if we can get away with a soft landing, mild recession, federal reserve continues to keep rates high, elevated, that could be a good scenario ultimately for the banks. of course, all we hear is this is not the great financial crisis banks are in good shape. >> of course including jp morgan and the market capital of $400 billion. that's more than tesla that will do it for us with "squawk on the street. tech check starts now. >> good tuesday morning. welcome to "tech check." tesla takes another tumble this adds on to their troubles but we have a fresh bull take this hour. plus, two upgrades why wall street is optimistic on paypal and block in 2023 paypal the top gainer. is workday the surprise stock of the new year two guests calling it a dark horse top pick today john, happy new year.

>> thanks. to you as well the markets overall kicking off 2023 the same way we ended 2022 with volatility. the dow seeing a nice 240 point gain until it went about flat. same story with the nasdaq as it loses a 1.4% gain now about flat along with the s&p economic data and a huge decline by tesla, as you mentioned, to blame. and i think this tesla thing is in a way about more than tesla, right? because the missed delivery numbers brought the stock back down to around where it was at the lows last week and it raises questions about demand for teslas going forward, about inventory and what the impact is going to be on labor and production levels because that's the thing about this inventory built up do they need to keep making as many so many different companies not just in tech but throughout the economy might be asking the same

question what if you start to get results in about two weeks, right on q4, how december actually ended up we don't know yet and we're not going to know exactly what tesla will do until we get the detailed numbers from them as well. >> it is not just tesla causing the pressure here. we're starting off 2023 much in the same way we saw 2022 that's what's under pressure it's tech. it's the nasdaq leading the way. but in 2021, we saw a lot of these pandemic darlings come back to earth. to start off this year, we're seeing tesla we're seeing apple decline these are the mega cap names are we going to see them decline? this is also with apple demand issue. are they going to have to scale back some of that production as well these are going to be questions for the year ahead as you mentioned, john, tesla, that is the biggest loser in the s&p today. shares are down big this morning. that follows a year-end delivery as the stock closes out its

worst year ever, is the turn-around ahead? elon musk is promote ing the pln and sales operations here in the u.s. joining us now is phil who has a buy rating on tesla. let me start with you. talking about tesla and the fundamentals, it is still the world's most valuable car maker. but we're talking demand and gross margins, more discounts. >> yep. >> how does it justify that valuation going forward? >> great question. i don't have an answer i'm not sure anybody does have an answer. here's the question. what valuation are you putting on this company, especially as they see delivery slowdown relative to expectations as well as gross margins being pressured relative to where they were. and how much pressure -- how long does that continue? so those are unknowns that are out there. and think about this we really haven't seen a true

recession for the ev industry where they have had to work in a lengthy recession. yes, you can talk about when the pandemic began, there was a drop in demand. but that was a very short blip and it really wasn't the ev industry as we're looking at now where the question becomes is the demand going to be there for electric vehicles that was expected to be there and i think a lot of people are questioning that right now and if it's not going to be as robust as previously expected either in this year or next year, then the question becomes how much do we have to scale down expectations for tesla? >> right well, you have a $450 price target for tesla obviously you do have some conviction that it is still going to grow at a fast clip what is baked into that valuation? can it grow at 50% annually or does that have to come down this year by, you know, a large margin >> yeah.

it's a very good question. so we -- tesla was trading, you know, nine months ago at 40, 50, 60 times earnings. when we get into that valuation, that means they are anticipating what i like to call a long duration high growth so the business is going to grow for a very long time at a very high rate. you can imagine today that when we see it going up very well, there is a first time for everything first time a recession for the ev manufacturer, first time for a high growth business like that getting into that kind of recession with products that are $55,000, which means that people don't buy that just out of their pockets. they need to borrow that when you are talking about how interest rates are up. there are so many incentives for

this year that the kind of growth rate we should expect for tesla for the next ten years nobody is looking at it right now because there is no visibility our price target is reflecting confidence into this incredible stock of tesla, which is they are selling to the 1.8 million cars a year and they are just at the very beginning. it is going to basically over the next 30 years replace almost $1 billion cars that are out there on the road buy electric cars and we believe they will grow very fast for a very long time. >> what's fast, pierre is that 40%? is it 50%? it is it more? what is fast to you? >> fast to me is very simple not as fast as elon wants it to be you know that. >> of course. >> so he's like managing tesla

to deliver 50% gross in units every year i think that's short of that i think good growth would be 40% in volumes to get that gross, to register that price, it will be between 13%, 14% gross. >> something they held on to is that earnings estimates over the last few months haven't actually moved all that much. although, you are starting to see them come down right now how does that change the proposition here >> that's going to change in the next couple of weeks here, especially if people say we have the number of deliveries, we know there was compression on the gross margins, especially in december the company was out marketing its vehicles with discounts in china and here in the u.s., its second largest market. when you put that altogether you are seeing the test mates already come in a little bit a number of the analysts notes say they're expecting them to come down. look, i think to a certain

