s&p 500 is 5% to 6% above the recent highs -- lows we saw. david, back to you >> thank you, bob. yeah, not far from them, as you say. though again for today's session at least, off those lows as well make sure to join us tomorrow on "squawk on the street. we'll have richmond fed president tom barkin with us that does it for us. "tech check" starts now. >> good thursday morning welcome to "tech check." i'm carl, with jon fortt and deirdre bosa today, the fed raising rates for a sixth time and no signsthey're stopping any time soon. what that means for the mega caps later on this hour. plus, more on the consumer as names from qualcomm to peloton slump on disappearing demand, and a look at the key tech names poised to benefit or take a hit as rates go higher along with some of today's big movers there are plenty of them >> plenty. we'll kick it off with a look at big tech the faang plus index losing all of its gains since july on the

heels of the fed's fourth 75 basis point hike in a row. amazon down 11% this week, as we talked about losing the $1 trillion status. apple, microsoft, also down big this week. while many expect more big rate hikes to come, tech naks are taking the hits. they're tightening their belts there's been almost 10,000 job cuts in the sector for october alone. a slew of names continuing to cut guidance as they report. qualcomm, roku, just to name a few. only in the last 24 hours speaking of layoffs, it was strike this morning. still a private company. really known as a darling here in silicon valley, and a note to staff, the ceo pointed to big tech earnings last week as evidence of all these macro factors that they're feeling in the private markets, that their public counterparts are feeling, and sectors we thought were safe like cloud, cybersecurity, how resilient are they really? the etf, the cybersecurity etf, it's down nearly 8% this week.

i can't stop thinking about this idea cramer brought up that we may no longer be in the early inningsof cloud. >> i think we're still in the early innings of the digital transformation that's affecting enterprise software. i have been saying it for a while, cloud is a useless term at this point. is it platform as a service, is it software as a service, is it infrastructure as a service? now we have dev ops to think about. we have got enterprise services. that sort of flavor that stretches across small business. we have got payments tech technologies that are really fintech that are for specific areas. all that's getting lumped into cloud and all of it is very different. and that's going to be important tonight, by the way, we have lassian reporting as well as godaddy and bill.com all of those gets lumped into cloud, but all of them are different. overall, we have seen some upside surprises relatively

speaking thus far in earnings. i think from the likes of ebay, even from the likes of robinhood is up 10% this morning that doesn't mean that stock is so great overall, it's just a reflection of what expectations were so in the show today, carl, i think we're going to comb through and try to give viewers some sense of what's happening in different areas and what's to come with a lot more reports tonight. >> we talked with cramer this morning about the narrow universe of companies that did well during the pandemic and then have managed to adjust to do well post pandemic. he pointed to etsy as a key example. we're watching wayfair as well but that depends depends on your vertical, your space, clearly chips are having a different story this morning, dee and jon. >> for sure. speaking of qualcomm, down this morning. off the lows but still down about 6.5% after missing on first quarter guidance on the call, ceo said the company has implemented a hiring

freeze, will cut op-x as needed as interest rates rise and consumers slow down. he warned device maker inventories are going to take a while to pare down >> based on our current assessment, we estimate there are roughly eight to ten weeks of elevated inventory in the channel. while the environment is very dynamic, based on the information we have today, we believe this may take a couple of quarters to work itself through with more than half of the inventory drawdown completed in the first fiscal quarter. >> that's not his voice. that's the cfo, but they agree with each other here i would point out that part of what's happening here with this inventory overhang, this isn't done yet necessarily we have to see how this plays out through q4, because what could happen is if these device makers don't sell as many devices as they expect in q4, and they have got overhang of finished devices, it's going to take them that much longer to then build and work through the

inventory of snapdragon chips, other chips they have, and so this estimate of being able to work through a portion of that in calendar q1 may or may not materialize based on that. that's going to have ripple effects throughout tech. >> you know, when we were in the chip shortage, not all that long ago, i remember you in particular, jon, were asking some of our guests, does that lead to a glut later on, which is where we are now. we talk about inventories. you see all these spinding come down qualcomm saying they're planning spending cuts for further products, could be further cuts. you're seeing the likes of that from many other chip companies planning on manufacturing as well it begs the question, such a cyclical business, do we get back in the same situation down the road because many of that spending is planned to take effect, give us chips year in the future where do we end up here? it's an interesting time for the chip makers, but i don't think anyone thinks we're at a bottom

