yeah, that rotation and energy and a broader market, and apple alone, 7.5%, $10 on apple, i'll wait for statisticians but it looks like they added in verizon in market cap. >> which after tech losing $800 billion in market cap going into today is good news >> we'll end it here and send it to "tech check." >> good friday morning welcome to "tech check." today, call it a big tech train wreck. google, murk soft, meta, and now amazon taking it on the chin amazon alone losing $200 billion in market cap. what comes next and what should you do with the rest of the names? apple's the only mega cap so far to see green post results. record revenues for a september quarter, and don't think we forgot about twitter deirdre is live on the ground as the musk era begins. we're going to discuss all of that in a moment

>> we're going to start with amazon, though we had the last of big tech report this week this is a company, of course, you see now with share prices declining. hit on the consumer side and the enterprise side at the midpoint, q4 revenue growth, forecast at 5% year over year. that would be a record low for this current all important holiday season, which has accounted for nearly a third of annual revenue historically. aws growth, that was a major focus. it slowed to 27% growth year over year. the ceo talked about enterprise customers really trying to save money here remember, this is a consumption based business model this is a cost they can cut. on the cost side, this was a huge focus this week investors found that amazon had trouble reining it in. amazon quickly, maybe the first among big tech this year, to rein in those costs saying we need to become more efficient. we overhired in the pandemic, but more work to do for the ceo,

andy jassy >> it makes sense. we set this up pretty well yesterday, talking about this andy jassy situation is not a mark zuckerberg situation where he's leaning in to spending despite the macro headwinds and the issues we see with the business they actually are tightening the belt you can argue maybe they got a few inches left to go as they tighten that belt, but amazon's responding to this environment and yes, part of it is macro, the slowdown in consumer that we're see that was reflected in q3 that's projected out again into q4, but there's nothing fundamentally here that i see, carl, where you question, does amazon have to change its playbook overall, either in cloud or in e-commerce or across advertising and marketing because they're unprepared for the situation or they're doing something, heading into this tough environment that investors fundamentally are spooked by >> yeah, i guess you could maybe make that argument, certainly on the retail side, having

retrenched on their warehouse and their head count i think the question on aws though is getting interesting, jon, if you think about an era in which startups had low cost to capital and needed cloud right away and that led to a huge what is now the engine of profitability at the company, but if that changes for good, maybe some of these aws revenues in the 20s, let's say, and certainly the operating margin guidance, that's going to be a harder thing to repair >> it will, carl, and i'm sticking to what i said yesterday, which is that i think competition between the platforms and the best of breed players is what starts to come into focus over the next few quarters what does amazon acquire, what do they build with whom do they compete? it sounds like you want to jump in here too? >> well, i was going to say, i know you're focused on competition between the hyperscalers and best of breed, but what about the competition in the hyperscalers themselves

the pie is growing bigger and bigger, but what does that mean for marnle margins? the street was concerned, the margins are narrowing a little bit and is that the macroenvironment or is it competition? we know that google is trying to make a big play in the space it's by far long the number three player, but it's prepared to lose money to gain more share. >> well, i think competition has always been a big issue here, and amazon itself as well as the others have been lowering costs as consumption and demand has gone up. but another way to work at that profitability issue is consolidation. right? is to buy things is to deepen your stack and crowd out your competition and say, hey, customer, buy more of this from us i think we're going to see more of that. let's move on meanwhile to apple, continuing to be in a class of its own, heading higher after strong results in a quarter that has seen microsoft,

google, and now amazon take a tumble apple is the outlier, steve, right? >> yeah, that's exactly right, jon. look, apple beat on the top and bottom lines, and there were some misses within individual seg segments, but the big story here is the iphone demand has been resistant to the cratering demand apple's peers have seen in pcs and smartphones i asked tim cook what he sees as far as demand goes, and he said look, it's the iphone 14 pros that are still really constrained, and that's good news actually for revenue growth on the iphone side even if unit sales remain flat, as long as they can get those out the door by the end of the holiday quarter. apple also benefitted from the falling demand overall, saying commodities like memory chips are cheaper. it helps keep costs down he also told me about, and not everything is super rosy here. services are still really under pressure from foreign exchange, fallen ad spending, and a drop

in video gaming on mobile devices. and mac revenues are expected to fall significantly too in the current quarter because they're having tough comps from last year's mac book pro launch, the redesigned one that sold really well last year and overall, foreign exchange is going to be a big problem this current holiday quarter and they're expecting it to hurt sales by about ten percentage points, guys >> and so, steve, what kind of inventory position was apple in? there was all that conversation about, oh, they're cutting orders of this or that, stopping down production. that could just mean they're making sure not to make too much of any individual thing once they see where demand is weighted, which appears for the iphone to be for the higher end. for macs, seems to be relatively strong was that reflected in the results? >> it was. and keep in mind, this is only eight days of iphone 14 sales.