extent, whether or not they come down a lot or a little, this hinges largely on -- when i say this, the future of tesla stock where the pricing is over the next month or so, i think it hinges on what elon musk says on the conference call on january 25th does he change the guidance? what does he say in terms of the compression of margins he's put out these statements saying the future is bright. long-term we will continue growing. fantastic. that and a cup of coffee, it's not worth anything you need something substantial that is what people will be waiting for. >> all good points thanks for being with us john, we should note as well we just showed you wall street ratings. 64% rated as a buy holding a year ago, 49% buy. so even the street is changing its tune on tesla. it's down more than 10%. >> you know how those ratings go and as we talk about that, let's also talk about the broader market as we start a new year. we also get a new market

are those bears getting tired yet. mike thinks last year's downturn could spell a strong starting point for 2023. >> hey, john at least a stronger one. if you were basically looking one year ago today, you were buying the s&p 500 take a look at what's happening at valuations. 21 times forecast earnings if you wanted to add some treasury bonds to that, the ten year was under 2%, not much of a cushion and strategists were saying, hey, we will go up 10% in the s&p expectations were relatively high all that changed at least to a degree since then. so you see the nasdaq 100, that's really where the episent valuations extremes were at the highs. a lot has not happened to compress that. it's gone from 30 to 20, whereas the s&p has gone from 31 to 17 took a dollar put it in each of the stocks, weighted them equally, you are paying 14 times

earnings all that doesn't necessarily mean the market is cheap we're down to average valuations we still have a fed that has more work to do, perhaps unfinished business on that side of things. we're not somehow at a compelling buy but if you are starting a portfolio today, you are closer to be ago able to anticipate the historical rate of return versus where we were about a year ago. >> okay. and, mike, so what, if anything, can we take from the last time stocks are down for two straight years during the dot com crash things bumped around at low levels for a while, didn't they? >> yeah, they did. it was at that point three years in a row one thing you could take from it is there are some similarities in the sense that technology was where the valuation excesses were they took a long time to be rung out. they were more extreme than they were you did have a tightening into the start of that.

and really in historical terms what would callfy as a relatively modest recession, main street did not have a terrible downturn whereas wall street did i think you want to keep that in mind as maybe the cautionary side of the probability spectrum i'm not saying we have a re-run underway but it is something to certainly be mindful of. by the way, the global financial crisis, and this is just the way calendar years fall. we only had one down calendar year, you know, 2008, because the market hit a record in october 2007 by the latter part of '09, we were already on the upswing. the calendar year stuff can be a little bit of an obscuring for us because we did peak exactly a year ago today. >> yeah. we had quite a calendar as you just referenced in 2022 as well. mike, thank you. so will 2023 be different? and if so, how should you position your portfolio for the year ahead our next guest sees value in microsoft, in cisco.

bullish on legacy tech following ib m's outperformance in 2022. let's bring in wealth management chief investment strategist. happy new year so give me your sense of not just why legacy tech is pretty good but what to do with growth tech do you just ignore it completely >> thanks, john. happy new year thanks for having me on. that's a great point we do think there is a lot of opportunities still in the marketplace. we don't want to abandon growth tech we think that one thing that 2022 has shown us is who some of the winners will be. you saw companies such as workday not just beat estimates last quarter but raise guidance. definitely some winners out there. you don't want to ignore them but you want to stick with the big companies, the companies with stable platforms. we think it is the year with big wins, where companies that are

spending money look to consolidate some of their vendors and microsoft started gathering a big amount of it spend going forward. we also like value big value plays are starting to emerge as mike said, valuations are gotten cheaper if you equal weight, the valuations look a lot better we do think there are areas that are still stable and will -- and you can get much cheaper prices than you can get last year. >> here is my worry. tell me how you balance this out. bigger tech companies actually faired better in 2022 relatively speaking, maybe didn't fall as much as we are heading into a potential recession, we will see how extreme it might turn out to be if we get it. in 2023, those stocks might suffer more. at the same time, pe is snapping them up. some of them seem to be rebounding off of lows

demand continues to be strong for unique technologies. so is the investor going to fade smaller tech stocks at exactly the wrong time >> well, we think there is no risk in smaller tech stocks. there will definitely be some winners. you don't want to abandon them altogether, but you want to look for companies that are able to grow sales, continue to grow earnings, that have a strong path to profitability. but overall, we do think that the bigger players are likely to get more of the it spend going forward. so you just have more risk it is not that you want to abandon them but you want to be selective you want to look at the end markets. the end markets look more stable and strong we think that data centers will continue to be an area that even if we see estimate cuts will finish 2023 pretty strong. same with automotive and industrial you want to think about what these companies are selling into, what are the end markets because we think consumer will probably still say relatively soft this year.

