investors just another effect of the rising rates on the economy. david? >> and not an unimportant one. diana olick. mike, in the 20 seconds we have left, thoughts on the rest of the sday? >> s&p kind of lev stating the market coiled tightly here, under 4,000. might make a run at it here. also inverted yield curve, very dramatic. >> yeah. >> rest of the week promises to be quiet "techcheck" starts now >> good tuesday morning. welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa a lot more on tech's stories from dell to zoom to disney and more first, ftx executives taking to a delaware courtroom for their first ever appearance before a bankruptcy judge eamon javers is live on the scene there. >> good morning. >> good morning to you, karl they are starting any moment

with the bankruptcy of ftx we saw a gaggle of attorneys heading in here. the billable hours are going to be impressive on this one based on the number of attorneys who showed up for this hearing so far today. we'll see where we go with this today and whether we learn anything more about ftx's assets and who all the creditors are. what we know is that ftx owes the creditors at least $3 billion that could have over a million creditors involved in the bankruptcy before all is said and done. they've identified 216 bank accounts across 36 banks which have positive balances, so there is some room for optimism here for some of the creditors. the company said over the weekend that some of the assets are solvent inside some of the subentities that are inside ftx so there's a lot of unpacking to do here. we saw a bunch of filings hit the docket here in this case within the past couple minutes we're going to start pouring through those and they will get under way inside momentarily as

well the big question on everybody's mind is, how much money does ftx ultimately owe and who does it owe that money to? those answers we might get the beginnings of those answers today, but nobody is expecting to know the entire picture by the time this hearing is over this afternoon back over to you. >> all right eamon javers, thank you. and now let's kick off today's feed with a look at hardware courtesy of dell. shares on the move after a week of unexpected current quarter revenue guide as the company beat estimates, but warned, quote, slowing economic growth, inflation, rising interest rates and currency pressure would pressure customer spending of course there's more to delve than just hardware, planning a software networking, et cetera one positive sign, operating income up 68% year over year a company record $1.8 billion. profitability looking okay there, dee, but signals on

consumer, but we had sort of expected that. >> yeah. >> i think we saw dell perhaps bounce up a little bit it's actually positive so far, up nearly 3% after best buy reported that they're going to actually hold to their full-year target, yes, the consumer is weaker than it was, but at least somewhat stable. >> yeah. the stock has been all over the place this morning, pretty volatile with the hardware companies really coming down to the earnings good or just less bad than expected. in terms of dell, tell me if you disagree, this is more of a supply story than a demand story. next year, fiscal year, revenue still to decline double digits year over year i think that's worse than the street was expecting but half of that out performance came from lower costs for components and logistics in the quarter, carl a reversal of the supply chain issues is helping the company, but that central question of demand still not exactly positive. >> yep although it's a stuff macro, at least some argue today, dee, is

an environment which dell can outperform over at bofa they say they can take share, outgrow pc and service markets and take share from competitors might be the silver lining on the stock. more of a supply storyit bng i think demand is the issue as they're talking about some customers, particularly on the enterprise side, pushing out some orders. others that need the i.t. to run and then we consumer demand weighed down from where it was just on the pc side. maybe it was more of a supply story before. it's more of a demand story now. but dell is managing to be profitable it's being run efficiently enough that they're confident they can weather it. >> i think that's what i meant, the positivity is coming from the supply side, but the core question of demand still soft there. one other thing i thought was interesting, financial services are increasing 17%, also excited what's going on in the macro,

customers move to preserve cash and finance more i.t. purchases. shares up 3% zoom, another mover after the bell, they reported last night the stock is now on pace for its worst day since august after issuing weaker than anticipated guidance for the full fiscal year despite beating expectations for the quarter the pandemic darling pointing to macro headwinds. the ceo also warned zoom is facing, quote, heightened deal scrutiny for new business as competition climbs in the space. the dips placing zoom among the biggest week to date laggards on the nasdaq 100 and it is driving the cloud computing index for its fifth consecutive day in the red. i want to point to one chart out of zoom earnings and the amount of stock-based compensation. what a huge number doubling year over year in the quarter and year to date nearly tripling, so this is a company like many others i would say in the software and tech space that

