ad market becomes important there, comments earlier this week, from even spiegel, the challenge that tiktok has meant for snap, for example, interesting as well. jim cramer sits here and talks about the potential prospect of great success coming from reels for meta, again we are seeing that stock up nicely that's going to do it for us here on "squawk on the street. "techcheck" starts now good friday morning, welcome to "techcheck," i'm carl kwint nil la with jon fortt, deirdre has the morning off. 2% gains on the nasdaq docusign, zscaler surging. we'll dive deeper into the numbers when zscaler's jay chaudhry joins us in a couple of moments. crypto on the rise ftx continuing its buying spree. is this a bear market bounce or the start of a real rally. intel, breaking ground on its

chip plant in ohio, we're going to go live on the ground there, jon, a long awaited day for that state and the company. >> for sure, carl. as you mentioned we're going to start with the pair of earnings movers docusign and zscaler are surging this morning, pandemic favorites that fell out of favor for different reasons but the guide is what's lifting both names today. docusign trying to engineer a turnaround, ceo dan springer stepped down in june, chair maggie wildorodder taking the heldment and zscaler, the q1 and full year 2023, significantly above estimates and that comes in sharp contrast to fellow security company okta, which reported not long ago had trouble with execution, particularly in sales, leading to slower growth forecast. right now investors focused on the trajectory, heading into the future call for both of these names, security, unlike kind of

documents productivity, one of those have to have areas, and zscaler keeps outperforming in that category, billing's up 57%. >> yeah, we've talked about security being basically an island, jon, amidst some of the other worries about a large consumer spend, and enterprise spend. i do wonder if maybe the conversation's going to pivot back to the weakness, the hand wringing that we got initially from service now, and other big players was more about seasonality, or if their external factors at play, ukraine, right, policy, energy security in europe, things like that. >> yeah, it's partly got to do with what has been expected for a given stock, the multiple, where it's traded, and then partly how much are they exposed internationally, how much are currencies going to come into play, the strength of the dollar for some of these names and then we're talking about security versus some other things are these companies affected by head count slowdown, or are they

just protecting the entire, you know, enterprise jewel horde, where no matter how many employees you've got, or what your growth rate, you still need to spend, for example, on security. >> yeah. we'll watch that pretty interesting day shaping up here in tech. for stocks and growth trade, let's bring in the senior markets commentator mike santoli. if we get a win on the nasdaq today, mike, we haven't done three in a row in a couple months. >> these streaks come back to back you're breaking higher the s&p 500 nosing above the lows of that friday jackson hole selloff. we'll see if that can hold when it comes to the high growth names that are now perking up it seems to me, still, a name by name reclamation project it's about, you know, costs, and essentially whether the franchises remain intact, and whether they got too oversold. this is a one year of asana and

docusign and zscaler you want to talk about whether, okay, there's some of that have downtrends, maybe tentatively broken asana had a monster move, it flattens out the rest of them but it scales it up to tell you that we're still talking about stocks that have been essentially really beaten down to a degree where it's the only people who are still watching are either heavily short, or they want to actually find individual names i don't think this is a group that can come back to life in a broad way, and it's going to lead the market. it's more about kind of picking up the pieces of what was left from the massive selloff taking a look at the equal weighted nasdaq 100, if equal weighted s&p and then the overall market cap weighted nasdaq 100 it tells you over three years a little bit of convergence here massive outperformance here, of course, by the big cap nasdaq 100, also by the average equal weighted nasdaq 100 and now

finally the typical nasdaq 100 stock is aligned over three years with the broader s&p 500 equal weight however, you still do have this big performance gap, and it's where i keep pointing out it's where the valuation premium, and if there's excess, that's where it sort of remains it is in those large stocks. so, you know, you're seeing a day like today, the big cap nasdaq stocks are doing a lot of work for the index, that's going to happen mathematically on a raldy day. i'm not convinced we're seeing a big swing back in this direction in terms of market leadership. >> on that front, mike, reuters has a piece out this morning basically arguing that a lot of internal factors, breadth, momentum, trading patterns suggested that the market has degraded, at least technically, and that does raise concerns about its future path. >> you know, i guess it's a matter of what time frame that's occurred upon, you were still feeding off of, to some degree, the benefit of the doubt thaft built up by the strength of the june rally the fact we didn't have to go

