we're talking about a $360 to $370 billion a lot of it will come down to valuations a lot of people are debating whether it is a stock worth buying. >> we will keep our eyes on tesla. in the meantime, "tech check" starts now >> good tuesday morning. welcome to "tech check." today you just heard about it, tesla falling again. production pauses now hurting that stock is the bottom still not done plus, what the digital markets act means for meta, google and apple. then, is it too late for a santa claus rally. down 8% in december alone. the s&p on pace for a historically bad year as well. are there names that can provide

a bounce it is the last trading week of the year it's been a rough one for tech and growth so far. what happens next, of course, will continue to rest largely on the fed's trajectory, the labor market guys, i was in miami over the holidays let me tell you it was a different picture than what i see on a daily basis service stop everywhere at the hotels, at the restaurants you can valley your car everywhere, including the hospital if the job market is what the fed is looking at next year, it's not here in the bay area, the tech jobs at google, apple, microsoft that will move the needle it is the services jobs. if miami is any indication, there could be a long way to go. >> what's interesting is looking at that zip recruiter data showing tech workers are able to find jobs maybe more quickly and more efficiently than many people had thought so there is this question of whether the job market remains tight even in the tech sector despite so many layoffs and the fact that these high tech jobs

are so much in demand, frank. >> yeah. another thing to think about is that shelter inflation is something that's probably the stickiest out of all of this we have seen wage inflation that fuels that shelter inflation that's something that doesn't appear to be going anywhere, especially with the housing market the way it is it is easier for people to change homes because they're in a house with a comfortable interest rate. that's pushing a lot of people to the rental market we have an undersupply. >> what does that mean for check? it's been a rough year is that set to continue in the next year. of course it makes their valuations look less appealing tesla one of those tnames holdin back the chance for an end of the year bounce. the company suspending production a day earlier than expected tesla planned to suspend model wide production from december 25th to january 1st. that comes as covid infections rise in china following the su

pension of a zero covid policy tesla, as we well know, has lost two-thirds of its value this year nearly 8% this morning guys, it has had this incredible lead over other auto makers in terms of ev. it really blazed the way key question, though, i think for investors is are the fundamentals changing? can it keep that lead? we know that elon musk is distracted can he get out the cyber truck, the semi can he do everything he's been promising? it's a real moment for tesla investors, especially retail investors that have really stuck with the stock. >> absolutely. obviously we're in an inflationary environment a lot of questions about people's ability to pay for these higher priced ev models. tesla hasn't had the majority of the ev market. the model one and three still 3% of the u.s. market starting on january 1st, tesla will get relief from the

inflation reduction act. we will have to see what kind of impact that has on sales. >> frank, don't forget here there are these two other factors impacting tesla. number one is the fact there are so many other rival evs in the market than there were a couple years ago. and then of course there is the twitter effect, the fact that elon musk had to sell so many shares because of his ownership of twitter so i just feel like we can't understand estimate how much investors are seeing maybe elon musk is just distracted. >> look at that. now down eight and a quarter of a percent. it is just dropping. >> we have to remember, he gets on twitter spaces and says he won't sell any more stock, we see a bump in the stock. so we still have the call to tesla people are following a our next guest thinks bearishness means the markets are oversold and it might be

time to buy the dip. group founder, always great to see you. happy holidays. >> happy holidays, frank thanks for having me. >> so you believe it may be time to buy the dip that implies you think we have hit the bottom what have you seen that tells you we have hit the bottom is it about valuation? is it some other metric you are following that gives you the confidence to say buy the dip now? >> great question. you know, i think timing of it i clarified it will be a little bit into 2023. i do think we are getting to those oversold levels. but in 2023, i think it will be a great opportunity to invest and buy. the valuations, some of the levels like the big cap, mega cap names are at valuations. they haven't traded in a while the nasdaq itself is trading below its five-year average on an earnings basis.

