so that might put to rest some fears about an immediate bankruptcy they do point out a severe recession could accelerate that and also bring up the idea what could we see in the near term, a debt equity exchange that could extend maturities or perhaps even some other actions as well. i did want to end on that note, though that will do it for us on "squawk on the street. "tech check" starts now. good wednesday morning welcome to "tech check." i'm carl quintanilla with jon fortt. two earnings ceos this hour join us in just a moment. some big stories on both fronts. then trouble in tech travel. expedia, trip, airbnb booking all downgraded today by various firms. later on, what we learned from biden's chip trip to arizona, jon, and what that means for u.s. industrial policy. >> yes, and we've got to start with mongodb

it's up about 19% this morning after reporting beats on the top and bottom lines for the fiscal third quarter. strong guidance for the remainder of the fiscal year joining us now on cnbc, an exclusive, their ceo dave, good morning this is the tech stock of the morning for me because of what there is to learn about the overall -- the overall enterprise space from your results. so let's start with consumption. the trends seem to have stabilized give more color on what you saw on the difference between your q2 and q3, including kind of the selling by hyperscalers and isvs that helped you out. >> hi, jon thanks for having me what we saw in q3 was an uptick in consumption trends and it was broad based across every geography as well as every customer segment so that was -- you know, we feel

like in many ways there's probably a lot of people coming back off the summer holidays, coming back to work, engaging with our applications more and that's what potentially drove the consumption uptick across the board. that's both at the high level as well as the s&p space. our relation with the hyperscalers has never been better they are really leaning into working with us. they recognize that mongodb is one of the most popular technologies used in the cloud, and people are really embracing our technology to build modern applications and so you're seeing them engage with us both at the product level, in the go to market side in the field, and now each of the hyperscalers essentially enable customers through their own consoles to sign up so we're seeing interest from the hyperscalers recently. >> we're talking about aws, azure, google cloud in

particular so let me go into two particular trends that i think i saw reflected in your results. you talked about it a bit on the call the idea that you're able to make developers more productive at a time when customers are paying attention to costs and the idea that building on mongodb because you work across multiple different cloud environments allows customers flexibility that can allow them to have more control over cost how much is that influencing the momentum that you're feeling >> right so software it's clear is central to every company's value proposition so developers can make that happen with mongodb, it goes incredibly high the more productive your developers are, the faster you can innovate especially in an area where people are trying to control costs, people want to do more with less. so that's really resonated with customers. second, our broad platform

enables developers to build a wide variety of use cases from transactional to surge to mobile to analytics and so using mongodb for broad set use cases makes it more compelling and then in terms of the multi-cloud angle, customers really want choice they want to leverage different services from different cloud providers. they want to have geo-redundanc in different parts of the world and, three, they want to switch between cloud providers if they feel like it's the right thing for the business with mongodb they truly preserve opt optionality. >> do you think you have implications for the broader space? a lot of the commentary in the wake of your quarter is that you're uniquely situated to take share. how much of this can we apply to some of your peers >> well, i think what we're seeing in our business is that our top line is still growing very, very quickly, so we're proud of that. and two, we're demonstrating

profitable growth by increasing our margins. i think that's a message that's been received well by investors. i can't really speak to other customers -- i mean other companies. you know, we have heard that some of them are maybe not as comfortable about what's going on in the business, but we're trying to obviously focus on serving our customers' needs well we're going after a massive market we feel like we've proven and hit velocity where people do view us as an important part of the tech stack and so we are bullish about the future. >> i'll definitely be watching the dev ops and multi cloud story lines but valuations matter here too. so how do you react -- well, not just react, but plan strategically from here? do you lean into focused sales and marketing spend to continue taking share are you more focused on the partnerships that are giving that sort of ecosystem boost

with perhaps less control but better costs built into it >> well, we think the best companies, especially in an economics environment like this, focus on being very operationally efficient while planting seeds for future growth and we're doing that so we have a high bar for investment so where we're seeing great returns, we continue to invest, whether it's on the product side or broader market side and where we see maybe the investments and returns aren't as good, we're going to slow down and stop. the whole notion is about profitable growth. grow in a very disciplined way because we're going after big opportunity, we're still going to invest. >> what's happening in europe? the economies, a lot of the economies there are really struggling with inflation. there are enterprise players who really have to be careful about costs. is that sort of additive to the story line or does it make it a more challenging environment to continue to grow in? >> european trends are also