it's not until we get results for the current quarter that we get a full picture, but you want to talk about inventory. you can walk in now and buy the regular model of the iphone 14, no problem it's the high-end pros thereat are feeling the constraints. so that is a good sign, at least on the revenue side, that people really want and are willing to spend $1,000 or more on those higher end iphones as opposed to the regular models, even with that plus model that came out a few weeks ago with a bigger screen, kind of a tweener device, between the pro and regular. look, inventory, they're constrained. they're constrained on the watch, too tim cook told me they can't make enough of the apple watch ultras to meet the demand either. >> certainly some fallout. people are watching skyworks and some of the apple supplier names on the chain concern great stuff on apple let's talk twitter as well as we said, dee is at twitter hq

in the beginning of this new era. >> i'm in the middle of san francisco, market street as the musk era begins. it's just after 8:00 a.m. local time and some of the companies more than 7,000 employees are just getting in and probably have a lot of questions and not sure what to expect now, even if they'll keep their jobs. of course, last night, we heard that the ceo as well as ned siegel have departed the company. ye is back on twitter. change is here there's other cameras around me. this is a moment, and julia, you have spent a lot of time outside of this building over the years as well, through, what, five or six different ceos how would you describe this moment >> well, yeah, it's really interesting right now because i remember that street corner well, dee, that you're standing on and the question is what is going on in the building behind you and what are elon musk's challenges and opportunities to fix them he's taking over the company in a time where there are three major constituencies he has to deal with and reassure

first, those employees, by the way, many of them used to working from home, seems like elon musk is going to expect them to come into the office, and the big question of whether or not they have jobs. there were some reports out there a couple weeks ago thattee was going to lay off 75% of the company's staff. he assured people that number was not accurate, but we have already seen hundreds of employees leave twitter, concerned about what the future might hold in terms of their job security so i think he's going to have to figure out how to retain that employee base. then, of course, there's a question of advertisers, advertisers don't want to be on a platform that's a free-for-all he's already taking some steps written this open letter to ad advertisers saying he's going to make sure the platform is safe for their messages in terms of a brand safety standpoint, and of course, the users. hoe laid out this very ambitious vision of how many hundreds and hundreds of millions of users he was going to be able to add. remember, he's very interested

in the subscriber model, the subscription model, but it takes a long time to build it up, and this is a platform really reliant on advertising >> this occurred to me last night and tell me if you think i'm wrong. if you want to invest as a retail investor or any investor, if you want to invest in social media right now, you're about to not have the twitter option. you don't have the twitter option anymore it's really close to $54 s.20 a share, and twitter is off the table. meta, meta is not moving based on anything having to do with social media it's based on how much zuckerberg is spending on the metaverse. tiktok, you can't invest in that it's pretty much snap and is there -- pinterest, maybe? some of the biggest players are not really investable options right now, right >> yeah. well, look, and i think there's also this question, and we're going to talk about pinterest

more later in the show, but is it more of a social shopping platform rather than a social network? some of snap's most valuable features are communications features, not necessarily social networking we need to take a step back and re-examine sort of what are these social platforms maybe they're not so much about the social network as they are about communications and groups and other things like that we're seeing a redefinition of what these tools are for, and it's going to be really interesting to see how elon musk manages this global town square, which is what twitter has been called by various ceos over the years and how he makes sure the town square is a safe place to be, both for the people in it as well as the brands >> yeah. a lot of the questions that people inside behind me are wondering. i love this discussion because it brings up the question, are the social media companies technology companies i don't know if you read our good friend's piece in the verge this morning but he argues this is a political problem that musk now has on his hands, not a

