seeing as well something we'll continue to talk about supply chain issues getting better maybe. >> looking at right there we remain firmly, let's call it, more or less in the green solidly with the nasdaq, of course, the poorest performer of the three. that's going to do it for us on "squawk on the street. "techcheck" starts right now. >> good monday morning, i'm carl quintanilla with deirdre bosa and jon fortt. a major slowdown in iphone 14 shipments, strict covid restrictions caused this at a factory in china interesting, progression of events regarding guidance then a story about numbers and i know you talked last night about the mix and how it's not the kind of product you'd want to have a shortfall on. >> no, carl. exactly. apple is like the one company

with a high dollar peoremium it doesn't appear the iphone customer wants to trade down into the lower end iphones but want those higher end features so when you still got demand, consumer demand that is viable at the high end at a time like this, you want supply. when supply gets choked off like this, it raises questions about how much and how long -- i don't know we have those answers, but this stock reaction initially pretty mild. i wouldn't expect that it's necessarily the only reaction that we'll get once we get more information. >> mild today but we're looking at a one-week chart of apple as you said a company that's been more resilient in terms of supply and demand when others are hit harder, down 10% over the past week. a large more which has been a north star for the market. when we're talking about supply, this is tim cook's legacy. what he has done at apple that

many, many praise him for that has led to these incredible results over the years and that is largely built in china. its operations are there you go back to the earnings call kind of incredible there were questions on wearables but not a single question on china or zero covid so leads you to wonder if wall street has become complacent apple is slowly diversifying that supply chain away from china but this just shows you the risks of that and that maybe needs to happen quicker. >> yep, i think what was it morgan stanley that pointed out the dearth of questions. by the way, a lot of the street is taking in their numbers and we're going to see and talk a lot more about cook as a logistics master and whether or not you can make a very large long-term turn if, in fact, you're dealing with a government whose restrictions make your business difficult. >> yeah, let's talk about that more insight and strategy from pat morehead joins us now on

this pat, i wanted to talk not just about the numbers, you know, financially themselves because we don't know, frankly, how bad this particular problem is but i'm getting a lot of people who say things like, why don't they just move assembly out of china. you've got good perspective on this i'm not sure a lot realize how apple through foxconn has built out a small city's worth of workers to assemble the iphone and how costly and logistically challenging it would be to move that given during peak season you need thousands more, tens of thousands in some cases more workers. you can't necessarily get that very easily in vietnam, which is also a communist country, by the way, or even in india. >> yeah, so, jon, i spent 20 years working for a manufacturing company and i've been through many factories in china and also taiwan and, jon, apple needs millions of workers

in peak season, in fact, so many workers that they need to bring them in from countries like malaysia so this idea of quickly diversifying its supply chain into places like india, mexico, and even malaysia would take five, if not ten years to fully take off it would be a moonshot and i do believe long term, jon, there's serious supply chain issues. every sea suite board of directors i talk to are fundamentally trying to get out of china as much as they can it started off as a great place, low cost, moved from creating some technologies to core ip and now with the way that china has handled covid with its flawed zero covid strategy, flybys at

the south china -- taiwan, i think that the next five years we need to assume that there could be military action on taiwan and then everybody's calculus change scompls let's talk about the near-term challenges for apple and associated companies then. there's a challenge on the supply side, which you were just talking about, there's also a challenge on the demand side because this is having real impacts on china's economy overall and one wonders what apple's china revenues will look like for iphone and things overall? do we have to be more concerned about that given this? >> so, what we've seen is each -- there have been different flare-ups in different cities of covid but i think the good news is that demand hasn't plummeted completely the place where this -- the factory we're talking about is in the more of the middle of the country versus the south of the

country where most of their volume comes out of. the good news for apple is that at least in western countries demand for its higher spec iphones is still high and attribute it to north america, pretty heavy subsidies from the carriers but also apple's one plan, its all you can eat plan is making a positive difference that shaves off, let's say, the monthly cost of these -- of the plans and what people do is they look at, hey, five, maybe ten extra bucks to go with a pro or max, i'm going to do that. i'm less concerned about the demand side of apple than i am with the supply side and if it weren't material, jon, we don't know that number yet, you're right. they wouldn't have even brought it up. >> it's deirdre. there's this idea apple perhaps more than any other tech company owns and controls the primary technology behind its products

