you're doing is sloshing around the lower end of a six or seven-month trading range. >> all right, so we're doing some sloshing right now. mike santoli, thank you as always that's going to do it for us right here on "squawk on the street." "tech check" starts right now. good wednesday morning, i'm carl quintanilla with deirdre bosa and jon fortt meta cutting 11,000 jobs, disney's dismal quarter, the crypto fallout after ftx and binance and elon musk selling $4 billion worth of tesla. this hour the ceo of ak my, and gen, but our feed begins with new developments out of the ftx and binance deal and the headlines are flying even as we speak. >> they are flying and bitcoin has dipped below that 17,000 mark

ether down 12% david, thanks for being with us. i mean, wild 24 hours. it turns out that the white knight, the so-called jpmorgan, the warren buffett of crypto has turned out to be just another over leveraged crypto bro. what does that mean for the industry walk us through how this all plays out. >> yeah, i mean, that's the current party line, and i think folks are really anxious to tdu in to what got us to this point. how much of this was a failure of diligence on the part of the investors, how much of this was bad actor misrepresenting to his clients how he behaved and how they operated. the folks i've spoken to believe that this is really more of a kind of isolated bad actor incident, but there is obviously a broader question everyone's asking now, which is where are the regulators and so much of the behavior and

the actions that may have led to this likely took place offshore, and a lot of the offshore regulators then allowed kind of isolated local regulation that ultimately spilled over into this kind of international problem. and so there is certainly going to be much more concerted, i think, international cross border efforts to try ask regular lawsuit now, and i think a lot of people inside the industry that want to see the industry succeed are saying that that's exactly what they want to see happen is really construct i constructive regulation that's cross border. >> this is such a failure of regulation, when you asked the request where are the regulators, they're in washington talking to sam bankman fried, he has been the faus of the institutional crypto sphere he's the one talking to regulators so his downfall, bad actors maybe but i think the key here is over leverage in the system i don't know if you can trust that binance isn't over le leveraged as well.

it has to go beyond regulation, right, david >> i think there's a real question on how these exchanges operate. regulated marketplaces, regulated exchanges in the u.s. under the s.e.c., there are really strict controls on what the marketplace can and cannot do the dealings that happen between the principals at some of these exchanges and some of the call it market making vehicles that they had set up off exchange seem to have been a big motivator here and under us regulation that would likely not have been allowed. again, the leverage is always give people an insen tive and you'll see them act on it. the lack of control allowed this to bloom very likely a lot of folks that are institutional in nature, thoughtful in nature, long-term investors in nature are going to sit out this crypto marketplace until they see the right transparency and the right regulation take place. >> here's my frustration is that

you have on the one hand a lot of the crypto community saying give us clear regulation that's what's safe here. the problem here is that all of these, you know, crypto institutions went overseas and set up or they weren't regulated clearly enough then you've also got the community saying don't regulate us too soon. this is financial innovation you have to let a million flowers bloom and just kind of let us do our thing. meanwhile, you have this pattern of so many different players in different parts of the crypto ecosystem failing, and failing in a way where they're not automobileable to deliver what they promise to investors or customers there seems to be rot in the crypto ecosystem, and i'm not sure we can pin that on regulators. >> yeah, i mean, you give someone a chance to go from having no money, no net worth to having $16 billion of paper net worth in three years, you're going to see a lot of people

trying to do the same thing. all of a sudden you have this very slippery slope. this is why securities regulators exist it's because in the past when folks realized they could sell something to a retail buyer, they could make money doing so all of a sudden all the snauk oil started to emerge. there's a tremendous push to very quickly make a lot of money, and retail was always there to pick it up and securities regulators emerged to try and protect retail investors and protect those that had their capital taken away from them because of these kind of schemes. and i think that that's kind of a really key pivot that's about to happen here is that there has now been that moment of loss there has now been that kind of seas have reseeceded, it's not good ones that took the most money that bloomed i think the tides, the pendulum

