was one of those tent pole names that went public in this up until a couple years ago unusual style. we have seen that company come off 90% since the highs of early 2021 >> yes, he was able to get out and make a lot of money. 10.5 million shares, he only paid about $17,000 for them. that's going to do it for us on "squawk on the street. "tech check" starts now. >> good monday morning i'm carl with deirdre and jon fortt, who is live in las vegas. more on that in a moment nvidia is kicking off their developer conference as we speak. shares more than 60% off the 52-week high can the company boost that falling stock price? we'll bring you the highlights throughout the hour. plus, a check on iphone demand and what it might mean for apple shares the company planning some price hikes and dealing with some camera bugs. we'll get details on that. inflation, of course, top of mind for investors ahead of the fed decision tomorrow. jon, you were in las vegas this

morning for the grocery shop conference and that's going to lead to some very special guests today. >> yes, it will. tony xu is going to join me on stage. we'll have a conversation, as we did actually last year on this very day last year, they were announcing alcohol delivery since then, inflation has become an important story as we know, margins tend to be pretty narrow in grocery, but doordash has continued to grow organically about 20% year over year they have some announcements today that we'll get into, new partnerships they recently kind of undid a partnership with walmart, which is a huge player in grocery, but they got some more partnerships going on, got some questions about the impact of this economy on the labor force, availability of drivers, which they call dashers. and also some m&a, they just closed a deal at the beginning of the summer, a big one, $8 billion all stock. all stock helps in this

environment. >> we have talked about where doordash sits in the gig economy space, and when you compare it to an uber that has got deeper into food delivery over the pandemic, doordash has commanded a higher valuation among investors. also, better profitability historically, but what's interesting, though, when we spoke to dara last week or the week before, he said that what he's seeing is the shift from retail to services so you would think that that maybe sets up the ride sharing part of their business a little better when you look at how these two stocks have performed, quarter to date, uber is up 55% from a much lower base, of course, but dash is down nearly 7% so carl, i'm going to be interested in asking tony what he is seeing in terms of that consumer demand, is inflation leading to smaller basket sizes, less orders. also the exclusivity of their partnerships jon, remember when doordash was getting started, there were a lot of exclusive deals the era of that seems to be firmly over as the restaurant

retailers can go on any platform and they often do. >> yeah. interesting dynamic here, carl it is also not just in basket sizes from individual locations but the extent to which doordash can kind of bring that consumer who perhaps was just in restaurants over into grocery, over into convenience. last year, also here at grocery shop, they were talking about double dash with albertson's albertson's, a big grocery player double dash is the idea. hey, you ordered something, maybe takeout from a restaurant. would you like some groceries with that? would you like perhaps some prepared foods with that so that's going to be important for margins. how much can you allow these dashers to do in one run that also increases their take-home, which has become quite an issue on social lately. on tiktok, there's dashers who are upset if people don't tip the right amount your order might end up in a

tree >> jon, there's so many places you can take this today. we can't wait. a lot of good information over the next 60 minutes. speaking of price, you have peloton introducing this cethed rowing machine peloton row. a list price of more than $3,000, as ceo barry mccarthy tries to execute this turnaround plan i think that does include delivery and setup, but $3195 is not cheap. >> that price tag is eye-popping. i am a rower, not an avid rower, but i do think it's a great low impact workout what's wrong with the concept, too, jon i don't know if you also dabble in this. but this has been around for deckids, does the job. this space, the complaint i'm hearing about this rower from peloton, similar to the treadmill, it takes up so much space. when you store it, it has to be latched in, and plus, i thought barry mccarthy was done with this i thought he was going to a software model this feels like they could get

into the same kind of issues with supply chain, with delivery we'll see. this was in production for a very long time maybe they had to get it out >> they have to have hardware. software is nice to talk about but if you're just dealing with software and workouts and services, then you're just in the mix with everybody else who can get a good personal trainer on video, and you're competing directly with amazon and google and apple and the others who don't have that hardware advantage, so whatever mccarthy says, they have to have premium hardware as what makes this sticky, reduces churn, and gives them that margin as for you not being an avid rower, you're avid as far as i'm concerned. some things you can dabble in. you can jog around the block and say i run, but rowing, that's painful. you either do it or you don't, and i due it i'm going to call you an avid rower. >> that's a great point. it's not a mainstream exercise i try to get people to row with me there's other apps you can do this on and they're few and far

