills and scrutinize, at least large deals in ways that they have not in several years. >> absolutely. anything that's got long sales cycles, anything that's transformational, digital transformation right now is a

very, very hard sell to do, especially these deals, and 50 million, it's very, very hard to get an approval right now because customers are just worried what's going to happen to their business over the next 12 months. >> gal, i was talking to vc in the software space yesterday who had a very different viewpoint than you he thinks that this is an opportunity for a company like okta, which has now fallen to pre-pandemic lows, he says that you can't build modern tech infrastructure with some of these companies, like a data dog, like a confluent. do you think that there's opportunities? we heard a certain tone from c3 ai, tom siebel yesterday, there are companies that are seeing sales cycles lengthen. but no demand destruction, they say. >> in general we don't talk about demand destruction yet what we are talking about is getting -- taking longer to get approvals done i think what's really important is some of the companies you mentioned they are key in order

to protect, in order to do something that we already have today. when we're thinking about expansioning to areas that -- or changing the process in ways we haven't done it before, we believe it could be something that is pushed out more than the others that are already part of your technology stack. >> so then, gal, what parts of enterprise software do you think are sort of on the cutting block for ceos, ctos, cfos, and which are essential, we talk about cybersecurity as one that's not going to face cuts in this kind of environment, are there others what does get cut? >> that's a great question well, i'll be a little bit biased coming from the vertical software side as well. there's a ton of opportunity in this space where we're seeing customers that are getting paid r&d dollars rather than production these are not revenues that are linked to royalties, for some of those, we definitely see opportunities, you know, stocks that have done well into the last selloff already, the likes

of cadence, and eda names, we really like those kind of long-term, three to five-year cycles that supported demand that we know is not going away electric vehicle platforms are here to come, we're going to have a drive towards autonomy, anything that's something that's transformational, generational changing is very, very important to invest today. otherwise you'll be able to leave five years from now. >> gal, i'm noticing some security names did particularly well this cycle. palo alto networks, crowd strike, sentinel one we're speaking with today, especially if there's share gainers, if they're smaller. devops has done pretty well, multicloud plays, pager duty today, nutanix we saw with a huge pop yesterday but productivity stuff, and by that i don't just mean stuff that generally keeps people productive, but things that end workers use, the growth perhaps seems to be slowing a bit more

because maybe because customers aren't sure how many more people they're going to hire. is that fair are you seeing similar trends? >> that's absolutely fair. no matter how many people you have at the end you need the tools to monitor -- your business is moving more and more into e-commerce is up and running. customers have seen this experience no matter how many customers you get through the door or on a remember site you still want to make sure that those transactions can be done and that's a key part there. you see those pops in the areas that are key to supporting the business, any business, as long as the business is going, these companies have to exist. and then to your second point, i would definitely agree that when we look at something that increases productivity, the question is, how much productivity do we need in a year, if we're going to be laying off potentially some of people, and those are the decisions that are then going to push out, it's not too different to disruption we had during covid where we saw, you know,

utilization rates and factories decline, and purchasing decisions got delayed. we're seeing this at a potentially bigger scale now and with more certainty. >> gal, what do you expect to see in m&a activity within, perhaps, those segments, or others, maybe some pressure in productivity if there's not growth, or perhaps opportunistic, companies in the space, in devops, in security buying other companies to fuel their growth if they're feeling ambitious. >> yeah, and it's a little bit is the growth r, on the other side it's finally getting hands on something they wanted for years and because of the fact that they couldn't because the multiples were where they were i think the fact that now they're competing more and more with the private equity funds just shows you that there's obviously a lot of -- a lot of value out there in the market. and when private markets step in, i think that's kind of the

next -- the next one usually are the corporates that come in, because they can provide significant synergies for some of those companies. >> and finally, gal, we don't talk about bentley systems too much, software for engineering and infrastructure but it sounds like it's one of your more favorite plays because of the infrastructure act which is just now beginning to hit the road, so to speak. >> yeah, absolutely. it's an interesting idea it's one of those that within our coverage, when you think about what is the risk to growth, i think earlier we mentioned growth isn't out of favor. it's just what is the confidence of the growth levels that we have in the numbers, as the street and i believe that this is one of those names when you look at the street, where the street is today, versus what can happen over the last year or two, it's one of the few names that could actually surprise on the upside. the reason is, they have been doing very well organically and since they become public they've definitely been outperforming expectations but it's not one of