those tend to look at they're very attractive. we still have some things to get to before we get to a point where you should put a lot of active cash to work. look at the 2022 challenges they will sustain into 2023 if you look at inflation and the monetary policy from the fed, those things are still there but that picture should clear up for investors in i believe some kind in 2023 so that window is starting to open up. >> i'm glad you gave us the horizon. i also want to touch on something else i know a lot of your client base is millennial investors, younger investors. what are you telling about the the levels we're seeing? you mentioned some of them are back to 2020 levels. if i look back to mid-march, i'm seeing amazon is 5% lower than it was back then microsoft about 50% higher and apple 80% higher what are you telling your

clients about buying at these levels compared to those levels? do we have to regauge how we look at the prices of these mega cap stocks >> yeah. one, if you look at the sentiment and the actual sentiments, they're pretty bearish. i believe young investors as well but trading activity is down younger investors have pulled away from tha of 2021 and just in general their sentiment has changed. but musk specifically we like to look at, one, the timed horizon of our investors and what they're thinking i think a lot of people mentally have gone away and the bearishness pushed them away from doing anything in the markets this year. a lot of sellers have driven the market but i think that will start to change at some point in 2023 because a lot of investors that have a longer time horizon can look back at the chart and see further past two years where some of these stocks are trading back then and maybe if they believe in the trend for both, that the tech companies got a

little more efficient, have trimmed out a little bit and have the ability to grow and have different areas where they made bets long term that they will perform better further out in a couple of years if you look a year from now, maybe they will be traded at better prices. that's the sentiment and the preaching point to investors and to our clients right now because things have been dire in 2022, especially for people holding tech that will still continue for a little bit. >> i'm curious to hear more about that sentiment of your clientele and the fact that you have insight into the next generation of investors. you say they're bearish. i'm curious of the types of companies they are most interested in now really shifted over the past couple of years as we have seen money move out of the crypto currency related stocks in addition to crypto itself was this a demographic that was really into the crypto currency related stocks. >> yes great to see you and congrats on the book great stocking stuffer for those

out there. i will say i actually got an e-mail for someone that wanted to get out of crypto i think that sentiment and i think what we saw with ftx, a lot of things happening, a lot of people have gone dire some of those people for different reasons. for myself, it's always been a long term hold i've not sold. if you are adding now, you have to withstand some potential decline to the downside. but i think it will be the fastest area that recovers when we see the world and tech and crypto recover i think crypto will be the faster that sentiment has changed the chatter has changed as well. i think, you know, that points to when people -- why people are buying and what they're buying for, what their time horizon was for us where we see a lot of consumers now in liquidity, the lowest we have seen in decades, that points to someone who has had to liquidate and move out of their positions where long term

investors continue to hold. >> good morning. when you say you think crypto will recover, are you looking at bitcoin and atherium or dabbling in some of the other tokens? >> yeah. so bitcoin and etherium is a big chunk of my holdings there is a couple other i got into for myself it was a small position, less than 1% of crypto holdings it is something i wouldn't advise people to do, especially when they're talking about the different areas. i'm not going to name the names. you have all the different areas that people dove into in 2021. that was a steal i'm still a holder i will still be holding but i want to stay in these places i think are safe this long term and hold the long term and the long horizon that's where i pointed to for 2022 and beyond. >> we have seen a major shakeout lastly, just quickly, if you are

looking at this ten year time horizon, does the current leadership change over the next decade >> yeah. i think there will be some shakeup. if you look at even last -- look at what performs, look at ibm or the value to perform well over the growth, i still think growth will be in the conversation, but some companies are going to have to have a little bit of change look at netflix, one of the things we owned a lot in 2021 but had some trouble netflix had some trouble and had some competition that's risen up and they have to do things to shift. they have done that. adding advertising to their streaming. now that's a huge different model we have not seen from that the makeup will shift. where it shifts to is a big question that's why we will continue to do our research and find the best companies that will continue to do well going forward. >> thanks for the insight. great to see you i'm conflating also. thanks for the holiday gift

idea. and coming up after the break, the eu versus big tech. how companies such as meta, google and apple will be impacted by new laws and what it means for growth "tech check" is back after this.