quite yet. >> we'll see turning back to the broader market the nasdaq down almost 6% on the week after yesterday's rate hike and no signs of that pause or pivot that some of the bulls had hoped for. showed how investors navigate the new normal for tech is the question joining us is wells fargo global investment internet banking chair, bob, thanks for coming in we have been talking about right sizing and cost management and expense reduction. the stripe example is a good one as dee pointed out because they talk about sparser start-up funding. we think 2022 represents the beginning of a different economic climate >> yeah. >> you think that's true >> yeah, i think it's interesting. taking a look at yesterday and the reaction to interest rates the faang group traded off 4% or 5% with tech, moreerates go up, the more impact to your valuation. you have seen that with the nasdaq being down 33%, while the

s&p is down low 20s, give or take each one of these larger tech companies has their own thing they're addressing it's not just a broader picture taking place facebook's case, it's spending on virtual reality and google's case, it was youtube being down for the first time ever. cloud, microsoft talked about pc sales. you're seeing an impact across the large tech companies maybe from recession, the general economy, anticipation of a recession or a broader pullback in the markets, but all these large companies are impacted for very different reasons. >> in addition to the macro. specific stories and universal stories. >> exactly, yeah >> on m, and a, your general view is next year is going to be better than this year, and that's not saying much, but there will be a ready population to consider investing in m&a situations because alpha has been so lean >> yeah, it's really interesting. a lot going on in m&a.

we are coming off a record year. $6 trillion of global m&a. still making it the fourth or fifth of m&a of all time that's interesting very front end loaded. you had broad com, microsoft and act avision, but a very interesting year what's interesting is the valuation parameters that boards and executive teams are talking about. helman and freeman bought zendex, but you're still seeing a reassessment of what is a true valuation multiple now and maybe not pinning or going back to the october and november time from last year, where things are at all-time highs we're seeing our clients, our c-suites, executive teams thinking maybe we weren't worth 30 times revenues, maybe only 20, or pick your numbers, but much more engagement and much more embracing the new reality and what that means. >> bob, i want to get your take

on a conversation we had at the start of the show. we're talking about where we are in cloud cramer brought up this idea that we may not be in the early innings anymore, at least when it comes from going on-prem to cloud. what does that mean for the markets, especially some of these massive hyperscalers that drive so much action >> on-cloud, there's still a massive opportunity there. near term, as companies seek to reel in costs, and maybe push out further expenditures into later next year or when the economy is better, i think you could see some near term pressure i think that's what we heard, quite honestly, from microsoft, from google, as they try to gauj what the near term trends would be, but there's a long tamp for these companies to benefit from. >> who's better positioned in a potentially slower economic environment? is it the hyperscalers or the reits, the data center reits that have more fixed contracts >> yeah, i think they'll both do

well the hyperscalers is where i think there's a lot of opportunity. they have that robust growth, and as consumption, as usage and utilization increases, their models will benefit from that. the one broader thing as you take a step pack from tech is that overall, skip looking at this quarter or next quarter, but longer term, the growth in tech and the growth of consumption, the growth in utilization and usage is going to be tremendous for all these companies to benefit from, specifically the clients of these companies as well. >> bob, staying on that for a moment i wonder what you think. my take is that the term cloud is increasingly just cumbersome and kind of useless. we used to have software as a service, infrastructure as a service, platform as a service we talked about. and sure, when it comes to infrastructure, a lot of people are using that but now, it seems to me industrials have to think more deeply about dev ops about platforms for cybersecurity, about software for smb that gives them the kind of capabilities that enterprises

traditionally have had when it comes to back office and when it comes to things like fintech and payments there's still a lot to go in those kinds of deeper categories >> couldn't agree with you more. i think you're spot on there i think you're going to see some of those subsectors of quote/unquote cloud have a much longer runway or larger tamp that has yet to be tapped into you're going to have these subsectors of cloud and it should be a long runway there. >> bob, appreciate that. a lot to get to and next year is going to get interesting >> thanks again for having me. >> and after the break, what to do with roku, as shares plunge there. plus, the ceo of data player is ahead in the opposite direction, and cloud revenues have popped triple digits year over year "tech check" is just getting started.