quite strong in q2 they were a little weaker and they have come back. maybe not to historical levels but the consumption trends have come back. in general, you're right in difficult economic environments, we really ask our people, especially our sales leaders, to rigorously qualify the forecast as you can imagine, there's more scrutiny on deals. approval levels are going up in the organization, so it's really important for our teams to really qualify the opportunities and make sure they have a healthy pipeline and that we qualify the forecast as well as we can so we don't get any last-minute surprises. >> well, this is a good surprise for some folks on mongodb stock up 19% dev, thank you. >> jon, thanks for having me. sentiment for stocks hitting some all-time lows according to the all-america economic survey and the public's view on crypto has been dropping significantly. let's get to steve liesman with some of those details. >> you are too kind, carl. i would describe it as americans hating on stocks and hating on crypto in our cnbc all-america

economic survey. take a look at the results and see if you agree with me 51% say now is a bad time to invest in stocks well, it was worse back in july, but you have to go back. going back all the way to march 18, just 30% those are kind of positive views and even neutral views through 2019 then it came down in the pandemic and it's worse than it was during the pandemic. just 26% say now is a good time to invest. and that gap is the second worst, i believe, we've measured in the 15 years of the survey. and not much better for crypto how the mighty have fallen, folks. take a look from march 20, 2022. 19% in march '22 were positive on crypto, 8% are positive now neutral, 31% 18% now. and look here, who has a negative view? 25% in march and that has now grown to 43% of the public having a somewhat or very negative view. and they want crypto regulated

21% say there should be more regulation oversight for cryptocurrency than stocks and bonds. 32% say as much. 25% say less and 22% are unsure but i think this is the important one. my friend, if you could zoom in on that right there. 58% of those who say they have invested in crypto want more or the same amount of regulation and oversight for crypto as they had for stocks and bonds who is negative on it? take a look. some of the key folks. men aged 18 to 49. a big change in their attitude post-grads, a big change in their attitude and significantly what we call the financial elite, those with a lot of money in the stock market and alsothose with higher incomes guys, am i not mistaken that it was just february of 2022 that crypto was the belle of the ball at the super bowl? >> yeah. and will go down in history with

the pets.com sock puppet as a call the top there so, steve, those are great numbers and they're not necessarily prognostications, right? this is a pulse of the culture it could be a buy signal for some of this stuff. >> it is but you know what, jon, i've been thinking a lot about that and i'm guessing you have too. to what extent does the public need to be confident in these -- in this asset class? do they need to have a positive view on it for the asset class itself to work while the use case of crypto is small, the confidence case has to be very large. >> oh, yeah. >> while it's not an essential means for transacting, then the issue becomes as an asset class, as a replacement, as a hedge, whatever you used it for, if the use case is low, the confidence case has to be large i think this industry has a lot of work to do to rebuild tha back up to get it back remember, it was just, what would you say, jon, you know better than i.

in the last year or so we started calling this an asset class. >> oh, yeah. i never really got to calling it an asset class personally. i was referring to stocks. back in the beginning of the survey results you were sharing about how people feel like now is not a good time to invest, it's really not a good time to have invested, which is different. >> sure. no, that's correct stocks don't have necessarily -- by the way, they did back in 2000 with the enron scandals, they had their go at lack of confidence, but i don't think that's the issue right now i think you're right, the issue is one of what is the outlook for the economy. our broader survey, jon, which you can read online shows there's not a lot of confidence in the economy right now, there's concern about the outlook. i think that ultimately is something that people are -- they don't have a perfect bad record or perfect good record in being positive on stocks and it being a good market. in general it tends to be coincident when stocks are up, people can have a good feeling toward stocks and that can be good or bad. in general, i think you want the

retail investor on board for a solid rally. >> keeping a feel on the pulse steve liesman, thank you. speaking of a lack of confidence in stocks, let's get a gut check on travel. expedia, trip advisor, booking holdings and airbnb all in the red by more than 3%. wolf research downgrading the online travel sector to underweight saying the travel demand is likely to moderate as the economy slows in 2023. morgan stanley taking airbnb down to underweight cutting the price target to $80 a share, noting slowing supply is a key risk to the stock. carl, travel has been very popular over the past several months as things have opened back up. and i guess some are also wondering, has some of that travel been pulled forward, as we like to say, with demand and a lot of other things? >> yep, we've been talking about this for a good part of the morning, whether or not we've reached that point where a lot of that excess savings which had been reserved for travel is