back down to those levels to really generate the oversold extremes we did recently a lot of this is really short term we're a four month trading range. the range is not actually particularly wide, it's basically 4,300 to 3,600 on the s&p 500, and most of that time has been spent in the middle zone of that range so i would say that on a short-term basis, we're feeding off, again, a little bit of the overdone selling that we got and the fact that sentiment got pretty, pretty thanasty in the s week or so how long it can carry us higher. >> appalling was the word that the event used to talk about flows in the week that ended on september 7th. thanks, mike mike santoli when it comes to investing in tech our next guest thinks that with semis, the inventories there rising, i.t. earnings estimates getting cut, might be time to turn to cybersecurity and enterprise software for the long term. joining us todd young yuma

you point out these elements of inventories in tech, the idea we're at the beginning of some cuts to estimates provide reason to be caution, right >> there's certainly reason to be cautious in certain areas of technology technology is outperforming today but since the jackson hole speech in mid-august technology as underperformed. the underperformance has really been concentrated in semis, hardware and the more speculative names of technology. we continue to think those are probably going to be the laggards even though we see outperformance today. >> do you think that cpi next week presents challenges or opportunities for tech >> well, i think a lot of of the bounce we've seen in the past couple days is based on optimism of the cpi numbers i do think that inflation expectations have started to come down. we see that in break even rates for tips and i think the market is hoping that we get another good print for cpi, and that gives a bit of a lift to technology.

>> yung-yu, how are you filtering for quality in enterprise tech right now, particularly in software, whether it means growth rates, or net revenue retention, what are you looking most closely at in terms of metrics? >> probably growth rates being able to hit their targets, maintain margins i think all of those are key factors right now. we do think enterprise software broadly is going to hold up pretty well. we think i.t. spend for corporations is still pretty stable given the tight labor market, it's pretty much top of the stack expenditures for companies. but as you mentioned cybersecurity is certainly at the top of that top. so within that, there's certainly some variation but we're looking for companies that are giving stable guidance. companies hitting their numbers, and where we see the money continue to flow so we think that enterprise software is still a stable place to be. >> what about consumer exposure? for example, apple has big

consumer exposure, has big exposure to international markets and yet it's held up pretty well because of the other things that it has going for it. how are you sort of factoring in those types of exposure, perhaps companies with exposure to the pc market, given that the consumer has been showing some signs of weakness? >> yeah, definitely the name of the game now is about end markets, and what it -- what specific markets and products are being utilized and most of the consumer markets are pretty weak, certainly pcs are weak, both for consumers, even enterprise is showing some weakness, but apple is a bit of a beast unto its own it's difficult to lump that in with the overall consumer category given the strong products it has, the positive network externalities of people using more and more of their products we separate apple from the consumer space overall but we do think that the consumer by and large is pretty full of hardware

so we're still shying away from the pc sector. we think that has a ways to go before it actually reaches bottom. >> that's interesting. i wonder, i mean, it's a little bit removed, but there's a lot of commentary this morning about the impact of lower gas prices have had, bofa, for example, today arguing it's definitely given tail wind to lodging, restaurants and airlines and even acted as an offset to a spike in utility costs does the consumer mind-set on tech spend deserve a second look in light of what energy's done the last six months? >> well, certainly budgets have been freed up a bit. so that's great to see and if we get better inflation numbers coming next week i think that enthusiasm will continue. i still think during the pandemic we had such a long time of consumers buying gadgets and technology that there's probably still more of a glut to work through and more of a backlog. we're seeing a lot of inventory build for certain semiconductor companies as well. but again, it's about end

markets. so if the semiconductor companies are selling into factories, if they're selling into farm equipment, if they're selling into industry, they're doing pretty well. if they're selling into personal computing products, they're much more challenging so that still has a ways to go, even with the budgets being freed up a bit, given those commodity prices coming down. >> that's a great point. it's not always about stress at the household balance sheet level. sometimes you just have enough of something, and your appetite is sated we'll see what the next year brings thanks so much, yung-yu ma. >> case study in cybersecurity, let's focus on zscaler, the stock in the green, up more than 19% staff company beat on estimates in the top and bottom lines, issuing a strong full year forecast, ceo jay chaudhry joins us now in an exclusive interview.