may shift on that point, and we may start to e see the general distributed open source let everything happen folks say maybe we do need to have some boundaries here. >> right well, i would argue that regulators, it was about public commentary, it was about white papers it was about fraumming discussions, coordinating with industry players do you expect, not that we're on the cusp of brand new information, maybe we are, but do you expect the next time around, the next innovation cycle regulators are going to be quicker to act with less public comment. >> regulators have never been quick to act i think that in both directions in terms of being innovative or in being responsive. and so i don't think so. i think you will always see a strain on the system, the system breaks and the regulators come in and put in these controls you can go back to -- you can go back to the 1930s and ultimately that's how so much of securities regulation around the world and

all regulators around the world have really kind of built their rules is not ahead of the curve and not with the curve it's usually after the curve, and so, you know, generally speaking for innovation to take place, there's going to be a couple of points where the markets break. whether or not they come back is tbd. >> david, you're sounding optimistic, and i'm having trouble understanding that the tide has receded, we're seeing who's swimming naked, doesn't this latest incident tell us that the tide is far from out there's going to be so much more to get flushed out here. how does it instill confidence in anyone rooking to be involved in this space or invest in crypto, if you can't trust ftx, how can you trust binance or anyone else? >> i don't know if you can right now. i think it's a function of regulators coming in and people looking to regulators for confidence whereas before i think folks expected that their own diligence or the dill swrens of the shareholders in those exchanges value tatidated them.

i'm not optimistic in a sense, i'm speaking to what i think will play out. regulators will have to come in. i think there may be some folks that actually go to jail in order for this market to have a shot at having legs or for these markets to have a shot at having legs, they're going to need to see regulators play a much more active role than they have historically. >> we're going to talk later, some more crypto with the ceo of crypto exchange. david, we want to turn to meta 13% of employees now gone as zuckerberg cuts costs dramatically and continues to pour money into his passion project, the metaverse i'm seeing a lot of commentary from the sell side today about an olive branch from management, the first sign he's willing to acquiesce to shareholders' desire to invest more judiciously. is that how you read it? >> folks that i speak to think it's a step in the right direction. but remember, meta would need to cut half their employee base to get back to the head count they were at pre-covid. you really need to ask yourself the question, what was the

outlook for the business precovid, what did they expect would happen, and how much of that has or hasn't been proven in the past two and a half, three years. based on that you could take a much more first principled approach that's what's been lacking in silicon valley is a first principled approach to work force engineering and now there's a big rewrite which ylan has really demonstrated this week saying how many people do you need to do the things you want to do we've gotten to this point because of bad governance, super voting, bards that don't pay attention, but also the war for talent where any great candidate you can get in the door, you should hire particularly during a growth phase now that growth has stalled, profits have stalled, multiples have shifted everyone's coming back and saying maybe we should think about work force engineering from a penirinciples basis. how many people do we need to execute the things we need to

execute to achieve our goals over the next couple of years. that's when i'm hearing buy side asking for, not just from meta but all the companies that are investing so significantly in head count in their employees through stock and cash can comp. >> too many people believe their own hype, this is the through line for crypto which we were just talking about and meta, and we can even draw through to shopify and so many other things ecom ecommerce, this digital boost through the pandemic people believed and zuckerberg wrote this in his letter to employees that momentum was going to continue, but it doesn't doesn't mean the underlying case for a digital future is false, but too much belief in the hype, but that brings me to my issue with even this cut, until zuckerberg cuts metaverse spending, i mean, if he does, these layoffs aren't disciplined. they're a sacrifice, right to the metaverse. >> i think that's fair

m maybe from his pouf int of view that would be a fair statement one of the thing that's lacking is there is this call it nebulous octobbjective it's far out at this point in the suzuki l w -- cycle when you have ten-year treasuries, you have to demonstrate what you're going to return and when in order to justify spending in this day and age. and so you really have to show a time line. you cannot have fuzzy time lines with some point in time in the future, we will maybe do something that looks a little like x there has to be a milestone based approach to achieving your object ives and a clear message on what those objectives are the absence of that makes folks say you're spending too much i'd rather see that money come in my pocket through buybacks and dividends and so on. you think that's what's really causing a rlot of this attentio right now. it will cause a massive chaunge

