market still feels like it needs to catch up to the tightening that's likely to come. right now everything's kind of stuck in neutral two-year note yield is down on the day. i don't think right now the market is clenching up for any major jolts. weal see what we get >> as we say the s&p down about 0.5% that's going to do it for us on "squawk on the street. "tech check" starts now. >> good wednesday morning, welcome to "tech check," i'm deirdre boese with jon fortt, today a ton of movers to get to o' we're talking airbnb, intuit, para paramount, how that is all impacting results. plus, zoom info and chegg heading in opposite directions this morning the ceos of both of those companies with us this hour. and two big bear tacalls. >> wow, that's a lot but we've got yet another angle

for you to start our feed this morning, and that is chips, amd confirming the pc slowdown they warned about a month ago still bilullish on data center. that stock is higher we're going to get more data on the difference in demand between consumers versus auto and industrial customers when qualcomm reports tonight kristina partsinevelos is with us for more on both companies. hey, kristina. >> hello, jon. so like you mentioned, data center sales really helped cushion the blow with amd's latest earnings. you had a miss on the top and bottom line, q4 guided lower because of weaker pc sales driving the client segment closer to what i can maybe call bottom down 40% year-over-year pc sales will actually continue to decline in q4 and in 2023 down 10%, but q3 data center revenue is what increased 45% year-over-year, and that's helping drive the stock about 3% higher right now

i also want to point out amd says the u.s. export rules to china would have a minimal impact on revenue, and today the nikkei is reporting that tokyo is in talks with washington to create its own set of tech restrictions for china similar discussions are pretty much ongoing with south korea and the eu that could be good when you have allies joining the united states but back to amd. so amd is still dealing with weak pc markets, so where does that leave qualcomm given its high exposure to consumer end markets? the stock you could see is down 19% reflecting a slowdown in 5g adoption as well as weak china smartphone sales, but still falls in line with the smh and the stock's etf during that same time frame, six months both morgan stanley and bernstein suggest qualcomm's valuation is really compelling, quite cheap, and long-term suggest the auto sector, segments as well as the internet of things segments will help drive future revenue you'll just have to endure the near-term pain possibly for q4 first. >> yeah, kristina, what i'm

looking at when it comes to qualcomm, which investors still have time to think about and position themselves for is the china market in part, but then the premium end of the smartphone business continued to do relatively better that's where qualcomm is strong, and also those growth areas that they have in industrial iot and automotive, that shift toward electri electrification, toward autonomous driving still happening, and they're in a pretty good position there so i guess it's a question of how much of that is priced in and what do investors react more to. >> two points to that. the high end market you're referring to is samsung, so qualcomm recently announced that they're going to be not only having their chips in samsung smartphones but everything to tablets. that will be a good driver for 2023 then you also have the fact that qualcomm has apple as a customer, there's been reports that maybe apple will hang on a little bit longer beyond 2023,

so that could further add two revenues going forward to your point about the auto segment, so yes, that is a huge growth it's a driver, but don't you think that it could be considered a long-term driver in the near-term benefits may not necessarily grow over the next little while so that's something that they use it as a narrative, like nxp, they talk about auto being a strong segment this is something that's going to be long-term, maybe not so much in the next two quarters, three quarters. >> right two chip companies that actually are benefitting from auto at the moment, on semi, their exposure there and their development of silicon carbide products, where is qualcomm positioned at this moment i kno how much do they drive from that category >> you mean specifically from silicone carbide. >> for auto, that serves auto. >> if you were to join auto as well as iot for one segment

group, it increased 35% last quarter, and this is year-over-year, of course. so can that continue, that's the big question it's a huge portion of their business, and so many chip companies are focusing more on auto because it's considered more resilient why is that? because cars are going to be giant computers. everybody's electrifying, everybody's creating evs qualcomm is definitely one of the stronger players in the market when it comes to auto that's no doubt. >> kristina, thank you for your insights. we've been talking about chips at large, though some areas of it have been hit less hard than others, but the sector as a whole has really been rebounding over the last month the fed remains in focus, another 75 basis point hike expected this afternoon, so what are some of the other names in tech that have made a recent comeback dom chu is with us and has a look at stocks that have rallied and fallen since the last rate hike. >> september 21st, 2022, a little over a month ago iswhen