jay, welcome you said you saw some deals taking longer to close but you don't seem to have had much trouble closing a lot of deals still. can you give us your sen of the overall marketplace and why you're confident that your sales organization is going to continue to execute? >> jon, thank you for providing the opportunity to come back and join us. it is true that market is getting a little bit uncertain, so there's more caution out there. cios and cfos are doing more scrutiny but they still want to do things that help the business and those things are, making sure the business becomes more aggressive -- sorry, more agile and more competitive, and making sure they can reduce costs and simply fire the infrastructure since zscaler platform eliminates lots of point products, legacy technologies like firewalls and vpns, and increases cybersecurity. so we can make a strong business

case to the cio and cfo that we can help them. that's why even though there was a lot more scrutiny, we did white quwell we have a very strong go to market machine, and we have a great architecture true zero plus platform, that's what's helping us. >> i was talking last night at a dinner of aaron levie of box, and dave -- of mongodb, making the point at a there's a lot of replacement, even in a slowdown that's going on. what are you finding are sort of the basises of the replacement switching out multiple vendors how much of this is krdriven by the tightness in the labor market, the difficulty finding highly skilled people to monitor complex systems, switching to things that are simpler to operate. >> it's not really us. in fact, when we look at justifying what business -- what

cios should do, there's elimination of point products being one. there's a cost -- operational cost reduction being two and the risk of some cyberincident being three. those are the three factors that are driving us enter enterprises have bought a lot of security poxes over the last year juan ciso said i have an appliance for -- the second factor is, operational costs are running, managing, operating these whole school appliances are sitting on prim is hard. cloud, something natively meant for cloud is easier. a deal i talked about during the earnings call, with 145,000 employees, we eliminated about seven, eight different products from half or a dozen vendors, and operational costs was a big part of it and being able to do business in

china securely was a third part of it. so there are multiple factors that are bringing our solutions together. >> you know, welles said something about you the other day, the company was purpose built for this type of macro environment, where budgets are tightening and companies are roog for ways to lower costs, can you explain to viewers what they mean, why you >> so, in today's tight environment, budgets are tight, but businesses still need to go on so they need to be able to make sure the security and connectivity to application happens. and cyber must happen at the same time. zscaler provides all three while bringing simplicity, introduction of complexity and think of the old school legacy cars, the very complex, think of the new electric cars, very simple. when we say zscaler purpose

built, it built architecture on a clean slate when it started this company 13, 14 years ago. the other vendors, the legacy vendors are essentially trying to bolt on an electric engine on top of their traditional engines. it doesn't really work it may do good demos and that's really why, because of the architecture, and because we have so many happy customers who actually talk to other customers, cios like to talk to cios, csos like to csos. so many happy case studies where results are good and very proven a lot of our business happens that way. >> jay, help me understand how this trend plays out in the medium term. similar to zero trust, there was a phrase that we got familiar with a couple years back, now i'm hearing a lot more about simplicity and i'm hearing from the likes of arctic wolf, talking about concierge security

having a workforce that sort of purpose, you know, tailors the security solution for a given compliant but then also crowd strike talks about having a nimble platform where it's easy to try out various security applications that a particular customer needs which of these trends do you think is really going to matter in this next generation environment? because multiple companies are telling me they're purpose built for this era, but i'm trying to understand which trends are really going to drive adoption, and lead to big wins >> first of all, cyber must be done right, okay, and next the architecture must be right the architecture doesn't change all the time talking electric car versus traditional. the architecture changes come after decades. if you build the right architecture, you do better security on top of that, if you really build for the cloud, you do bring simplicity think about trying to deploy

stable system versus salesforce. salesforce was purpose built for the cloud, easier to deploy that all stuff. similarly, when zscaler was built for the cloud in the cloud, it is a lot easier to deploy and operate at the same time so operational ease of use, right architecture combined, that delivers great cyber, and reduced cost is what customers are looking for. now, beyond that, do you really -- if you simply find your operational cadence, life becomes easier, you don't need people to be watching and upgrading boxes and things you need your i.t. experts, your security experts to be more strategic, to look for the kind of policies and compliance they should be doing, rather than doing the mundane past that's what zscaler brings to the table. a typical customer will say to zscaler, once you got deployed,

my operational everh overhead went down to 80% it calm down to 20%. those are big, big massive savings and benefits. >> savings important in this environment. jay, thank you ceo of -- >> jon, thank you so much for the opportunity. >> see you soon. breaking ground on two new chip fabs this morning, the company receiving billions in state and federal incentives kristina partsinevelos is on the ground in ohio and spoke with the ceo earlier this morning. >> yeah, it's a $20 billion investment on two fabs right behind me that will focus on advanced technology. this comes at a time when intel, we know, is trying to turn itself around, the stock is hovering near 52-week low, down 20% since the chips act passed you also have the company that's facing demand weakening, losing market share to amd with data centers, but the ceo of intel is promising to spend up to $100 billion on ground here in ohio