tech companies are bracing for the impact of new content moderation regulation out of the eu last month the eu passed the digital services act or the dsa that aims to force the likes of meta, google, twitter and tiktok to cut down on misinformation and hate speech with the threat of severe fines. meta and google certainly have their own guidelines these are the first external rules with meaningful consequences the dsa mandates transparency around remove orders, criteria for how platforms should act when they detect legal content, mandated that his companies could not have any deceptive design around consumer and data protection and the rule that large platforms must apply m

mitigation risk. the maximum penalty is 6% of global revenue that would be $15 billion for alphabet and $7 billion for meta the regulatory process started, but it is not until february 2024 when the enforcement begins and penalties can be handed down one company that could be the most at risk is elon musk's twitter because most of the company's compliance officers have either been fired or chose to leave the company >> well, we also want to get the impact of the digital service act and what it will have on mobile platforms steve has that angle. >> yeah. the dma is one of those two major laws that we were talking about the dsa targeting these big tech companies it will have most impact on apple and google, forcing them to open up their software for smartphones. this is why apple is building a version of ios that allows the

third party apps in app stores here is what to expect next year the eu will designate gate keepers. companies meeting certain markers for revenue in the eu. it is written specifically to target apple, google and amazon among others companies have to comply or face fines by march of 2024 now, for perspective on the fines, that's nearly a $40 billion fine for apple based on last year's rev. apple and google may find other ways to charge fees anyway, something they have done to get around other app regulations in other countries like south korea. it may also be a huge financial hit in apple's case. the eu app sales are only a small fraction of what's made in the u.s. and china. >> here in the u.s. a similar bill called the opens markets act did not make it out this year, but if congress takes it up next year, they have the

european law as a possible model. >> yeah. it is so interesting, steve. i know we talked a lot about the fact that the eu is really setting the standard in terms of tech regulation when it comes to gdpr that's a privacy regulation. it institutes changes that had wide ranging effects even here between the dsa and the dma, some are easier to apply unilaterally and sequestered to kw europe. >> this is what it appears apple is doing instead of having this global change, that's why when you log into a website they ask you to accept cookies it sounds like apple will not take that approach in fact, they will have this special verse of ios in the eu while the rest of the world have to have the lockdown ecosystem tied to apple app store, tied to their payments and stuff what that tells me is they're

willing to fight this country by country and wait for legislators to do the hard work for them instead of doing this globally and damaging their profits we hear them talk about we have these payment systems. we have these app stores for privacy. that's true. on the other hand, they are protecting their profits. >> guys, these regulations, they're some of the biggest to come down the pipe, but investors don't seem to buy into that it just isn't priced in. investors don't think this will move the needle. even if we look at those graphics, 2024 for enforcement and application, a lot can happen between now and then, steve. should investors be worried this time is 2023 going to be the year of regulation or are there eother issues on their hands? >> i have been covering this story since 2016 and 2017. and every year we say this is the year that congress is going

to regulate big tech, and it never happens. just last week, they were going to pass the digital markets act into the omnibus bill of congress there was an idea maybe they would try to vote on it before the midterms they got cold feet on that one who knows if any of these acts will make it through congress despite bipartisan support this is a very popular bill and it just cannot get passed. >> can you get better conditions >> no. >> if you can, what makes this any likelier in the years ahead? >> it doesn't seem very likely i'm cynical about this now. >> you may be cynical, but it does seem like it is moving forward internationally. let's continue this conversation and bring in alex of big technology alex, it sounds like you see these regulations as very serious and maybe you want to take an alternate point of view.