we got that last catalyst for interest rates and what it's done for the overall market has been some at least triggering some volatility. if you take a look at the nasdaq 100 and the big etf that tracks it, the qqq, we're down roughly 3% during that time span but as you can see here, during that little move here that we've seen, it's been down, then up, then down again, but on balance, a roughly 3 to 4% loss of the nasdaq 100 overall during that last span between the last interest rate hike until today so among those stocks within technology, communication services and consumer discretionary, the ones that are most closely tied to that technology ecosystem, there have been 28 members of those three sectors, 156 stocks total, 28 members have rallied by at least 10% or more since the last fed rate hike. those names include netflix up 16%, juniper networks up 15%, and oracle up about 12.25% all since september 21st

so there's where there has been some positive momentum as for the flip side of that coin, what are the stocks among those 156 in those three sectors that have fallen by 10% or more since that last fed rate meeting, a number of factors obviously factoring into this particular trade, but still, the momentum has been decidedly downwards for names like meta platforms down 36% in that span, tesla down 27%, and advanced micro devices down 19% that's all between the 21st of september through yesterday's close. so if you're looking for, guys, where there has been that relative momentum on the upside and downside, look towards names like that. >> so hard, dom, to suss out how much of that is currency, how much of that is other factors that have to do with slowing consumer demand. how do you think about those other factors when you're looking at, you know, the action from one meeting to the next >> you have to look at all of them, but the point being right now the valuation argument has

been at play for a long time for many of these names, and with interest rates, every time there is a move higher that valuation discussion becomes first and foremost, again, how much you're willing to pay in terms of stock price for every dollar in earnings that these companies generate what there has been is decided down trends in many of these names, especially in tech, comp services and consumer discretionary. but the ones that have bounced off those may signal at least in some portion that the value walks have gotten attractive enough, right, where those down trends might be reversed as opposed to names that have been in down trends and continue to be in those ones as well. dei deirdre jon, this idea that valuations are a big concern still plays first and foremost if you have a fed that continues to be on a path of more aggress uf interest rate hikes. >> that certainly in focus today. one of the stocks that has struggled at least over the last month or so is airbnb down 8%

this morning, 40% year-to-date the company forecast fourth quarter revenue that was in lin with consensus there was a thinking that the street wanted a little bit more. this is a company that does demand a premium hotels, the online travel agencies i tend to agree with jim cramer here that the market is judging those results harshly. it was record profitability, better than ever revenue, so it was a good set of results in terms of going into the quarter. there is this big question will people go back to the cities will people go back to hotels. you could argue that airbnb is still well placed there in the pandemic and post-pandemic but what we've seen generally over the last few weeks, that sort of letdown in big tech, jon, when we saw those earnings. and this week we'll call it the week of unprofitable tech, it hasn't been so uniform i mean, you've got the likes of uber actually popping after those results, even though they're still losing money we're going to talk about zoom info and chegg, which is up huge

today. >> some of it has to do with expectations, right? they're not all starting from the same point people felt like airbnb was doing pretty great relative to others leading into this print so the reaction is based off of that chegg, boy did they take a beating last quarter there's probably some short interest playing into that, so we got to zoom out to borrow the zoom part of zoom info that we're going to talk to in just a bit, and think about the overall context here part of it with airbnb too was how transparent they're going to be on pricing, right, and some analysts questioning how that's going to impact consumer behavior >> yeah, that's a good point, that average daily rate expected to peter out as well, which may be a good sign for inflation if you want to take it that way you know, jon, we've spent so much time talking about unprofitable tech, and the rock solid balance sheets of big tech the narrative that we've kind of had is that big tech is still spending a lot while unprofitable tech has really been focused on reining in

