the crypto curious wanting to get in we think it's a great time to play the market, play the index and let the experts, kind of automation manage it behind the scenes because this is really complicated stuff. >> it's really complicated and it's a complicated market environment. sa sarah levi with the pulse. that's going to do it for "squawk on the street. tech check is next. >> welcome to tech check, i'm deirdre bosa with carl quintanilla and jon fortt. today netflix reveals about its ad-supported tier. the streets bullish on the strategy but is a nearly $7 price point cheap enough to stop the turn and nfl sunday ticket is up for grabs. plus, mark zuckerberg says he missed a giant shift in social networking we'll have that story in just a few minutes. first take a look at the broader markets. they are lower this morning. we are seeing more consolidation in tech.

we've got another possible deal in the news this morning we actually talked about this yesterday. some of those targets that were ripe, guys, this was a company worth about $9 billion at its peak 5 billion ahead of the news. now we're nearing 6. it feels like companies are becoming more in line, the targets with the acquirers starting to accept that maybe they may not reach those peaks, so selling is a good option. i think with knew tannics, the company is doing pretty well this is one of those software for infrastructure multicloud plays. was just talking to the ceo a month ago when you and i were at the goldman sachs conference here in san francisco, he was talking about how demand is still pretty healthy in this environment for that tier of enterprise software, but it's acquiring new customers versus expanding with existing customers that's the issue take a listen. >> we've seen continued demand so far

now everybody talks about the session here, and we're not immune from that either, but if you look at several layers, there's a layer in terms of enterprise hardware and enterprise software c, which is what we play in, which is to some extent a little insulatied. we are being conservative when it comes to a new business people might delay projects. >> so sweating assets meaning customers just keep what they have versus doing that digital transformation, but carl, i think this is where investors have to think about is there a floor under some of these companies because they have a solid amount of recurring revenue, you know, cash flow positive business. distinctive technology, even though things are down now, private equity could step in, somebody else could step in and some of these companies sub

$10 billion public companies could be good value. >> it kind of reminds me what james gorman of morgan stanley says this morning. your going to see a washout in his view in fintech. these prices, i think the sellers are only there if they need to sell they're probably holding out for better valuations, which he thinks might come later this year that'd be a huge chapter shift in how we've talked about legacy banks and some of these new startups. >> that is the key question. where do they think their valuation should be? at what point do they get out? it also raises the question of how do you finance these deals we have seen more all cash deals but this still doing some leverage buyouts in this tricky credit market, that's difficult. you've also got this uncertain economic backdrop as reasons against m&a. we are seeing deals done >> indeed, in fact, let's stick with the markets this morning, bring in cnbc's senior market commentator mike santoli talking

about banks, and apparently how we're still beholden to some e coe data >> for sure. yesterday's move was impressive, dramatic, not decisive you have to look at it in the context of where we came from and the levels that provided the starting point for yesterday's bounce the nasdaq composite for one even at the highs of this morning, unlike the s&p still below that june, mid-june low, closing low. so still kind of fighting an uphill battle. the trends are still negative. yes, you're getting to be more in the way of a normalized valuation if earnings hold up. it's not showing that it's about to really turn and burst higher just yet take a look at financials and industrials, relative to tech and the overall market there has been a little bit of a subtle shift towards things like financials, toward industrials sort of wholesale cyclicals, i guess you would call it as opposed to consumer cyclicals. it's not going to tell you

things have been a tidal shift here, financials, industrials, s&p 500, and tech that's been the pecking order. the banks tell you a similar story. the economy as we see it here and now skas we can observe it seems okay we're very twitch ecy on the see that's why the university of michigan inflation expectations number for, you know, unrobust as that kind of statistically is, it's still moving the markets. >> as for the uk, i know it's not exactly a tech story, but when you have a u-turn like this, the stacking from the chancellor, does that suggest to you that policy is out of control? >> it suggests to you that the market is just not willing to bet that it's under control. i know that's a kind of round about way of answering it. it's one of those what if questions, the market is full of them right now