>> i think they are serious. anything that will get apple to move on to its own, that's a big deal that's a big deal. now, the question is whether they will enforce some of these penalties. i'm less bullish about that. the biggest fine was the $700 billion to amazon. that's a lot of money to you and i but for amazon not so much i think what the eu is trying to do here and succeeding in doing is pushing these companies to self-regulate. well, to go as far as they can without having to be fpunished. >> what are the ripple effects going to be of the dsa and dma here in the u.s. maybe it is easier for apple to separate out the impact of the dma in the eu. but when it comes to the content moderation piece of the dsa, do you think we will really see different behavior of the likes of google and youtube and meta when it comes to how they're

handling content around the rest of the world maybe not in the eu? >> well, in the united states, i would say no way some of the rules in the dsa are simple violations of the first amendment. we would never have them pass in the united states. so you take that first and you say, okay, that's not coming here the second part of it is does the congress, do united states regulators have the will to act against big tech we talked about how there is bipartisan support but the actual action has been a joke you mentioned it right beforehand that there is bipartisan support this was the optimal conditions to pass something like the open markets act and it hasn't gone through. if it's not going to happen now and it didn't happen when the tech giants were at the height of their powers, i don't see it going through in a moment of struggle. >> ultimately, it seems like the tech giants will be able to get away with business as usual without much repercussion. >> alex, we actually just hit on

a topic i want to talk to you about, the willingness of congress here to act on big tech coming up in a few days on december 29th, representative jim jordan is asking for the big tech companies to send information about sensorship of conservative voices. in the new year the supreme court is looking at section 230 which could impact the legal liable shield a lot of these companies have for providing content. so are these companies doing anything to prepare for these eventualities that give us insight into this regulation >> right we have had some movement against section 230 like you talk about where there is going to be potentially some limits on what the tech companies can moderate on their platforms, right? talk about who that will impact most it might be elon musk's twitter. so that will be something worth watching but in terms of what jim jordan is going to do, i mean, at this point, we have been watching these committees drag ceos and

policy folks from the tech giants in front of their committees for years now they have a nice youtube sound bite they go viral on twitter and send a press release trying to raise money off of it and find a reason not to go forward i think that some of the stuff at the state level when it comes to content moderation plans and how it makes its way through the courts, that's definitely worth watching and it could have implications in terms of what's going on at the federal level, i'm kind of laughing back at them because at this point they lost all their credibility in terms of their willingness to act. >> so have investors, right? they haven't priced it in. alex, let me play devil's advocate to you and myself, what i was saying earlier there may not be any big moment. the companies keep pushing it off to the future, but is there a risk this happens slowly there is distraction there is other companies able to focus on innovation and growth

while other big companies are dedicating time and divisions to regulatory pressure. even if nothing happens, that hurts the business in the long run or the competitive edge. >> that's a god pod point these companies will have people working on compliance, right so that's one thing. and, second, they have actually used some of those anti-competitive practices to strengthen their strangle hold over the economy, and they're going to be a little more reticent to do that. they will have trouble acquiring companies, which is an offshoot of this. i think that's a good plan i think it will be tougher for tech giants to do business, hurting margins and making them take their foot off the gas pedal. >> yeah. always interesting to see if these policies and laws actually impact the amount of competition that can arise in the face of these giants thanks so much for joining and thanks to steve as well. >> thank you. coming up next, what won the holiday season

we will look at the demand picture for amazon during this holiday season don't go anywhere. more "tech check" coming up.

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welcome back to "tech check. take a look at amazon since the start of the pandemic. now negative since march of 2020 we will break down that stock and take a look at consumer demand in just a minute. first let's get a news update. >> here's what's happening at this hour. southwest air shares are still getting hammered right now now down about 5%. the carrier says it will cancel two-thirds of its scheduled flights for the next several days they are battling disruptions created by the massive winter storm and other issues the department of transportation will examine why southwest was so much harder hit than other airlines and whether southwest is complying with customer service plan and federal

regulations. oil prices hit a three week high but an even bigger driver is china easing covid restrictions, including the end of quarantine requirements for inbound travelers. that rule will be dropped on january 8th. home prices fell for a fourth straight month in october. 20 index drops half a percent. over the last year the prices have dropped 6.8%. >> christina, thank you. happy boxing day, by the way. >> oh, yesterday. >> i know you know what that is. >> oh, of course. >> let's talk amazon because it is a big shopping day in canada. jeffreys removed the stock from their franchise picks list last week despite their bullishness and maintaining a buy rating on the stock. joining us now, jeffreys managing director, brent fell. happy holidays what kind of a slowdown or

recession do you have priced into your target for amazon? >> good morning. we think that across the board things continue to slow and consumers weakening. and we're also seeing it in the flagship business. so i don't think a full-fledged massive recession is priced in yet. clearly a lot of the tech names are down materially year to date a lot of this bad news is already embedded but i think really no one knows what's going to happen in the first quarter. and we have highlighted this as the black ice quarter that effectively you are driving and you don't actually see what's on the road and there is this thin layer of ice and there is typically a lot of spin jots in q1 across tech so we think ultimately what's going to happen is we are going to come past this holiday season, which was okay, it wasn't great, into a very difficult period in the first half of the year both for the consumer and the enterprise.