when you look at how reliant it is on china and you said the idea it can quickly diversify is akin to a moonshot, is that still the case can you say that about apple given what the impact of its china operations could now have? >> the short answer is, yes, deirdre and, by the way, i no longer just link a china issue, you have to connect china and taiwan and all of apple's chips, its core proprietary chips are made in taiwan i still think even though the company's made good strides into in india, we're still looking at a moonshot where else will you find a million works to subassemble iphones. it's putting everything together these phones are still hand built by human beings, not robots and they're so thin that

it takes so many people to do this >> so do you think there are black swan scenarios in apple's desk drawer that looks at geopolitical conflict regarding china and taiwan and then tries to game out how production continues under such a scenario? >> i do. i do think there is a black swan event. it's not just apple but apple as a percentage of manufacturing does more in china than any other company i'm aware of and does its core components but its subassembly. if you look at a lot of the pc-makers they're spreading final assembly out to countries like mexico, and this is where you get into geopolitics which i know is a little scary for me to get into because i'm an industry analyst but i think we are seeing -- we have to game play out when does china make its play on taiwan is it better off doing it in the next two years, next five years or the next ten years? because essentially what happens

is, if china makes a play on taiwan, apple loses even access to its highest performance chips, which ironically makes a bull case for companies like intel here in the united states and micron as semiconductor makers here who manufacture in the united states along with local foundries. >> and that gets into a broader chip conversation that we're going to continue to have here on "techcheck. pat morehead great to see you again. >> you too, jon. thank you. >> come back soon. meantime, take a look at shares of meta rising as reports suggest the company is preparing to notify employees this week of large-scale layoffs, steve kovach has more and really the shifting sentiment in tech when it comes to jobs feels like every single day we have news of more layoffs >> that comes off the back of just huge hiring, deirdre, during the pandemic. meta reportedly laying off thousands this week after going on a hiring and spending spree during the pandemic along with

its other big tech peers, now they declined to confirm the layoffs are happening this week but spokesperson pointed us to mark zuckerberg's statement on last earnings call saying, quote, some teams will grow meaningfully but most other teams will stay flat or shrink over the next year also overall head count will be about the same or a little lower by this time next year but that ballooned during the pandemic, guy, meta growing from 45,000 employees to 87,000 over the last three years, nearly doubling their head count and they weren't alone alphabet grew also, amazon doubled head count up to 1.6 million. now, apple's is an outlier and hired more slowly than its peer, growing head count almost 20%, so far meta is the only one in the group expecting mass layoffs for now but cutting costs no matter how much hiring is going -- is happening right now, apple's tim cook telling me last

month he's slowing hiring at apple and the company has slowed down hiring even more in certain areas and they're being much more deliberate in how much they increase their head count. microsoft has also laid off some employees including a group of about a thousand last month. for now, though, it's meta under the most precissure to make cuts after increased spending on its metaverse business shares down more than 70% for the year >> which obviously we know is -- makes it the worst s&per of the year where should you look for value in tech as we move past the peak of earnings season? according to our next guest nowhere downgrading the sector to underweight is tech yesterday's trade. joining us is keith lerner >> great to be with you, carl.

first of all we've been underweight communication services all year long for some of the reasons that were just discussed and with tech, it is -- it's been hit hard a lot this year. i think it's important for investors to zoom out a bit. even with this, you know, this year's down or decline, over the last ten years, tech has outperformed by over 200%. semiconductors have outperformed by over 400% and the reason why you buy tech, carl, as you know is because their earnings momentum this over the last few weeks we saw the earnings momentum for tech relative to the broader market hit a two-year low which also what we also saw was prices hit a two-year low we don't think that's a coincidence and think at best, you know, tech trades alongside the market we think there's so much embedded gains that it's more likely to be more of an underperformer as we look out not only the next couple of months but probably the next several years. >> right how much vulnerability does that bring to the overall indices if you're just along the s&p?