costs. more than a billion dollar profit from airbnb, better unit economics from uber ask even good old gap profit from the likes of chegg. >> i prefer not yet profitable tech for some of these the models look pretty good. the net revenue retention looks okay with zoom info in particular, i think we're going to get another turn of the screw looking at what net revenue retention really means in a slowing economy. let's turn to some moves brendan carr saying the u.s. should ban tiktok. snap and meta getting a boost on that yesterday, although slightly lower this morning. carr joined "squawk on the street" earlier this morning. >> what i've seen so far from the reporting of the tiktok officials is they're not convinced that there's any deal that can be worked out that will still prevent beijing officials from getting access to it. at the end of the day they say these are tools that were built by beijing. >> a couple of interesting things about this, julia this isn't exactly the fcc's

area bre bre brendan carr is freelancing here i guess he's free to do that can you imagine tiktok just being banned at this point >> well, look, that's right. it's important to remember that brendan ca arrr is one of five commissioners. this is up to sifs you, which is part of the treasury they're currently in negotiations with tiktok about how to manage a potential divestiture. that is in the works, although siphous, they won't comment on it because they won't comment on things that may or may not be happening. i just want to point out why we saw the bump up in the meta and snap shares as a result of this. it's because tiktok is massive they say it's been installed 324 million times in the u.s. alone, and that tiktok is reaching 4 billion down loads worldwide so this is a massive, massive force. it is, of course, a threat to

meta and snap and others, but i think what's really important here and the reason why the stocks are not maintaining those gains is because, jon, siphous is more likely to make it challenging for tiktok to operate. i think it would be very hard to shut it down entirely. the question is whether it's forced to be divested to a u.s. high temperature based company, and maybe there are audits and things like that. >> even in china where a lot of u.s. technology like google search engine, twitter is banned, people find ways around it got the great firewall of china that people can get through. i thought it was interesting what commissioner carr said on the previous hour, he said that tiktok is feeding, training, and improving beijing's ai which it uses authoritarian ways. that's at the root of this, right julia, is that algorithm that tiktok has developed. i wonder if you think that it's still a superior algorithm than reels the technology at the heart of it. is that what makes tiktok stickier, arguably more

successful than meta's reels >> skpi just have to correct myself, deirdre, it's 342 million, that's how many down loads it's had in the u.s. so look, it's interesting because so many companies have called out tiktok as a force, as a sort of reason why their growth was hampered, but in this most recent quarter, mark zuckerberg said they're actually making progress against tiktok and their reels al fworgorithm s working and they're able to draw increasing engagement here i think that's the thing to watch. obviously tiktok has a particular special sauce meta has a different use case. a lot of companies are trying to embrace that format. it will be really interesting to see if there's anything that can hold back tiktok's growth. maybe not a full ban, but maybe some sort of auditing or regulatory oversight that would prevent them from growing as quickly as they have been. >> which politician and political party wants to take credit for banning something so popular to the youngs right now. >> a lot of angry teenagers.

>> yeah, and young voters in general, but not to say that's not still a good reason to do it julia, thank you let's get a check now on twilio, bank of america double downgrading the stock this morning, ahead of the company's investor day tomorrow. frank holland has more on that downgrade, what to expect for investor day >> twilio down almost 6% after that big down fwrad at b of a, shares were outperforming the s&p, raised some serious question about twilio's ability to compete and the $10 billion customer platform is the service market huge price target cut noting increasing competition, and a potentially recessionary environment. those players trying to get in the bid. i've spoken to salesforce and they say customers are becoming increasingly concerned about a future without cookies cookies of course are small files created when you visit a website. some are used by advertisers to track your habits and have raised some privacy concerns analysts say that's creating a

huge tailwind for customer platforms as a service that's expected to see 30% growth over the next three years as google moves towards eliminating third-party cookies by 2024. 75% of the country will live in moderate privacy regulation. it tomorrow during its investor day, twilio is expected to lay out its vision for the cpas market and the cookieless future the ceo in the past has saidth company will be b to c focused other companies expected to benefit from what one analyst called a data gold rush. jon, back over to you. thank you. ceos of zoom info and chegg speaking on security and privacy coming up, "tech check" just getting started.