and this obviously -- the incentive -- being incentivized by the fact that it is getting state aid, getting almost to the tune of $6 billion that's what they're anticipating from the chips act and that's just for ohio. if we talk about arizona, though, arizona intel is joining forces with brookfield asset management in a $30 billion funding partnership, the first of its kind, so i asked intel ceo pat gel singer about that, does he need to borrow money in order to expand. listen in. >> that's a lot of capital up front. remember, you know, by the time we build one of these modules, we're well over 10 billion and we've got zero revenue it's equity financing, it's a very interesting model of financing that it doesn't hit my balance sheet as a debt burden. >> so he's obviously acknowledging how expensive it is to build these fabs without getting any revenue up front, intel will have to share a future arizona revenue with brookfield asset management, but

today is about ohio, and what we've just found out now is the president has arrived on the ground that's why all of the people that were seated behind me have moved inside for security purposes we were told we might lose the signal right now but the president is expected to speak about the chips act, the implementation program they're planning to give out the money by this spring but they have to make sure that none of the companies will spend the investments elsewhere, outside of the country, that they're not going to spend it on buybacks, that they're not going to spend it on dividends. they've got their work cut out for them given the fact that they want to give it out by this spring guys >> we're also talking to intel's cfo, not long go, about inflation hitting their construction costs, and the difficulty in finding a construction labor force in ohio i suspect they don't want to talk too much about that but that is going to be a bit of a headache for them, won't it? >> excellent, excellent point,

jon, i not only asked that to pat gel singer, but i also asked that to the governor of ohio, and to the chief people officer of intel earlier, and yes, they need to get 7,000 construction workers, they need to get 3,000 technicians/engineers, they are making that announcement today, $17.7 million in educational programs in the ohio area, they're going to be pairing up with schools but if you think about the time frame, these fabs are supposed to go up in 2025 intel ceo did say maybe it will be 2026 because they were delayed. that's a short time frame to find thousands of employees. they seem pretty confident, though, that they're going to do it, and that the technician level, you only need, according to them, a high school degree, so they're really just going to try to show their presence in the state in terms of getting people into a s.t.e.m. research and s.t.e.m. related fields but yeah, no, it's an excellent point, the one that we have to consider, where is the talent going to come from >> that's going to be a

conversation we're going to have continually as we try to reshore a lot of production, great for national security. but where do the workers come from kristina partsinevelos in ohio today, watching intel, huge story. pretty good action continueses, dow is up 300 s&p up 50 points off of session highs, 8-1 upside "techcheck" is just getting started.

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nasdaq gainers there, meantime let's get a gut check on amazon. morgan stanley calls the stock a top pick within advertising and it's also morgan stanley's top internet pick. the firm sees more than 30% upside from here, they also expect amazon's nearly $40 billion ad business to grow at a 22% rate in the next few years, stocks still down on the year, but it's up nearly 15% in the last three months. analysts behind that call is going to join us monday, jon, highest level, at least so far this month, also bernstein talks about higher ad margins, surcharges in the peak season, higher prime fees, arguing that ebit leverage will return.

>> very interesting that amazon's doing a more effective job getting into google's house in digital advertising than it did in apple's when it comes to digital devices. apple continues to execute with pretty strong margins, heading to break, check out bitcoin, on pace for best week in a month. we're going to tell you what's behind that move when "techcheck" returns in just a moment at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. one day, you might wake up and think... time for a change. when your friend asks, want to try this place? and you say you know what, let's try this place instead.

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out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. welcome back to "techcheck," i'm jon fortt with carl quintanilla. we watch the nasdaq this morning up more than 3.5% since monday, up 1.33% today alone, it's looking to break a three-week losing streak, take a look at

some names helping leave the index this morning we mentioned docusign and zscaler bouncing back in a big way. atlassian, keeps moving around, there's a lot of stuff moving higher but first, let's go to contessa brewer with a news update. king charles iii is set to make his first speech as britain's monarch about 90 minutes from now this morning he arrived at buckingham palace where he and the queen consort greeted well wishers and looked at the many tributes left there after the death of his mother queen elizabeth. the treasury is imposing new sanctions on iran's intelligence ministry, accusing it of cyberattacks on the u.s. and its allies, including the disruption offal banian computer systems in july. and these chicago bulls tickets won't get you into a game but they couldcost someon as much as $300,000. a pair of tickets to michael