if these tech valuations have more correcting to do, where could that lead you on the s&p overall? >> well, i think you're talking about the upside for the market is somewhat capped look at tech, communications and discretionary, those account for about 45% of the overall market. the technology sector even though it's been hit, it's still trading at 5% premium relative to the broader market and what we've seen over the last few weeks is the equal weighted s&p so a proxy for the average stock make a four-year high relative to the s&p which is really still somewhat top heavy and i know we've both been doing it for a long time. all this spending that went into the market during the stimulus reminds me of what happened during y2k when you had that stimulus and things got ahead of themselves and saw all the employment gains and we think we'll go through consolidation across the board. >> what's the turn that you're waiting for in tech then i worry, boy, the real time to

stop buying tech would have been december, right? but now things are so much cheaper, some companies have models that appear to be working better than others is it time to do away with it entirely or get more granular? how will you know when individual names are ready for a turn >> it's a great point. and as mentioned we've been underweight communications all year and neutral tech. it's not as 23 we were both, per se but i think a couple of things i would look for. one is cheaper valuations and the other thing we focus on is just the turning -- earnings momentum there is a potential as we go into next year if we do have a recession which is our best case maybe there will be movement back towards tech, some stability there. maybe that could help tech and simply interest rates not moving higher as well but, again, i think the most important thing you buy tech for their earnings relative to the market, right? you pay a premium because

they're able to outperform on earnings relative to the market and look at the next two years, the consensus estimates for growth for tech is about 4% to 5% over the next two years that's actually below the market which we think is too high as well other than opportunities this is a big sector of course, there's opportunities below the surface. it isn't saying sell everything but think there's better opportunities in other areas like energy, industrial, health care >> right >> before this year. >> i understand what you're saying, at least in the immediate feature you think tech is unlikely to be the market leadership what about in the longer term when it comes to the big tech company, they have some of the most solid balance sheets and if they're becoming more financially disciplined and still able to innovate does that set them up for leadership for, say, the next decade >> it's in question. historically it's unusual to see what was the leadership over the last decade become the leadership of the next but we know that technology is going to be a big, you know, reason for

productivity gains in the future new innovations we're not speaking about and winners as well but i think the other thing i'm noticing is there's been so many gains over the last decade, over 200% relative outperformance that there's inertia for investors to give up i think really at a point where investors do kind of give up and not worry so much about capital gains, that may be helpful but, again, longer term, is it fine, yes. leadership in our work life, no. >> keith, appreciate it very much obviously it's a huge ramification for the broader market keith lerner over at truist. see you next time. >> thank you very much. two of the biggest names in video games reporting after the bell we will tell you what to expect on the other side of this break. activision and take-two.

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this morning to 7 and change. shares down almost 60% for the year >> this week some of the biggest names in gaming are on joining us with his expectations, the verge editor in chief and cnbc contributor neil patel not wearing his oculus >> i'm here in reality >> boom times have come to an end and it's been more recession resilient but newer trends like pay to play. has though turned it on its head >> yeah, i think there's a lot of expectation in the pandemic that we would be transacting a lot in games and that the amount revenue would correlate to the amount of time we were spending in games which on top of everything people are spending way more time in the games during the pandemic.

so there were these multiples on multiples stacking up into these pretty intense expectations. i think they're coming back down to earth there is a note from jefferies this morning, pretty soft on roblox because kids are going back to school and it's that level of things are returning back to normal this secular shift is maybe not as big as people thought they were or as permanent and then on top of it multiples on multiples. not shopping in video games yet and that's the turn everyone is expecting. >> okay, so let's talk about some of those games that are more in the quote, unquote metaverse. roblox struggled this year but seen more optimism lately they reported daily active users in september that suggested a turnaround what are you looking for from some of these more immersive companies? >> it's time spent if you're going to run an