technological one. the technology as of now is not that important and he's about to find that out certainly, especially if we see former president trump come back on the platform next week. >> yeah. well, the technology is always a problem because they have some product evolution to do, but maybe not the most pressing one, certainly not the most pressing one now. we're going to move on, turn to another earnings mover, intel up about 10%. one of the top gainers on the nasdaq this morning, after delivering a beat in q3, and also announcing a series of cost cutting measures a miss on the guide, lowering their outlook through the end of the year but we're going to take a closer look in a cnbc exclusive with intel's ceo, pat gelsinger welcome back things are tough but the reaction so different from last quarter, because that quarter, which people were describing as kitchen sink, you know, that guide down, you were talking about inventory and slowdown, you were just a little

below the midpoint of the guidance tell me where you are inventory position wise and demand position wise, compared to where you expected to be with that tough quarter last quarter >> well, thanks, jon always a pleasure to join you, carl, and deirdre on the show. this quarter, we executed well and delivered within the range that we had set, and i think everybody last quarter was saying, boy, what's going on well, we proved to be much more of a foreteller of the market's outlook than i think even we realized at the time product execution was solid in the quarter. we were a share gainer in areas like the pc market, so overall i'd say we were happy with how we executed. we also had unique good news as we got the mobile i ipo completed with very good trading and above the range. i would say we have a lot of good things going on but we also said, boy, market conditions, there is no good news on the horizon.

u.s., europe, asia, all of them look to have headwinds for the foreseeable future we took down our range for the rest of the year, and of course, as you say, we're making cost adjustments to our business, even as we continue the drive forward strategically of a long term transformation of this great technology company >> let's get into the tough stuff, pat what kinds of layoffs are you talking about here over what period of time to achieve these cost reductions that you're talking about? and what kinds of adjustments are you making in the turnaround plan, whether it's the implementation of foundry, your expectations that you can get these new process nodes done in the period of time that you had set out, and maybe some adjustments to when equipment is moving into these fabs that you're building? is the plan still the plan, and are you cutting to be able to continue executing the turnaround, or has the turnaround timeline shifted at

all? >> boy, a lot in that question, jon. at the highest level, the plan is the plan. we remain on the strategy that we laid out, building these new sites, getting back to unquestioned technology leadership at five nodes in four years, all of that is healthy, under way, and progressing as expected and takes some investments at the same time, hey, the market size adjustments, you know, need to occur. we have strategic capital versus the capacity capital, and we're making adjustments here while we stay true to our strategy and plans and new sites like ohio and germany and build out of arizona. those are long term investments but we have to then measure how much equipment we put into that because that's when you make the bigger capital commitments, and those have to be aligned with the market environment so that's where we're making capital adjustments but staying true to the strategy that we laid out obviously in the near term, and i had an all hadf company meeting last night where it's

painful, it's soulful to have to tell great intel employees that we have to make some reductions. but i would remind you we're a fixed cost business largely. which means that two-thirds of our costs are in factories, in depreciation, and that's our cost efforts, our first focus on how to make the factories more efficient and how to take those large fixed assets and drive them to be higher productivity, higher margin entities that's where our internal foundry model is so critical we're going to benchmark them, operate them as a world class foundry and the market stacking potential as their products produce margin is the hallmark of what we're out to accomplish with idm 2.0 as we call it. be a manufacturer at scale, a foundry at scale, and deliver leadership products. that's the business plan we're on and making adjustments to the market, to simultaneously pus the gad pedal on the strategy and the investments for the long

term >> let me get to the individual product level or at least into the segment level, and really talk about data center first we just saw the results from amazon and, you know, we saw the results from microsoft cloud softening somewhat with the hyperscaler crowd. you mentioned this as well it seems to me like there could be a considerable softening or digestion of the existing equipment that the hyperscalers have bought. and i'm wondering how much of that you're factoring into your 2023 guide are you factoring in the hyperscalers potentially pulling back significantly as overall global demand softens and not buying as much or are you just factoring in a little bit of that >> as we think about the data center market, we view it in enterprise, what happens with hyperscalers and what happens in china. those are the three big things

we look at and as you suggest, they're softening in enterprise. some, not as much softening, in the cloud space, but we have definitely seen a stepping back for the first time in a while for the big cloud guys and we're not optimistic on china either, and that's why i say there's not a lot of good news on the horizon to look forward to and why we have lowered our outlook. that said, at the same time, even as we see the market weakening, our product positioning is getting better. the sapphire rapid is a critical product for us and we're going to ramp that we also had a good quarter on execution, as well, which this has been an area we have been struggling with execution, and the next three generation products all hit key milestones this quarter so we feel very good that our road map is strengthening, and in this business, if you want to hire asps, you have a better product. if you want a higher margin, you have a better product.