jordan's nba debut in 1984 are being auctioned later this month. they cost, at the time, $11.50 they're being sold by a man who was in high school when he went to the game with his dad he managed to pull them out of the drawer after he heard about another ticket that went unused for the game, had sold for almost half a million dollars. i don't know what's more remarkable, that they would cost so much, carl, or that they've been sitting in a drawer for what, 40 years, almost. >> fed's got a hike. that's crazy contessa, thanks, contessa brewer. crypto surging this morning after ftx and sam bankman agreed on a -- we have more with this continued buying spree, good morning, kate. >> hey there, carl, yeah, crypto getting relief to end this week following broader markets. bitcoin was up as much as 10% after hitting a three month low a couple days ago.

it's been particularly sensitive to the rising u.s. dollar in recent months. you can see that inverse correlation on the chart there really picking up in may or so and another factor this week, there's been a strong uptick in short liquidations, the past day or so, about $343 million worth of crypto shorts closed out their positions, the largest level in more than a month according to glassnode, coin glass data there, that sparks the jumps in prices. that may not be driving bitcoin's -- the venture arm of ftx, buying a 30% stake in sky bridge capital, after sky bridge gated some redemptions earlier this year as the prices of cryptocurrencies crashed, less than 8% of the if i rfirm's ass. $40 million of the roughly $50 million stake is going to go into sky bridge's balance sheet directly to buy more crypto.

scaramucci told cnbc earlier it was already under way. adding to the growing empire, provided multiple bailouts to block fire and voyager, a personal stake in robinhood, telling "squawk box" earlier this morning it was about merging digital assets in traditional wall street. bankman has been moving into traditional -- ftx has launched stock trading and then finally, guys, the deal really builds on this conference relationship that these two have built. sky bridge owns salt, and salt and ftx teamed up for a conference in the bahamas earlier this year, see if that continues. >> a lot going on this week in the crypto space, a few days ago you add this bitcoin mining pool, pool in freezing withdrawals because of liquidity issues, and that kind of confuses me, given that crypto is having a pretty good week so beneath the surface, what are some of the liquidity challenges

that continue to happen? >> it's interesting, we saw that huge wave of liquidations and liquidity issues play out earlier this spring that dragged down crypto prices, right now the biggest driver of bitcoin in particular seem to be macro news you have these company specific liquidation issues that they're running into issues, and that seems to be, at this point, from what i'm hearing, very company specific, not having those really broad contagion effects we saw that really were an issue for the industry, we have seen that shake out for the most part, as far as the effect on prices, right now there are definitely issues out there, and i'm told there will likely be more failures to come, as companies, "a," can't raise as much venture capital money and run into issues as prices have come down and resale demand. you're right, there are still issues out there, but we're seeing a little bit less of a broader contagion issue than we did a couple months ago. >> it's funny, we wrapped up a

few days out at code, and the likes of mark cuban had comments and it sort of points to the price action that is, it's not dead money, right, there are things that are interesting down the road, but in cuban's view, at least, it's still early so that sort of supports this idea that, you know, it's not necessarily a huge downside argument but maybe not the fuel for a huge upside rip either. >> yeah, that's a great point, great week at code, by the way, guys fun to watch but as far as the crypto analogy, so many people that lived through the dotcom era loved to compare it to that, saying maybe 1% of these bets are going to work and every company wants to point to amazon and say, yeah, well amazon made it out of the dotcom boom and bust, and not every company can be amazon. but it seems like there's been so much optimism and hype around this, that every founder has to go in with a belief and say, no, we are the amazon, we're the ones that are going to make it out of this. at this point you can't imagine that every company, every nft company that we've seen or project is going to make it out

here, and i think it's still very early, not to mention consumers are a little bit more worried and a lot of them are under water just on bitcoin prices, seen as the least risky in this asset class. you've got to wait for on super demand and excitement to come back to justify the valuations. >> kate, thank you kate rooney. we're going to have a lot more on the move you're seeing in bitcoin, and ether tonight, make sure to tune in to superman's least favorite program but it's great, the cnbc special crypto night in america, that starts at 6:00 p.m. eastern, we'll be right back