until the market proves that on its own and with the new kind of policy structure it can absorb what's happening and not have things get too disorderly in the bond markets, you know, it's not going to necessarily rush in there with a bunch of risk capital and buy ahead of other people i think that's a little bit of the defensive situation we're in in general. thanks so much netflix shares are more than 1% outperforming some of the other big tech names the streaming giant announcing its ad-supported plan will go for 6$6.99 a month. that ad-supported plan will be available in the u.s. beginning november 3rd will it help the company reignite subscriber growth here to discuss, cnbc contributor here's my question as we move into this experiment, not just with netflix but disney plus, do you think that the streaming platforms are going to

find it more lucrative to sell ads? does the subscription model eventually go away >> i don't know if the subscription model goes away entirely there's always some set of people willing to pay more money, which usually means a higher margin, and you kind of just see those high end products persist for a long time, you know, they're aspirational in some ways, but they are also high margin. especially for streaming services what you're seeing the street react to is netflix finally has plans for revenue growth that aren't just we're going to spend more money on content. and the two big plans here are ads, and that is two levers of revenue. you get actual subscription growth people might sign up at a higher rate and you have the ad money they're forecasting like father ads an hour. and they're going to start cracking down on password sharing which they're being very open about it. there's actual plans here.

there's actual plans to both grow the subscriber base and revenue that aren't just spending money on content. we haven't seen that from netflix in, what, five years >> so then what about the price? we just were looking at a graphic that compares it to the other streaming platforms. it is on the higher side >> yeah, netflix has held itself out as the must have for years if you look at remotes for tvs, there's always a netflix button on them. the tv manufacturers know that if they ship a remote without a netflix button, consumers will be mad that is an amaze position for netflix to have been in. if you look at the must watch tv shows, they're not necessarily netflix anymore. i think netflix has to still keep that content while going fast, while it faces incredible competition in streaming from not just disney but also apple, from peacock, all these other competitors that have a lot of

experience. >> i'm looking at a bernstein note, you don't need to have a $65 cpm. it's totally doable in their view, and actually, the real debate should be whether or not going to this new model ends up adding sub growth. maybe time to focus on sub growth again. >> yeah, i think that is the entire story here. if you can kind of just get back to subscriber growth at a reasonable rpu, i think we're going to see all of these streaming services fall into the trap that cell carriers fall into rpu is the entire name of the game you bring people in and how much money can you extract from them? netflix has to bring more people in they have done expansion by going to every country around the world, and they've allowed countries like the united states, other developed markets to kind of stagnate. they've got to bring more people in these markets with new product offerings. >> that's what i wonder. is this emerging new model from netflix a sign of maturity, which would be bad for the

multiple you think about are they really going to grow subscribers at # p bucks. if you're going to drop streaming, are you just going to drop down to 7 bucks to watch some ads how significant is that going to be for growth? and then, yeah, the ads are worth more in developed markets than developing markets. can they afford to keep pumping out localized content, which is really expensive on a sort of per country basis when they're also pursuing this i don't know >> yeah, you know, i always think about netflix as making a lot of shows that are great to watch while you look at your phone. that's kind of been the netflix binge model. you turn it on for several hours, you look at your phone. the show happens you i am interested to see if they can create those must watch shows. they've got a few of them. the data suggests at every turn, every week netflix has some of the top ten shows in the country. they're going to add nielsen measurements to the ad-supported tier because advertisers want that independent audible data.