in governance. >> we've got to ask you about elon musk selling off $4 billion of tesla shares. your buddies, they're in the room with musculoskk about the b that it's taking and how that could potentially impact elon musk's public company. >> i have nothing to share with you on that, deirdre look, i think obviously -- >> are you saufving it for the pod? >> no, i have no knowledge of what my friends are doing or not doing with respect to twitter and elon and so on in all honesty. >> then as an investor. >> as an investor in tesla, obviously having the largest shareholder, the ceo selling shares to fund another project, you do that with any other person in silicon valley, you're going to have really hard questions being asked by investors, which is show me how this benefits my stock, my shares in tesla, and so, you know, i don't know the right way

to answer that, but it's certainly begging a lot of questions. look, he's not a very dedicated shareholder base he's got a very dedicated customer base in tesla it's clear folks have gone along with him for the ride for many years. whether or not this jars him, i don't know it's certainly going to beg the question for some folks. >> something we're all wondering. thank you for being with us. shares are down after missing on earnings ps let's bring in julia boorstin who had a good look at the quarter. we talked to cramer this morning about the number of metrics on which they missed and certainly rpu was among them. >> the losses at the exstreamin businesses more than double over a year ago growing that top line streaming s subscriber number, and though that number did exceed expectations, we're in a total moment of shift and disneys and the other companies are reckoning with the fact that you cannot grow at all costs when it

comes to streaming subscribers you have to shift the conversation and think about average revenue per user and thinking about how much you're spending on content and making sure that's justified. stock down 12%, you have to wonder what this next phase is going to be like and how much they are going to have to drama drama dramatically pare back spending. >> if we are wondering what they're going to have to do, does this mean fewer deals awith maybe carriers and other outside sources of user growth to try to goose the top line, fewer bundles and more focus on, hey, who really wants this content and is going to stick with us for the value we provide >> i think it's the same type of shift we've seen from netflix. netflix said don't think about the top line numbers anymore think about the profitability of each of those users and interestingly, chapek said this is the peak quarter for losses

in the division, in the streaming division they're still on track to reach profit sability in 2024 assuming we do not see a meaningful shift in the economic climate. i think it's going to be really fascinating to see how if there is a meaningful recession, meaningful pullback in consumer spending, how the fact there is this pro liferation of streamin services, now we're waiting for the disney service to launch in a month to see how those impact overall spending, not just on streaming services but also on movies and you know, we're having this conversation right now ahead of the launch of the black panther sequel that's coming out on friday the media industry has faced massive upheaval, transformation with this focus on streaming and now they're having to reconfigure how they prioritize streaming and how the introduction of streaming introduces other businesses.

>> indeed. julia boorstin, thank you. more disney later on "tech check," plus the ceo of ok my and gen, norton life lock. tech check is back after a quick break. this is doubling production without doubling headcount. this is connecting all your team with a shared point of view. this is the system you built moving from concept to customer. this is how. airtable.

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take a look at akamai, shares are up nearly 6%, delivering a beat on the top and bottom lines in q3 with us now in a cnbc exclusive, the cofounder and ceo, tom leighton welcome. first of all, did i hear you say that you're going to buy $3 million worth of akamai stock over the next six months is that a call on the macro in particular because, boy, there's a lot happening in the macro affecting every stock, not just akamai. >> yes, you heard correctly, and of course there is a very challenging macroeconomic environment, but i think akamai has a tremendous potential for growth now we embark on cloud computing following the acquisition of

linode and the investments we're making there we already have a market security interest. i am very optimistic about akamai's future growth. >> my understanding also is you've taken down more than 500 open positions you have. i don't know how much that equates to a hiring freeze, but also that you're shifting resources to security away from delivery can you talk about the extent to which you're able to do that with employees internally, and how that actually translates into what you're able to deliver. >> yeah, that's correct, and you know, for example, akamai has enormous capabilities in terms of people power and knowledge for deploying very large scale platforms from our delivery platform, and you know, we're going to take that know how and those people and they are now going to be growing out and

deploying our cloud compute platform so very similar kind of skill sets, you know, in terms of arranging for the coe low, getting the servers and putting them there we've connected the linode regions with our backbone. we're going to introduce a new notion of sort of a lighter weight distributed come paut re compute regions where you get containers as a service, where a lot of businesses have their data centers and where their end users are. it's a very natural capability for akamai to take what we've done and the people that have been working on content delivery and now build out a world class computer organization. >> you mentioned on the call sort of the seasonal variability you sometimes often see in media in 2q4 >> it is a seasonal business,