spent a lot of money on stock-based compensation you can see just how much it has climbed over the last few years. and jon raises questions about the bundle, right. we talk about competition. you have the likes of cisco and microsoft and google able to offer video conferencing software which is, of course, zoom's strength is trying to diversify into areas like calendar, but a lot of companies already have that figured out. >> no. a lot of companies supposedly had video communication figured out and then along came zoom and this is still a company that's got a high teens market cap at the very least there's some things they can do. i don't know i'm not trying to make a call on zoom, not my job, but i think the factthat they could -- i continue to use zoom i've got access to teams and access to webex, et set ter they have a loyal customer base and good technology. i think they endured a heady time i remember standing next to eric

on the day of their ipo at nasdaq, and he was feeling a little, i don't know, seemed queasy about how quickly the stock price was moving up. he doesn't have that to worry about anymore now. >> he may be queasy on the other sense. >> now he can focus on building the business from about the point where the stock was at the ipo. and it's an enterprise business more than consumer clearly despite what we went through in the pandemic now our next guest had different takes on the software space. baird maintaining an outperform rating but lowering their price target on zoom citing lower free cash flow while our second guest believes productivity stocks like zoom will benefit from cost-cutting along with salesforce joining us baird senior research analyst will power and mighty capital founding managing partner s.e.moyati i'm curious about what zoom 3.0

perhaps might look like at this point. things relatively stable one might argue but not on that rocket ship trajectory we saw during the pandemic. what do you like about what you see and what are your major concerns >> yeah. jon, great question. thanks for having me and good morning. happy thanksgiving look, i mean, needless to say it wasn't a stellar outlook yesterday from zoom. the quarter was okay, but i think there were two things that have contributed to the weakness of today you know, a, there were some leading indicators as it pertains ta growth next year that raised concerns and then, b, much higher stock-based compensation when things aren't going as well, against the greater focus from investors those are contributing to the weakness longer term for us, this is all about, you know, the platformf platform leadership and added capabilities around zoom and other items they introduced recently as zoom tope pe ya

event. look, near term there's no question, they continue to, you know, face some of the pandemic hangover elements. >> is your bet on the best of breed players like a zoom, in this environment where so many have to figure out who is going to win the next generation of collaboration, or more on the platform likes microsoft, like salesforce, where is the biggest opportunity now? >> yes my personal thesis for investing the best product wins. at the beginning of the pandemic zoom was a clear winner. since then, tools like microsoft and cisco have made great strides to improve their products the bets are off you're looking for a portfolio that will outperform in the long term you want to look for companies that are helping businesses reduce costs, boost

productivity, and my advice is we're going to see a lot of these companies realign their messaging in order to support that, you know, cost cutting, ri model, productivity boost so that they can turn the corner and get their revenue back up. >> hey, will, i'm not sure zoom is considered a canary in terms of the overall space but there has been discussion today about the fact that crowd strike is coming up, snow and other names, intuit and they better be good otherwise software as a whole might come under fresh pressure. do you agree >> i think that's right. look, i mean, zoom within the unified communication space as opposed to enterprise software broadly. they're still subject to some of the same keys and they're seeing lengthening sales cycles in some cases. for the previous comments they're a platform that lowers total cost of ownership and some places they could benefit but as

we indicated earlier still facing that so-called pandemic hangover and slow growth as it pertains to upcoming names yeah, we still have high expectations for snowflake in particular the trends around cloud data remain positive and despite slowing growth from the hyper scalers like microsoft azure or aws early in the earnings reporting cycle many cloud names -- i think they are still well positioned as we head into the next couple weeks. >> as we continue to see valuations come down, how are you thinking about consolecation in the enterprise software space? zoom 209,000 enterprise customers up from the previous could be attractive. you saw stewart butterfield sell slack to salesforce. do you think that be could be in the cards? >> i think it's a possibility. i'm not sure the company is interested in doing something