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paramount shares are moving lower this morning julia's back with us and has more on the quarter. >> paramount shares plummeting more than 11% on lower revenue and earnings than expected as the company suffers from cord cutting and also declining ad revenue. ad revenue at paramount's tv networks declined 3% for a 5%

decline in revenue in that tv media segment. the company warning they do expect that macro weakness in the ad market to continue into the fourth quarter there was a bright spot, though, direct to consumer streaming subscribers grew faster than expected and paramount's ceo bob backish said they expect healthy fourth quarter subscriber growth and to exceed their full year forecast of 75 million global streaming subscribers. backish saying of paramount plus which added 4.6 million subs for a total of 46 million, that they are confident they can raise prices and do so in a way that minimizes churn. he also said of some new ad supported rivals such as netflix that those streamers validate the strategy of pluto, which became the first ad supported platform to reach 1% of all tv viewership in the u.s. jpmorgan with a neutral rating on the stock saying they believe management has put an appropriate strategy in place for a difficult time in legacy

media, but stock is down dramaticallytoday, jon. >> well, you talk about down dramatically, jeulia, thanks. let's get into one of the biggest earnings movers, zoominfo down, posting a miss on billings, cutting free cash flow guidance for the year. joining us now for a closer look in a cnbc exclusive, zoominfo ceo henry schuck good to have you so the late quarter increase in deal scrutiny interesting here it was more europe and larger deals a quarter ago, but now it's expanded. give some more color on exactly how quickly that happened and how pervasive you think that's going to be for how long fl yeah, thanks again for having me, jon. i appreciate it. look, like you said, we had a great quarter. we beat on the top line. we beat on the bottom line most tech companies don't have a bottom line to beat on we're running this business

profitably we grew the top line 46% we grew -- we had 41% operating margins, you and deirdre were talking about big tech companies having profitability and other tech companies, the smaller ones having a path to it. we're already there, so we're driving great unit economics if our business now, what we saw in the quarter and what you've heard from software companies for the last four months is this idea of sale cycle elongation and i think what they're not explaining or what hasn't been explaining is what does that actually mean in the business when a sales cycle elongates what it actually means is that your reps, your front line account manager, your front line account executive, they're spending more time for the same outcome. more calls, more emails, more video demonstrations more executive review with a cfo or a global cfo. and so all of that makes your capacity be constrained, and so what we saw with our account management team on the customer

side is that their capacity got constrained because of the sales cycle elongation, and what that caused was us not being able to upsell and cross sell at the same rates as we have historically that's how this sales cycle elongation is going to manifest in companies is it's going to eat away at capacity. >> well, this also brings me to kind of revisiting the idea of net revenue retention because i think i and probably investors in general have been sort of looking at this as a gauge of loyalty and how healthy a core product is, but it seems like as we pay more attention to this in software probably for the first time during a real slowdown, when head count isn't growing so fast at these customers, when you get those capacity issues that you talked about and when data expansion isn't happening as much. they don't have as much data flowing into the system, even if they're still liking and using the product, the net revenue

retention number is going to go down, isn't it >> there's two ways to think about net revenue retention, or net revenue retention is made up of two things. gross revenue return in our business we see our gross revenue retention staying stable compared to last year. now, what the other part of net revenue retention is upsell and cross sell within your existing account base, and so your ability to keep your customers, that's one thing, and that's a great sign of loyalty, and we've seen really good numbers there your ability to upsell and cross sell if sales cycles get elongated all of a sudden you're capacity restrained there, and that's what's going to hurt your net revenue retention over time. >> one more piece of that, if customers had been using more seats over time, just in the same product, they were spending more, getting the same thing, but if they don't need as many seats either because they're not hiring or because they're actually cutting, doesn't that