we're going to find out if that's true, and i think that will reveal much more about the future of netflix. >> nilay, we want to get to the sunday ticket. cnbc out with new reporting that that is still up for grabs, and apple is pushing for more flexibility with gaming rights we're expecting a winning bidder by the fall of this year only really a few weeks left for that i guess the question, who cracks first? which is the stronger -- coming from the stronger position, the nfl or apple if this is the case >> i think apple cracks first. flatly can i have the rest of the hour to talk about sunday ticket? this is a product -- like, it is the crown jewel of american sports products right now. nfl live streaming out of market games, people want to watch everything it is such a poor product today. it is such a bad experience today that almost any improvement instantly grows the market, right? almost any improvement over i'm going to look on reddit for an illegal stream instantly grows

the nfl's revenue. instantly grows the market for sports sports streaming this is like the hottest sports property going. >> is that an argument for apple? you say you need a wetter expe -- better experience that's going to grow the market it sounds like you're saying the nfl should crack. >> i'm saying apple is saying we can to more than just give people the games they want with the extremely expensive famous announcers they're familiar with all the nfl needs is to reliably stream the product to people over the internet, and they cannot do that today >> i see. >> so if you're amazon or you're ap apple your first cut is, yeah, we're going to give people an interface that doesn't crash every five seconds sunday ticket has been down on more sundays this season than it's been up. >> part of this dynamic, isn't it, the nfl the big sports leagues aren't going to make the same mistake that the big media companies made dealing with netflix, kind of giving away the

store just to get that tech shine and additional digital viewer they understand the value of that direct to consumer shine and of sports and live sports in an increasingly commoditized content market >> yeah, and i think they also understand the value of having multiple extremely lucrative deals with multiple partners who are always fighting each other the nfl is in a perpetual contract renegotiation they structure themselves that way because they're always creating leverage over one partner or another for apple to come in and say we want to experiment with how nfl games are packaged and sold, the nfl is going to look at that and say we're really good at this. we need a technology partner that can create an excellent user experience for people direct tv and at&t have not. we don't want to take that risk by ourselves we'd rather have every five, ten years, apple, amazon, google r fighting for this package over and over again. >> i know it's secondary, nilay,

but i'm sure you saw the chatter last night about the thursday night game and how bad it was, the prior thursday night game and how bad it was i think at one point there were 40 offensive possessions on thursday night without a single touchdown. that's not great for amazon, and i wonder if you think if apple goes here, if they need to demand better matchups >> probably. if you get sunday ticket, you get all the premier matches. they're just in your bundle, you get the red zone product there's a lot there. the thing about those thursday night matchups being bad, i suffered through the last few weeks with everybody else on twitter, we were all still watching it, and that's the power of the -- >> i dhate watching it. >> we were hate watching it, complaining. it's one of the few mono sports cultures that remain you can't say that major league baseball creates those mono sports cultures anymore. it's really the nfl and maybe the nba finals

that is extraordinarily powerful for apple, you know if you've watched apple's broadcast of ma major league baseball games. they brought in the talent and they're doing a bad job. if you're the nfl, you're not going to hand off your most lucrative product in the world to a company that still hasn't figured it out. >> what about broadcasting what about broadcasting golden state warriors practice? that's must see. >> i mean, there's some people who want to do it. and all that stuff is just like -- there's just one more person who will pay the money to do it. you can see the streamers have done it for a long time, but live sports is the game. >> a lot of people here. i only watch hockey, but you know what? you convinced me i could spend the next hour talking about this we do have another good story, mark zuckerberg admitting to stra tech ri's ben thompson he missed a mega social media trend saying media interest has sh shish shifted from posts of your friends, and discover things that are interesting you send them to your friends in

messages and you interact there. that has largely contributed to the success of meta's rival, tiktok you were like did he really not see this coming and so i went back to 2016 post from facebook how they -- explaining how they built the news feed. first principal, friends and family come first. they did consider that idea of a mor a more algorithm led model so what is zuck talking about? >> it seems to me like zuckerberg's talking out of both sides of his mouth here. they sort of were headed in this direction, but algorithmically driven content leads you down some pretty nasty misinformation, you know, tail wagging the dog areas. tiktok's not getting as much heat for that right now, but facebook sure was. it's not that he missed it, he pivoted away from it internally. >> he absolutely pivoted away from it. they pivoted to facebook groups. they pivoted to messaging.