we feel good about our outlook even as the market softens a little bit >> when you think about the enterprise softening, pat, how do you think it's eventually going to prepare to the drawdown we saw in pc demand? >> we don't see the enterprise shift as harsh, carl, as the pc shift, which has driven more by consumer requirement here you have a more i'll say balanced view of it, but definitely the enterprise has softened, the cloud has softened, and result of that is we see the overall data center segment being flattish year on year, as we're looking at it right now. and the outlook for next year is maybe a little bit of optimism as you get to the second half of the year, but not a very positive outlook there for a bit. >> all right, pat, i want to slip one more in because i think a lot of investors need to hear the perspective on this. all this talk a few quarters ago around the time of the chips act

about how strong demand for chips was and was going to be. talk about the difference between the long term demand for chips, you expect that to continue to be strong with semi-conductors in just about everything, and then the short term demand for chips which has fallen off very quickly. some people will say, see, we didn't need all those chips game is that the case >> clearly, i'll say 12-month economic cycles do not dictate long-term market trends. and we still absolutely are committed and believe firmly all of the analysts agree that as we get past maybe this 12-month cycle, semi-conductors double this ecade and as we get to a trillion dollar market for semi-conductors and the critical role it plays, even in this negative economic cycle, every aspect of your life is becoming more digital and all digital runs by

semi-conductors. even as we go through this cycle and we have been through semi-conductor cycles before we're making five-year capital decisions. it takes us that long to build a factory. and even as we still have some areas of semi-conductors we still have shortages today, supply demand will come into balance more quickly in the near term, but all of these strategies are about what does it look like for the second half of the decade. and for that, we believe that the chips act, the most seminole piece of industrial policy legislation that has occurred in the united states since world war ii, similarly, the eu chips act, these are about long-term leadership, long-term rebuilding the supply chains. geographically balanced resilience, and the most important thing for national security, for the economic welfare, every industry relies on it. yes, we believe this was a profoundly important step, and we're proud to have played a part in it

>> all right pat gelsinger, challenging times for intel, certainly for the economy as well. thanks for joining us exclusively on cnbc. with the stock near session highs, up more, carl, than 10.5%. >> yeah. >> thank you >> the dow is up 600 sticking with earnings, let's folking on big tech and a big week for technology. apple, a bright spot is now the time to start taking a look at some of these names or stay away? joining us, laura martin joins us i have to give you props because a lot of the calls you made earlier in the year, namely taking meta to underperform in july, really paid off this week. stock is down 40% since. has your view changed? >> no, it's gotten more negative, but at least i think the market is catching up with the fact that mark is the ceo here is very clear about what he's doing, and i appreciate his courage because he's basically telling you, look, we spent $10

billion on the metaverse last year, we're going to spend $20 in 2022 and more next year and our capx is going up, they reported negative growth in revenue. that's a courageous act. so he's telling the market, the market is catching up with what he's saying. and i think the only way we're now sort of different from the market that's caught up with us is that we're not sure there's a core business here we're not sure that if tiktok wins, that there actually is value in instagram or facebook certainly we're not sure about the metaverse spending, but that's where we might be a little more negative than the average wall street person it's unclear to us in a network effects business if tiktok wins if there's anything left to value of facebook. that's where we are now. >> your point back in the summer was to use meta as a source of funds. a source of funds to fund what now, laura >> well, we're more negative about google because their costs keep going up, so don't put it

there. the safe haven was apple what a well run company, right we had 42% operating margins on $90 billion of revenue, up 8%, all time record, and it generated $24 billion of free cash flow in the september quarter. and bought in shares worth $29 billion. so there's a constant floor under those apple shares because they're in the market spending every dollar of their free cash flow giving you a buyer in the market it's a lovely business model, it's a lovely stable, predictable management team. record sales of wearables. we had record sales of macs. and ipads was a little, you know, underperforming, but iphones were right on target despite rumors they might be weak so sort of hitting on all cylinders and it feels like a safe haven in big tech today >> i think what you're describing is how a lot of wul street feels about apple, that