between. >> meanwhile, we are awaiting the fed, and as a potential rate hike looms, our next guest is long on retailers like walmart and amazon and even sports betting names. joining us is the founder, dan niles. how are you positioning yourself ahead of the fed meeting you actually think that it could set us up for a brief rally. >> yeah. to be clear, i have no idea how the market is going to react to the fed meeting. what we did is we took advantage of the 1.2 put to call ratio on friday if you remember, fedex preannounced one of the ugliest preannouncements i can remember. missed dps by 33%, guided eps lower by almost 50% for the follower quarter, and trauns po transports below the june low. we used that to cover our

shorts, we were not short. my bias would be the market goes lower because i think jerome powell is going to channel more of his mojo from jackson hole where he was pretty direct, gave you no reason to be optimistic and i think the data they're going to give you gives you no reason to be optimistic, but people want to believe that the fed's going to pivot if you look at the futures markets, they actually have the fed cutting again in june. june quarter of next year. and i just think there's zero chance of that happening so we'll see how the market takes this some of this is going to depend on what happens between now and when the decision actually comes out. >> and dan, you have been very good this year at calling bear market rallies so to be clear, your thiesz is still intact you point to fedex which took markets by surprise or a little off guard last week. since then, there's been some maybe not positive, but less dire commentary from ceos like intuit, home depot, even

marriott how do you square those? >> well, i think you actually touched upon it in your earlier segment, where there's a shift going on from goods to services. so if you supply goods, those really spike during the pandemic because you couldn't go out to restaurants. you weren't doing ride sharing you weren't in las vegas like jon is right now you're stuck at home on your peloton bike so i think now what you're seeing is people going out to hotels like marriott they're doing ride sharing to their favorite vacation spots. so the things we have set up in our portfolio again, remember, we think the market is going to be down 30% to 50% from peak to trough our single point estimate on the s&p is 3,000 with that in mind, we're more focused on our shorts because we think that's where we're going to make the profits. we're up for the year, we're up for the month, but that's driven by the short book, not our long book which in general is down, obviously. so that's kind of how we're paring this right now.

and that's kind of how we see this going forward, where we're trying to avoid pcs, smartphones on the good side, on the service side, we have things like actually uber in there and we have got online sports betting in there, again, services related defensives like walmart and some health care in there and commodities. and we're short things like internet advertising, goods, and enterprise software. >> so dan, hello from vegas. >> i'm jealous >> q4, which we're heading into. yeah, in just about ten-plus days, that's a big goods quarter. you can't do q4 well and just have services. so give me your sort of sense of the narrative. i think about target, walmart, fedex. each is a big headline that the market had a big reaction to and then sort of tried to shrug off. target seemed to be more about inventory.

walmart was about the working class consumer fedex about goods overall. is there a creeping narrative here that investors should pay attention to or no >> you're absolutely right and creeping is the right word because these things don't get sorted out in a day. so the fed raising rates 75 basis points on wednesday, that's going to have an impact six months, a year from now, because the fed, by the way, isn't done they're going to raise rates again in november and december there is this creeping narrative where you're switching from goods to services. and that's going to take a while to play out. people are going to be on vacation they're going to be in vegas like you are they weren't doing that two, three years ago. so that switch, it's going to take a while to work its way through. and also, right now, the low and mid-end consumer is the one feeling the pain the high-end consumer, they're doing just fine. but i think you're going to see some of this creep, to use your word, into the higher end

consumers. we have to see how that plays out in the biggest goods quarter of all, christmas, the fourth quarter. i think you're really going to see that shift show up then, and we'll have to see how demand looks at that point in time. i don't think it's going to be very good for goods, but i think for servicesuric think it's going to be great. we're going to have our best vacation in three years probably coming up this christmas, but that means that we're probably not going to be sitting there streaming netflix, sitting on a peloton bike, you know, ordering off amazon we're going to be at a restaurant, hopefully skiing, you know, in a hotel, et cetera. that's a very different spending pattern than the last two, three years. >> right so does that mean, dan, you don't mind chasing cruise lines and casinos and airlines and hotels at this point >> you know, that's a really great point, carl. because each one of those sectors has got different things you have to think about. with cruise lines, you have a lot of debt. i mean, to be completely clear, we got murdered in those names