the things i think the second part, which is really important, it's not in the numbers today, is that u.s. obviously is going through effectively doubling their spend incrementally on what they spend on infrastructure. and as that hit in, you want to own the owners of that space, and the biggest beneficiary of that is bentley systems who effectively controls majority of the market share within the department of transportation, for example. >> yeah, we're going to watch that closely, definitely outperforming the market quarter to date. gal, great stuff, appreciate it very much, good to see you. >> absolutely, thank you for having me. we named it a few times, take a look at sentinelone, shares higher than 2.5 after a beat across the board in q2. joining us is sentinelone co-founder and ceo, tommer

winegarden growth above 120%, you know, your net revenue retention looking really strong and you raised the guide what are you seeing in demand for security and identity software that's different from what we're seeing from some other enterprise software names that are talking lengthening sales cycles. >> we're seeing strong demand, it's the nature of the platform we built and there's definitely a move towards consolidating away some of the legacy products that folks have in their environment. and eventually, it's not just about security being a must have it's not just about having that need for protection. it's also about, how do you get more operational efficiency within your environment, and that's something that you see us delivering to our customers, both in terms of consolidating away legacy products, saving on spend, automating more, and really helping folks become more efficient. >> you completed the acquisition

of ativo in may. this brings to mind, we were just talking to okta yesterday, they got some indigestion over an acquisition, which ideally is meant to fuel growth but if you don't get the integration right, can cause a lot of problems. how are you approaching m&a during this period and how is that integration going? >> yeah, it's a great question, and, you know, with us obviously our organic growth is so, you know, so strong that it's kind of the universe with us. when we acquire someone like ativo we want to assimilate them it's a different type of integration. and it's going really well i mean, identity is one of these very, very needed ingredients right now. the fresh landscape as you -- dramatically, in the past couple of years attackers are gunning towards identity and provincial theft. what it did is what customers need, it's a great compliment to

the platform we have when you buy one of these companies you can easily attach these modules and deliver them to your customer base, hence, you know, the great rate you're seeing. >> are you still inquisitive >> sorry >> are you still looking for m&a targets? >> all the time. can't say there's anything eminent, but there's great opportunities out there. obviously with the pullback, but again, all in all, we're also trying to be very prudent and conservative there's still a degree of uncertainty. >> yeah. >> and want to make sure we don't do anything too dramatic at this point in time. >> you did report wider than expected losses this quarter how does that affect that drive and also where were some of the cost pressures, what kind of levers can you pull on the operational side to get that profitability better >> yeah, i mean, actually it was not wider than expected. it was narrower than expected. we've improved significantly year over year on our operating margin and we also delivered a

72% margin point when we ipo the company we're around 55% margins within a year we've expended our margins dramatically operating margin to include 30 points year over year, we're showing a lot of leverage in the model we're improving 30 points of margin, practically every year now, and so you can kind of understand that, you know, going into next quarter, at the scale that we are, kind of nearing half a billion dollars of arr, still triple digit growth rate, improving operating margins significantly year over year, there's going to be an infliction point at some point we all hope, and that's going to -- the business model sales efficiencies are incredibly high, so we feel confident. >> gross margin over 72% how do you balance that, which is nice, with your need to fuel growth in a space that's very competitive? i mean, you've got an identity player that's having some knee trouble right now, i imagine you

want to try to run as fast as possible in sales and try to gain some share. >> yeah, i mean, look, and that's the balance of, you know, growth and the investment we're doing to fuel our growth we've invested them back into business the expectation for us to turn profitable right now we don't want to do that our investment in the business is elective. when you see, you know, a very weak, you know, sea of incumbents that you can displace and grab more market share, our election is to invest back into the business, to invest back in growth for the longer term profitability target in doing that on a high revenue scale of course. to us, as long as it can do that efficiently. when we're printing something like a 1.3 magic number for sales efficiency, which is typically something that's reserved to companies that are bigger than us, significantly, we know that what we're doing is efficient and we feel confident

investing back in the business. >> all right, once again with that stock up -- better than 2.5%, tommer weingarten from sentinelone. the software story continues after this, we'll check in on another winner today pager duty ceo is joining us aztec as "techcheck" is just getting started. (dad) we have to tell everyone that we just switched to verizon's new welcome unlimited plan, for just $30. (daughter) i've already told everyone! (nurse) wait... did you say verizon for just $30? (mom) it's their best unlimited price ever. (cool guy) $30...that's awesome. (dad) yeah, and it's from the most

reliable 5g network in america. (woman) for $30 a line, i'm switching now. (mom) yeah, it's easy and you get $960 when you switch the whole family. (geek) wow... i've got to let my buddies know. (geek friend) we're already here! (vo) the network you want. the price you love. only from verizon.