immersive video game like roblox which is about being there with other people, what you're looking for, can they capture share, not just from other video games, but from other things to do with other people from concerts and live events, from netflix and i think that time spent is under pressure as kids go back to school. what's in their favor a lot of kids lot roblox and they want to play with their friends and hanging out in roblox so there's a dip we're seeing that will come up in the back to school season that is what analysts and i have been saying the question for roblox is can they capture the incremental dollars inside of all that immersive time spent and that is pretty flat as far as i can tell. >> here are my two questions about gaming overall heading into 2023. i worry that take-two and others are going to have to again rely

increasingly on others' intellectual property including sports, including major franchises like marvel and disney and those players can afford to raise their prices and narrow the margins for the gaming companies and then also on the lower end with take-two they have zinga and attention translates but a lot is based on internal game economies and advertising and see consumers spend and advertising coming down will we eventually see the likes of zinga, mobile players get hit in a slowing economy and will people have to take their estimates down >> yeah, the mobile side of that, i think there's a third pressure that is important, which is the platform players like apple and google are not slowing down on collecting their platform fees. if anything they are accelerating they're putting more pressure before whatever regulatory events happen around the world

so i think there's a lot of pressure on the mobile side, a lot of pressure on the, hey, this is a great business before. we could buy ads on facebook to get people to install the games and then we can happily pay it to apple and google as people bought boosts in the game. all of that is falling apart their transparency is making conversions on facebook much more expensive and on top of collecting ever greater fees inside the products themselves so there's a lot of pressure there then on the flip side, ip pointthat's also, you are seeing the big content companies facing enormous pressures to grow their user bases and have spent a lot of money on streaming platforms and need to collect revenue elsewhere and they can look at the amount of money the gaming companies have historically made, maybe not in the present but historically and we should take more of. >> we'll love to get your thoughts on activision this new york post story saying

insiders fret the deal won't close. 71 is the lowest since that deal was announced. what do you think that means >> i think there's -- part of that story that i think is great, bobby and his advisers get paid no matter what happens. deal terms and call of duty because they just want to close it and that's great. the second part is sewn think is right now pushing back really hard against the exclusives that they have with activision particularly call of duty. call of duty just came out and it's doing great fastest to a billion of any call of duty. you can see this thing as a juggernaut that drives not only activision's revenue but ancillary revenue for the hardware makers like sony and microsoft so sony is just around the world pushing back really hard i think we've seen a return volley from microsoft saying we'll promise to keep the stuff cross platform and that's not the business we want to build but microsoft doesn't have the out. they don't yet have the game

streaming capability that we thought they would where they can put xbox everywhere, on your tv, on your phone wherever and stream the games that's what they're building towards but slowed down the plans and paused their tv device they said would come out soon and i think they're in a bit of a spot here where they need to close this deal and accelerate towards game streaming or they've got to pivot and i don't know which one they'll do. >> good questions, nilay, thanks for being with us. be sure to tune in tomorrow for the interview with phil spencer in "techcheck" tomorrow. jon. >> for sure. meanwhile, doordash, oppenheimer turns bullish and takes the stock up to an outperform with a price target of 70 bucks that's almost 20 bucks higher than where it's trading this morning. st's up more than 1.5% improving reaurant margins domestically the catalyst there

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do you have those budget markups? thank you. mmhm. [bubbles]

welcome back to "techcheck." i'm contessa brewer. village md, a provider is buying summit health in a deal worth nearly $9 billion. summit city's md division says it's the largest urgent care provider in new york and new jersey a new study reinforces the danger of eating highly processed foods. researchers estimate more than a tenth of premature deaths of people age 30 to 69 in brazil in 2019 were connected to eating ultra processed food like mass produce o deuced hot dogs, chips and baked goods. sounds delicious looks disgusting. florida is back on storm watch sandbagging operations have begun on the state's east coast, subtropical storm nicole could strengthen into a hurricane before it threatens parts of florida and other parts of the southeast later this week we'll keep a close eye on that,