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broader m&a landscape, our next guest thinks we could see an uptick in consolidation keeping an eye on targets across sass and health care i.t., joining us this morning we're pleased to have ted smith. welcome back, great to see you. >> thanks, carl. >> it's easy to convince yourself that nothing's happening because the headlines make you feel that way. >> right. >> but you argue the data doesn't back it up. >> we're certainly down from last year, off by about a third from where we were in 2021, but it's still been a very busy environment out there. very aboutive across private equity, continued to do a lot of deals because things are cheaper now. and large corporate buyers are active as well we saw august be twice as busy in terms of deal volume as we saw in july. we think the rest of this year could continue to be pretty good. >> stair step into q4, and early

23, does that roll over. >> it should, one of the things that happens in an environment like this is it takes a while for deals to get done. takes longer things that get started now are going to be q1 deals unless they really run fast. we think at least into q1 we'll see that busyness and we'll hope for the best in the back half of 2023. >> we mentioned sass, and health care, what's special about those two verticals right now? >> well, i think on the sass side in general what we've seen through the pandemic is just how resilient sass software providers are with their subscription models. if you're an enterprise company that's betting how you run your business on a piece of software you're not going to unplug that until the very last, paying utilities, rent and people, and that is going to continue. it's going to be hard to disconnect from the sass companies, on the health care side we've got a lot of workto do in this country with our health care system, aztecnology and artificial intelligence helps us be better at that, you're going to see ongoing investments this that sector.

>> ted, are we going to see more arranged marriages in m&a, and by that, i mean this week we have a announcement of misfit market acquiring imperfect foods. not traditional check, but tech driving change in food and grocery ecosystem, and imperfect foods was around longer than misfit, but misfits was arguably better operationally which led for it to be the acquirer. do you expect to see more deals like that where perhaps a company can't get more funding to compete, but gets told you need to pair up? >> we see that, jon, it's a great question we see a lot of non-traditional buyers, things are cheaper now opportunities to focus on improving the operational side of the business for tech businesses that may not not grown into full scale yet and to really augment what the buyer is

able to do yes, we think we'll see more of that. >> one thing that gets a lot of commentary is cross border, just because of obvious geopolitical tensions, is that a real head wind >> i think it is in the sense that i think it's still difficult to do deals with certain parts of the world, china in particular, russia these days, obviously. but i also think that with the strength of the dollar, which we've seen and you've talked about a lot on these shows, if you have a dollar denominated fund, the world is your oyster things are cheaper, you'll go on a shopping spree. >> you mentioned health care, the journal has a piece out, the headline reads something like dr. amazon will see you now, and andy jassy talked about the potential for it to be another huge pillar in the company's overall strategy we know about one medical. his argument is that the customer experience, which drives a lot of amazon's thinking needs to be reinvented in health care and you alluded to it just now. >> never bet against amazon in

terms of reinventing the customer experience, they've been so good at it for so long it's one of the rare areas where they have stubbed their toe a bit in the prior ventures, the fact they're coming back with one medical, and saying let's come at this from a different angle and do this differently than the first couple of times around shows they're very focused on how big the market is and the opportunity they have. >> finally, hardware, we've had daily discussions about the challenges in inventory, and pull forwards from covid how do you think that normalizes, maybe it's beyond 23 >> it's certainly well into 23 as that long tail finally smooths things out a little bit. we think it's much better to be exposed to software than hardware, quite frankly, just because it's a lot easier to sell 1's and 0's than the physical goods piled up on the dock. >> that's going to be with us for a while, it seems. really good color on this space and we can't wait to get into the next couple quarters thanks. >> thanks, carl. heading to break, check out shares of t-mobile, reversing

earlier gains, announcing plans for a 14 billion share buyback program that's going to run through september of next year the stock, a massive winner in 2022 so far, up more than 25%, flat for the day right now stay with us

live from one of the biggest tech events of the year, vox media's code conference here in

los angeles -- ♪ >> kara swisher, calling her final code as host, you're definitely making a statement with the lineup this year. >> yes, i am. >> apple's tim cook, johnny ive. >> comes from nowhere, none offous -- >> i have to ask about tiktok. that is the company that everyone has been talking about. >> tremendous threat advertisers love them. there are lots of risks, where is that data, where does it go >> we've tried to put the user in the driver's seat to own their day at a. >> so much of what tim cook's apple is able to do, i think, is put together ingredients that steve jobs himself didn't have. >> a lot of the questions were, what would steve think, particularly around privacy, where steve famously said you've got to ask, ask again, ask a third time. >> fascinating look, though, at the ways in which company are looking at costs. >> we made the decision is that we would air on the side of building more, if we were higher than we needed, that we'd