we're seeing on the enterprise business, some red flags one of the most comps for q4 so i think, again, given the question marks across the group, we have advised being tactically on the sidelines and come back to the group in q1 and q2 into '23 and '24. ultimately everything seems to be signaling that things will get worse before they get better. >> so what gives you confidence that most of the bad news is priced in? you will see upsets by the end of next year they're setting up their spending plans for the year ahead, and we have seen this and heard this time and time again cloud costs are somethin relatively easy to cut because of their consumption base. how do we know that they're priced in? >> we don't think the worst is priced in because we have seen the first signals.

i don't think that's priced in yet. ultimately, when you look at the backlog that amazon has been putting up, anywhere between 50 and 60% back leg is a good proxy for what will happen on revenue going forward. but many companies are trending around the edges on a cloud compute spend and we're seeing a pull back. is that 50% to 20% mid-20s next year in terms of growth certainly i think there could be that risk that we could see another number reset based on what we just saw but i think be very clear about what's happening they are the number one vendor they are in the best position for the recovery again, i think it is too early to talk about the recovery i think we're talking about a tough first half of the year >> frank holland here. i'm hearing your point on aus. have we seen a pull forward of demand for infrastructure when it comes to cloud computing for chips, laptops and other tech

things and part two, when we look at the holiday season, we have heard a lot of holiday reports of manager a meh holiday season. mastercard data shows overall sales are up 10% in e-commerce 5% in high margin categories like electronics and jewelry, but that's not really what people go to amazon for anyway isn't it bullish to see that 10% in e-commerce spending >> yeah. i think, look, e-com continues to gain share. we're going back to basics we're not about buying high-end jewelry or we need clean supplies and basic things for amazon i think that puts them in a good position versus other e-com vendors. to your second point about pull forward 100% there was pull forward. every one of these tech companies came on your show and says there is no pull forward. the pandemic didn't pull forward demand that is nonsense there is no question there has been a massive pull forward.

we were all working from home and we changed our consumption it went digital. so there was a pull forward. let's scratch that comment we're now working through the hangover of that, that it is very clear that we're on agrea trajectory for the cloud and we're still not even -- we're still a long ways to go. if you look at the recent deep deal from the u.s. navy, you know, who is three-quarters of a billion dollar transaction, that just signals to you how big these contracts can be and how the duration we're talking about in a decade plus commitments these are not one or two-year commitments to amazon. we think they bring in really good shape with that business. high margin revenue. e-com, you have no visibility. >> i want to ask you about an industry very much a growth area for amazon, and that is digital advertising. we have seen amazon's digital ad

business take off in the past couple of years. but i'm curious how you see these e-commerce trends impacting what we will see in the digital ad market in the first half of next year. what do you think of the expectations that are out there. are things going to be worse than we have seen in terms of the selloff in some of these digital ad players >> i think digital advertising will be rough. i think it will be worse you have seen tightening contracts. you have seen companies start to pull away. again, remember, in a recession the first thing you cut is ad dollars. so, yes, there is a fight to pull it away from exploratory with twitter and snap up to proven with amazon and other platforms like google. they will see an incremental share shift, but everyone will see dollars down again, as we talk about the q1 black ice, i believe it will be a very difficult q1 coming off of what is seemingly we're about to brace into a recession. so we don't -- we don't expect