although everybody has their eyes on the global macroeconomic situation, and obviously very worried about what's going on in europe with the war there and what might happen this winter. so i would say there's uncertainty in general in the global macroeconomic environment. you know, ironically it could provide a little bit of a tailwind for us on the compute business major in major enterprises seem to be in a position where they cut costs in media and commerce. we can help them do that with their compute bills, now that we have the compute service. >> give some investors some color, you mentioned the war in ukraine. interesting developments there even today with russia pulling out of part of the kherson region, which might imply along with perhaps democrats in the

u.s. faring better in midterms, perhaps able to supply more aid to ukraine going forward than they would have otherwise, that this war could go on for longer than some people had thought >> well, obviously we would all like the war to end. it's a horrible, horrible situation for the people there obviously we're concerned about, you know, the energy situation inflation is high in many of the areas we do business, and we're worried about a recession. none of those things are great for business there is concern, i think, particularly in europe, and we're hoping things can get better >> all right, tom rleighton, thank you. thank you. when we come back this morning, how layoffs at meta will impact the stock praise we'll check with michael nathanson about that check out shares of upstart holdings, down double-digits on the heels of earnings now down nearly 90% on the year you can read more about that quarter on cnbc.com. we're back in a memont

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i'm silva na ha now. kansas's democratic governor has narrowly won re-election she focused her campaign on the economy and tax cuts and a desire to work with republicans. she can start with kris kobach who will be the next attorney general. kobach cochaired president trump's voter fraud commission russia is withdrawing from kherson, the only regional capital captured during the eight month war.

it the loss of kherson would be another humiliating setback for the kremlin. ukrainian forces have not immediately confirmed the move. the threat of a railroad strike has been postponed for now. the brotherhood of maintenance district one of the two rail unions that has not reached an agreement with the companies is moving its strike deadline back from november 20th to december 5th. this would put it on the same negotiating schedule as the signalman's union, the other union still in talks federal paid sick time remains the sticking point in the negotiations guys, i'll send it back to you. thanks let's turn back to two of the bigger movers of the morning it's an inflection point for meta and disney. disney is out with disappointing results while meta cuts 13% of its staff or 11,000 employees. our next guest covers them both, michael nathanson joins us this morning. thanks for the time. the line really leaps out when you say you're talking about the disney ebit guide for next year versus your own forecast, and you say rarely have we ever been

so incorrect in our forecasting of disney profits. what happened? >> carl, it's a good question. we're neutral on disney. what happened was losses at streaming were higher this quarter, and losses would be higher year ahead. you know, as we talk about for a while now, it's a spending driven business. you have to spend more to get revenue growth, and the spending being done was higher than we thought. 22 is the top of their losses but 23 will be large as well then on cable networks and linear tv, cord cutting is now negative 6% a year, it's really collapsed. people are cutting the cable bundle, and that affects disney severely because of espn espn is a very expensive programming package and has high fixed costs. as they lose revenues there's a

collapse of profitability. those two things came together worse than we expected. >> are you calling for peak streaming losses because there's a lot of notes on the street today sort of de defending the parks resiliency, their ip, the way they could benefit long-term from om any ve omniverse or metaverse those are longer term plays. >> our concern is this the parks have done great, but there's consumer slowdown. we see it. we know it the parks have not shown that yet. in 2023 the risks are to the downside their most important engine of profit growth is at risk of slowing cyclically streaming we've always debated with folks whether or not it's a great business we won't know the answer far wh for a while. the losses will come down. what's no, mrmalized profitabily in streaming we're not sure it's going to be a great business we have doubts about where it ends, and then cable networks