was only underscored with the results last night let me ask you about amazon. because you're not exactly happy about how they're spending you're disappointed they're taking their billions of dollars in operating profit from cloud and advertising and putting it in e-commerce, but isn't that why they're here they never made much money it's always these other businesses, cloud namely, and also advertising to pay for it >> i think our disappointment here, which we're pretty harsh on them this morning, i would say in our note, was two years ago, their operating margins were 6% and 7% last year in '21, 4% and 5%, and now this year, they have been running 2% okay so the confusion for us is, in the last three years they have added cloud, which in the quarter generated $5.4 billion of operating income. we know that the ad business u because we covered 20 of them, generates about 60% margins and they reported $10 billion of revenue, which means $6 billion

of operating income in the quarter came tromtheir adv advertising business that's $11 billion of operating income, but the enterprise called amazon reported only $2.5 billion of operating income, which emplies everything else is losing $8 billion on $100 billion of revenue, which is their core business. what we object to is they're taking very high margin, high return on capital businesses, and reinvesting that money in a business that's just losing more money, i guess they call it their core business. if a business doesn't have pricing power, i don't understand why you're in it. you're either better and can price that way, like apple, or you're a really bad competitor and have to compete on price i feel like apple argues they're best in class, but then they're reinvesting profits from other businesses into lowering their price point and competing on price. which is it? >> but these are such different businesses, and doesn't advertising give sort of an

amazon a pass to do this a few years ago, we weren't talking about amazon advertising. now it brings in more than their subscriptions including prime. so doesn't that kind of tell you if you're an amazon investor u you're looking at different things you're not necessarily looking at the profitability the same way as apple you're looking for them to innovate and create the next big $10 billion business don't we have to do this to find that next business >> you know, i guess where i would push back is saying we're running a not for profit amazon is on track to report $500 billion of revenue and zero operating income so we're running a not for profit let's invest in the red cross. it does more good. i don't -- scale is supposed to bring profitability. it's not happening here. i don't understand why we're calling this a business if it doesn't make money >> laura, we're out of time, but next time maybe we can talk your view on what alphabet's worth broken up versus together. great to see you congratulations on some of the calls from months ago.

laura martin over at needham >> spicy and substantive >> meanwhile, amazon's at $100 even down 10% apple's rising a huge twitter deal. more on all three names this hour "tech check" is just getting started.

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pinterest shares are up more than 9% after the company beat expectations across the board and talked about the advantage of its focus on shopping pinterest 8% revenue growth surpassed expectations topping snap's 6% revenue growth in the quarter, and meta's 4% revenue decline. and while snap is forecasting flat revenue in q4 and meta is projecting another revenue decline, pinterest says they expect q4 revenue growth in the mid-single digit percentage range. pinterest is bucking this downward trend we're seeing in other companies because of its focus on shopping. users come to the platform with an intent to buy and as ceo bill ready works to

make every product on the platform shopable, the company will be able to show brands the return on investment of their ads. barclay's says pinterest is currently the top of the pedestal for digital ads we think shares can trade well compared to the group into next year's analyst day morgan stanley is a little more cautious, saying, quote, pins may continue to trade well on a relative base given the hope of management turnaround, but we need more details on how management intends to execute. now, with pinterest shares down about 33% year to date, a third of analysts have a buy rating on the stock. 64% have a hold, and 3% have a sell carl >> quite a story, julia. >> if you want more on the quarter, you'll hear from bill ready tonight on "mad money" at 6:00 p.m. eastern time >> in the meantime, dow is up 575. let's get a news update with seema modi >> here's what's happening at this hour. house speaker nancy pelosi's hsz

paul was violently assaulted by an intruding in their house in san francisco. nbc news reporting the weapon used in the assault was a hammer a spokesperson for the speaker says paul pelosi has been hospitalized and is expected to make a full recovery and that a suspect has been arrested speaker pelosi was not in san francisco at the time. >> on to some economic data, pending home sales shrinking sharply last menth as mortgage rates topped 7%. the drop was more than twice what analysts expected over the year, sales have sunk 31%. excluding a brief plunge at the beginning of the pandemic, it's been the slowest pace in 22 years. >> overseas, britain's royal mint has produced the first coin with king charles' image on them king charles is shown without a crown, unlike most coins showing his mother, queen elizabeth. the new coins will go into circulation by the end of the year back to you. >> seema, thanks for that. >> apple definitely defying the big tech meltdown today.