like this, but what we're seeing is, post-pandemic, a new wave of innovation where companies like salesforce and adobe ride the cloud innovation wave that started about 20 years ago post-pandemic we're seeing companies take advantage of a.i., analytics, so the winners of tomorrow over the long term we think are more like atlantan, amplitude, that new emerging platform and my take is zoom is probably one of the newer platforms. >> well, what about you? how are you thinking about conle isedation and where do you think it would come from other tech players or private equity funds looking at more private deals? >> it's true - >> i was going to say that's a great question. >> i think as you look at zoom and the unified communication space within broader software, we haven't seen private equity interest yet, but it doesn't mean it couldn't happen. i think there are a number of

interesting things there are opportunities, whether, you know, salesforce or in oracle, names that have dabbled in communication software, where some of the names like zoom i think probably could. they have focused on whether zoom could be a buyer of assets. it made a run at 5.9 at one point, has a balance sheet over $5 billion and generates good free cash flow my suspicion more of a tuck-in variety. longer term, with a bigger enterprise software. >> all right will, s.c., thank you. >> thanks for having me. meantime ftx is headed to delaware bankruptcy court. more on that story with one of the company's creditors next "techcheck" is just getting started.

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let's get a gut check on tesla. stock on pace for the worst month ever dropping more than 25% in november. elon musk's twitter takeover, renewed concerns about covid restrictions in china some of the headwinds putting pressure on the stock tesla shares also on pace for their worst year ever since the debut in 2010 down more than 50% since january and set to break a

five-year win streak jon, we had discussion this morning about just what tesla is right now is it reflecting competition from gm and ford, weakness in china, proxy for how much musk may have to sell in the future to fund twitter. >> or a proxy for how much people believe that elon musk can pull another rabbit out of his hat, and he has done it so many times in the past but he didn't want twitter first he wanted twitter, didn't want twitter, then had to have twitter, can he run twitter up the mountain as opposed to into the ground more doubt around the elon musk brand out there in general traps that's what's being reflected in tesla stock. >> and that's where his focus is you had a fascinating conversation with phil about how much of it -- how much of the story is around elon musk himself tweeting about the company, the company doesn't spend anything on market so he does drive a lot of that hype, and you saw the share price up

700% over the last three years, but essentially flat over the last two fascinating to keep watching let's let's giv back into ftx, the first bankruptcy hearing under way in delaware with billions at stake the company owes the top 50 creditors more than 50 -- $3 billion combined to monitor suspicious transaction alerts joining us gene alice co-founder and ceo michael. thanks for being with us this morning. can you tell our audience the extent of your exposure. how much do they owe you >> you've asked the question, but the customer of ours, i can't share the number, i can just say they're like a regular to small customer of ours and we become a credit. >> why can't you give us the number i wonder, did you accept payment

in ftt or any other tokens do you accept tokens generally as a form of payment for many of your customers >> no. so we always had the policy that we don't accept tokens, only u.s. dollars we accept bitcoin but they're converted on the spot at the time they transact to u.s. dollars. we only hold and accept u.s. dollar payments from customers the reason i don't want to get into the number, we don't share our prices and don't share details of our customer contracts. >> michael good to see you again. we spoke some time ago and since your business is sort of forensic analysis of what's happened on the blockchain, i imagine you're getting calls trying to understand what the fallout from ftx is. how much systemic risk is there within crypto do you think being exposed during this period of time where from stable coins to

ftx and genesis, et cetera, we're seeing dominos fall? >> so i think like the extent of the risk, what i say sit back into time of sales and three arrows is dominos, when markets like two down, we have a bear market, definitely see there's been leverage in the market so far, and when that happens one domino falls another one falls and another one falls six months after that that's what we saw right now this was by far the biggest domino that fell right now if you look at the market participants there's like different kinds of risk associated to this, right. so we have indirect exposure from people who will trust bitcoin who will get like attached to the different prices of crypto and at the same time we have direct exposure from those who have funds directly like on the ftx exchange and now very liquid and hard to get hands on and that will probably