eventually grow into that footprint. >> talking to a major investor in growth tech. >> a move of growth at all costs to need to focus on profitability. >> it's not like last year when folks had three years of runway out raising huge rounds. >> now there's a situation where netflix and disney are really going head to head. >> i don't think all streamers are created equal. i do not believe all streamers that are in it today will survive. >> evan spiegel. >> when you have inflation running this hot the paths forward are really difficult. >> what can tech do that's good? they can solve problems. >> health care in this country is [ bleep ] up and the pricing for medication is even worse, here's a way for us to change a huge problem and make people's lives better. >> aviators on always. >> i can't believe ray-ban is partnering in facebook and not kara swisher that's okay. >> that's a wrap from code it's been a busy few days. >> it's not over, world domination is next

that was code '22. jon, you and dee are heading to goldmans next week cost discipline was one, revisiting business models and valuations, and then i would argue a fair amount of anxiety, especially in media, and that's what iger really got it's not just about communications in media, it's also about tech and enterprise tech, and i talked to a number of leaders there, and i expect to get a more granular look at some of the zscaler type drivers we've been talking about on the program today, carl. >> that's interesting. you know, a big part of the

conversation, i think wa -- a zoom only situation, and so when we have the opportunity to actually break bread to meet face to face, there's a real potential for -- to get real work done so we're going to try to do that, continue to do that as you did this week, do it next week as well, carl. >> yeah, that's fantastic, especially given that september is such an important month for conference season. coming up after the break, lawmakers warning apple about the new chinese chips in iphones, details on that, coming up

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♪ some other people in organizations as usual using the apple event this week to put themselves in the headlines, apple announced this week they are partnering with global star to help iphone and apple watch users connect to emergency services via satellite when

cellular reception is unavailable. elon musk took the opportunity to tweet that his company's star link satellite communications team has spoken with the iphone maker about potentially using its services for a future project, and then following reports that apple would consider adding a chinese chip maker memory technologies to its list of flash memory chip providers, marco rubio told the financial times that apple is playing with fire and if they move ahead they, quote, would be subject to scrutiny like it has never seen from the federal government apple told the paper it's only considering using those chips within china, and that all users data stored on the chips would be, quote, fully encrypted so, carl, we'll see if we get state oversight of iphone assembly in the u.s., phones made for china. >> well, i guess i'd say two things, they've been through the ringer before, hard to imagine

you could surprise them but it is a tight rope a lot of tech is walking as we try to decouple from chinese manufacturing and surveillance if you missed part of the show, follow and subscribe to our podcast, listen anytime, anywhere whether every you download podcasts. "techcheck" is back in men aomt. ♪ with merrill. think miss allen is texting for backup? no she's totally in charge. of her portfolio and daniel g. she's building a greener future and he's... running a pretend restaurant. and phil? phil has questions, but none of them are about his portfolio. digital tools so impressive, your money never stops working for you with merrill, a bank of america company.

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and that's meta cutting down its responsible innovation team, a journal reported the team had roughly two dozen engineers, and ethicists who worked together. meta continues to deal with misinformation on the platform, also dealing with a slowdown in ad spend and profits leading to cost cutting a company's spokesperson said meta believed its ethical product design resources were better spent on issue specific teams. jon, curiosity, i guess it's hard to know how much money they're saving on this particular initiative. >> well, they have some headline risk, though, they're cutting this, heading into midterms in just as a lot of action is going to start gearing up for the general. so maybe they should start talking about what they're doing to protect elections before people start connecting dots

that they don't want to connect, carl. >> right. >> next week we're going to get oracle and adobe to off cycle big software reports, and that will be really informative. >> indeed. as we are in the blackout window for fed speak as we get into closer to a fed meeting and obviously cpi, hard to overstate the importance of that print on tuesday. have a good weekend, let's get to dom chu in the half all right, thank you very much, carl quintanilla here we are, the "halftime report," i am dominic chu in for scott walker today stocks pushing higher yet again, aiming to break a three-week losing streak but a big warning from a major investor about why stocks could fall below june lows, we will debate that call with our investment committee they are today brenda -- shannon -- john, and jim -- in englewood cliffs, new jersey, checking on the rally at this hour right now, we are up 332 points, north of 1