finally hitting its own end point. some of the commentary and the downgrade, wolf on booking and growing concerns about the company's european exposure. airbnb, the morgan stanley note has an 80 target the bear case is 60. they cut their 23 ebitda by 8% as active listings are slowing and that's not just for next year, that's going out into a three-year range of, say, '23 to 2025. >> all that, as you said, on the backdrop of things like jamie dimon yesterday saying that midnight is mid-2023 that's when the consumer savings carriage turns into a pumpkin. how much does the economy shift between now and then do things stabilize? do wages remain high i don't know if not, there could be trouble. still to come this hour, the ceo of sentinel one is with us a lot more on meta's meltdown

this week. "tech check" is just getting started.

just look around. this digital age we're living in, it's pretty unbelievable. problem is, not everyone's fully living in it.

nobody should have to take a class or fill out a medical form on public wifi with a screen the size of your hand. home internet shouldn't be a luxury. everyone should have it and now a lot more people can. so let's go. the digital age is waiting. let's turn to social stocks

this morning you've got pinterest partnering with elliott adding a portfolio manager to the board meta meantime facing a crackdown on targeted ads in the eu. as for digital advertising, paramount's bob backish offering his outlook on "squawk on the street" earlier this morning take a listen. >> i really think this is overblown. >> why >> we have a cyclical problem in advertising. we've had them before. you can go back and look at the data it's happened many teams, including since 2000 and this too will turn you know, we're using this as an opportunity to make some moves, really accelerate some moves, including in ad sales where we are reorganizing part of our sales force. >> let's take a closer look at the ad landscape this morning with oppenheimer managing director jason helstein. great to have you back this morning. i wonder how you're processing a lot of the commentary, not just from bob but a lot of the media companies the last couple of weeks and whether or not ads are truly a first in, last out when

it comes to cyclical downturns. >> sure of the on the first in, last out question you really have to divide the universe. you have brand advertising and that's first in, last out and performance advertising which is typically last in. so kind of probably the best way to describe the two, google, you know, they are almost all performance except for youtube and even part of youtube is performance. meta has largely been mostly performance. whereas companies we cover like roku and some of the brand companies like viacom, that's all brand. that's how we would divide it up >> right what did you make of this eu news yesterday regarding meta and their ability to target? the stock was down there was several headlines swirling around. how important was that one, though >> this is connected to like prior privacy regulation

the gdpr and the idea that certain constituents don't think that meta is properly complying with getting user permission so i don't think that's necessarily why the stock was down i think investors are broadly concerned that apple and google both hold the cards right now controlling the operating system, and that's going to put meta, facebook, at a long-term competitive disadvantage mark zuckerberg talked about that recently at a conference you guys covered so i think that is broadly the main overhang on the stock as far as this one specific thing, i think that's more of a nuisance than something we're worried about in the model. >> jason, i think an important thing for investors to figure out is what is the next evolution in digital ads is it more about knowing about

individual audience members and being able to target them which ios changes and other things have complicated, or is it more about brand advertising within premium content and the direction that netflix is moving in and i guess arguably that tiktok occupies in a way? >> i think it's actually the intersection of those two. so the idea today you still have, you know, the largest bucket of ad dollars in linear advertising with untargeted ads, right? so there's an enormous waste of consumers seeing ads that are not relevant to them either for gender reasons or geographic reasons or economic reasons. they wouldn't just never be a buyer of that product or service. and so, you know, as you move to connected tv, all advertising kind of moving programatically you can be much more efficient with your targeting and you can unlock those dollars and spend them other places. >> okay. >> again, at its peak, you saw

that with meta that being said, meta lost a lot of their advantage with the apple privacy changes. so i think it's really the intersection of those two dynamics. >> so if it is, whose technology has pole position. is it alphabet's with google sounds like it. >> yeah. we think google/alphabet very well positioned. youtube will struggle a bit as we move through what may be a recession over the next few quarters but ultimately they come out very strong with cookies potentially going away, their targeting technology will still have a very strong seat at the table. you know, we think apple is going to continue to -- i don't formally cover apple, it's another analyst. but we think apple is serious about using leverage with audience targeting and then you get into the other platforms. we put a report out today on roku they're the largest streaming platform in the u.s. in a third of households and really have