cause a little bit more like downfall in the industry, but it's hard to assess how much because many of these things are not unchanged. many deals happening more like let me use this as a collateral view and then i get a loan from here and i can't see that on a blockchain. >> right so it's partly the leverage in the system, i guess, is what you're saying and leverage that's partly based on coins that have as much value as people believe that it has i've used the chuck e. cheese token metaphor and crypto fans got insulted, but i think it's more relevant than ever today. how long is it going to take to unwind the amount of or uncover i should say the amount of leverage that's in the system that in some cases is going to amplify the effects of these dom dominos falling? >> the effect of these things take several months. it takes a while to figure out

where -- what is the size, what are the impacts and so on. we have seen in the press recently that other companies have come out and said we had a big exposure, this will mean this and that, and some said we had big exposure and don't know what it means. that takes months to uncover as usual there can be more hiding we didn't know that the exposure that ftx had to three arrows but that became clear right now. we see that there might be other things hiding, so a couple of months usually it takes before there's a good understanding of the size of this. >> michael, your company provides compliance and investigation software to, quote, hundreds of top institutions, but the biggest scandal in crypto was under your nose, one of your own customers. how do you think about protecting customers or your clients from potential bad actors in the space and how much do you know about your own customers? >> so what we know about our customers, our customers buy our compliance solutions

transaction monitoring, they want to ensure that their customers are not involved in criminal activity in one way or the other. that's basically the involvement we have with our customer. we cannot say whether they are in -- whether their balance sheet is okay and we would not do that check. similar to if you take a company like any other cloud provider that might be a bigger credit than ours they would not check the balance sheet of customers they assume the businesses are liquid when you see them backed by big names and have a lot of interest around them. >> understood. fort whole industry it's becoming clearer partial audits and proof of reserves are not enough to understand the balance sheet, not that that is your job, but are you pushing for more of your customers in the industry to publish more information and have more transparency >> i am definitely okay for that and i also think that that goes hand in happened with what we

see with it. this is something that concerns me deep lu when i see that people lose money or get their money locked up for many, many years while the bankruptcy basically unfolds. so it's something that i'm pushing for to auditing, ideally you have regulation around to do stuff like that because that's what we need we need to ensure that people have the money when they say it. >> the whole industry. thank you very much, michael we got an expensive streaming business, murphy theatrical outlook and no succession plan. bob iger has a tough next chapter at disney. we'll discuss it in a moment

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given challenges on the horizon including a new succession plan, will he pull its off in julia boorstin joins us with more. julia? >> he's moving quickly bob iger firing a top executive and announcing the restructuring is in the works. he says the restructuring aims to, quote, honor and respect creativity as the heart and soul of who we are. in a reversal of bob chapek's separation of content creation and distribution into two divisions he's fired kareem daniel, he ran media and entertainment distribution or dmed in a memo iger said he asked general entertainment chairman dana walden, studio chief allen bergman, espn chairman and cfo christine mccarthy to design a new structure that puts decision making back in the hands of creative teams and rationalizes costs and aim to have the new structure in place in the coming months i fundamentally believe that story telling what is fueled

this company, and it belongs at the center of how we organize our businesses now the spotlight turns to those executives that iger mentioned and the board is imperative he develop a successor. one thing he failed to do in his delayed retirement when running disney deutsche bank underscoring the focus of an importance on content writing the decision to reinstate iger was about lack of confidence in chapek's creative leadership saying of iger's finding a successor there just aren't any other bob igers out there. perhaps this time they will start with a creative leader and try to develop the rest of that individual's skills over the next two years one name that could fit the bill chair dana walden. but one thing is for sure, as this all happens, iger is showing he's moving quickly to drive change and boost morale. back over to you. >> pretty good look at what he's

got to do. everybody surmising about potential asset sales. obviously, the binary question about hulu, ongoing cost cutting, revising the long term dtc targets. do you expect news on those fronts in the near term or so much to be done mending relationships both in and out of the company that that's going to be more of a longer term story >> well, look, there are all these pieces of this one thing we know is that the ad supported disney plus is launching on december 8th. another thing to keep in mind is that iger might take a different approach to pricing at the parks than chapek did. chapek recently raised pricing at the parks again and the pricing at the parks has continued to rise and it will be interesting to see if maybe iger rolls out some discounts at the parks or halts that constant increase in prices we've seen in recent years i think as we see consumer spend coming under pressure that's going to be something to watch another thing just to keep an