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turning back to apple. our next guest maintains a neutral with a target of $160, noting while the performance is better than its peers he still expects a slowdown tied to weaker macro joining us is wamsi mohan. we talked about the print going into it. do you think you were too cautious in retrospect or not? >> no, i don't think so. thanks for having me i think what the quarter has really told you is that the upside really didn't come from iphones, even in the september quarter. the december quarter guide has a wide range it could be up 1%, it could be up 7%. a deceleration in that range is a very massive range when you take out the extra week

from that, the implied trajectory is really negative. i think that's where the issue is the issue is what do we know about the trajectory of demand as it pertains to the march quarter and had june quarter, and that's where we see there's a real disconnect between estimates where the street is and where expectations are i would say the quarter was more for reaffirmation of a deceleration across the board. you really saw outsized performance on the mac, but outside of that, we're really looking into a december quarter that has got probably flat to down on an apples to apples basis, and when you look at services, it's even more meaningful deceleration in that regard so i think services going x gro growth, that's material from a valuation standpoint our concerns are the same we had going into the print services actually disappointed there are probably street low number of 7% growth, and they came in at 5%, so we still feel

that there is ample risk to earnings estimates, and we're going to be closer to $6 for fiscal year '23 eps rather than the much higher estimates currently out there. >> you're absolutely right there's been a lot of disection of the calendar issue, to be sure are you thinking of the risk, though, is it embedded in the company as a services company or a hardware company >> yeah, look, it's a great question i think the valuation multiple has expanded because of two reasons, one, because the services growth has been strong. and the second is because the gross margin structure has been great. the gross margin structure continues to be very solid and they're benefitting from things like commodity pricing, where if you look at memory pricing it could be down 40%, 45% year or year thesis are transitory cyclical things helping the gross margin, but nonetheless, you have to admit the groisz ss margin stor

remains intact the chink in the armor is on the services side. you have 66% of services revenue that is decelerating meaningfully, that's app store and that's the google payments to apple and those two, you really can't do too much. they're trying to do whatever they can from a standpoint on the services side as it pertained to their own portfolio where they have control, pricing power, and they're addressing that there, but the services deceleration is something that 60% of that is really not within their control, and so that part is going to really compress the valuation multiple in our opinion because look, when you have a services story just adds more resiliency to earnings. it adds more confidence in the install base story that apple is migrating to and when you go through a quarter where you see that services could potentially go x growth, that has to get reflected in the valuation multiple which i don't think it's currently reflecting. >> so how much, i mean, unlike

amazon, alphabet, certainly meta, apple is trading a little bit above where it was exactly a year ago everything else down like 30% plus how expensive is this? and what kind of a move lower should investors expect on a medium to worst case scenario? >> yeah, look, i think that the outperformance has been very material it has been because estimates have remained relatively robust. and when we downgraded the stock, this was exactly our point. that the stock has outperformed because estimates haven't gotten cut yet. we think estimates would have gotten cut but for the extra week, and we're going to see that in the march quarter where analysts are currently modeling it, 25% sequential decline if you add in the impact of the extra week, that's more like a 33% sequential decline we see real risk to estimate

revisions right around the corner, and when that takes place, we think that valuation multiple starts to compress. on a relative basis, obviously, this is a great franchise, great cash flow generating machine, and so when you think about it in the overall context of the market, we do think that it deserves a premium so tell me where the market is going to be, i would add a 20% premium to that, and then put a $6 earnings on that multiple, and so i think the downside risk on the story can be somewhere between $110, $120 depending on where the market goes. there's meaningful downside and risk to the story in our opinion. >> we look forward to unpacking the next quarter and certainly talking to you between now and then appreciate it, as always >> i'm still live at the twitter hq about 8:30 here in san francisco, and employees should begin to stream in soon to brand-new management, as the musk era begins.

we'll be right back on "tech check.