earlier this year by getting involved way too early but the good news is we had oo lot of shorts that helped offset that so right now, we're not looking so much at cruise lines. what we're looking at, services, like we're looking at stuff like sports betting we do own bookings, so again, in the travel space we're trying to look at better balance sheets which is leaving out cruise lines which was stupid on our part earlier this year because they don't have good balance sheets. we're trying to, again, stick with that services piece of it, but we're matching that up against shorts we're short a lot of internet ad related names. we think netflix and disney launching ad related streaming services, that's going to suck out a lot of demand for other internet ad driven businesses. so every long we put on, we try to find a short in our related area that we can put against it, because in a market that we think still has a long way to go, we see it undercutting the lows in june, being down to s&p

3,000, you want to focus on your shorts more than your longs because that's how you're going to make money. or if you dacan't do that, be in cash >> that's what you have been saying all year for the average investor who doesn't necessarily day trade, stick to cash dan niles, talk to you again soon >> thanks, guys. >> amazon scoring a touchdown with thursday night football it says in an internal memo, prime video vp telling colleagues that the broadcast was the most watched night of pr primetime in the history of the service and the broadcast fueled the most ever prime signps in a three-hour period. nielsen hasn't released official numbers yet, they told buyers earlier this year it anticipated roughly 12.5 million viewers per game that's less than fox's weekly audience in its last full season of thursday night football in 2021 carl, i guess success for amazon

measured differently than success for your average broadcast. you can talk about the number of prime sign-ups over a three-hour period >> yeah, although i don't know, man. the cowboys game for cbs, jon, 27.4 million viewers that's the most watched nfl on cbs national game in three years. and the best week two in about 22 years so the league strength is pretty incredible this early into the season coming up after the break, the ceo of doordash with jon "tech check" is just getting started. ♪♪

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let's get a gut check on western digital. shares under pressure as deutsche takes the stock down to hold cuts the price target to $40 a share. the firm says western digital's recovery remains uncertain

thanks to deteriorating demand revenue and eps tracking below the low end of guidance. they do believe shares will be range bound and recommend investors move to the sidelines at least until the supply demand balance returns. stock is down more than 40% on the year jon. >> yeah, let's turn to doordash now, carl. consumer pressures, inflation, rising food costs, all big topics here at grocery shop in las vegas. but doordash is here announcing new partnerships across grocery, convenience, and broader retail including sprouts, big lots, and dick's sporting goods. joining us ahead of our conversation this morning, doordash cofounder and ceo, tony xu we did this on the exact same day a year ago, so i got you groceries for your birthday. >> i appreciate it it's always nice to spend my birthday with good company >> thank you i want to start off talking about these deals. you're announcing these after

you announced the walmart deal, that partnership is going away what's the strategic imperative that makes this good for obviously doordash, but also these new partners >> as you know, it's a tough macro environment out there right now. it's all about incremental growth as a way to get out of the current situation. certainly, it's very difficult to just save your way through some of these inflationary pressures. you also have to keep growing so you can keep recouping some of the costs and investments you made that's exactly what these deals are about. we're the largest local commerce platform in the united states with over 25 million active monthly users who shop there more often than any other platform with these deals, with spartz, farmers markets, giant eagle, on top of the deals we have, dollar general, bj's wholesale club, we're offering more americans more affordable choices as well as more selection than ever before >> what's happening as inflation has run pretty hot since the last time we talked? we talked about on the one hand,

consumer spending more on food, which would be good for you, but i imagine that also consumers are more price sensitive about actually paying for delivery and are going into the store more. so you have had some strong 20% year over year growth, but have you seen a change in the mix and a change in consumer habits if that's going to continue >> it's been a net neutral story for us on the one hand, as you mentioned, slightly higher prices per item. on the other hand, consumers are buying fewer items per cart. therefore, that mix is washing out. the consumer emand has been very resilient in the last 60 years we have only seen two years in that history in which spend on restaurants and grocery have declined ever in the u.s. economy. we see that continued resilience as people are still going back out and enjoying finally time away from home they're still ordering in, and those two use cases are still very complementary >> what's the labor force impact