eye on here is the strategy around what content goes to theaters and what content goes direct to disney plus. disney does have one other massive theatrical release coming up this year and that is the yav tar sequel important as a franchise for the company and another one of the crown jewels acquired as part of that fox acquisition. i think iger is going to continue to move quickly but the fact that he announced the restructuring process has already kicked off indicates that he really wants to engage with his deputies to make sure they're creating a structure that can continue to exist for years to come, not just for the next year. he's trying to set this company up for success for the long run. >> and probably pretty safe to guess that the next ceo isn't going to come from the parks business i'm just out on a limb there a quote that concerns me analysts, quote, there just aren't any other bob igers out there. isn't that the problem, right?

succession wise? that's the perception. >> yes but remember, by the way, there's a great book written on this by james steward who is a contributor to cnbc called "disney wars." when bob iger started he was not bob iger either. there's a history of people having to grow into their roles and that's the question who can grow into this position. no one is bob iger. >> two years is not a long time to grow into anything. if you don't already have the pieces in your resume to take over from bob iger minus maybe one more piece, in two years, are you really going to be able to get it? isn't part of his role to elevate other people to the point where among his leadership team investors, employees, others, have confidence in them and we stop hearing this there just aren't any other bob igers? >> and that's the thing. i would say just remember bob iger was not bob iger when he started 15 years -- in his 15-year reign as ceo

dana walden, the reason people are pointing to her, she has the creative chops and good relationships with talent and well respected and also could be put into a position now maybe as part of this restructuring, where she would have more of a business role as well. i do have to note, you said they won't have another parks executive in the ceo world josh demar ro who is running parks, seen as more dynamic than bob chapek was, of the content business as well he is definitely one of the names from a sort of strategic point right age and he's very well liked i do think you're right that the board would probably look for more of a content person then john, what if there's a big deal work iger look to do some sort of m&a that could bring in someone that might be well positioned to take over. at this points i think with the regulatory landscape i'm not looking at a big apple-disney

merger, merger, but it's interesting to speculate about what kind of m&a could be sort of a hire situation. >> it's always interesting to speculate. we do it pretty well that's a great chat. let's continue the conversation. our next guest expects investors to be happy with iger's return but he does not believe a lack of leadership is disney's problem. joining us this morning cowan analyst doug who maintains his market performance rating. he had a great piece widely quoted in the trades and papers basically we do not see or do not view iger's return as necessarily a sign of better times to come. what do you mean by that >> disney has structural issues, right, and a lot of structural issues predate bob chapek. i think one of the biggest ones was that when bob iger decided he wanted to buy the fox enterta

entertainment assets back in 2016 that changed disney fund mentally being a company solely focused on branded family ente entertainment to one on general entertainment as well. that was part of the run up to launching the streaming strategy the valuation of the media assets since the deal has happened has come way down for well chronicled reasons. it's hard to argue that rupert murdoch didn't vastly get the better end of that deal and having bob iger in charge of the assets or bob chapek, i don't know that it changes the underlying reality that those assets are struggling. >> yeah. your broader point, we've been having this debate about disney since the days of touchstone is it stronger to be concentrated in core disney fair or more jgeneral? not only did they not need the fox assets, but you thought it

was priced too low that the consumer base will pay up even for a narrower range of product. >> there is an alternate universe where they didn't buy fox and launched disney plus at a higher price with somewhat less aggressive content spending out of the gate. it certainly wouldn't be as widely distributed as it is now, but i think it would still be pretty widely distributed and you look at people who like marvel and "star wars" content they're priced in elastic and i think a lot of parents and kids would have gotten it regardless. disney plus would be probably in a much more profitable spot still growing. the business as a whole would be in a more profitable spot and far less leveraged and i think they would have amuch stronger position to deal with all the headwinds hitting media right now than they are in the actual world we have it >> so doug, does bob iger needed to solve the structural problems and show better profitability or