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roku on the rocks this morning as shares plunge on weak results amid downgrades as well. julia boorstin has more on the gut checks today >> roku shares are down more than 8% on guidance that fell far short of expectations. the company forecasting a revenue decline of about 8% in the fourth quarter instead of the 3% revenue growth that analysts were projecting for q4. while the company has projected loss for the last quarter of the year is more than three times what analysts had anticipated. roku warning they expect the macro environment to further pressure consumer discretionary spend and to degrade ad budgets. roku shares are down about 80% year to date and we have seen a number of analysts downgrades this morning guggenheim downgraded to neutral writing, we lack visibility into key business drivers including advertising trends, types of rev nu new, and long term profitability

objectives moffettnathanson with an underperform noting all players in the market have posted disappointing third quarter results or weak fourth quarter guidance roku and snap's disappointing results show that smaller platforms without a true up front mechanism to presale ads, those are the ones that are easiest for marketers to cut and the first to get cut >> roku was obviously very pessimistic, but there are a few in the space that are more optimistic like netflix that launches its ad-supported version today, saying it's seeing strong interest from advertisers, and fox's tubi growing at a pretty good clip. is roku highlighting what is to come, a better view of what's coming down the pipe or is it unique to roku >> look, i think fox is really the outlier here it's interesting you mentioned fox. it has been bolstered by political advertising so they're

the one who has given the most robust view of the ad market i think roku plays into this whole idea that the ones that have -- that are most experimental, maybe have the youngest ad business, those are the ones that are going to get cut first. i think it's going to be really interesting to see what the adoption is of the ad supported platforms for netflix as well as disney we'll talk about that more later this hour to give a tease there, but i think it's about the health of the ad platform as it exists, how much these platforms can show measurable return on investment, because that's what brands want right now, and understanding that if it's real easy to turn on advertising on a platform, it's also really easy to flip the switch and turn that off. that is what we have seen with roku and snap. >> yeah, julia, thanks we'll see you in just a bit. >> meanwhile, other side of the coin, a name very much in the green. confluent jumping this morning up more than 12% after beating on the top and bottom lines. the streaming data platform also forecasting beats on guidance for next quarter, the full

fiscal year, as cloud revenues came in, well, more than twice where they were a year ago joining us now, confluent's cofounder and ceo, jay crepes. jay, first want to get some sense of what went so right here, even though you have got increasing deal scrutiny customers at a million dollars are more -- are up more than 50%. what's the trade-off you see in kind of more spend with some customers but also more hesitation overall >> yeah, i mean, no question it's a difficult environment to operate in and we felt the same as everybody else this is definitely a time where the value of what the product actually does for the customer, do they need it, are they getting the full value, that ends up shining through. so everybody is getting more inspection i think we're lucky that we tend to be attached to these mission critical use cases that are the things that are going to go

through. they're going to be the last to get cut. that helps in the retention of customers. that helps in the expansion. that helps in insuring this goes in as the net new thing. for customers, i think that is a little bit about our space and the evolution of data streaming where it came out of the lab but has moved into the mainstroom in what customers are doing >> something that raised my eyebrow this earning cycle is the impact of this overall economic slowdown on net revenue retention, which is a number that a lot of us are looking more at. particularly in zoom info's results. itjumped out at me that as consumption decreases overall, and as companies either hire more slowly or even reduce their workforces, you get seat growth slowing down or shrinking and lower usage overall the same product, and that can affect net revenue reretention, even if th

like your product just as much and even as they're adding incrementally new features >> there is a dynamic of that. we have a consumption model for our product. investors say these models are great in boom times, what do they look like in tough times? does everything pull back and use less the answer is it depends if you have sold a lot of stuff that isn't really creating value, you are going to see some trimming and optimization and cutback, maybe large, maybe small. but that's not inherent to the model. if anything, i think a consumption model is an asset in these times. you don't want to be incurring a lot of risk on the customer's side when they're thinking about the next new thing, the next expansion. this is a way to take risk off the table and say look, we'll take a portion of the value we create, but we're going to do that together. i think it ends up being a huge asset if it's done well. >> you're seeing demand remain strong however, it looks like costs are