for doordash uber a few days ago was saying they're seeing some inflation impact where drivers actually want to drive more, so on the supply side of drivers he's seeing some benefit because people want to earn extra money. what are you seeing from doordash's perspective has the supply of drivers improved then at the same time, they want to get tipped. >> we're seeing actually very, very strong demand from dashers all across the country, with more than 3 million dashers every quarter that come in to deliver on the platform, we see people coming in from all industries again, this is really a complementary part-time kind of offering where the average dasher works fewer than four hours a week and 90% of dashers are delivering fewer than ten hours a week so when you have that kind of flexibility where you can deliver wherever you want, whenever you want, you really attract the workforce, especially for times like this

where people can use that extra dollar at unexpected times >> didn't you say six a year ago? >> always been four. >> have you seen these -- i know this isn't necessarily the broader macro story of what's happening but there's a tiktok thing out about a driver, a dasher who left an order in a tree because he wasn't tipped enough is that kind of indicative of, hey, the labor force, pay is tight, people. dashers want to get paid and you know, they're sort of demanding that from people who order? >> look, doordash has to work if it works -- it can only work if it works for everyone across the board. it has to work for dashers, for mi merchants, for consumers dashers are earning close to all-time highs, around $25 an hour when they're delivering as a result, i think you're seeing pretty healthy activity we're seeing still very, very fast delivery times around 31, 32 minutes, which is close to

our all-time fastest deliveries. even in spite of i think some of the return of that demand coming in through the seasonal moments where you have the nfl coming back you have the nba soon. and some of the weather turning. >> hey, tony good to see you. you said to jon just a moment ago that consumer demand has remained resilient earlier this year kwh you were reporting q2 earnings you anticipated a softer consumer spending environment in the second half of the year. is that not playing out or are there different ways in which that's playing out >> well, whenever you're heading into a macro environment that has lots of uncertainty and you're seeing this rise in stickiness of inflation, you certainly want to take a conservative stance. and that's what we have always done, especially since the beginning of 2020 when the pandemic really struck so what we're doing about it at doordash is really offering more and more affordable selection, as mentioned, we have been

partners with places like dollar general, big lots, bj's wholesale club, giving more choice at more affordable prices to consumers and where we have doubled now the number of stores we deliver from, over 75,000, more than any other platform in north america. and we're also offering more affordable products, whether that's dash pass, the leading local commerce membership program, or double dash where you can get deliveries from two stores for the price of one delivery fee >> that shift to sort of more sensitive price points, lower priced products, is that helping then was that stance too conservative have you seen any decrease in demand, or is it holding up better than you thought? >> well, we're seeing pretty strong resilience still. and as we indicated in our q2 shareholder letter as well as the results, what you're seeing is people, the order rates from all of the cohorts, whether they joined during the pandemic, before the pandemic, or i guess in the time now as we are get

quote/unquote out of the pandemic, are relatively similar. what you're seeing is mixed behavior, where you have higher prices, slightly lower items per basket but overall, net/net, the consumer seems pretty resilient. >> tony, tell me about international. you guys closed the acquisition of woke in june. it was around $8 billion in stock, although stocks have been moving around. >> a percentage of our market cap. >> a percentage of your market cap. still, big purchase there. what's happening internationally? are the trends similar are your goals different in mix and in activity on the platform? >> when we announced the partnership, what we saw was a massive runway in front of their markets as well as just a team that has built a best in class product to really go and get after that runway. volt really doubled the population that we address, and

now adds us to over 27 countries globally they have a product that has the best in class order retention as well as spend retention, which gives us the foundation to invest behind that i think even though we do have some challenging macro environment headwinds we still see a lot of places ready for environment. >> i should have said volt we have been talking about m&a in this environment. investors in the short term, perhaps more skittish about it but the importance for some companies that are growing and using m&a to fuel growth, how are you balancing investor appetite for growing margins and the path to profitability against opportunities you see to make purchases that are going to continue your momentum >> so our equation at doordash has always been about maximizing