and linears is in a structural decline. so our cautious view is really warranted here, especially ahead of any type of slowing consumer spend on parks in '23. i think being patient and being cautious, we continue to be that way. our first rule of thumb is that earnings revisions drives stocks we think the works could weaken. >> i'm trying to parse through your words, so you do believe chapek when he says this is peak losses >> directly, yes, it's peak losses if they want it to be peak losses. the question really is what's the top-line growth rate from here, right? >> like that could cost them is what you're saying, if they decide this is peak losses that could cost them in market share later on >> right now you have to drive pricing. there's a price increase coming in december, long overdue. but then what you see happening in streaming is as prices go up

in other places like netflix, there's been a slowdown in subscribers. there's going to have to be a tradeoff will there be a top line slowdown over time you've got a price increase and then subscribers start to really slow down. our problem to your question is peak losses, we got it, profitability somewhere in '24 where does this business rest at what's normalized profit margins. netflix preached about 20, they're now below 20 no one else is close to that these businesses are not cash generative, which is a problem we are working to find out where these businesses settle out. these are not cable networks in terms of profitability. >> that's the interesting tradeoff, michael, the way i'm looking at it and tell me if you look at it the same way. so cord cutting is hurting revenue, but streaming and the investment in it, the growth of it is hurting profits, and so

you're moving people from one thing that was very high revenue, high profit but not the future to something that is the future, but it's unclear what the business model is. this is way different from the meta metaverse. people clearly want to stream. it is not clear whether people want to live in the metaverse. it's also not clear whether advertising is going to rescue this model, especially not in the near-term with the economy weakening, right >> you have it right, and the in this case thing about the old model of linear, cnbc always had live news, live information every day. you had a constant model but other people programmed spo sporadically there wasn't a new movie every night on cbs because they couldn't afford that in streaming, you're battling with netflix and amazon who have a different incentive structure. they all came from a place of rationality where people didn't over spend and they all had

shared economics it's a much more difficult pivot. that's been our talking point forever, right now what's happened is you had a collapse in linear cord cutting is accelerating during the pandemic and now during the slowdown. you can't control the speed of the collapse of linear and you can't, you know, slow down the investment in streaming. that's your future all these companies go through earnings season. all the same predicament is how do they navigate this transition without blowing up their business unfortunately the economy is helping them, really hurting them in this transition. it's causing the core business to weaken faster than they wanted it to as a pivot. >> speaking of transitions, really quickly on meta, the general tone is that an olive branch from zuckerberg, there's downside to the operating expense guide, even maybe some progress on ad signal could be a revenue tailwind what do you think. >> call me crazy, we actually

like meta. we talked before meta's earnings came out, carl's like what's happened here and i think mark addressed it in the email last night. '22 turned out to be a weaker year than anyone expected. the '21 comp in digital advertising was incredibly strong we had a bunch of headwinds in '22. i can't defend the meta reality investment, that to us as you mentioned, it's not streaming. it's hard to put value against it, so we take it off of our valuation, but the core business is not nearly as bad as the tissue -- two weeks ago their earnings update got people very upset i know jim cramer was very upset about it our thinking is mark has to be rational his employees need the stock price to work. you know, he needs to maintain quality engineering teams and

they're not going to be happy if they feel they've lost all their wealth this to me is a pivot to rationality, is what i hoped, what i expected. we didn't downgrade the stock after that call. >> i remember. >> that's a buy for us. >> pretty fascinating a couple of big stories there, michael. appreciate the help as always. good to see you, thanks. >> good to see you. as we've been talking, nbc news is projecting the republican ron johnson will win re-election in wisconsin as the picture in the senate begins to fill out a little bit, but obviously some big decisions yet to be called. >> we'll track all of them a fwith vg big after postin results. e 5g network. so you can do more than connect your business, you can make it even smarter. now ports can know where every piece of cargo is. and where it's going. (dock worker) right on time. (vo) robots can predict breakdowns

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get a gut check on affirm, the fintech company hitting record lows this morning, down 18.5% after missing on quarterly estimates. ceo max levchin joined "mad money" saying the company prepared for macro headwinds and can outperform peers. >> the market has to figure out at some point that we are different. if you look at the credit results you just referred to, we are managing to the number that is exactly what it was before the pandemic, before everything.

and that is because it's no accident it's by design we're running the company two goals that we set for ourselves and we have the kind of controls that i think a lot of our peers in the space frankly do not to hit the numbers that we feel we must hit. >> we'll see if that model holds up in a slowing economy, what the defaults look like right now. as i mentioned the shares are down a little over 18%. >> affirm does not have a banking license. interested in how that helps or hurts them as we head to break, take a look at bitcoin and ether along with coinbase and robinhood plunging doe digits after the break we will speak to the ceo of a major trading platform for more on how the industry is trying to calm some of this contagion. we'll be right back. ♪ finally? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire.