deirdre. >> contessa, thanks. we told you about the serious amount of spend domestically that chipmakers are doing to improve manufacturing capacity but who is profiting here seema mody has the answer reading tea leaves, we're talking tens of billions of dollars thating are go to be beneficiaries not the chipmakers themselves. >> the first orders are beginning as intel, taiwan semi and globalfoundries plot their u.s. expansion and some companies are fit to benefit eaton is seeing a large number of manufacturing projectsings in the u.s. that includes new semiconductor facilities and new ev battery investments that they say are tied to improving electrical infrastructure and will benefit them over the next few years. rock wellington arch automation said it had an important win to provide flexible wafer transfers and went on to say, quote, we're

playing an expanded role in production b of a estimates equipment used to build a semiconductor fab accounts to 70% to 80% of total costs and they say it will lead to a windfall that are specialized in automation, robotics and other key machinery. in addition to rock wellington arch and eaton open points to emerson, ptc and ensis as key beneficiaries. they write emerson, those name also continue to benefit but as these investments are not anticipated to be creative e earnings till next year and supply chain have referenced the earnings system still slowing down orders. take a look at these stocks, chip beneficiary, they've outperformed over the past one month as investors shift from growth to sort of the cyclical names, eaton and emerson up 16%, rock wellington arch up about 10%. carl >> seema, appreciate that. seema mody let's dig deeper into the chip

sector and get a closer look at competition on a global level as china tries to catch the united states' tail and gain share. it continues to face hurdles including the commerce department's new restrictions to protect a key technology our next guest takes a deep dive into this year's long battle to dominate the chip industry in his new book "chip war." joining us is the author, chris miller appreciate the time. thanks for being with us. >> thanks for having me. >> i wonder how you're just thinking broadly about the overall dynamics meaning slower economic activity, maybe a decline or a slowdown in demand growth and yet you've got all these nationally driven attempts to boost investment in the meantime how is that going to work out? >> i think there is certainly a risk of some overcapacity as china, the u.s., japan, europe all pour government-backed subsidy funds into their chip industries now it's going to depend where you look in the chip sector. at the leading edge of logic

there's probably a lot less likelihood of overcapacity because of impressive demand over the past several years for advanced logic chips but look at where china is pouring most of its money in at lagging edge older types of technology chips, what you see there is that there's much less constraint on china's government subsidies in terms of where they're going and so that because firms that are not at all focused on profit, they're not at all focused on market, they're just focused on pouring government-backed capital into building out capacity, there is a substantial risk that we get overcapacity in that part of the segment but you've got to be focused on which type of chip you're looking at to think about the impacts of potential overcapacity driven by government subsidy. >> right we've had some guests on in recent weeks who argued china's pretty -- is behind in a lot of the leading edge, ai, quantum computing and as a result, the u.s. restrictions will eventually have real teeth to them do you agree

>> i think that's right. if you look at china's ability to fabricate the most advanced chips that are used in daytona centers for high performance, they're a long way away both from designing the most advanced chips but more importantly from producing them today it's got to try to import ultra precise machine tools from the u.s., from japan, from the netherlands and it's now currently not able to do so because of the u.s. and other countries' regulations so it's a huge problem for china and their pathway to domestically producing these types of tools will be measured in the many years if not decades and so as long as these are in place they'll face immense difficulties and probably fail to produce advanced chips domestically. >> in the context of a couple specific companies, namely intel and global foundry, global foundries doesn't lead so much on the leading edge. intel is pouring billions into

trying to build out fab capacity for leading edge and when the ceo announced that last year, it faced a lot of skepticism about the foundry strategy what you see developing, does that put more or less likelihood that people are going to come around to one point of view or the other? >> well, i think intel is facing many of the same market pressures as the rest of the chip industry, slowing demand is not good for intel for sure but i think the big questions for intel are first can they get their chip design business to catch up to amd whereby many metrics say they've fallen behind and, second, can they get their manufacturing processes to catch up to taiwan's tmc, 9 world's leader in terms of producing advanced logic chips and so it's a technological problem intel faces the next couple of years and by the time we know whether intel has sorted out those issue, i think we should expect the chip market has already turned around by