this? this is supersonic wifi from xfinity. it's fast. so gaming with your niece has never felt more intense. incoming! hey, what does this button do? no, don't! welcome to the fastest internet on the largest gig speed network. are you crying uncle ed? no! a little. only from xfinity. unbeatable internet made to do anything so you can do anything.

look at lulu lemon, there with the tech names, gut check on chips, shared of broadcom up this morning, the company beating top and bottom tanks to robust demand across cloud, service provider and enterprise, also issuing strong guidance expecting demand to continue into q4. and then there's nvidia, hitting 52 week lows but cathie wood is buying, scooping up almost $32 million

worth of the name, dee. >> i mean, it has fallen a lot so -- meanwhile, volatile morning for pagerduty after a big pop on better than expected quarterly results, 7% jump in total paid customers compared to a year ago, and issuing strong guidance ceo jennifer tejada joins us to discuss. good morning, it's good to see you. >> good morning, grade to see you too, deirdre. >> the call, duration extension for larger deals, could you give us more color, what kind of budget scrutiny are you guys seeing at the moment >> we continue to execute really well in the quarter. i'm proud of the results we delivered, growth up 34% this is our fourth quarter at or above 32% growth with significant operating margin improvements, throughout a thousand basis points year over year, we're really committed around our path to profitability, we expect to be profitable for q4 this year and for the full year, next year, fy

24 from a macro perspective, we saw a few things, incident response continues to be a very important priority for our customers, not dissimilar to security with most business moving to digital assets online. mobile app, et cetera. we see customers needing to make sure customer experiences go well, they continue to invest in there. so while we did see some larger deals slow down, and some additional scrutiny on deals in europe, we continue to see our high velocity land and expand business perform very well, be very predictable, like it has been quarter in, quarter out that's one of the unique denver s differentiators. we don't rely on significant large deals to deliver our growth. >> jennifer, we were talking to tom siebel yesterday of c 3 5rks -- ai, he's switching to consumption based model. he thinks that is the wise move

to do in this environment when budgets are getting an extra look, as you talked about some of those larger deals. is that something you have considered or would consider in the current macro environment? >> we're always looking at different pricing models what we've seen with our per seat pricing model is that developers who are among our primary buyers are very resilient to fluctuations in the macro environment. there's a pretty significant talent shortage where tech talent exists. there are more jobs open than there are capable developers, and again with most of business moving online, this is -- it's important for you are customers to try and improve the productivity and the efficiency of their technology teams, and at the same time return those teams to doing the innovation work that delivers the great customer experiences like we heard about on lulu lemon which is a pagerduty customer. we're always contemplating different pricing models i don't think it's a one size fits all thing and it kind of depends on the product and the

buyer. in our case the per seat model has worked very well for us. >> jen, it's great to have you back some are trying to retrace the moment at which software began to get more worrisome. it was service now comments about lead cycles in europe, could you give us a sense of how you're feeling about that area of the world in the next 12 months >> you know, we're obviously watching the macro very carefully, and the u.s. dollar is strong, which means the i.t. euro doesn't go as far as it used to. but at the same time we see really strong demand in those marks and have a customer base there that is, like i said, going to continue to invest in priorities that are mission critical to their business operations, and their business outcomes as our pagerduty has truly become essential infrastructure for our customers one thing we're not talking about, tail winds, cloud adoption, devops

transformation and digital acceleration remain intact that's what's driving the strong demand and we're seeing great performance in our other regions. we have a very diverse customer base, we're not -- we don't have a lot of concentration in any specific vertical. that's helped us to continue to be a very consistent strong performer over the last several quarters. >> hey, jen, it's jon fortt, good to see you. hoping you can give some color on something i've been hearing more and more about. i know you've been making investments, m&a-wise into automation with the labor force being as tight as it is, particularly in i.t., what have you seen in demand for automation, software that just goes ahead and does basic things that need doing, and low code, no code in this environment? >> it's a great question, jon. we see incredible demand for automation, for a couple of reasons. one, developers are really smart, and they tend to be leading influencers for our