♪ and i'm going to tell you about exciting medicare advantage plans that can provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare you are covered for hospital stays and doctor office visits but you have to meet a deductible for each, and then you're still responsible for 20% of the cost. next, let's look at a medicare supplement plan. as you can see, they cover the same things as original medicare, and they also cover your medicare deductibles and coinsurance. but they often have higher monthly premiums and no prescription drug coverage. now, let's take a look at humana's medicare advantage plans. with a humana medicare advantage plan, hospitals stays, doctor office visits and your original medicare deductibles are covered. and, of course, most

humana medicare advantage plans include prescription drug coverage. with no copays or deductibles on tier 1 prescriptions, and zero dollars for routine vaccines, including shingles, at in-network retail pharmacies. in fact, in 2021, humana medicare advantage prescription drug plan members saved an estimated $9,600 on average on their prescription costs. most humana medicare advantage plans have coverage for vision and hearing. and dental coverage that includes two free cleanings a year, plus dentures, crowns, fillings and more! most humana medicare advantage plans include a silver sneakers fitness program at no extra cost. you get all of this for as low as a zero-dollar monthly plan premium in many areas; and your doctor and hospital may already be a part of humana's large network. there is no obligation, so call the number on your screen right now to see if your doctor is in our network; to find out if you could save on your prescriptions, and to get our free decision guide. humana, a more human way to

healthcare. let's come back to crypto. lots of developments this morning, reports suggesting that both the s.e.c. and the fcftc are investigating the ftx empire over its handling of client funds and lending. crypto stocks and koins are tanking dramatically this morning. let's hear from the u.s. ceo of crypto exchange. we had this conversation at the top of the show, ftx, they were supposed to be the white knights of this industry, if you can't trust them, why should anyone

trust any other exchange, yours included >> well, first of all, this is an unfortunate situation and you're right in the sense that trust is the central premise of any exchange or platform that should be used i mean, i think that ultimately context matters and i do think that we should let the sort of dust settle before we get into the vitriol of what happened here ultimately there are plenty of exchanges just like ours and platforms that secure their customers' assets that don't -- you know, do segregate assets, do not comingle, have one for one dollar positioning so i think that it would be a mistake to try to color everything under two players, albeit very consequential players. >> what context do we need, though, beyond a lack of transparency here, and why can we just believe that others are better you have a global business as well, right? how can investors and your customers be confident that you're not over leveraged there and that could affect your u.s. business

>> let's be clear, we do not offer leverage on our platform, we don't lend our customers assets and one of the things that has been beneficial for us in the u.s. is we are a multiregulated platform. we have a broker dealer that is goc governed and overseen by s.e.c we have state licenses and state regulators it's a hhighly regulated environment. what we are missing is a central thesis, which i do agree is necessary for standardization to create transparency. the key will be not to let the vitriol be the driver of that regulatory instructor. that will only drive crypto offshore >> you talked about those regulations in the u.s what are the checks on your international business >> we are regular ted in over 12 different regulatory structures. etoro is one of the most sfit k

-- we function in 11 regulatory structures we are regulation and compliance first company first. our risk management is very sophisticated. and so ultimately we think that that is the only way to have an enduring platform and business globally as well as in the u.s. >> i guess that's my question about this market and about businesses like etoro is how much are you reliant on even indirectly the hype around cryptocurrencies, the dollar volatile of cryptocurrencies, the availability of multiple coins, right because as consumers, retail investors lose some trust in the overall narrative about crypto changing everything in the near-term, do they migrate to more traditional exchanges where they might find some security? >> yeah, i think, again, in this space traditional exchange is a arguably sort of like what does