rising too you missed on operating income and your free cash flow down 120% year over year. what do you attribute that to? >> we did have a dynamic with free cash flow where we had a different schedule of payouts of our bonuses so that is kind of a one-time impact, but it really is a pull forward of spend so on the whole, we were super pleased with the progress on efficiency this has been a big focus for us, as you can imagine we have shown 14 points of improvement year over year in nongap operating margins and that comes out of a lot of hard work in driving optimizizaationn our cloud platform that drives our progress, which is something we talked about quite a bit with our investor base >> jay, spent more time there with us, because today we have the news of stripe cutting 14% of its workforce, and yes, it's a private company, but it's the size of a young public company

like confluent certainly gets a lot of attention. how are you approaching hiring right now? qualcomm is another one, just a few weeks ago, christiano amaund was talking about continuing to hire now they have a hiring freeze in place. even though your top line continues to do well, your business overall feels healthy, are you still hiring are you still spending at the same pace as you see revenues going? >> yeah, we are still hiring but we have made a set of optimizations. what you say is exactly right. you look across tech there's layoffs, there's hiring freezes, big pullback. people are dropping areas. what we have done is try to be smart. we are in high growth, we slow ourselves down, but we want to be smart about where we're making investments we made significant shifts in where is head count going? what are the highest roi segments for us, the must-do

projects we have been smart about how we deploy that. i think that's what's led to the year over year improvement for us that's obviously an ongoing process. it's nothing new but i think it's made extra important in this environment. and the plus side is, if you have areas where you're growing, there's amazing people on the market it used to be in tech, the reality was there was 17 jobs for each available candidate, and everyone could put in their bid. that has changed so now, we're able to really hire amazing talent that's out there, and there really isn't as much as big tech has slowed down a lot of start-ups are in freeze mode like the late stage funding market is settling out in a sense, it's actually a great time to be growing if you're doing it in a smart way >> all right well, investors recognizing those results today, jay, with confluent stock up more than 13%. jay kreps, thank you >> still to come, a long road ahead when it comes to interest rates. don't miss the key names poised

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. welcome back to "tech check. i'm carl, with deirdre, jon, and julia. we have shaved some opening losses, dow now down fewer than 100 points as the ten-year yield has come back to just under 4.14 julia has more on netflix as the company finally sees the debut of the ad-tier service in a dozen countries. let's get an update with bertha

coombs >> zoetis shares cratering 15% the pet health company posted weak quarterly results it lowered guidance cited supply chain issues 4x headwinds and shortage of veterinary workers under armour shares are popping 15%. profits and sales topped estimates. they also gave strong full year guidance despite expectations of more discounting to clear inventory. tune in to "closing bell" at 3:00 p.m. eastern for an interview with under armour's interim ceo, and also founder, kevin plank. >> and carmaker stulants is urging owners of more than a quarter million older vehicles to stop driving them after toccata airbags exploeted, killing three more people. cars include certain dodge and chrysler models from 2005 through 2010 all had been recalled back in

2015 fatalities bring the death toll from exploding airbags to at least 32 worldwide best to get that checked jon. >> yes, bertha, thanks >> fed chair powell signaling no pivot or rate cut is coming anytime soon, even after the fed's fourth 75 basis point hike yesterday. so are there key tech names at risk here? domchu takes a look. >> we're looking at a key metric valuations in the market have become even a bigger focal point. higher rates mean lower market multiples and lower stock prices for the nasdaq 100 index and the etf, it tracks a roughly 35% decline since the highs in november of last year. during that span, the amount of price you pay today for a dollar of next year's expected earnings was 30 at the highs we saw, and now it's trading at closer to about 20 times that forward