welcome back to "tech check. it's a pretty momeanting morning here in san francisco. this building behind me, twitter headquarters, the company, it has been a fixture here for over a decade certainly all of my time in this city there's questions now about the direction of free speech, a billionaire with no less than

three ceo jobs what comes next, guys? cost cutting, layoffs, those are very likely. twitter also will no longer be a public company, guys more than a decade, carl, i know you remember that ipo very well in new york. so musk is not going to have to answer to shareholders publicly. no quarterly reports he's going to be able to make all the changes he wants to make ultimately, he wants to mack this a super part of what he sees as this vision. maybe a position someone like mark zuckerberg is envious of. he has to do all this in the public eye with a lot of scrutiny >> scrutiny but not accountability and you're right, is momentous part of what strikes me here is that nobody seems to love the social media business right now. mark zuckerberg wants to invest mainly heavily in the metaverse. elon musk, you know, wants to build more of a membership

business, carl and jack dorsey has said that the sin in twitter was that it was a company at all if anybody can make a business out of social media, a profitable one, maybe tiktok they're spending a lot to acquire users. now would be a good time to make that case. >> yeah, and as dee mentioned, the piece in the verge today, the big question about moderation, does moderation bring you advertising dollars or does it repel them is twitter an engineering turnaround or a political turnaround questions we won't know for quite some time. >> in the meantime -- go ahead, dee. >> also, carl, i would say what are advertisers going do that's a big question. we saw elon musk reach out to them yesterday how are they going to feel about the changes ahead and that $13 billion we talked about of debt he has to finance. all this goes hand in hand it will be exciting to watch

from this vantage point in particular >> yeah. meanwhile, session highs 3871, dow is up 630. elon musk may prefer in-office work, but the rest of silicon valley certainly does not. that story coming up next. don't go away. wait, i don't do tai chi. i don't do most of the things you see in medicare health insurance commercials. cut! all the ads look the same because the insurance companies all see us the same. humana is different. they get to know you and listen to what you need. they have all-in-one humana medicare advantage plans with medical and prescription drug coverage. most plans include vision, hearing and dental for as low as a $0 monthly plan premium in many areas. humana has a large network, and they offer ppo options for even more flexibility. members saved an average of $9600 a year on prescription drugs. most plans include a yearly allowance for over-the-counter items. you can get tier 1 prescriptions

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let's get a gut check on t-mobile shares up 6.75 this morning despite revenue and cuts to its sales forecast the company reporting its strongest jump in subscribers since merging with sprint in 2020 raking in more wireless and broadband customers than expected shares are up almost 30% this year tech check's back after this

and volatile macro environment leaving tech names to cut costs hey, diana >> hey the tech sector has long been a leader in office leasing but not so much right now. tech office leasing in the first half of this year dropped to the lowest share in five years according to a new report from cbre with office demand and rents in the 30 leading markets in the u.s. and canada tech does still account for 16% of all office leasing but rather than leading it's now tied with finance and insurance and professional business services last year tech was at 21% of all office leases, the highest of any sector tech job growth in the u.s. slowed to 2.1% year over year gain in the first half of this year compare that to a 4.5% pace in the second half of last year and also tech workers choosing

to work from home so not using the office as much as they used to some tech markets are fairing betten than others hiring in the last two years was still strong in vancouver, seattle, toronto and montreal. the subsubmarkets where offices gained in certain tech hubs is philadelphia, nashville, san diego, and denver. there is a potential, of course, for pent-up demand given that venture capital funding in tech is on track for the second highest annual total on record after last year's peak, but these numbers don't yet factor in the tech weakness we're seeing right now >> they might not buy office space as one of the first things they used to -- i should say lease. some big moves for big tech this week as results roll in. you can catch up with all of it on our podcast that's the tech check podcast. listen anytime, anywhere,

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two more things before we go

the last three days i've been joining you from green castle, indiana, the offices of depaw, indiana's oldest newspaper exactly 25 years ago this was my office today marks one year to the day since meta changed its name from facebook to meta to focus on what mark zuckerberg called the next frontier in social networks a year later the company has lost more than $600 billion in market cap falling to its lowest levs in six years. and despite investing more than $9 billion in their metaverse vision, reality labs, still no likes in the metaverse but those likes are coming, carl >> we will see, john it's an epic showdown between you and the architects of the metaverse. >> that's right. it'll always be there for the other side a year ago lauren and i and my

producer -- there's been so much change for these companies but tech at large over the last year >> we've got central banks, jolts friday and a lot of earnings a bunch of others have a good weekend. let's get to the half. carl, thanks so much welcome to the half time report. i'm scott wapner front and center this hour the last faang standing. we'll debate what it means for your money and whether the long love tech trade is on its last legs joining me for the hour. let's check the markets. we're just past 12:00 noon in the east, and we have a pretty good gain going. highs of the day 2% just about for the dow, which has been ripping of late. there's the s&p strong, nasdaq is strong. sounds funny to sa