not embraced this kind of programatic technology but we think it's coming with their new president of advertising meta still has a ton of i don't say -- usage we think the threat of tiktok is starting to slow we think we're actually past the worst of it actually >> wow, it's been quite a run to the downside pins is on jim's show tonight, bill ready, and i wonder if you think this deal with elliott allows them to start to build something more constructive? >> so we don't formally cover pins but any time you have super voting control, which you do with the founder, it's really hard for an activist to be kind of an aggressive activist. they need to go in with kid gloves i think that's what you have here ultimately you've got -- elliott we think the company is

undervalued and wants to help add their credibility to the story but has to do it in a much softer way i think that's kind of what you're seeing here >> interesting certainly an interesting space for you right now, jason, getting more interesting by the day. look forward to talking next time thanks so much. >> thank you for having me ft x's disgraced founder and former ceo sam bankman-fried has tried to portray himself as an easy going, laid-back executive. we didn't know the extent of his issues at his now bankrupt exchange kate rooney has some new reporting that tells a different story. >> yeah, we've been talking to half a dozen people who worked closely with bankman-fried and a very different picture is emerging some insiders say that bankman-fried really put on an act by portraying himself as an easy-going ceo that is the persona most of us have seen in interviews recently, especially in his media appearances where he denied committing fraud and said he was unaware of a comingling of fundsbetween ftx and

alameda. but people who worked closely with him do describe a pattern of ignoring advice of his top executives, attacking employees who spoke up, and focusing too much on partnerships a key example resources pointed to a failed taylor swift deal. ftx had been on track to sign a $100 million partnership with the grammy winner earlier this year they described it as a disaster internally because of the price tag and a lack of clarity on what they were getting other than swift nfts. but they say bankman-fried stayed committed despite some really begging him to pull the plug they say it fits into a pattern of him ignoring top lieutenants and going it alone that deal ultimately fell through and swift declined to comment. while ftx insiders say some people questioned his decisions, he surrounded himself with a crew of what they called yes men and women. two sources use the word insular. one former top executive said sbf as he's known had a tendency to chew out employees who disagreed with him in a way that

deterred others from speaking up according to one top executive, his knee-jerk reaction was to throw people under the bus, as he put it. we did get a comment from bankman-fried. he said he disagrees with that characterization of his leadership style guys, whether or not he was in total control of ftx is one of the key factors in this ongoing bankruptcy and criminal investigations back to you. >> kate, we're certainly going to see if the hearings on the hill add any more intelligence to what we've heard from your reporting and some of his appearances. thanks, kate rooney. taiwan semi already locking in some customers for that new fab in arizona apple's ceo tim cook, and lisa su say they are planning to buy chips from the new plant we'll talk more about the implications for the chips sector and manufacturing in general in this country when we come back in a minute.

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welcome back to "tech check. i'm dominic chu. here's what's happening at this hour china has eased some parts of its zero covid strategy. officials are rolling back rules that confine millions of people to their homes and spark protests and demands for president xi to resign they're also reporting their biggest pullback in trade in ten years. exports sank more than twice what economists were expecting. campbell's is extending gains on quarterly results margins and organic growth topped estimates and the company raised its guidance. campbell's is being helped by consumers cutting back on eating

out. brown-forman missed analysts forecast the jack daniels parent company down 7% despite raised sales guidance jon, back over to you. >> all right, dom, thanks. the nasdaq meanwhile in the red again today. it's now down four days in a row. let's get over to the nasdaq and our kristina partsinevelos who has a look at what is moving kristina. >> thank you, jon. it's like you said, the nasdaq slightly negative right now. this is as investors are debating how bad this looming recession might be against optimism around easing covid protocols in china the industry is still 30% off its 52-week high that's almost a 5,000-point drop cloud names are higher ever so slightly but just barely but that's helped by mongodb up a whopping 18% after a surprise quarterly profit and forecasting another one for the current quarter. the biggest names right now on