facebook's data for years and years and years has shown there's more action in instagram dms than there is on instagram proper, and i think what zuck is trying to reframe here is they're pivoting to the discovery engine, that's their ai generated content recommendation tool across all of their feeds where you see the best stuff from text facebook, instagram story, whatever, and they're going to build that tiktok like experience using all these multiple formats i kind of see what he's getting at i also firmly believe that the shift he's talking about where you just open an algorithmic feed to find recommendations of cool things, that happens next to i want to see what my friends are doing. >> yeah. >> and all the companies are pivoting towards scale and they see scale there. that doesn't mean that people don't -- aren't interested in what their friends are doing you know, the groups on facebook aren't still hot i think he's just trying to reframe the discovery engine pivot, which is really i need to compete with tiktok. >> yeah, people still want to

see cute posts from their friends, maybe that's why they duoto go to facebook and instagram. still to come, a double down dp grade of the nasdaq exchange a price cut from meta. tech check is back after this ♪ ♪ >> announcer: "tech check" is sponsored by comcast business, po powering possibilities ♪ ♪ ♪ ♪ ♪ ♪

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let's get a gut check on the nasdaq exchange, b of a double downgrade to underperform. while their total return is positive, the nasdaq is at the, quote, low end of their coverage and why they foresee meaningful eps growth in '24, market tech growth decelerations all stand as risk factors for the coming year shares down about 4.5% obviously in a pretty red tape, jon. >> yeah, carl, and now let's turn to semiconductors there's been a lot of news the last few days. you've got reportedly thousands of layoffs possibly coming for intel. guidance cuts from amd and applied materials.

a number of names gaining exemptions from chip restrictions on china and a stronger than expected quarter out of tsmc. let's bring in former cypress semiconductor ceo t.j. rogers to get a closer look. i'm particularly interested in the impact on equipment makers and on sort of leading edge fabs into the future. china's had this ambition to build its own domestic capability, but that's looking tougher right now. what does that mean for other companies that are trying to build up capacity, including potentially intel? >> well, china stated ten years ago that they wanted to become self-efficient on semiconductors and they worked on it, but fortunately for us semiconductors are a relatively unique business where freedom and free markets matter a lot, and that's why your industry is always dominated

people who have an axe to grind might define it as percent share manufactured which doesn't matter that much anymore the term foundry was invented by a cal tech professor, and i find it insumlting but what he said i the semiconductor, the brain part of the function will be in the chips, what's on the chips and how small the gee no-- are joe biden has tripled down on that strategy, and he's now cut off equipment to china as well as the middle chips made specifically for ai and super computing, namely those which could be applied to the military >> right, and so -- >> it's a gut punch for china. >> so what are the implications for investors? how does that kind of tilt the

scales what's a better bet now because of that? i'm looking at asml, it's still above its pandemic, pre-pandemic highs. i'm thinking about other equipment makers and, again, you know, the players that are trying to build up foundry capacity and double down on that better u.s. base what does it mean for them >> well, if you go up to the highest level, physics says there will be enough machines in the world to make the chips that the world demands. right now the world is demanding roughly the number of chips being made, although there's some places where we don't have enough spand some places where we're starting to have a glut. this whole action really is determining what countries those machines will be in, and how many machines there will be. the asml, the chip equipment companies will make the equipment for the new fabs and they will ship them somewhere. so i don't think there's a huge

downside for the chip making companies. this is just moving them from shanghai to ohio. >> okay, well, t.j. what about second and third layer consequences as you say these restrictions are a knockout punch they can affect everything from china's ambitions in ai, their military growth. are we going to see retaliation this time? who does that affect where does taiwan fit in >> now you've got something on which i know very little i don't know what china's going to do in response, but i am a student of free trade. i do know that when china behaves itself, which it isn't, that's better for us i know that every american is better off when they can buy goods from china on the other hand, what's china going to do? it's like, you know, the old joke stop or i'll shoot. okay, what are you going to do stop making stuff, shut town y down your factories to prevent us from getting imports.