price to earnings ratio. that's something to keep an eye on for context for the biggest stocks in the market, we have seen valuations come down. apple's ratio is closer to around 22. it was 31 at the highs of the year microsoft is currently at around 22 times forward earnings as well, down from 35 at the highs. alphabet is the relative discount play here, it's around 16 times forward earnings. it was 26. amazon is at 58 times forward earnings it was, again, 96 at the highs, and tesla is 39 times, down from just around 157 at the highs of the year to give you an idea of the context, remember, the nasdaq 100 trades at roughly 20 times forward earnings now, we took a look at some of the other forward pe stocks for the nasdaq 100 among some of the highest is murcotta libre, also crowdstrike

which is about 85 times forward earnings and zscholar which trades at roughly 107 times forward earnings all that can shift around as analysts change their views. if you're curious, guys. about what some of the other higher valuation nasdaq 100 stocks are, just head over to my twitter feed i have posted the highest 25 valuations in the nasdaq 100 over there just to give you an idea of context, you can check out that particular piece of data back over to you >> i'm glad you bring up the cybersecurity names. we mentioned at the beginning of the show, those are some of the hardest hit in the market and you tell us why. the forward pe multiples still relatively high. thank you. one silver lining of higher rates, higher yields for fintechs like sofrbs i and robinhood. kate rooney joins us with that story. they have been some of the highest valued, unprofitable, but higher rates actually helped their core business, the money

they hold. >> there are two sides rates are hitting valuations at the same tie we saw rates help robinhood. they were a meaningful boost to robinhood's results and are set to play a bigger bowl as the core trading business slows down net interest income jumped 73% from the prior quarter executives called out rate hikes as a driver of the revenue beat. it made up more than a third of income and was one factor that helped shrink some of the losses add robinhood. the company was profitable on an adjusted ebitda base it has about $17 billion in interest bearing assets on the platform it may be in a better position than some of its fintech peers it earned interest on cash accounts, about $3 billion, but it's getting the bulk of the yield from securities lepding and also is raising the thetrust rates on the sweep accounts to 3.75%. these higher rates are becoming a way for fintechs to compete

for customers. we heard that from sofi this week it saw a similar rate related boost and a jump in customer accounts, thanks to the higher rates. executives are welcoming the help from higher rates as it helps offset some of the trading slowdown, but of course, on the flipside, as i mentioned, the rates have hit rates for a lot of the money losing stocks like robinhood, a bit of a catch-22 the big theme for fintechs, all about cost discipline and reining in spending. robinhood stock did get a boost after it lowered its outlook for operating expenses and stock based compensation >> the irony of this is not lost on me. these companies, these disruptive fintechs are being rewarded not for being disruptive but for essentially holding cash, being valued kind of like a bank or what they would do so break that down for us. i know you mentioned that interview at the beginning of the week, he said he was pulling in a lot of big bank customers

it's interesting they're not doing anything, the big banks, i guess they don't have to because traditionally it's been sticky do you think that's shifting, though, in thisvi environment >> it's not clear how much of a threat the fintechs are to big banks. a lot of them will raise the interest rate knows they're going to lose money but it will attract customers. the other side is is that a sticky customer? the customer willing to leave their traditional bank for a higher interest rate, is that a person who's going to get a home loan or refinance their student loan on your platform? the question is are these sticky accounts on the sofi side, they get better economics because technically, they are bank a lot of these fintechs don't have access to the same rate boost as a sofi. robinhood has a securities lending side they're not going to be in as great of a position to benefit

from the rate hike >> how do you value them, as traditional finance or technology companies they're all trying to cut costs. we talk about the big tech giants freezing or slowing hi hiring they're actually cutting jobs. robinhood, stripe this morning how does that help the balance sheets >> robinhood was 23% layoffs you had stripe this morning. the big thing is stock based compensation there's a lot of dilution in the startups that pent public that gave aquity to early employees. that's a big operating expense line item. while it's tough for employees near term and say what you mean about what it means for the economy, in terms of the stocks, wall street likes to see this displace and see the layoffs happening, especially in the public names >> kate rooney, thanks for breaking it down for us. jon. >> yeah, and turning to some