customers. and they don't want to be doing work that could be managed as effectively or more effectively by machines. they want to stay in flow and focus on the innovation work that can really help their companies disrupt competition, create delightful experiences for their customers and improve their productivity overall i mean, no one wants to feel like their time is not well spent or their time is wasted. and so we saw developers, first, asking for automation. in our case we're automating across -- throughout our platform from the way we detect events for our customers, the way we orchestrate work intelligently to the right teams and communities. and increasingly how we help them safe self-heal their infrastructure when things don't go well. having that automation throughout the platform has really been a game changer for us, and put us in a very favorable competitive position we've extended our lead.

no code automation or no code work flows are really amazing because they enable non-technical people across the enterprise to start to build out the work flows that they want to automate themselves. and that's where our recent acquisition of catalytic has been really important, and this summer we actually announced no code work flows for incident response which enables our customers to really quickly put automation into those work flows that historically have taken a lot of time or required them to wake up technical people with specialized scripts. you're going to continue to hear about automation because it's highly quantifiable roi for our customers but also helps developers and individuals get to the purposeful work that really matters to them. >> so going into the next year, what are you doing about developer events in person versus remote streaming? i know everybody was having to do the remote thing with the ecosystem during the pandemic. but now is it important productivity-wise to actually bring people together?

>> we're definitely have a hybrid mantra at work. when you're writing code, when you're developing, being in flow, and being able to concentrate, and not being interrupted, which is one of the things that pagerduty was, we manage interrupt work really well and really efficiently for our customers, that's super important. i don't see us bringing developers back into the office to do their day-to-day work. but what we are doing more and more of is getting people together to collaborate, so build community, to build a relationship, to, you know, brainstorm and innovate in group settings and, in fact, our offices have become more like off site centers, you know, more -- our office feels more like soho house than it feels like the traditional office and i'm traveling a lot more than i was during covid, obviously. in some cases traveling for different things i'm traveling to see our employees as much as i'm traveling to see customers and to give talks. so i think this hybrid way of working, this distributed way of working is going to continue for a long time.

because technical employees are really good at managing their time at home, and demonstrating great productivity but humans need interaction. and we also want to connect and build together, and i think that's going to be an important part of the hybrid balance going forward. >> yeah, the rise of the off site, certainly a san francisco west coast trend, i'm sure we'll talk to you again soon, thanks so much. >> great to see you all. >> pagerduty ceo. we're going to get more on the outlook for soft wir with the ceo smartsheet, shares up 13% this morning. plus, meta, teaming up with qualcomm, we're going to discuss this new partnership to make custom chips for vr when "techcheck" is back in a moment. this... is the planning effect. this is how it feels to know you have a wealth plan that covers everything that's important to you. this is what it's like to have a dedicated fidelity advisor

looking at your full financial picture. making sure you have the right balance of risk and reward. and helping you plan for future generations. this is "the planning effect" from fidelity.

good day, i'm contessa brewer, the justice department released a more detailed inventory of items seized by the fbi during its mar-a-lago search

following a judge's order, details material with classification labels found alongside unclassified documents. a lot of newspapers, a handful of gift items. also on the list, some empty folders, empty, with classified banners on them. former white house counsel pat cipalone, to testify before a grand jury investigating the january 6th attack on the capitol. and what then president trump did or didn't do on that day g-7 # finance ministers say today they're moving ahead with plans to limit russia's oil income u.s. treasury officials say there will be one price cap on crude and two or refined products. "the wall street journal" reports general motors will offer buyouts to buick dealers that don't want to make the investments needed as the brand goes all electric by 2030. carl, that's the news. send it back to you. >> contessa, see you in a bit. meantime, metais betting big

on virtual reality with this new partnership with qualcomm, our juliaboorstin has more on that for us today, hi, julia. >> meta works to build out its virtual reality business, meta and qualcomm are teaming up -- for quest products, using qualcomm's snap dragon technology meta and qualcomm have worked together for years qualcomm does power the latest quest 2 headset along with the rayban stories glasses meta shares are down, qualcomm shares are up. chip sets will be optimized for quest systems the chips will not be exclusive to meta this also shows meta's dependence on qualcomm and the fact that meta has not been able to make its own custom chips despite the attempts of its in-house silicon unit, improving