this may have the desired effect it may have the effect of causing us to come to the table and work out a deal with the chinese which would be better for both countries than what we're doing now. >> t.j., meantime, we keep hearing various long-term targets on the percentage of global memory that can be made in this country having had it crushed over the last few decades. where do you think that number can top out? how self-sufficient can we become as we build these belts of manufacturing in ohio and maybe new york >> okay. that's a great question because that really goes to the heart of the issue. where is it going to end up? and you know, let me take an example. we don't weave cotton into thread anymore, nor do we weave cotton thread into shirts anymore. there's a point in the life cycle of any technology where the technology is no longer economically done in the united states that's true for let's say 80% of all chips in the world right

now. they're better made somewhere where people earn a buck an hour or two bucks an hour instead of where americans want to earn 22 bucks an hour. what we're trying to do now is parse between the critical technically and militarily, critical strategic semiconductors we do want in the united states. we're 12% manufacturing. that's probably a pretty good number if we control the technologies of that 12%, we'll be okay having said that, you know, they can shut off plain old ships and all of a sudden we've got a problem making the high end products that use chips. it's a very complex problem. again, we're better off working with them, getting them to do the right thing with pressure than we are this war, trade war. >> yeah, we'll see if we can find a new playbook to make that happen because the old one doesn't seem to have worked.

t.j. rogers, thank you >> thank you. let's get a quick check on the markets as we head to break. the dow is down more than 100 points the nasdaq was just about flat on the weekend heading into today's session. it's now down 1.5%, which would lead to another weekly loss. take a look at some of the names to lead a weekly bounce. you've got moderna, walgreen's and kraft heinz. more "tech check" after the break. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

people advisory services leader kim, thanks so much for being here amidst all of the market disruption we're seeing, companies are having to transform their businesses what are you seeing that's working? >> ey did a global study with the oxford school of business. the reason we did that is the transformation success needle hasn't moved much over the last 20 years less than 50% of them are successful that's because people are focused on the rational side of transformation, of technology and process. if you put humans at the center, your likelihood of success more than doubles who wouldn't love a 700 batting average in the transformation space. >> how do companies focus on humans at the center. >> our study has discovered six

very specific levers and those are vision, collaboration, technology, process, leadership is a big one and also creating psychological safety, and when you do that, you start to turn it to a transformation eq, which actually is driving those programs far beyond success. >> and then how are you applying those levers to your clients >> we find two different kinds of clients, one embarking on the transformation and resetting that foundation, that mind-set, and the other one is clients in flight that may be having a bumpy ride on their transformation, this is an accelerant for getting them back on course. >> kim, thanks so much for sharing your insights, really appreciate it. >> thank you (vo) verizon has business-grade internet solutions nationwide. (wayne) for our not-so-small business too. (wilder) they've got plans and speeds to suit our needs now. and we can keep growing without outgrowing our internet. (vo) combine it with a business unlimited phone plan and save a bunch. switch to business internet that keeps your business ready for anything.

from the network america relies on. welcome back to "tech check. coming up this morning, one strategist will tell us when she thinks the right time is to start putting some cash back into the market. nasdaq is falling today on pace for its fourth negative week in the last five. let's get a news update this

morning with contessa brewer >> hi there, carl, nice to see you. a flurry of strong bank earnings driving those stocks higher and helping trim losses in the broader market wells fargo, citigroup, jpmorgan topping estimates morgan stanley is bucking that trend. it had top and bottom line misses driven by weakness in its global wealth and investment management business. kroger is buying rival supermarket chain albertson's in a $25 billion deal that deal combines the company's two largest stand alone grocery companies. the merged firms will still be number two to walmart's grocery operations. consumer sentiment is up this month and well above expectations, even as inflation expectations worsen. september retail sales were shy of estimates they came in flat as higher prices for rent and food limited the money available for other things and british prime minister liz truss has abandoned a plan to cut corporate taxes she also fired her treasury chief but said she has no