affect net revenue retention >> yeah, absolutely. net revenue retention, a a part of net revenue retention can be expansion of seats it can be expansion of functionality. it can be expansion of data credits for us, for example. for us, we're not penetrated across nearly any of our customers' wall to wall, so we don't rely on the next user, the next hire to add a new user. in most of our companies we might be penetrated across 10, 15, 20% of the user base that we can attract, so our job then is to go find the additional users who are already there to get our software in front of to drive efficiencies in their go to market motions and so if you are wall to wall already, yes, then if you're not hiring or you're cutting, that becomes a headwind we see tremendous opportunity within our accounts to continue to expand. we're not reliant on that next hire for that expansion. >> right, henry, but you are

relying on cross selling or upselling, right did you just say you haven't been able to do that like you have historically in this environment? >> in this environment mainly because of that sales cycle -- >> just on hadthat point, thoug understand that may be harder in that environment that feels concerning because maybe others can't have an easier time doing that they can bundle and have more pricing power in this environment like bigger tech companies that can't offer that bundle does that put you at a disadvantage here? >> yeah, it's actually a great question over the last two years, what we've built at zoominfo is an end to end go to market platform we started with data and intelligence, and from there we built in sales automation, conversation intelligence. we built in intent data and b to b chat so our customers today have an end to end platform story that they can get behind, so we saw big consolidation opportunities within our customer base. we consolidated companies off

multiple point solutions including rider systems, usi where they took multiple point solutions in their go to market tech stocks and they consolidated onto zoominfo that consolidation opportunity we're hearing from the market, they're saying look, we don't want a whole bunch of vendors anymore. we have a few strategic vendors in our go to market tech stock that puts us in a great position to come in and give them an opportunity to consolidate multiple point solutions onto zoominfo that's been a talk track and a strategy that's been landing for our customers. >> we appreciate the added insight on the quarter and on the industry as, hey, in this macro environment the fed continues to pump the brakes, henry schuck from zoominfo >> great, thank you for having me after the break, we'll look ahead at how to play qualcomm results. take another look at amd, tech check is back in just a moment

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welcome back to "tech check," here's your cnbc update. ford says u.s. vehicle sales fell 10% in october compared to a year ago u.s. automakers have seen uneven sales trends as they deal with supply chain issues that have resulted in volatile inventory levels sales through october are just about the same as they were for the same period a year ago the u.s. economy added 239 thousand private sector jobs in october according to the monthly report from adp. that was more than expected and as part of a reason that stocks are a bit under pressure today investors fear that stronger than expected economic news will just prompt the fed to continue raising rates for longer wheat prices are falling more than 6% today that comes after russia said it

would resume its parnticipation in a deal to export grain from ukraine. it had pulled out of that deal over the weekend saying the war between russia and ukraine endangered the safety of civilian ships crossing the black sea. and shares of cheesecake factory are getting sliced and diced today after the restaurant chain reported an unexpected quarterly loss it's not that customers aren't coming in. it's that bills for electricity and building maintenance have soared all of those costs keep rising, jon. back to you. >> yeah, yeah, bertha, thanks. boeing shares popping in the last few minutes, we get to phil lebeau for a market flash. >> john, we are getting guidance from boeing for the first time since 2019 the company holding an analyst day. a couple of big headlines, dave calhoun, ceo of the company says the target for free cash flow on an annual basis, 10 billion by 2025, 2026 that gets them back to pre-max