more earnings still ahead, we're going to get a read today on how small and medium business technology demand is holding up and on an important enterprise upstart when we get results from names like bill.com, godaddy, atlassian, and paypal. while higher rates have caused havoc for some consumer names, etsy and ebay jumping this morning on the back of relatively strong results from both names i would point out, etsy still off 55% year to date ebay off just 40% year to date but carl, godaddy and bill, you don't always talk about bill.com when you talk about fintech, but it's a fintech company, not for consumers but for small and medium business. let's contrast that and see how they're doing sort of as a back office software cloud play there. are businesses, smaller businesses still moving to them as they might need to at a time

when there's a lot of belt tightening >> i was looking at morgan stanley on etsy. higher income consumers showing some signs of slowing incrementally, and frequency per buyer. gms per buyer does appear to be retreating habitual buyers declining, maybe for the first time in four years. >> prior to the news conference yesterday from fed chair powell, you saw investors sort of picking at some of these unprofitable tech names that we have seen this year like uber earlier this week. you have to wonder if that hawkish outlook scares some investors away paypal will be interesting it's down 60% year to date, carl some have called it now a value stock. >> and dee, don't forget about atlassian, kind of the poster child for product led growth the idea being they don't spend a lot on marketing relative to what they spend on r&d, in tough times can they ford to continue

doing that is their top line going to be strong that's an important one to watch for, enterprise and cloud overall. >> atlassian is one good example of some green today. if you're looking for some green, pinduoduo bookings on there, amd, even lucid, and farther down the list, you have zoom videos, honeywells, and intels stay with us

as you're well aware, we're five days from midterms and while the races are heating up, one tech billionaire has played a pretty big role behind the scenes our ylan mui has more on that this morning >> carl, the senate race out here in arizona is extremely tight, incumbent democrat mark kelly does have a slight lead in the polls, but his gop challenger blake masters is literally giving him a run for his money. now, if you look at how much each candidate has raised, it doesn't seem like a contest. kelly raked in $82 million masters has just brought in $12 million, but masters has a secret woem weapon in peter thiel. he's deployed $20 million in the race through his pac, and the pac has brought in $26 million it's the biggest republican

spend in the senate race here, booking $8 million in ads during the general election alone thiel has osthosted private fund-raisers for masters who is running as a hard line conservative i went to one of his campaign events where he slammed democrats on everything from border security to gas prices and inflation. >> so they destroyed our energy independence and then they printed $7 trillion, between $6 and $7 trillion in the last 20 months, and the economists don't understand how this causes inflation. >> democrat mark kelly is running as a moderate focused on bipartisanship remember, he was instrumental in getting the chips bill passed because semi-conductors are such a big industry here. kelly has some ceos in his corner as well >> ylan mui, thank you >> speaking of peter thiel, check out shares of palantir the average price target on the street, $10 a share, or 25% higher from here

we'll bring you the latest on monday more market action after the break. nasdaq down about 1.5% stay with us

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let's take a look at equinext, a frequent target of jim chanos shares are jumping on strong results. let's bring in the ceo, charles meyers for a closer look and a cnbc exclusive good morning thanks for joining us. on your earnings call last night, you were very optimistic. you said you don't expect any significant churn and you will

be able to pass along price increases as it relates to energy and other things without any issue. but we are entering this softer macro economic backdrop and even the hyperscalers were more measured what is the bear case and how are you preparing for case, anw are you preparing for it we like other companies are very attuned to the macro climate but we're tremendously pleased with the business >> right, but what gives you the confidence you're going to be able to pass along these price increases? i know you've said historically demand has been very elastic, but a lot of the growth we've seen then cloud has just happened over the last few years.

what gives you that confidence that customers are just going to accept these price increases and not taper demand somewhat? >> well, again, i think it's a reflection of how they're using us the digital transformation is a huge priority for them so i think as they think about how to respond to the current macro climate, doing more with less, digital is a fundamental part of that so i think they're keeping that very much at the top of their list and also i think our experience impairically when we've rolled through price increases, which we've done a couple times over the last several years, you know, we've really demonstrated that the demand profile for the business continues to be very strong and elastic >> i understand digital transformation is still top of mind for many ceos these days, but is it cyclical especially after we saw cloud slow down and moderation in growth from the hyperscalers >> i think companies are absolutely still navigating how