does the street give him a pass because he's the better creative guy and what does that mean for succession plans is the street going to be more patient with his successor than with chapek? >> yeah. you know, again, i don't know that there's any kind of magic wand he can wave he wants to get the company' focus back on creativity fy look at the output the movies have done quite well, "black panther wakanda forever" had a massive opening weekend. the content that's come to disney plus hasn't all been great but certainly the mandalorian has been very good, loki several shows that were good i don't think kevin is getting marching orders necessarily from bob chapek or was. so i don't know that there's some dramatic change that's going to make things run better. as far as, you know, the street is going give him some time,

obviously, but if he's true his word and only going to be there two years he doesn't have that much time. the other issues then, whoever comes in to replace bob iger is going to be looking over their shoulder from day one given the short hook that chapek got. >> yeah. if, in fact, it's limited to two years there's so many interesting questions we're going to be tossing around for the extended future, doug. look forward to next time. thank you. >> doug over at cowan. >> a news update with our contessa brewer. >> hi there, carl. here's what's happening right now. best buy surging after reporting demand for electronic gadgets fell less than expected. the retailer also raised guidance and resumed stock buybacks. >> american eagle outfitters reported a surprise quarterly profit and a big drop in inventory levels abercrombie & fitch posted strong numbers including a margin beat and raised guidance. shares of both retailers are soaring now more than 15%.

medtronic stock falling 6% afte cutting earnings guidance. the medical device is still facing supply chain issues and slow recovery in the overall volume of medical procedures using its equipment. and the global economy will grow just 2.2% next year according it a key forecast from the oecd the group sees the u.s. and eurozone growth of half a percent. higher inflation and russia's war in ukraine are among the reasons for the predicted slow down in growth jon? >> thank you amazon reportedly losing billions on alexa and the losses might be growing but is that a problem. we will discuss next

>> i want to go to game and now i've left a game what does that look like in the next phase?

reports out this morning on the state of amazon as alexa business one of the first spots to see layoffs as the company pledges to cut costs employees telling business insider the worldwide digital segment which does have echo smart speakers operated at a $3 billion loss in the first quarter and losses are growing one employee calling alexa a coloss yal failure of imagination. we've talked to the device chief for a long time but it does seem like the locus of the cutbacks will be centered in that area. >> it might be this is funny because a few years ago so many were saying

why didn't apple invent the alexa, innovation is gone at apple. wait a minute, apple is selling hardware at a profit which is a different business than what amount is doing. this isn't a dis on alexa. investors need to remember alexa is not really a business it's a driver of usage it's like netflix's content spend frankly. it's a loss leader in a sense but it gives amazon more data signal into what people are interested in. it's a play in search. that's not to say they can't afford to cut it back as time shifts and they might want to invest elsewhere i don't think it's fair to judge this as a hardware business because in a way, the assistance, you know, combined with kindle, combined with other things are hardware businesses but these are underlying technologies that are meant to drive usage and quicker learning >> so i agree with you in that alexa was always supposed to be part of the amazon fly wheel,

support the other pilars like prime and e-commerce i might dispute the quality of the data in my household we used alexa to set alarms and access my spotify music. we don't use it to shop on amazon.com we've never watched anything on it despite having the show version. so i think maybe it raises questions about the usefulness and what data, carl, it's getting here that's one of the things we've asked in the past, david limp, what are people using it for and they say there's going to be more, they're offering more, games and trivia, but even that is frustratingly slow in my household. you use it for this very narrow set of actions that i'm not sure is driving that flywheel. >> yeah. we're going to find out. the whole retail operation and tougher macro is a different story as well. got more market action ahead we got gains this morning. dow up about 275 take a look at the laggards on the nasdaq today as we have seen some weakness in elements of

retail dollar tree on the heels of their results opened lower this morning as well. back in two.