crash levels in terms of free cash flow. in terms of the max, they will be increasing production next year it's about 375 being delivered this year. they expect to deliver 400 to 450 next year, and then in '25 and '26 they expect deliveries to essentially double are from where they are right now to 800 a year call is still going on they're still talking with analysts we'll have more a little bit later on >> phil lebeau, thank you. those shares up 4.5% let's turn to chips, big week ahead for earnings in the space. qualcomm today after the bell, and of course amd and nxpi moving higher on their latest results. there's a new note out today from piper sandler cutting its price target let's bring in piper sandler's harsh kumar. where are we broadly in terms of valuations in the chip space have all the headwinds been baked in >> we are what i would describe as going through the bottoming

process. so we've had about a quarter worth of issues with most of our companies that are particularly related to consumer. pcs and hand sets and now we're seeing some of that weakness spread to things like iot and even industrial iot. the two areas that seem to be hanging on really well appear to be data center and cloud, and then of course automotive. so we're at a point where, you know, a lot of the chip end markets are going to some digestion of sort, but a couple of end markets are still hanging on that's -- i would say we're into it, and we are looking to come out of this sort of correction for most of the industries and markets in about a quarter or two. >> we'll dive into the specific cate categories, but i want to talk about spending as well when we have the chip shortage, we saw those spending plans put into place really ramp up over the last few months we've seen some of those capex plans come back a little bit. where is that in terms of the bottoming progress do you think there's more cuts to come? >> i do believe there are more cuts to come

there's still a little bit of excess inventory in hand sets. there is still inventory in the pc segment, and you know, the big question mark of course with the rise in interest rates is whether auto wis will hang on o correct. autos seem to be the last strength along with data center. with companies seeing what they're seeing, with companies seeing a weak consumer, i think it's very prudent that they are bringing in some of this, some of the capex spend, particularly you've seen that from companies like -- that are involved in industrial, that are involved in mobile, that are involved in pc space. >> harsh, so what about qualcomm coming up this afternoon and evening, i mean, i guess part of the question is are smartphones going to surprise to the downside more thanautos and industrial iot surprises to the upside when i was talking to the ceo at their auto investor day just a few weeks ago, he was saying, boy, these companies are moving

toward a electric vehicles despite what's happening in the broader economy. so does that mean their growth is likely to be stable >> so qualcomm is an interesting one, and what's interesting about qualcomm is it's such a massive player in the hand set space. when you break down the revenues, for example, for qualcomm, you get somewhere in the neighborhood of 40 to 50% of revenues that are associated, even more than that, that are associated with the hand set so it's like -- in fa funny way it's like turning a ship around. it takes a long time they're having great sesuccess iot, tremendous success in automotive those businesses are tiny compared to how much of a player they are in the hand sets. we do believe that in the next four to five years they'll be a very strong player in non-hand set related things, but it's just requesting to take tame

gu given the exposure to hand sets. >> we started the show on that note as well it's going to take time. thanks so much for being with us, harsh kumar of piper sandler. >> after the break, chegg surging on results, ceo dan rosensweig is with us with that stock still up more than 24% don't go away. at humana we believe your healthcare should evolve with 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 office visits but you'll have to pay a deductible for each. a medicare supplement plan can cover your deductibles and coinsurance but you may pay higher premiums and still not get prescription drug coverage. but with an all-in-one humana medicare advantage plan you could get all that coverage plus part d prescription drug benefits. with no copays or deductibles on tier 1 prescriptions. you

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the white house holding a two-day 36-country international counterransomware seminar. eamon javers joins us with the highlights. >> they just wrapped up the summit here last night i spoke to ann newburgher this morning, the top cyber security official here at the biden white house. she said one of the pieces of intelligence that the white house shared with those 36 nations is relationships they're seeing between the price of cryptocurrency and ransomware attacks over the past several years. take lan to what she said. >> as the price of bitcoin rose, the number of ransomware attacks rose as well it makes sense, for financially driven criminals, the more money they can make in an operation, the more attracted they are by it >> reporter: that's what happened on the rise up in cryptocurrency a little bit about the rise -- the decline down in cryptocurrency in one second she also said, though, that one of the things that they're leaning on now is the insurance sector, which often is responsible for the payouts of a lot of these ransomware bribes that are paid to the ransomware