great things from the ad business in the first half of next year. >> right amazon likes to distinguish itself by saying it is mor intent driven, saying they're better off brent, always great to get your views. talk to you again soon. we will stick with the holiday demand picture consumers buying fewer electronics. chip makers are still facing that glut. micron said it was planning to cut 10% of its staff in 2023 gloomy outlook as well for more on the demand picture, let's bring in matthew bryson on the cnbc news line good morning happy holidays how will investors know when it is time to get back into chip stocks there is a lot of pain priced in, but you haven't seen certain sectors like auto and analog feel the pain. do they need to before you can become bullish >> i certainly think that, yes, we have seen kind of the pain,

if you will, move across sectors. so you saw it enhanced in the pcs. now cloud computing is getting cut. i would expect that you also see analog and auto suffer from both the slowdown in consumer. >> matt, talk to us about some of your picks. i understand you are bullish on micron they had this relatively weak outlook for this fiscal second quarter. tell us about why you are picking micron >> so the names that i'm picking, i think there is two themes one, with micron, it is not that memory turns any time soon if anything, the news that samsung is spending more or potentially spending more is a negative indicated for the memory sector. but when micron historically, they do bottom at around book

value, so for them, tangle book is in the mid-40s. so you don't have a ton of downside and historically when they have hit that bottom before, they have often been the worst player in the space, so the worst technology, different questions about their balance sheet and none of those questions exist today. they arguably have the best out there. they have a strong balance sheet. and so i would argue that the stock should bottom somewhere north of that tangible book value. so i just think you are at a bottom on the target pick. it is hard to know exactly when cycles are going to turn and so now is a good entry-level for micron even if the cycle doesn't turn for 6, 9 or even 12 months with other names, it has more to do with share chip amd taking share from intel. even though the server market

might not be as strong, same thing with taiwan semi, there again you have them benefitting from -- >> yeah. and, matt, i'm interested, though, in the fact you see these green flags around the gaming market. there has been concern and questions about whether gaming demand did benefit from a full -- a pull forward and how much that demand will be sustainable into next year. >> yeah. so with invidia, we have a neutral rating there is two pieces of business. the gaming part is the part that had suffered over the last 6, 9 months i think there two things are working in their favor one, what we're seeing this holiday season is enthusiasts are still buying and, so, they're getting a bit of a faster pulldown in inventories, a bit of a demand bump from their new products coming out. and then, two, invidia, in the

pc space it was earlier to see the slowdown and, so, invidia started cutting their production so i think they're further along on the consumer side in terms of working down their inventory so i think of the gaming side of things, they have a better outlook than they did, say, a couple months ago. the reason i'm on the sidelines with invidia is more on the sunny side of things there i think three years down the road, four years down the road, we are in the market. ai is a wonderful sector to be in it's just a question of over the next 6 to 12 months, we just heard about aws potentially pulling back spending. so is there -- is there another reset in their ai business before they get to see the benefit of being the market with ai again >> all good questions. matthew bryson, thanks for your

insights talk to you again soon all right. coming up after the break, we will take a look at some of the hardest hit cloud names in q4 and identify the traits that the winners have in common we're ba iju aomt. ayith usst men here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. 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] it's time for business to show its true worth. because it's not goodbye, world. it's hello, team earth. [clap]

all right. welcome back to tech check cloud enterprise and cyber stocks underperformed big tech look at the triple qs as a

benchmark, these stocks weighed down by interest rate pressure and of course the rising dollar. however, that dollar pressure, that has eased significantly take a look here don't get confused by the crisscrossing patterns i want to start with the white line first the yen -- i'm sorry the dollar fell 8% to the yem while the euro has risen 8% to the dollar that's easing the pressure and cutting it in relation to those currencies basically in half globally, there has been a positive tailwind to the transition from the cloud. spending is up here. it's levelled off from earlier this year. however, you can see it is still a really strong trend. more than 20% growth all the way throughout this year and that's a really positive trend for that transition to the cloud. we had a guest mention that he's bullish on that transition that companies have been rewarded i'm talking about sap, the german cloud providers