total long term profit dollars organically what thal means is we have to make sure our investments are the right amount for the right stage of that project. if it's late stage where we understand the economics very, very well, of course we're going to manage a bit more towards the profitability profile. whereas something much earlier stage, we're looking to product market fit metrics on the inorganic side, we have a high bar for m&a it has to be related to something that obviously expands the business profile that we currently carry. but as importantly, has to really be a team that sees very eye to eye with us in terms of how we want to invest for the long run and do we invest similarly through all of the ups and downs as great operators >> finally, you and i have talked in the past about how some employees, tech employees, become pretty mercenary about their approach to working for a company. be here for a couple years or maybe even less and planning to

move on somewhere else as the labor market perhaps slows down, as the fed hikes interest rates, trying to slow down the economy, are you seeing a shift at all in the mind set of employees who are interviewing and perhaps you're onboarding at doordash >> we're seeing less chatter about compensation topics in general. that might be a reflection of current market dynamics which is changing fairly quickly. but for me and interms of the team at doordash, it's been about understanding what is the long term story for doordash that's really being the local commerce player globally no one has achieved that yet we have a great opportunity at winning that moniker one day but it's very, very early stages and we're hoping to attract people who are attracted by that long term mission. >> all right, looking forward to talking more about that later today. tony xu, cofounder and ceo of doordash, thank you. >> thanks, jon >> as he was speaking, that stock actually is up now, .6%.

>> after the break, apple battling a strong dollar with app store price hikes, plus bug fixes for the iphone 14. that's next.

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welcome back to "tech check. the dow is down a little more than 300 points. una moment we'll have more on how you might play apple in the wake of the iphone stock is about flat over the last two months after a big run. we'll talk demand and price mix. but first, let's get a news update with kristina partsinevelos. >> hi, carl. here's what's happening at this hour housing starts were up big in august, even as mortgage rates rose however, housing starts are still down slightly over the last year, and building permits sank about 10% during august

new york city is lifting its covid vabz mandate for private workers. the change goes into effect on november 1st city employees will still be required to get shots. >> uk prime minister liz truss says a free trade deal with the united states won't even be negotiated for years to come her predecessors both said free trade with the united states would be one of brexit's key benefits >> chief operating officer of beyond meat doug ramsey has been arrested for allegedly biting a man's nose police say it happened this weekend after a university of arkansas football game after a car made contact with ramsey's vehicle, ramsey was charged with terroristic threatening and third degree battery. ramsey and beyond meat have not responded to cnbc's request for comment. carl >> thanks very much. >> two weeks now since apple unveiled the iphone 14 models and investors, analysts, all trying to gauge what demand is like lead times online remain a bit

elevated and it seems like the high end more expensive pro models are more in demand. let's dive in with morgan stanley's apple analyst, eric. good to see you again are lead times really instructive at this stage? >> carl, thank you for having me on this morning. so they are instructive. again, we're looking for as many early data points on demand as possible and something we can all do is track lead times again, the time between ordering a phone and getting that phone delivered. and the answer is they are elevated right now iphone 14 pro max lead times are almost 45 days iphone 14 pro lead times are almost 37 days both of those are records across all models launched in the last six years. at this point in the cycle and so there's a lot to go i don't want us to get ouver ou skis, but yes, lead times are

very instructive, and they are much better than expected, i would say, so far. >> right if you extract the emphasis on the pro, which we mentioned is getting quite a bit of a play, what does that suggest about overall demand in this cycle >> yeah, so right now, what we're trying to balance is the strength of the pro and the pro max versus relative weakness of the iphone 14 skew and what we have determined so far is that the strength at the high end is more than offsetting perhaps some weaker demand at the low end. we have heard about some rumors of increasing iphone 14 pro and pro max builds ultimately, what we do is rely on a lot of our supply chain team to give us insight into what assemblers are looking at we see upside to our unit forecast in the december quarter. again, speaking to the strength of the pro and pro max, more

than offsetting any perceived weakness from the lower end models that perhaps didn't get the significant upgrades that the pro and pro max models did >> it sounds like there could be an imbalance between the higher end pro models and the regular models what does that mean for apple, for the holiday sales? >> i think most importantly, it shows you that they can raise pr prices, and we have iphone prices up about 5% year over year in fiscal '23 we assume about 22% of the new model mix are the pro and pro max models builds are training to be roughly 57% of mix, so even if we forecast growth and pricing for the next year, actually, i would argue that you could even have incrementally stronger prices just given the mixture that we're seeing to the pro and pro max. it is early. you know, the phones were