traditional exchange look like for a digital asset provider as well, right? i think it's the model that matters. do they have a sophisticated risk management structure, do they comingle customer assets. do they have other regulatory -- the fact that i'm regulated as a broker dealer influences how we run the business at large. i think that those sort of check balance questions are important, and i do not believe that all players are colored the same way. i think that ultimately we win when there is smart regulation and we welcome that, smart, clear regulation is the way to go the thing that, again, i would like to stress is when it's not one that is adaptive to this technology, it could end up driving activity elsewhere, and that is not going to protect the retail investor. >> speaking of retail, we can point to other episodes in the crypto space that you could argue would keep the marginal buyer from getting interested, whether it's a hack or something else i wonder if you think there's something about this particular

round of news that might make a would be investor think twice. >> think of like the hot kitchen we're in right now, monetary policy that's tightening, wars around the world it's not helpful an election cycle. it's not helpful to have one more sort of grain of sand, and this one being a fairly sizable one, creating noise. it creates distrust. so it's unfortunate, and you know, one of the things that i think as an industry we have to do is bring a sense of gravitas because this technology deserves that you know, one of the things that i feel really strongly about digital assets and this technology of blockchain is that it has the power to revolutionize a lot of things for regular people, and so we all as executives of this and stewards of this industry have to treat it responsibly for that promise. >> thanks for your insights today. talk to you again soon >> thank you we're going to have a lot more on the moves we're seeing in crypto when microstrategies michael saylor joins us tomorrow

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welcome back closing out the hour with another earnings mover, gen, posting a top line beat with earnings per share in line with expectation. joining us now vincent welcome, this last acquisition seems to be a big part of the strategy particularly cross selling. how do you do that with a slowing economy and stubborn inflation? >> absolutely. the two leaders of consumer cyber safety, because when we talk about it we're solely focused on the individual, the consumers. we now serve over 65 million paid customers and have over 500 million users. and cyber security has evolved from where we're coming from from security online and enabling you to have better

management online and privacy control. we'll need to sell a much richer portfolio to all customers and users. >> you seem to be trying to do that profitably. you said on the call you're focusing your marketing on getting higher revenue per user versus customer account. so does that mean less discounting? how do you go about spending that in a way. >> we focus both on the top line and bottom line as we know and in terms of using our marketing budget is about making consumers understand the benefit and most of the consumers today compromised for the use in the

digital world. we have a very wide base in terms of marketing spend, and we either tied market to consumer or go to financial institutions and insurance companies and include a cyber safety element we balance to reach out to the billion people connected every day to the intermet. >> we've seen more weakness in security stocks over the last week this is an area of tech that's held up better or been more resilient. have you noticed market slow down or scrutiny in recent months >> the reality is hackers are not slowing down maybe the economy is or interest rate expenses are up, but hacking is up, too, and we've seen over 500 million crimes

hitting consumers last year, and 80 million of them, and without them knowing it and then these actions are being resold on the dark web and a year later you can be a victim of the hacking event without them knowing your identity and credit card purchase on the dark web that need is definitely present, so even though the consumer sentiment may be down we definitely see a strong need in the long run for a full cyber safety as your daily life becomes fully digital. >> finally, it seems to me that security sales to consumers often lag pc sales so you questioned if i

understood if pc sales was down and consumer was going to have the same effect, and the reality is the device security is where we've come from 30 years ago and provide other products that protect you in the cloud without even going through advisers. so we are related to the market level environment. >> i appreciate that very much look forward to our chat next time good radar bothternally and externally we've been in the red most of the morning. pretty much on the s&p circulating around 3800, and crypto continues to be the story of the day along with disney and meta, and we did briefly take out yesterday's intraday low >> there's another report saying

maybe cz took a look at the books. we'll see how it works out with bitcoin, just above 17,000, carl >> busy night again between bumble and blade and rivian, and cpi coming up in the morning so the week's not over by a long shot let's get to the judge and the half >> reporter: welcome everybody to the half time report. i'm scott wapner, front and center this hour assessing the aftermath from the mid-term surprise to meta's layoff and disney's dow disaster. the company debating what all that means to your money liz young, jim labenthal all here with brian bellsky on set let's check stocks down as you see. we're down 0.75 on the s&p, down a little more than 1% on the