then and intel's got the financial resources it needs to keep investing over the next couple of years, so the real question is can they turn around their technology >> chris, you talked about, you know, beijing's role, the huge investment the government has made into the chip sector but they haven't been that successful in developing high performance leading-edge chips so with now the u.s. export restrictions, does this raise the risk of geopolitical conflict around taiwan's role and you talked about the importance of tsmc >> it does on the margin raise the risk in the short term and i think it probably reduces the risk in the long term. from the u.s. government's perspective the key question is the ability of china and the u.s. to apply advanced chips to military systems and so the u.s. is betting that if it opens up a bigger and bigger gap between what china can produce domestically and what the u.s. can produce or access via allies, the u.s. will be more able to put advanced computing

power in its defense systems in the long run and so the u.s. is hoping that this will shore up the u.s. military position in asia over the coming decade but it does increase over the short run the risk that china might try to retaliate against the u.s. either in the commercial sphere or in the geopolitical sphere now, in the past when the u.s. took separable measures men huawei in 2020 banning the use of u.s. chip technology to sell chips to huawei, china didn't respond at all it threatened to respond it created new regulatory mechanisms to punish u.s. firms but in the end it didn't do anything. >> chris, we'll talk more about domestic production next time. congrats on the book all the best. >> thanks for having me. >> meanwhile got a nice little bump for okta up more than 2%. guggenheim upgrades it to a buy, says, quote, current valuation levels are too compelling to ignore price target is 65, up again almost 20 from here.

we're back in a moment

call it a sass crash, the wisdom tree cloud computing etf tracking some of the most important names in cloud had its worst week since the beginning of the pandemic. our frank collin has an update. >> double digit losses for cloud stocks last week the cloud computing etf hardest hit. they continue with the ten-year

yield hovering above 4%. jay powell's comments that rates could move higher causing deep declines in even blue chip cloud stocks like salesforce and palo alto high valuation names like snowflake falling harder than the broader group but defeat fears cloud spending has remained stable in the second half of 020. important to note as you can see here, it has fallen from first half levels leaving the question, which cloud stocks could be impacted by this slight downturn this week we'll see a test of some areas tomorrow akamai is reporting, etfs report decline of 15% product led growth or banking on the product and its performance as opposed to a sales focused strategy and litmus test of cybersecurity demand where they get 45% of revenue five9 reports and earnings and revenues are forecast to increase 25% that growth depended on consumer

spending and customer engagement for their customers. toast is forecast to report a larger loss with revenue of 48% growth it's an example of a company with the premium model where a basic part of the platform is offered for free and extras come at a premium toast focuses on restaurant software so pretty much a broad look at cloud stocks and the demand and what head winds they may be facing, deirdre. >> after a brutal week even cybersecurity was hit last week which has been more immune this year frank, thank you very much. >> thank you. we saw a big pop from uber after reporting earnings so can we expect the mesa from lyft we expect the mesa from lyft we will tell you after the this is how. airtable. good luck.

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shares of lyft on the move lower by 1.6% and the company will report results after the close. last week if you remember it laid off 13% of its workforce. the second round of job cuts this year as it works to bring down costs like many others in the gig space the stock is underperforming. it used to move in very close step with uber but since may there has been a significant divergence you can see in the time frame lyft is down 75% versus 40% for uber both losing companies, of course, but in terms of execution, investors have

struggled with lyft this year. obviously its narrow focus which used to be a benefit not really seen that way. it has the food delivery business which is it really has invested a lot in. so we'll see what the results bring. >> yeah, we've long talked about the optionality uber gives you i'm still amazed morgan stanley called dash the best quarter of internet earnings season so there have been highlights. >> yeah, these are not all quite the same and the challenge for us and investors is to see whose models are working better than others and it's been a year or two of name changes, got another one, market flash on norton lifelock changing its name to gem not like short for jennifer, but with a "g" in a nod to what the company calls generation digital pivoting completely to consumer cybersecurity. that ticker will change and the change will take place toromrow