the nasdaq 100, you've got -- i should say the biggest laggards, airbnb, booking holdings and tesla. morgan stanley downgrading airbnb on travel demand concerns and that's impacting the entire sector let's switch over to semiconductor names, which are pretty much mixed right now. qualcomm, intel are lower but applied materials is one of the stronger players on the nasdaq 100, up over almost 1 sp.5% rig now after loop capital initiated a buy on the company bitcoin and ether are still struggli struggling, both on pace for their worst year since 2018 and that's dragging down coinbase which is barely positive but down 26% just in the last month or so. carl. >> pretty incredible thank you, kristina partsinevelos. the president joining the ceos of apple and nvidia to visit a construction site in arizona yesterday. with more companies diversifying their supply chains, what is the

read-through for semi stocks of large? let's bring in vivek it's great to have you back. it sounds like you think the most obvious trade is going to be around semi capital equipment but that trade could last for several years. >> yes, thank you, carl. good morning i think when we look at what happened yesterday, i think it's great news for the u.s i think it's very good to have a more diversified supply chain. but when you think about this from the narrow perspective of just the semiconductor industry, it doesn't really change demand, right? who cares whether you are producing these chips as long as you are producing them and the demand really follows the cycle and the product cycles if you look on the supply side and see what taiwan semi plans to do, they were planning to move 1% of the capacity to the u.s. and now move 3 to 4% capacity to the u.s. even a few years from now, 90% plus of leading edge chips will still be produced in taiwan so

we are not really going to be independent of that dynamic. but it is true over the next few years there's a lot more construction that will happen in the u.s. and europe and japan and even in china, despite all the restrictions and i think that's really very positive for the semi cap equipment names, applied materials, lamb research i think they're on the sweet spot of the cycle because they benefit from the chip sector this is also a space where all the china restrictions and the valuation makes a lot of sense so semi cap equipment is one of the first places i would be looking to to add money to semis here. >> you can see on the chart where some of the china concerns weighed in but then recovered on some of these more reshoring efforts. i am curious about the stocks overall. it sounds like you think we might get a seasonal boost this quarter, but once we turn the calendar, things get more challenging. can you talk about that and how much it's related to europe? >> yeah, carl.

it's interesting that the stocks peaked in december of last year. nobody was talking about a recession then just as nobody is talking about an upturn or the next cycle right now. and i think the point i'm trying to make right here is that semiconductor sales and semiconductor stocks peak well before the cycle turns, but they also trough well before the cycle turns. so our baseline assumption is that the semiconductor industry started to see the slowdown very early this year in q2 of this year when the sales peaked i think q4 or q1 is the bottom of the cycle and if you are right, i think we actually have a soft landing ahead because it starts to get easier for semiconductor stocks. so we're quite positive on semiconductor stocks going into next year. that doesn't disregard the fact that we could still have some negative headlines in q4 or q1 but overall as an industry, we think that we are in front of a soft landing if the sales start to recover in the second half of next year, we

think semiconductor stocks will bottom right about now. >> i want to call out the implications of this tsmc investment in the u.s. the implications for intel it seems to up the pressure on intel to execute on its process technology road map. they have to not only catch up to tsmc, they have to pass them with this additional investment that tsmc is making, right >> absolutely. i think intel faces three issues first is over half of their core business is exposed to the pc market that's a very tough market to be in we are past growth in that market and they are losing market share to both apple doing its own processor and to amd the second problem they face is the core data center, amd continues to produce better products and gain more market share. so intel faces tough challenges in its core business now, when it comes to getting into the foundry side, the problem they have is that if

they cannot produce leading edge chips for their own products, how can customers come to them to act as a foundry. and then there is a business model conflict most of the customers that you saw at the ceremony yesterday, apple, you know, qualcomm, amd, nvidia, they all to some extent compete against intel. so i think there's a lot of conflict of interest in that business model so i think the lack of technology, secondly this business model conflict and third and most importantly is if i can get reliable capacity from tsmc outside of taiwan and the u.s., i have no reason to look for another foundry partner. >> so when benchmark-wise on the road does intel have to prove that their process technology is good enough and that they can produce well enough for the foundry model that they're coming up with to work what's a date, a quarter in the future that you would give them? >> sure. so i don't think it happens for

several years for the reason that first you have got to the manufacturing technology right for your own products. and then once you get that right, remember, foundries are a very different business model. foundries are a services orient model. that's why global foundries, these are pure play foundries because they don't have that conflict of interest in trying to compete against their own customers. so foundry is a very different business maodel so by the time intel gets the services side ready, we are very cautious on intel's foundry business for the next several years. >> interesting so many layers to this usiness it's hard to understand at times but appreciate your guidance as always talk soon. >> thank you now coming up we'll speak exclusively to the ceo of sentinel 1 that stock is having a volatile morning. it's been up, it's been down after reporting third quarter

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former theranos president awaiting sentencing today. that's after elizabeth holmes received a more than 11-year sentence just last month let's get to our scott cohn who is outside the courthouse in san jose this morning. good morning, scott.