intention of stepping down herself. the british pound is down against the dollar for a second day in a row guys, carl, send it back to you. >> contessa, thanks very much. amid these up and down markets, our next guest says to stay invested, although neutral on tech, she is hot on the cloud and even some semi names despite the slips we talked about. joining us this morning, wilmington trust head of investment strategy. happy friday, megan, good to see you again. >> thanks for having me. >> i know cpi yesterday didn't really change your inflation narrative, and i'm watching the two-year once again 449, ten-year just above 4. is it beginning to feel to you like those are going to be relative ceilings here for a while? >> yes, i think we are getting close to the peak ten-year treasury yield for this cycle. i really think that's the one to watch as we think about the stock market, especially some of those longer duration assets like within the technology

sector or growth stocks. you know, woe're getting incrementally more hawkish pricing from the market, now looking at a peak fed funds rate pretty darn close to 5%. i don't think that moves much higher and even, you know, with that disappointing inflation read yesterday, we haven't really seen the ten-year move too much. i do think we are -- you know, it's possible we move a little bit higher, but i think the heavy lifting has been done here in terms of the massive repricing from the market on the fed side and what we've seen in reaction from the ten-year treasury yield. >> right, and we'll talk about sectors in a moment, but okay, if i got the terminal rate basically getting set aside, isn't now the issue of how long we hold here and what the impact is going to be on earnings for next year? >> absolutely. so typically when you're looking at a fed rate hike cycle, you expect the market to start to find the bottom when you get to

that peak rate because it usually means that the fed is then going to start cutting rates. and i think that might be a little bit different here, particularly given the importance and really the urgency minbehind the inflation story. what we've heard from the fed is how they get to a certain point and not immediately start to cut. that's based on the data today the fez d does not have the luxy of using leading indicators to try to predict where inflation is going a lot of those leading indicators are still encouraging for a slower inflationary environment. i think when we actually get down that time, you know, at some point in 2023 when the fed does level off, it will have to see. if inflation is coming down quickly because growth is slowing dramatically, then we might start to see some easing off of the break from the fed, and all of that could help ease markets and start to find that recovery period. >> hey, megan, i want to talk

about growth tech, we sometimes call it unprofitable tech or maybe not profitable yet tech particularly because nutanics right now is up 24% on questions about whether it is in play. now, this is a stock that's been under estimated over the past couple of months it was trading, i think, down in the 17 area before its earnings report it popped after earnings it's higher than that now. also thinking about vista's move for no before. it was in the 17 range just a few weeks ago. i think the question is even though some of these companies aren't profitable, if they're in areas like multicloud, like cybersecurity and have unique technology, is there a point in getting into them now either for the long-term or in some cases, hey, private equity is stepping in and saying this looks good. >> yeah, so i think there's two issues at play here.

one has been -- and this really comes back to the rate conversation so one has been the velocity of the move in interest rates, and that's really what has shaken the foundation of some of those growthier parts of the market that don't have profitability and the other is the level of rates. i would say from the velocity perspective, i think we felt a lot of that pain you could see investors ease back into longer duration assets, less profitable companies. we are still looking within the growth sector for a lean towards valuations so kind of that growth at a reasonable price type of dynamic, and a path to profitability if not actual profitability, and i think the reason for that is because we are probably looking at a return to a more normalized interest rate environment so you know, even if inflation comes off, we don't expect a return to those level of rates that we've enjoyed for the past few years that really gave fuel

to that unprofitable tech sector part of the market and so i think going forward, you really do have to keep an eye on valuations, but a lot of the growth that we are probably going to see in the tech space is going to come from some of these new entrants so finding the balance, i think, is really the key. >> right, we're always trying to figure out what the right valuation is for especially this unprofitable tech sector what does it tell us that maybe there's some interest here in terms of nutanix, m&a activity, some of these other names, are we getting close to a bottom >> we've already seen a 25% correction in the s&p 500. i think there's a lot of negative headlines and a lot of people who are putting out that really risky scenario that we have, you know, some sort of spillover contagion. you know, that is always a possibility, but it's not our base case, and really even our downside scenarios for a mild

recession. if you think about that, you think about getting to peacockishness, peak interest rates, that is why you're going to see investors easing back into some of these growthier part of the markets. bottoming doesn't happen on a day. we are reminded back to the pandemic when it was literally a drop down and a slingshot back up i think this is going to take longer it is going to be more of a process. i don't think that we have too much further to fall, and that's why i think you have to stay invested here. >> meghan, it has been a process. that's for sure. it's been good to check in with you at least wunonce a week or . have a good weekend, meghan shue. shares are down 1.5%, don't go away. you and part of that evolution means choosing the right medicare plan for you. humana can help. with original medicare you are covered for hospital stays and doctor