actors she says the insurance sector here can play a key role in sort of draining the swamp overall in ransomware >> any payment of ransom increases the growth of ransomware attacks we greatly discourage any payment of ransoms insurance companies can play a very helpful role incentivizing the kind of resilience practices that companies can do to make themselves far less vulnerable to attacks patching systems quickly, segments off sensitive parts of their network. protecting data by encrypting it on their own network so if it's stolen an attacker can't use it to blackmail the company. >> reporter: on that question of cryptocurrency, w what happens n the backdecline. i pressed neuberger on that, she wouldn't say they're seeing that necessarily. she did say they're hopeful as cryptocurrency prices decline, one of the effects might be that ransomware bad actors find something else to go and do,

guys. >> eamon javers, thanks so much for bringing that to us. let's get a quick check on the nasdaq, down about 1% near session lows, 10786. also want to mention later today, you don't want to miss a special edition of cnbc pro talks. dan niles, a frequent "tech check" guest, that's 10:00 a.m. here on the west coast this is for cnbcpro subscriber only you can sign up for that be sure to at cnbc.com/pro we'll be right back. thanks to avalara we can calculate sales tax on almost anything, anywhere, automatically. avalarahhhhh. what if tax rates change? ahhhhhh. filing sales tax returns? ahhhhhh. managing exemption certificates? ahhhhhh. business license guidance? ahhhhhh. does it connect with accounting? ahhhhhh. item classification? ahhhhhh. cross-border sales? ahhhhhh. what about? ahhhhhh. ahhhhhh. do you have those budget markups? thank you. mmhm.

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welcome back chegg is sue ma cum laude after beating on the top and bottom lines for the third quarter, this comes after an ftc consent agreement earlier this week over the ed tech company's security practices. joining us now chegg ceo dan rose rosensweig welcome, good morning. in a way this mirrors six months ago when the stock went on a bender, was down about a third after earnings, but this in the opposite direction, what are the core trends when it comes to your price increases, and also when it comes to students being excited about being back at school that's fueling this

>> yeah, hey, jon. thanks for having me so what we saws after return to normalcy in terms of the incoming freshman class and a return of the previous year's freshman class eventually we will see it, the million and a half students that left during covid and took jobs that haven't come back in any meaningful way when they do, that will also boost our business what we're seeing is trends where students are going to bigger state schools they're going to historically black colleges and universities. they're going to online schools. they're looking for more flexibility and they're taking fewer classes while they're in school, and they're taking classes more like 12 months a year rather than over the nine-month period. all of these things are good trends for chegg, but we're seeing a little bit of return to normalcy pre-pandemic. >> so what does this mean for how you position and i guess continually reposition chegg for the future of particularly higher ed? does this mean that mobile

becomes more important because students aren't necessarily sitting down at a desk in school in that mode as they muight have been in the past does it change how you look at academic resources and access to them >> actually, it's a a phenomenal question it changes the user experience and we're seeing an increase in the u.s. of app down loads for exactly that reason. but what it really changes is the recognition that students have had very little academic support in their life and that's what we do the best, but now we're adding nonacademic support. we're adding things like calm and stress relief, and we're going to be adding skills to prepare you not only for your first job but make you employable as a result of it what students are depending on more on from chegg is bring more value academic, nonacademic

skills we're beginning to see some of those things results in our profitability. we actually think the future is a lot brighter than the past, and we're excited about if >> i know last night on the call you talked about the textbook business how less reliance on that has brought down your marketing cost how much are you investing in cyber security now, and what can you tell current or potential students about the safety of their data if they are working with chegg >> the first thing i can tell them is i don't really understand what "the new york times" article was these are data breaches from two years ago and four years ago we had two external ones and two smaller ones internal. we have met in our meeting all of the cyber security issues so this is something where the government makes the announcement, the times got it a lot of it wrong and had to retract it for example, we don't store any of your credit card data