>> reporter: good morning, carl. sonny and his attorneys can't feel good about today. after all, elizabeth holmes got an 11-year sentence and she was only convicted on four counts in the theranos fraud sonny was convicted on 12 counts she was acquitted of lying to patients he was convicted on those counts and so he could face a pretty stiff sentence when he goes before the judge today sopy balwani the former president of their knows and elizabeth holmes ex-boy friend he is 19 years her senior. they met when she was just out of high school he invested nearly $5 million into the company, came on as chief operating officer. the government wants a 15-year sentence he faces a maximum of 20 balwani's attorneys argue that he did not profit from the fraud, he was not like elizabeth holmes, he was not seeking fame or fortune and they want just probation. we'll see how that flies

he, regardless, is certain to appeal this sentence when it comes down today and speaking of appeals and elizabeth holmes, we're now getting some word about the potential outlines of her appeal this from a court filing earlier this week. among the areas that they are likely to take on, the government's expert witnesses, court rulings on evidence. there was some that was let in and some kept out. inconsistencies the defense says between her case and the sonny balwani case and that infamous incident where the government's star witness appeared at holmes' house in august and appeared to regret some of his testimony in that filing, holmes asked to remain frehan report to prison on april 27th, as the judge has ordered the attorneys argue she has strong ties to her partner and family, including her son and soon-to-be born child that incentivizes her to conform to

her conditions of police her pregnancy delayed her trial. she's very pregnant with her second child it's been nearly a year sense she was convicted and about four years since theranos shut down carl, jon. >> scott, thank you. we'll of course continue to watch that meanwhile, fanatics valuation reaching $31 billion after a new $700 million round that story is on cnbc.com. more "tech check" next hi, my name is tony cooper, 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

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welcome back let's get a gut check on carvana today. those shares tumbling as bankruptcy fears continue to grow reports saying creditors, including apollo and pimco signed a cooperation agreement to work uniformly in negotiations with the company. apollo and pimco hold $4 billion of carvana's unsecured debt. about 70% of the total outstanding. that makes room for a new bear case out of wedbush. downgrading it and reducing the target to $1, down from 9, saying the restructuring could, quote, leave the equity worthless in a bankruptcy scenario, jon. sort of keeping with some of the notes we've gotten from the sell side over the last couple of weeks. >> ouch, what a chart. those are 200s you're seeing on the left. meanwhile our tech executive council weighing in on recession spending take a listen. >> i think in terms of

challenges that the industry is going to face in 2023 is people are really going to want to make sure that they're justifying their spend, figuring out where to invest that next dollar. >> individuals will look for new ways to save, grow and invest money and look for recession-proof areas. >> for us, obviously, we are a public sector so we are dependent on our citizens and tax revenues, so that's always a concern for us. >> plus it would be really doubling down on what our customers need when it comes to differential security, including things like insurance, things like asset management, and things about advising them on their financial plan and lives >> you can get more exclusive insights and content available on cnbc.com/tec. "tech check" is back in a ment [newscast audio] hello, world. or is it goodbye? you know, it seems like hope and trust

are in short supply. [clap] now, as businesses we can blame and shame. or [whistles]... we can make a change. [clap] we can make work, work for our communities. create more equal opportunities. [clap] maybe, just maybe, get a bit more unity. ♪ let's have less cancellation and more conversation. prioritize conservation. and... empower future generations! [clap] [chuckles] let's question again what we think we know. use our power and our people... to pay back what we owe! [clap] ♪ it's time for business to show its true worth. because it's not goodbye, world. it's hello, team earth. [clap] now, let's get down to business.

exclusive. the growth of sentinel one continues to be impressive you're hitting this macro and

there are questions about how long that growth can continue. what signal are you getting from the customer >> yeah, i think that customer is definitely there and you see that read by the pipeline we continue to see quarter to quarter. with that i mean we're obviously not blind to what we're seeing out of customers which is elongated sales cycles very typical right now. working on budgets, definitely people right sizing their purchases, and as we kind of look to kind of next year, next fiscal year, we want to take a conservative approach what growth might look like and actually want to anchor more on our profitability and path to profitability and make sure we hit that no matter what, no matter what economic scenario or growth scenario we actually deliver.