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welcome back e. as cnbc celebrates hispanic heritage, our kate rooney is looking into the private flood of equity dollars into latin america. >> latin america is very much on the map for private equity, and after a record 2021, there has been a slowdown, but this year is still on track to be the second biggest in terms of deals for south america and central america. according to the latin america venture capital association, price tags have come down substantially, but total deal number is actually holding up relatively well. there's been a sharper drop in late stage pre-ipo deals while

earlier rounds are holding up much better. i talked to some of the biggest investors in south america, ariel ariana of nxtp tells me there's been an end to blitz scaling. the same thing here in the u.s., a lot more discipline on the vc side and still a pile of money they have to spend global names like softbank, tiger, sequoia that have raised dedicated funds and they need to get that money out the door. the appeal here, guys, is growth in latin america there is a chance to leapfrog or replace some of the kexisting tech and infrastructure, faster than you might see in the u.s banking is one big xample. there's a large tech savvy but unbanked or under banked population, and fintech is by the far the biggest category for deals right now followed by e-commerce, crypto and web 3 also getting a lot of attention there and brazil is attracting by far the most deals followed by mexico, colombia, chile and arge argentina. there's a growing tech ecosystem

there. some of the entrepreneurs really cut their teeth at companies like mercado libre, and they're moving to start their own venture. he's seeing a rise in serial entrepreneurs, 43% of dollars this year went to a repeat founder. there's a lot more diversity about one-third of dollars went to female-led startups versus about 12% of global dollars. and then check out some of the publicly traded names as well. mercado libre, delocale, outperforming some of their north american fintech peers at least, back to you. >> what a great angle, especially in all kinds of sectors, media but especially fintech too. kate, thanks for that. speaking of which, we want to get a check on the banks, getting pushed around by some of the macro. the tape went red on the hotter than expected inflation. we're 100 points off the intraday highs on the s&p.

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expansion for the foreseeable future shares were up at the open but those gains, down 2 1/3 percent. ermember the whole unity merger the. we'll be right back in a minute. (fisher investments) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how? aren't we all just looking for the hottest stocks? (fisher investments) nope. we use diversified strategies to position our client's portfolios for their long-term goals. (other money manager) but you still sell investments that generate high commissions for you, right?

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turning now to meta. that used to be facebook

naming the company their top pick, slashing the price target. let's bring in the analyst behind that call my question about facebook, meta is doesn't the whole stock now kind of hinge on whether they cut this amount of spending they're putting into head sets and the metaverse? i mean they could vauft quite easily just by pulling back a little on that >> i get the idea of an ad stock into a certain macro i think there are three parts to this bear case that have gotten really loud recently the first is on the spending two is on engagement, the first ever year over year user it clines in history. and the third on revenue growth. i think what we're going to see is traction against all three of those. we've already seen engagement on the aggregate back on track.

on the expense side i do think we're going to see some increased discipline from them and lastly on the revenue growth trajectory at least allowing investors to look at it coming off the bottom >> i agree particularly i think i hear you articulating that the narrative has turned against meta, particularly facebook and instagram maybe a little too strongly but this reminds me of five years ago they said we're going to spend all this money building up content moderation, and then when they pulled back the stock popped aren't we in another one of those situations where aren't those things important, but maybe the really important thing