chances to have competing with apple. this comes ahead of apple's event next week where we could get a peek at its first vr headset, expected to compete with quest pro, anticipated to launch in october. this upcoming quest headset is expected to be a higher end option, this after meta raised the prices of its most accessible quest 2 headsets in july one question here is whether qualcomm can help meta bring down the cost of its hardware and drive adoption of vr dan ives tells us meta needs all the help it can get on this virtual reality strategy with apple set to release its new apple glass in 2023. qualcomm is a good step forward and solidified its stance on the market but this is clearly a defensive play versus apple. ives also saying that it's, quote, very concerning that these chips are not exclusive. he says qualcomm is hedging their bets and making sure meta is not their sole partner

device >> got to have volume. one way or the other julia, thanks. buying the dip this morning, initiating a buy along with crowdstrike and palo alto at neutral. the names were oversold, given respective market dominance and that demand can only go up from here 'rba ia ment this is doubling production without doubling headcount. this is connecting all your team with a shared point of view. this is the system you built moving from concept to customer. this is how. airtable. - [narrator] the future. the way you see it is said to depend on where you sit. at x-chair, we think it also gets down to how you sit, which is why our technology is lightyears ahead.

x-chair has done it again with our groundbreaking elemax technology, providing hours of infinite comfort no matter where in the world you're sitting by synthesizing the universe's elements, bringing hot, cold, and touch into one extraordinary seating experience. our mission is to help you discover that every work day can happen with body and mind in an out-of-this-world place of comfort and productivity. x-chair is charting a new course, helping workers everywhere find comfort as their work worlds zoom back and forth. even though your work reality may continue to shift, we've got our eye on the future of work so you can focus on the present. at x-chair, we're gazing ahead. and from where we sit, the future still feels good. x-chair works for you. save up to $600 on a new x-tech plus a free x-hmt now.

smartsheet shares jumping

more than 12%, the work management software platform beating on the top and bottom lines for the second quarter lowered revenue guidance for the full year but expects to break even on free cash flow after falling nearly 60% year to date. could this be the start of a rebound? joining us now in the first cnbc interview, smartsheet koechlt mark mader good to see you, mark. so interesting setup here, productivity very much needed in this environment, but you made an interesting comment in the beginning of the call about the sales force's productivity, how long it's taking new sales reps to ramp. what's happening there in. >> good to see you again, jon. i think what we're seeing is, in this macro situation, the newer sellers are taking a bit longer to get to a point where they can really draw that road map for the customer in a normal setting you might see a sales ramp of five to six months for an enterprise rep we're seeing that extend a bit further. we are patient, however, it's important. it's a big market. and we're building that team for not only the second half of this

year, but into next year. >> now, tell me about the acquisition that you just did and the growth in even content automation, how you expect that within the context of collaboration and a tight labor environment to drive customer loyalty. >> when a tight labor environment companies are trying to figure out how to do more with fewer resources and the content automation is just a perfect pairing with that mind-set and what it enables companies to do is to identify a digital asset, an image, maybe an advertising campaign that they want to run. and then duplicate hundreds of times over how to merge information that may have a different set of language. it could be for multilanguage they need to produce at scale. it could be a variety of campaign variants that they want to test. and as opposed to having to have a designer manually design every

single image you can use our platform to automate that and do it with a click of a button. that's the type of quantifiable roi that people are looking for today during this tighter market and it's all about listening to your most demanding customers and understanding where they want us to take the platform what they're willing to buy. this was one of those perfect pairings with what we had today. >> mark, good morning, it's deirdre. i know you guys have a partnership with microsoft, and integration into teams, which has been good. but as microsoft pushes teams, and it gets more traction, more market share, does more things, do you guys have a wide enough mote, if they were to try to do something like bundle, or not even microsoft for that matter, someone else, another big tech giant with deep pockets? >> deirdre, we're seeing it on a couple of fronts and the pairing between a slack and teams is really being well adopted within our customer base. these technologies and platforms have been around for decades and customers are really leading the way. one of the reasons we're growing north of 40% is because the

customers are dictating what they want and what they're responding to. we're cognizant of what they're running today, microsoft, google and then we're figuring out the logical bridge between those so we can deliver a fantastic experience, and customers seem to be receptive of that today. >> you say you're moderating hiring with roles that aren't revenue generating can you be more specific on what you're giving more scrutiny and why? >> yeah, when we look at running the business, and being at scale now, almost three quarter of a billion dollars, we have great opportunity to start to leverage the team we have so it's not about for every next hundred million of dollars of business you do you hire the same number of people we're starting to hit that point where we can get yield from our teams, our systems, our processes where it's not to generate another dollar of revenue, you need another x number of people to do so that's what pete articulated on our earnings call yesterday. the moderation is really a