couple days with higher inventories could mean write downs ahead. kristina partsinevelos joins us with a look at names most at risk what did you find? >> what we know inventories increased over the last quarter

and that's leaving chip makers with a dilemma, keep stock piling, cut prices and sell or cancel, slash delay orders and then take a write down their bookings and back los angeles a-- back logs are holdig up better. the cfo said they have opted for higher levels to reduce lead times and expect voer voe to cease. other companies have opted for write downs because they are unable to utilize the supply they committed to. take qorvo, they took a charge against their commitment because they didn't need the chip products other firms stuck with large purchase commitments qualcomm has over $13 billion due in the next 12 months accounting for 70% of its cost of goods sold. you can see other names on your screen like nvidia, marvel they have large, you know, 20% more

commitments just due in the next year or so so for those investors watching right now worried about stock piling or write downs, wells fargo suggests software and ip chip stocks like kay dens is outperforming the s&p 500 year to date. they are also bullish on names with smaller purchase commitments and larger exposure to the auto sector like on semi and wolfspeed. the auto sector is considered to be holding up better than end consumer segments like pcs and smartphones. jon? >> thank you the chip industry facing a pc slump, stricter controls on what it can export to china. amd is diversifying its approach katie has this deep dive on lisa su's momentum and bets on a new approach to design. >> known for commuting but now it's branching out, its chips inside tesla, the mars land

rover, 5g cell towers and the fastest super computer. >> they used to be under the covers people didn't realize chips were important and i think what the pandemic has done is it's just reminded people really highlighted why chips are so enabling to everything that we do. >> amd amd only has major competition from two other companies when it comes to designing the most advanced microprocessors, intel and cpus, central processing units, and gpus amd made history this year when it surpassed intel's market cap this year for the first time ever >> i think it's beating on all metrics that matter. unless intel canix i fts manufacturing, they will continue to do that. the right . get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech.

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it may be the most wonderful time of the year but not for shippers like ups and fedex as consumers continue to pull back amid higher prices our frank holland joins us with the break down this morning. hi, frank. >> reporter: good morning, carl. 90 million packages from black friday to christmas that would actually be flat year over year. we're at the ups smart hub outside atlanta where they're preparing for any surge using a

combination of autoimation like the truck you see behind me and of course human workers. so the question is there going to be a big holiday surge? big retail shippers being charged surcharges over preholiday volumes there's also question about on time delivery. on time delivery directly impacts markets, a big deal for this industry. anything over 95% that's pretty good i also spoke to ups what they're doing here on the ground so they're still claiming to hire seasonal workers >> if the volume increases we have the capacity through technology and through the use of automation to make sure we deliver on time.

and if the volume does not materialize we're able to make sure we operate efficientlyand effectively and still provide the same value to our customers. >> again, they're ready for any surng but overcapacity that might end up being the story this holiday there's 20% more capacity available and that over capacity is creating an opportunity for new e-commerce now, to be clear they're not true competitors but they could grasp some of that volume that could be very crucial this holiday season >> all right, market share along with that. thanks so much fascinating especially ups versus fedex and also amazon tech check is back in just a moment

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one more thing hedge funds have a new top pick, and that is microsoft pausing

amazon as the stock with the most hedge fund positions. saying the company's cloud business is still, quote, saturated for more growth even in a global shutdown, calling the businesses of amazon and google, quote, saturated by comparison there was a note this morning, too, that according to their data checks azure edge aws on total customer cloud production, they're positive there, john no surprise, there, i suppose. microsoft has been among the steadiest of the tech names this year >> well, it's diversified in some interesting ways. i think the narrative is shifting as i've been saying and some of us have been saying. it's not just infrastructure as a service, now we've got to turn to profitability in a world where you assume the cloud is a key part of enterprise

does that mean mna, building more vertical spaks, we'll see >> we did have a conversation one time microsoft was seen as a bedrock of stability we'll see. there's a lot of names reporting in the coming day. let's get to the half. welcome everybody to the half time report i'm scott wapner front and center this hour, refresh or reversal what is the state of stocks and that year end rally many are still predicting we'll ask the investment committee. joining me now everybody's here at the desk today. let's check the markets. there you go, we're higher across the board dow is good for nearly 300 just shy of 34,000 there