for the stock is whether they pull back on that spending for mostly metaverse but some of it. >> yeah, i think that's certainly, you know, a critical part of the story, certainly i think there's question marks about the metaverse. not quite what investors are looking for given the midst of what the macro environment we're under. this viewpoint nobody uses facebook anymore, it's a melting iceberg, pick your expression, i think it's untrue. until you can get past those very loud bear narratives, it gets hard to underwrite growth trajectory for the stock >> i wonder once you strip out the cyclical dynamics and ad cycle and certainly monetization of product in the near-term, if you've ever seen a company invest this much money and this

much time on a promise that was this far-out and whether or not you think that gives bears some credence when they're skeptical. >> certainly it's a big number, right if you kind of add it all up you're talking a number in the tens of billions of dollars. if they were private what's really the right move for the company? if we weren't scrutinizing them on a quarterly basis do we really believe there's going to be a change or evolution in the computing platform metas lived through that we had this existential questions of that time a billion users, could they migrate successfully to this app based ecosystem? certainly see theopics around it, but i don't think it's the long-term strategy for the company. >> even if you have still good or improving engagement, long

cost discipline, you've got competition from netflix and disney amazon is becoming an even bigger player. even if everything is sort of the same are they still going to be winning the same ad dollars they have in the last decade >> i think certainly the market is absolutely more competitive >> netflix is disney coming in, who knows if is when they ramp up their own monetization effort, so there's certainly competition. the thing i point to when you look at the advertising perspective it remains squarely on doing and meta. i pointed to vantage plus, which is a product they launched recently, which to me effectively helping, you know, automate much of the advertisers big question marks you know, what does the creative look like, where do i target

where do i place it effectively running through thousands of combinations, but i think this reinstates the mode. >> nasdaq down 2%, and tech check is back in a moment. if you wake up thinking about the market and want to make the right moves fast... get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity. and i'm going to tell you about exciting medicare advantage plans that can provide broad coverage and still may save you money on monthly premiums and prescription drugs. with

original medicare you are covered for hospital stays and doctor office visits but you have to meet a deductible for each, and then you're still responsible for 20% of the cost. next, let's look at a medicare supplement plan. as you can see, they cover the same things as original medicare, and they also cover your medicare deductibles and coinsurance. but they often have higher monthly premiums and no prescription drug coverage. now, let's take a look at humana's medicare advantage plans. with a humana medicare advantage plan, hospitals stays, doctor office visits and your original medicare deductibles are covered. and, of course, most humana medicare advantage plans include prescription drug coverage. with no copays or deductibles on tier 1 prescriptions, and zero dollars for routine vaccines, including shingles, at in-network retail pharmacies. in fact, in 2021, humana medicare advantage

prescription drug plan members saved an estimated $9,600 on average on their prescription costs. most humana medicare advantage plans have coverage for vision and hearing. and dental coverage that includes two free cleanings a year, plus dentures, crowns, fillings and more! most humana medicare advantage plans include a silver sneakers fitness program at no extra cost. you get all of this for as low as a zero-dollar monthly plan premium in many areas; and your doctor and hospital may already be a part of humana's large network. there is no obligation, so call the number on your screen right now to see if your doctor is in our network; to find out if you could save on your prescriptions, and to get our free decision guide. humana, a more human way to healthcare.

one more thing this morning to elon musk's conduct to buy twitter. no details on what he's being investigated for or the agencies involve, but twitter says musk failed to comply after they asked for materials related to that investigation in july with attorneys for musk last month getting a privilege log of the documents they planned to with hold. awfully sketchy here, john, given we had no idea where they're going with this. >> i don't know especially given how much elon expresses on

twitter, how much we saw he was getting inbound traffic from friends and really his influence over the stock while having an interest in the stock, all of that important >> yep, stock at 60, 59 but still not at that level? >> at 3600 have a good weekend. let's get to judge welcome everybody to the half time report i'm scott wapner after that epic turn around for stocks is it something to build on or will earnings in the days ahead deliver another blow to the bulls? joining me for the hour today and right here on our set today is steve weiss let's check the markets. carl just said we're at session lows in fact we are you did have that better than expected consumer sentiment. one-year expectations also rose, rates went up, the dollar moved up, k'