result of the scale we're starting to achieve as a business. >> all right moderation mark mader from smartsheet, thank you. >> thank you, jon. >> up next, a buy now pay later battle affirm telling us it's growing faster than clarna find out who is right, next, don't go away. and business forecasts when you need it. i think it was fine how it was. (air tool sound) to help you stay ahead of the curve... or you could use workday. the finance, hr and planning system that helps cfos make better decisions faster. on the other hand, we had a great fourth quarter. for a accelerate your decision-making world. workday. for a changing world.

let's turn now to fintech. earlier this week we had the klarna ceo pulling no punches talking about his growth rate compared to buy now pay later rival, a firm said he was incorrect in what he said right here. >> affirm publishes numbers like, you know, last week, and we see that we're growing double their pace at -- in revenue, and we're growing faster than the gmv, we are the biggest provider of these hosts in the u.s., and we're extremely, extremely happy with the results that we're seeing in the u.s. market. >> well, affirm was listening to that they said, hey, look our weighted average loan life is four to five months. they're growing faster than klarna, they say, they say that gmv growth for klarna in q2 of calendar 22 was 22%, affirm grew gmv 77%. this is partly a matter of klarna is big in europe, and has

a large gmv there, but they're growing fast in the u.s., where they're smaller, and so depending on what you cherry pick, right. >> cherry pick, exactly. and -- maybe this is an indication that buy now, pay later, they are facing off, the competition is getting really intense here in the united states i should correct myself as well. earlier this week i said that klarna wasn't a bank it does have a banking license and the reason that is so important is because economic downturn with yields or interest rates rising, the cost of capital becomes more expensive if you don't have a banking license, so you can say one point there for klarna, but affirm would argue that they don't have the same kind of regulatory points to pull fill, and they can potentially do more unless they want a banking license. i don't know, carl, i feel like this feud isn't going to go away for a while. but you know who may come in and settle it? apple. remember, that event next week they're going to be announcing their own buy now, pay later stuff. >> yeah, especially if they rely

heavily on their own balance sheet. as for broader consumer stress, morgan stanley has a piece out a few minutes ago, looking at the savings at the household level because of the decline in gas prices, annualized now savings of $900 a year is going to be welcome news, at least, to some households still to come this morning, why the creator of dope sick is bullish on streaming and what hulu has to do with it binge is back after this, don't go anywhere. this is evolving from gym to global media company. this is connecting your people and content in one place. this is the system you built to transform your business. this is how. airtable. ♪ ♪

♪ ♪ ♪ ♪

with xfinity internet, you get advanced security that helps protect you at home and on the go. you feel so safe, it's as if... i don't know... evander holyfield has your back. i wouldn't click on that. hey, thanks! we got a muffin for ed! all right! you don't need those calories. can we at least split it? nope. advanced security that helps protect your devices in and out of the home. i mean, can i have a bite? only from xfinity. nah. unbeatable internet. made to do anything so you can do anything.

bringing the story of the u.s. opioid epidemic to television is no easy task, but hulu's emmy nominated scripted series "dopesick" tackles the subject matter head on, dovetailing fact and fiction to bring th it head on to bring the real life crimes of the sackler family and purdue pharma to the screen we chatted with the creator, danny strong, and he opened up about the unique challenges that they faced and taking americans to the epicenter of american addiction. i've read a lot about the pressure that the cast and crew were under to bring this story to life. i know michael keaton has given some interviews in which he would read a script and couldn't imagine the story was that bad in real life. >> there was some of the crimes they had committed, some of the lies they had told seemed absurd to michael. >> less than 1% of people get

addicted to oxycontin. >> that's not possible. >> but it is. >> you know, really they created fake blood charts. they created fake slogans that were 100% untrue then after the guilty plea, they would just continue with their behavior, their actions, they're prescribing as vigorous as they did before they pled guilty. the outrage goes on and on and on. >> given all that, was it a challenge to hitch did it universe your potential buyers >> it was pretty frustrating actually i had this beth-selling book by beth macy. i had an incredible producer we thought we would go around and all the studios and all the networks would be interested in the show in fact the opposite was the case all of them passed except for one. they ended up not making it. then in the final hour, hulu stepped up and just saved the entire project and green lit it for the entire season based on