available last friday, but every data point we can collect thus far is relatively positive, with the one caveat that i would love to see more data coming out of the likes of japan or the eurozone, both areas where apple has raised prices significantly to offset some of the currency impact i would love to get better insight into how those regions are performing early on, but overall, again, the number one read through on stronger shift to the high end is pricing growth year over year. >> and also, erik, this might be one of the most brilliant stealth price increases that i have seen in consumer electronics because apple eliminated the mini at the low end, so the entry point for the 14 is higher they introduced the 14 plus, so it's a little more to get there, and they kept the old chip in the 14, so the margin should be higher, but i guess the question is, overall on margins, do you have any sense that apple is going to be supply constrained

in the 14 pro and pro max models to a degree that wouldn't allow hem to take full advantage of the demand on the high end >> it doesn't look like that's the case right now we do see that apple is working with its assembly partners to reconfigure some of the assembly lines away from the iphone 14 to the pro and pro max. so as of right now, again, lead times show us that they are ramping supply to meet what is very strong initial demand but nothing on our end suggests that there are supply constraints that will ultimately impact getting those devices in the hands of consumers, either now or as we move closer to the all important holiday period >> pretty interesting, erik. we look forward to chatting again, maybe about the watch, which certainly got the lion's share of the marketing push a couple weeks ago great to see you thanks so much >> after the break, one firm downgrading paypal the stock already losing half its value this year.

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let's get a gut check on paypal, the firm falling more than 2.5% this morning after a

downgrade to neutral lowering the price target by $15 a share. the analyst pointing to braintree here, the one-click client paypal acquired in 2013 is projected to contribute 72% of the company's overall growth next year. however, the service also has higher transaction costs and lower yields than the rest of the company's core product the potential drag on overall results coupled with the fact the company is up roughly 30% off its july lows prompting the call to investors to stay put. very interesting that braintree is cited here. that was an acquisition a long time ago that also brought the company venmo and really revived it but of course, this is the take rate there is lower. higher transactional expenses. just when paypal was looking kind of good again, jury is out on whether this is a value stock or a dprgrowth name again. >> there's a bit of a push and pull one upgraded last week and we

got a downgrade today. >> coming up next, the highlights from nvidia's developer conference got some news on a gaming chip when "tech check" merit cos gh back ll prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. this is not just laundry. this is laundry that's smarter than the dial. this is ge profile smarter wash technology. fully optimized cleaning, no more guessing. this is smarter cleaning. this is ge profile.

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after the stock sank on its deal, so how should investors be navigating the space hear to discuss in person, elliot robinson. thank you for nav gdpating the traffic to get here in person. let's start with figmo, what does the adobe acquisition say or not say about the m&a market? >> it says a couple things one, it talks about the power of the cloud and collaborative software model for more than a decade now, adobe had this fixed chokehold on the entire design market, particularly in the enterprise what we're seeing now, companies like fig ma, companies like can vau, they're doing the collaborative approach a little bit of an existential risk to their business model, their pricing model and their relationship with users. >> that risk has been well telegraphed by the street. these series of downgrades mention one thing, competitive

land landscape. does this acquisition reinstate the adobe case, make it more competitive against the likes of canva, or do you think that's still going to be playing out? >> we're going to see this play out over the next two, five, ten years but what i can say about canva is last week they had their user conference, and the visual work suite is what everyone is excited about now. a mix of word processing, great video editing tools that they didn't have before and a new work board where it's all about collaboration. everything from the first idea of design all the way throughout, and then you can reverse engineer all of that into the collaborative work processor. i'm excited. >> you sound excited >> of course, i'm a canva fan, but i'm also a fan of figma, and the design space - >> are you a fan of adobe? >> the most interesting thing is they have an awesome relationship with their user base and end customer. i think adobe didn't necessarily do the same way of evangelizing