>> so i wonder, though, looking at this from the investor perspective what that means. you tend to get when analysts come out and people look at the multiple you deserve, higher multiple because of that up to line growth. if you manage to hit that free cash flow and how quickly can you grow on the top? >> i think it really is more dependent on market conditions than our own growth. obviously we're going to work harder and we're going to do better and we're going to try and grow as fast as we can but we first and foremost want to make sure by fy-25 we can be a profitable company, and that seems a reasonable target for us we don't really care about the multiples at this point in time. we just want to make sure we continue with the envelope of spend we have. on the flip side again we're

going to finish this year right around 100% of growth, which is still, you know, a massive amount of growth we 5x'd our aor by 5% quarters ago and at the same time cut spend by half so we made tremendous progress. >> i wonder if you can characterize sort of the way the customer thinks right now. we talk about these budgets in the framework of cost discipline, but what happens if another risk catalyst happens, if there's a breach across industry how much do budgets change as a result of events so to speak during the course of the year? >> yeah, it's a great question and, you know, the nature of cyber security hadn't changed. cyber security is a must-have. you've got to have it. no one is running a protection

software like the one we sell. that remains intact. what we're seeing out there are customers looking for the core offering they want to make sure they've got the fundamentals right, and everything that could be nice, everything that could be deferred is being deferred every license you don't necessarily need for today, you're not buying for the future, you're buying for the right now, and i think that's the most prevalent theme we're seeingch the other one is customers obviously need to have their own envelopes and coming in asking for positions. all in all we've been able to not only maintain a really healthy price point but at the same time even grow our gross margin, so we're just trying to work with customers to make sure we can do what's right for them as they're going through this macro economic condition as well as we do >> threading that needle strong growth and the stock about flat, choppy as i said in

the mornings trade thank you. >> thank you so much >> if you miss part of the show don't forget to follow and subscribe to our podcast you can listen anytime, anywhere, wherever youdownload podcasts in the meantime tech check is back in just a moment. hi, my name is tony cooper. and if you have both medicare and medicaid, i have some really encouraging news that you'll definitely want to hear. depending on the plan you choose, you may be eligible to get extra benefits with a humana medicare advantage dual-eligible

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get you on update on the story we told you about yesterday, microsoft entering that ten-year commitment to bring call of duty to nintendo after offering a similar deal to sony only if microsoft's deal with activision blizzard goes through. a spokesman for the company telling cnbc, quote, as we've said before we are prepared to address the concerns of regulators including the ftc and sony to ensure the deal closes with confidence. we'll still trail sony and ten cent in the market after the deal closes, and together activision and xbox will benefit gamers and make the industry more competitive certainly an echo of smith's op-ed in the journal this week >> for sure, carl. and one more thing despite or maybe because of the downturn in

private markets, public equity ready to pick up the pieces. announcing its largest buy out ever after a busy year of taking companies private and a plan for about $11 billion in march, sales point for about seven in april. >> that's pretty interesting certainly going to get the question swirling about the appetite for tech at least in the pa space and looking at new c compa comparisons between valuations there and public equities. >> we started off the show talking a bit about that hashicorp is reporting a bit later and has been rumored cisco or others might be eyeing to see if it really wants to stay public there are lots of buyers still

out there in the market especially given the valuation reset that we're getting, and with these earnings we'll see where it goes, carl. >> certainly inflation is going to remain a big part of that equation as we're going to get a lot of indicators in the next few days, michigan expectations, ppi friday and of course the big one cpi headed our way next week the judge is in the house. let's get to the half. all right, carl, thank you very much. welcome, everybody, to the half time report. i'm scott wapner front and center this hour santa claus versus the grinch in a fight to the finish of the year anyway can stocks mount a rally in the face of fed and recession fears and with sentiment so bad? we debate that with the investment committee today right here with me at post nine cnbc's jim cramer. let's check the markets here just past 12:00 noon in the east it's a mixed picture i think we're still kind of in a wait aee