they're going to most effectively use the cloud. we hear from our customers they're deeply committed to cloud first architectures but they're also concerned about the level of spend on cloud, and i think that means they're going to continue to optimize that it's a business that's grown to $400 billion over the last handful of years i think inevitably in that there's room for optimizization for customers. they're adding 3 to $4 billion a quarter i think there's still a huge commitment to cloud as architecture of choice and thinking about hybrid and multi-cloud which really our customers are thinking about their preferred architecture >> you guys have a notable amount of debt although your -- your rating just got upgraded. how is that going to affect your capital spending plans given the rising interest rates? and how is that going to affect

your growth? >> yeah, john, good to see you we've done some work to continue to fortify the balance sheet we're taking steps we think are necessary, and we've got a ton of liquidity, $2.5 billion of cash and we're much less levered. we had about 3.5 turns of leverage, and i think we've got a lot of room there, and so i think we're -- and all of our doubt is almost exclusively fixed rate i think we're in a really good position from a balance sheet perspective, and again with demand as strong as is and the kind of returns we're seeing i think we want to continue to be in a position to invest in business >> and what are you doing on the cost side, for the costs that aren't fixed when it comes to head count, things like that as you look to expand are you -- are you growing there? are you pairing back, holding steady >> i think it's a balanced approach for us, which is i

think absolutely companies need to be cognizant of what's going on, managing expense tightly only adding where we're confident we're going to get a return on investment i think we're going to be very tight on gna we were flat quarter to quarter despite the fact we're adding head count based on a really strong pipeline of demand. i think other areas of business we've got to continue to do what i think everyone is doing and really be prudent in an environment where there's some uncertainty. >> charles, finally, you said on the call last night your business is much more fixed contracts. the hyperscalers offer consumption based models could that put you at a disadvantage in this environment especially when companies are looking to scale back their cloud costs? are you reconsidering that >> i think there's elements of our business that are usage based models

i think we're actually in a good position in people have made investments in terms of the fixed costs associated with our platform, and i think they're just looking to get the most out of that. i think our model, you know, has fared very well over the last several years. >> charles, thanks for being with us today. all right, today's losses leaving peloton down 90% over the last year. is the company just spinning its wheels we'll discuss on the heels of their quartewhr en tech check comes back in a minute [drone speaking] technology lets drones deliver pizza. no,no,no! have a nice day. but to deliver powerful insights that are on target you need more than technology. you need cdw. we can help transform and manage your it environment with a dell technology solution, so you can use your data to innovate. wooh pizza is here! i'm still gonna eat it.

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humana medicare advantage plan could save you money. humana, a more human way to healthcare. some breaking news to bring you on lyft this morning the ride share company will be cutting 13% of staff as soon as today. lyft has more than 5,000 employees and today's announcement follows a 2% cut it made back in july. telling employees the cuts will impact every team across the company, and they are proactive. guys, it's always difficult when they do this in waves, not at the same time. the stock recovered a little bit on that, but it's still down

2.4%, and i think this kind of tells you investors are just not excited about this name. it has been losing ground or the thought it has been losing ground to uber this year maybe it was later to make those cuts and start getting proactive. remember we had that note earlier on in the year saying they were going to freeze hiring and take those necessary steps these two companies used to be -- trade more in lock step in very similar businesses but not at all this year lyft is having a tougher time in the market >> i would point out strike is actually bigger than lyft even strike is not public at some point. one more thing meanwhile before we go. peloton having a rough ride this morning, plunging after missing estimates across the board it is off the lows, still down more than 5% stronger subscription numbers offsetting a little bit of nearly 60% slide in hardware revenue as the company becomes

the latest reflection of a consumer slow down shares are down 90% over the last year, but barry mccarthy's still bullish saying the company's results make a strong case that we will beat the one-year time line and deliver on our turn around goal, carl. >> brace for starbucks tonight and of course jobs friday, tomorrow let's get to the half. welcome to the half time report i am frank holland in for the judge, scott wapner. no pivot and no pause. the fed plans to keep tightening how much of this hawkish talk is already priced into this market. and the big question is the year end rally, is that even still possible we're going to invade that and much more with our investment committee today. joining me right here on set is jim labenthal. let's get a check on markets this hour. stocks adding to yesterday's post-fed loss. but we are off the session lows. the s&p and do