themselves with the community. how do you take a bottoms up premium community and then in adobe's case, how do you blend the two where typically they had it installed on your computer. a big annual license, a bit pricey, and match that with folks used to the platform >> elliot, i wonder, i want to take you in two directions, if i might. first of all, i'm hearing a lot of chatter, questions about whether this adobe figma acquisition is even going to go through because of the biden administration's kind of muscular antitrust stance. and is that good for canva or not, because on the one hand, you might think, oh, well, canva is a smaller design player ia don't want adobe getting too big, but it sure helps their valuation if there's a sense that m&a can happen in this market do you think this deal should go through? >> i think the current regulatory environment and antitrust is something we're all

going to watch play out as this deal tries to complete into next year but i think for canva, they have to run their own race. like i said before, great user base a bunch of really power users and influencers that love canva and where it's going when i think about some of the greatest m&a cases over the last decade, particularly in cloud software not all have worked out, it's going to be a big question mark around can you take this model and put it with this annual force licensing pricing model. i think for canva, they're going to run their own race. the team are really focused on the future and they're customer obsessed and that brought success to figma >> elliot, the street is struggling to sort of ferret out what the headline might be out of dream force this week can we think about what -- i mean, i think it was bernstein yesterday who said it might be a nonevent to the extent it is a nonevent, what news might come out of it? >> i'll open with one thing

that's a bit personal. for those of us who live and work in san francisco, it took me 40 minutes to get here this morning, which is great. that means it's really busy. we have 40,000 visitors in the city that's great for the local community, the workers, the restaurants. the workers. there's three things i'm looking for. one is product brett taylor talked about genie their new product they're going to put out there's two other things in terms of the market. one is tone. in 2020 and 2021 we had cloud software really driven and outlook performance is the third thing everyone going to look for. last year they anonethelessed this goal of 50 billion on obscription revenue in fiscal

25 tbd given how they revise outlook. the product and genie launch, the tone they set in the marketplace and forward performance outlook. >> it'll be really key going forward. thanks for being with us in person john >> still to come, signs that the stock market continues tthe one up up that's o what? amazon has daily deals, so every day is a chance to meet the deal that catches your eye, that shakes your soul, that changes your destiny. quick break. i'm gonna go check on those tater tots. learn all the ways to save with amazon. this is doubling production without doubling headcount.

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we mentioned nvidia at the top of the hour. jensen wong making some comments at the company's conference, announcing some new products christina has been monitoring and joins us with some highlights >> nvidia sticking with its gaming routes. so in simple terms think of love lace architecture as than the engine of a car and the graphics processor as a car the processor can provide realtime rendering to create fully simulated worlds, which is what you're seeing on your screen right now, even down to light refraction on a plane. we have signs of slowing in the second quarter but also announcing its latest h100 graphics processor and that's going to help with high

performance computing. so investors were worried about delays in this particular chip because it was being developed with chinese partners and the united states as we know is imposing export restrictions on ai chips to china. invid you warning previously it could take a $400 million revenue hit this quarter loan. but there is a positive for this since a five-year license is required to use this service and nvidia announcing its first software and infrastructure as a service offering for example, lowes can literally build a digital twin, a lepricca store so an employee in the storewide just have to put an ar headset on and they could see whether the products or which products need to be put on the shelf. and lastly you've got thor, which is centralized car

computer so it's a one stop shop that can essentially save a lot of space in the car the stock, though, look it's starting to climb now. now up up 0.75 as we head to a break a reminder cnbc is delivering alpha september 28th we're excited to hear from we're excited to hear from insts.veor don't just connect your business. (dock worker) right on time. (vo) make it even smarter. we call this enterprise intelligence. tech check is back in a moment

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one more thing liquidating two spacks, returning about $1.5 billion to investors today unable to secure an acquisition after reportedly analyzing more than 100 potential targets landed blame on valuations and ongoing turbulence bringing the total number of liqu liquidated spacs to 21 this year definitely a sign of the times and just how different things are from 2021. >> he wanted a spac for each

letter we talked a lot about it how the spac investor has fared, but he's made out okay $750 million in spac, roughly doubling the money at his firm so we'll see if there's any money to get done. >> s&p is about 20 points after the intraday lows. carl, thanks very much thanks very much to the half time report. i'm scott wapner we'll discuss and debate what that means for the markets with the investment committee the fed meeting begins, the dow goes down 244. bond yields are up today so you'll see there 256 is the ten-year th