forecasting 20% growth in cloud revenues cyber security player and multifactor authentication raised its billings guidance and a cloud storage company also showing margin expansion high valuations or stocks not seen as mission critical under a lot of pressure in q4. we're talking snow flake this is a classic case right here, one of those stocks that's been under a lot of pressure also palintire down. high vaguation and a bit of a complicated business that relies on government contracts. oracle in that $9 billion pentagon contract creating questions about government contracting something they admitted is somewhat lumpier also, faces a lot of competition from mega cap tech players including microsoft and salesforce but m and a may be the big story for these stocks in 2023

private equity has a $941 billion sitting buy in dry powder that's up 14% year over year. >> we talked a lot about that. it's been a quiet near in terms of deal making, safe for very large ones you have seen the likes of others but it's interesting when you look at this dynamic between value and growth, right, that has certainly been a theme this year. but within tech as well, you have seen the legacy tech names like ibm you mentioned oracle outperformed snow flake and others but you look into their ebita margins and that's where it is you look at the forward margin it's 8%. about half of that, julia. so, you know, the proof is really in these numbers here of what investors are focused on. then you have a stock-based compensation and that changes everything also. >> yeah.

it certainly increased focus on profitability. i will go back to something frank said, which of these software and service platforms which are mission critical which are going to see growth because they will see more efficiencies and helping their customers better deal with things like worker shortages the things that are mission critical secure growth even in these tougher economic times. >> yeah. and the bundle versus best of breed. those are themes in the year ahead. chinese stocks are popping they continue this massive rally as the country scales back covid restrictions could this last and be the start of a longer term rally that's after the break

as we head into the new year short sellers believe there could be further to fall companies such as microsoft and apple topping the list of the u.s. stocks with the most short interest, all with more than $10 billion. tesla getting squeezed as short interest of percentage of their free flow falls. to see the full list of the top shorted stocks subscribe to cnbc pro. tech check returns in just a few minutes.

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china to end quarantine for travelers in january >> starting in january travelers to china will no longer have to quarantine ending one of the most restrictive covid measures that in some cases had travelers staying in a hotel for more than 14 days. trading higher as you can see there as are u.s. listed names

like alibaba investors hope these looker restrictions will bring in more outside travelers to spend on leisure activities in china. keep in mind prior to the pandemic chinese tourists contributed billions of dollars to the u.s. economy spending on average $6,700 in the u.s. per trip that is 50% more than other foreign groups other broader groups set to benefit seen as popular destinations for chinese travelers. but there are still a limited number of flights to and from china. until the major airlines increase capacity, analysts warn recovery could be tepid. julia? >> thanks so much. it's fascinating to see watch those stocks move. if you miss part of the show, don't forget to follow and subscribe to our podcast listen anytime, anywhere wherever you download podcasts tech check is back in just a moment

td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! service that has your back. the company profile tool, in thinkorswim®.

one more thing before we go and that is continued demand issues for peloton the company now offering refurbished bikes across the u.s. and canada at a discount

about to $500. the price of these models net between 1,000 and $2,000 a piece. shares are also more than 60% below where they traded at the start of the pandemic. guys, i can't recall this term pandemic mountain, but that is one if i've ever seen it i remember questions about this company before they became so big is it a tech company, is it a fad? i suppose we have our answer, though we talked about this a lot could it be a take over target, not yet. >> we do have our answer it's a streaming company the bike is nice and everything but i don't know about you, i go to gym and other work out classes, they're full. we went through a period of time people were trapped alone and this is something they could do by themselves. now people want to be together >> it's a media company, guys, with that monthly subscription revenues but i was one of the people who bought a bike during the

pandemic i'm still paying that monthly fee, but now i'm kind of resentful they slashed prices dramatically here in california i could go running all the time >> fair enough i'm still a fan of the tread anyway, guys, let's get to the judge and the half all right, guys, thauchk very much and welcome to the half time report i'm scott wapner front and center the final stretch for stocks and why some say a santa claus rally is still in the cards for your money. we'll discuss and debate with the investment committee let's take a look at the markets here, 12:00 noon in the east and we're trying to put a little something together here. dow is good for 135. s&p is down still 5. nasdaq down about 94, and hers th