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comcast business. powering possibilities. ™ welcome back let's take a deeper dive into go daddy, and q4 guide cutting the outlook for the year good to see you. i want to start just thinking

about the health of small business and the digital infrastructure necessary for them to survive and to thrive. you are seeing some pretty decent growth in applications in commerce, and hosting which is where people may have thought about go daddy and that legacy >> small business customers continue to be resilient as we have shared in our earnings call, two-thirds of the customers continue to feel positive about the outlook that is in front of them. as you break down the business and talk about hosting versus applications and hosting, and our hosting business is affected because a large part of the business is in europe, and so we are going to continue strong fundamentals in the business where we have over 85% customer

retention rate for the long term we are happy with the execution of this year, which is 9% constant currency growth which we think is great >> you are boosting at the same time you are borrowing capacity, and even as interest rates are rising, what are you going to do with that money strategically at this time over the next year or so >> yeah, without going into specifics, you know, what we did here was took a window of opportunity where we had the chance to sort of change our debt profile and change that and we took it, and the uncertainty around recessionary pressures, it would be good to take the cash, and it doesn't hurt for us to be in the best financial position we can given the

uncertain outlook. >> are you making real efforts to, i don't know, freeze, reign in head count or limit operating expenses or look at the budget go into 2023 >> we started to be more cautious over a year ago and we made tough decisions and focusing on where we thought demand was going to go, and we started cutting down marketing span, and we talked about the management team in the earnings call and we have a seriously focused management team that has seen many cycles and will definitely keep our costs structure in mind, and that includes our head count and office infrastructure and we watch all that on a quarterly basis. >> i wonder if you could give us regional color how does the u.s. hold up compared to europe >> yeah, we talked about that last quarter, you know, where we

moved marketing spending from europe to the u.s. and we have grown faster in the u.s. and now it's a little more uncertain where the u.s. is, and we continue to look at the customer base and we know they are resilient and we have 21 million customers and they are going to be retained at 85% or higher, and that's what we are focused on we don't have to rely on always going after new customers. we sell 85% of revenues into the base that's what we will focus on europe is weaker and we note reasons, and the dollar is strong, and international business grew -- those changes are, in my mind, short to medium term and the fundamentals will carry us through >> i want to ask about what reaction you are seeing your small business customers have to the changes in targeted advertising. we saw apple roll out changes

and google talked about changes and we have seen the affects through social media companies, and how can consumer and small businesses draw eyeballs to their websites and apps and products how are your customers adjusting for that how are you rolling out different products to help to solve the value gap that is left >> our customers may not be technically sophisticated, john, but they are quick to understand what is working in their business and for their customers, and they know they have so many choices out there, whether it's the marketplace platforms or social media platforms and we offered them a solution where from one screen they can manage their sales and inventory, whatever platform it might be, and that's the type of simplification we are offering them, and we want them to see it from one screen, and look at

what they are investing in and how they are doing so they can make the best decisions for themselves >> thank you very much it's time for your daily twitter update musk throwing his support behind republicans in the midterms, offering some confusing language overlayoffs. a delay on the blue check pricing plan and several suspicions are celebrity parody accounts you can dive deeper into those

to adapt in a fast changing world, stories onl time data and business forecasts when you need it. i think it was fine how it was. (air tool sound) to help you stay ahead of the curve... we're back in a momente had a great fourth quarter. for a accelerate your decision-making world. workday. for a changing world.

one more thing tomorrow i will interview fcc chairwoman, jessica rosenworcel. highlights of that sure to be a wide ranging conversation will be here on tech check. we will not want to talk about tiktok and twitter >> it didn't stop the commissioner, he still talks about it, and it will be interesting to see how she dodges it, if she does, even

>> yeah, that's going to be fascinating given all the commentary that has come out of carr's account in the past few days cpi is not until thursday, but plenty of big-name earnings throughout the course of the week disney will be on tuesday night. that does it for "techcheck. let's get to the judge and the half >> thanks very much. welcome to the "halftime report." the midterms, the cpi, and key earnings, we have all that our investment committee sizing up what is at stake for your money. carry firestone, victoria green, and joe and steve weiss. we are just past 12 noon in the east, and the dow holding on to a gain of 150. and here's the nasdaq, down three quarters of a percent. we have a lot on