we collect a lot less data the data we collect, though, is all about personalization. it's all about your classes. it's all about what your curriculum is. it's all about what your needs are. it's not the kind of personal data other sites collect that we no longer do so their data is safe. these were as i said issues that were between two and four years ago so we've been in very good shape, have invested heavily, will invest heavily. >> help me understand what you take issue with in "the new york times" article because the ftc has filed a complaint, correct are you working with them? >> we have worked with them. we're meeting the agreement. for us this is a -- this is something that happened many years ago and they chose to publish it now, but the agreement we reached was to do things mostly which we've already done so we're in compliance and will be in compliance, so for us, you know, this was a nonissue

because it was an issue when it happened and if you remember we announced it we announced it early. we were one of the first to come out and announce these things ahead of time. we didn't hold it back we're very big on transparency and communication and privacy. we were ahead on these things. it's unfortunate that it happened but this was multiple years ago. >> we would point people to the ftc's site where you can read the decision and agreement if you want to do that. dan, finally, when it comes to who the customer is, you've been very consumer-focused up to this point. i just got back last week joined the trustees, and so many institutions are considering, do you continue to focus solely on the end user or is there space for institutions to adopt some of what chegg is offering as they seek to transform >> yeah, no, great question.

the former president is now the president at colgate where my daughters went and he's done a phenomenal job we've been advocating over ten years the school's technology to expand the curriculum, lower the price, personalize, make sure students are able to get the support they need 24/7 as opposed to try to do things office hours the overwhelming majority of students are older the average age is 25. we're talking about women with children that are in the workforce. so the way we love to work with schools is obviously we work with them on areas of making sure we protect integrity of education and that -- second we're building all of these skills we're working to go directly to corporations but those can go directly to students and to institutions as

well at the end of the day 80% plus of all students go to college for the sole purpose of becoming more employable. so wherever we can work with schools to increase student's ability to master the material, continue on in their education and expand the curriculum towards skills, we very much look forward to doing so and we think it's in the best interest of schools to do it because that's the reason that students go to school. we're see a proliferation of students now going to large state schools where there's less support, hbcus where they're just building the support now and online universities. you mentioned mobile earlier at the end of the day our life these to be 24/7, really powerful and excellent quality in terms of learning >> i see your shout out to brian. i raise you a shot out to the

new president. >> nasdaq off session lows but keep an eye on airbnb crossing into double digit loss now -- come back a little bit it was down as much as 10% more on that in the earnings results we'll see tonit ghand this week. that's next. stay with us with kal penn and older kal penn. - oh, the stock market is doing that fun thing again. - hey news from the future, you're going to live through that about 10 more times. (laughs) - oh, it's no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - ooh. i think some of my gray hairs just reversed. - yeah. you're welcome. - [narrator] become an investor today. yieldstreet: private market investing. 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

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is it time to sell square? block is the parent company of course evercore thinks so, citing increased seller competition, rising interest rates and cautious credit dispersement from its after pay acquisition you can read more on this call and other analyst calls on cnbc pro. and john, if you sign-up right now you can also watch my talk with dan niles in less than an hour >> one more thing amazon's value dipping below $1 trillion. amazon's market cap hasn't been below the 1 trillion there is mark since april 2020. the stock now down more than 40%

since january, on pace for its worst year since 2008. i would note it hasn't spent that much time above the trillion dollar mark historically, but it was above >> still this mean reversion we're getting, john, it brings it back to april 2020 so almost the very beginning of the pandemic given how much it's built and how much it's hired since then >> that'll do it for tech check. let's get to the half and scott wapner at the impact conference. >> thank you very much and welcome everybody to the half time report live from denver today at the schwab impact event. more than 4,500 investment advisers are meeting today front and center for all of you and us, the fed. we discuss and debate that with the investment committee, of course and joining me for the hou