that pilot script. deeply, deeply grateful to hulu. >> the entire interview with danny strong is up on cnbc.com/binge right now for the full uncut conversation, join us on twitter or youtube right after the show today, 12:15 eastern time, for a special live stream. dee, pretty interesting. when you think about hulu, "handmaid's tale," and the only man with jeff bridges earlier in the summer danny argues from a streaming standpoint that hulu is starting to make a play here. >> i haven't starting watching this one but i am avidly watching "industry" which i think you are as well. i've been trying to convinceon o -- convince jon over here to watch it. >> this sets up the value of hulu discussion which is key for disney. meanwhile softbank preparing to lay off 20% of its vision

fund staff after reporting a $23 billion loss in the second quarter. they told cnbc in a statement that as massa said at our most recent earnings, we are reviewing the organization size and structure. however, nothing has yet been decided. guys, that report said that there was debate internally. we know there's been turbulence at the top as well you've seen people leave and a few other deputies they're also waiting for arm to go public. but they need to cut costs somewhere, carl. >> yeah, satista had a pretty good piece of data earlier in the week, jon. looking at the number of startups and tech companies that have had layoffs between april and july, 170. 170 startups and tech companies. we can count the snaps and hoods and coins among them. >> softbank's vision fund was largely based on investing in these world-changing

technologies at a late stage that's exactly what vcs and private equity are doing as these public companies are trading at huge discounts. they want to get in and buy them now that they're public but cheaper where folks like softbank were funding them to begin with you've got to have the right idea but at the right time well, quick programming note as we head to break, don't miss tonight's cnbc special report back to business back on what this morning's job number means for markets, what the return to work looks like and a whole lot more tonight at 6:00 eastern don't go away, "tech check" is ckn montba ia me bubbles bubbles bubbles bubbles there are bubbles everywhere! as an expedia member you earn points

on top of your airline miles. so you can go see even more of all the world's bubbles.

the test at 3900 you've got pretty much every s&p sector green, vix below 24 on the ndx, dee, about a 9-1 upside day pretty healthy, although the week itself has not been. >> there's going to be a lot more to digest in september. silicon valley officials want you to believe the city is back and better than ever but things

may not be that sicmple you and i remember we could barely move in downtown san francisco. how is it shaping up this year >> a strong labor market and robust conference season not the full story when it comes to the cliche return to normal. yes, the u.s. economy added over 300,000 jobs in august and salesforce expected to host 150,000 attendees at its annual dream force event later this month. but the surge in jobs and conferences comes against the backdrop of serious challenges in getting people back into the office out here. san francisco once a bustling hub for workers now has some of the highest office vacancy raets in the coununcountry. nearly a quarter of downtown office space is completely empty. it's the market that's seen the vacancy increase the most kpart to where it was pre-pandemic this could be because of the city's unique relationship with tech the industry has created more

than 4 million jobs since 2020 the problem is tech companies headquartered out here have been flexible with allowing their employees to work remotely many have scaled back growth expectations realizing that they don't really need that office space and adopting what's called a remote first policy. city officials i spoke with pushed back on the idea that san francisco is more troubled than most saying it's no different than any other major city that's recovering. >> thanks. those numbers suggest different. thanks for bringing that to us. speaking of conferences, a big week ahead for "tech check" from the code conference that kicks off tuesday. given the mixed signals we've gotten during earnings season, all the ceo commentary will be welcome, dee. >> look at that lineup we'll hear from tim cook we didn't even get to lululemon earn earnings i know you're thinking why am i talking about that but if that's the pulse to the

middle to high end consumer, could bode well for iphone demand. >> yeah. you see the piece today about apple overtaking android in the u.s. with 50% share on things that move very glacially great long weekend let's get to the judge and the half carl, thanks very much welcome, everybody, to this friday edition of "halftime report" from the new york stock exchange front and center this hour, a goldilocks jobs report is that what we got? and if so, what does it mean for your money in the weeks ahead? is it time to bet more heavily on a soft landing? rob, josh brown with me jenny harrington and jim lebenthal let's take a look at the friday trade. we're green across the board 350 for the dow, we're above 32,000 s&p is above 4000, that's