>> and in your thesis depends on a soft landing scenario. walk us through that you say that could happen on the back of a resilient labor market isn't that at odds with what the fed wants to and needs to achieve. doesn't that mean higher rates for longer and that would be a negative for tech. >> we think interest rates will stay stable through 2023 we will see one or two more increases from the fed but we think interest rates will stay relatively flat after that. but we think that economy can recalibrate through those higher interest rates they're not unprecedented. what's unprecedented is the speed at which interest rates have risen we think we can achieve a soft landing. we think the labor market can stay stable, the fed can achieve what it wants to achieve because inflation should still fall and the labor market can soften on the edges and growth can stabilize in the second half of the year so we are expecting a soft landing, but we're also expecting a couple quarters of

earnings estimates cuts going forward. it could be a bumpy ride, but we think opportunities will emerge. >> all right tesla one of many names in the market at least looking like it will have a bumpy ride thank you. still ahead, is more social media regulation ahead plus, what to expect from sam bankman-fried in court today "tech check" is just getting started. (woman 1) so i just switched to verizon business unlimited. it is just right for my little business. (woman 2) we switched, too. (woman 1) unlimited premium data, unlimited hotspot data. my point of sale is on point. (woman 2) you know it's from the most reliable 5g network in america?

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welcome back let's take a look at apple it is down -- let's see. about three and a half percent, a little more than that. interestingly, that takes it below the $2 trillion market cap level. the stock was down nearly 30% in 2022 and right now it looks like it is about $10 a share away from what would be the two-year low. >> yeah. as you said, john, a lot of the mega cap names, they were relatively stable within tech last year. so could be more room to fall. apple, of course, as goes apple

as goes the market as we like to say. so worth watching. now nearly 4%. meta, though, another mega cap name i guess lost a lot. but it is an early outperformer in a down patient to start 2023 against the backdrop of what appears to be more regulation coming though, we say that all the time julie, if you think about it, it's been a relatively calm, scandal free period for meta because tiktok has taken all the attention. >> tiktok is drawing the spotlight right now. and let me tell you what one congressman called it. digital fentanyl that's what he called it on sunday's "meet the press." he thinks the ban on government devices should be expanded nationally but tiktok is one of the tech firms being targeted by congress right now. on december 31st, senator klobuchar along with other

democratic and republican senators introduced what they call the platform accountability and transparency act, a bipartisan bill to increase transparency around social media companies. it would require social media platforms to share data with the public and with researchers. but what type of data and what kinds of data they are collecting this comes after earlier in december another bipartisan group of lawmakers including marco rubio introduced the antisocial ccp app that prohibits the tiktok platform in the united states, addressing concerns about the platform being used to spy on americans senator amy klobuchar saying that bipartisan support does exist for these bills warning about the challenge that's coming from the tech lobby saying that the lobby is so powerful that support for bipartisan bills can fall apart within as little as 24 hours remember, francis, the facebook whistleblower? she backs that platform

accountability and transparency act. she says the u.s. is asleep at the wheel and it is like the auto industry before seat belt laws she backs this legislation, john. >> i wonder -- let 's bring in first elon elon, it looks questionable whether the gop will be able to agree on a speaker, much less agree with the democrats on how to regulate social media so is it really going to happen this year given the political climate? >> yeah, john. right now all the drama is about the internal politics within the gop. but i think the tiktok example is really interesting and really telling. that's because one of the barriers to big tech has been even though there is bipartisan support, republicans and democrats do agree that something should be done to bring in big tech. they don't come from the same place on this. in the tiktok example, that is a nexus of issues that those republicans and democrats have

been able to get onboard with. that is combining the issue of big tech with the issue of national security and china. we know that senate majority leader chuck schumer is a big china hawk we saw the same thing from nart marco rubio who included national security and big tech is part of his vision for american renewal over the weekend. so you might see a reframing of the big tech legislation, the big tech backlash issues around national security as a way to win bipartisan support. >> all right i keep coming back to senator amy klobuchar's comments about how powerful the tech lobby is and we know they increased spending, but it is only in the tens of millions of dollars. these companies have billions and billions to spend. is that a powerful force when it comes to tiktok? how effective would that be when this is such a bipartisan issue? >> klobuchar likes to say her kids have called out the big tech companies as being mean to their mom, so she's taken this

somewhat personally here i think it is important to remember where they're situated. big tech always has a big presence in california that's the scene of the congresswoman. there is some division congress democrats as well over how to address this, and that's been a snag in just getting some of these bills out of committee, in which democrats have needed republicans to get onboard in order to create these sort of bipartisan coalitions to move legislation forward. big tech has leveraged those divisions. >> julia, we seem to be entering mark zuckerberg's dream scenario where they're finally focussing on tiktok and, you know, twitter. elon musk is a bigger draw attention-wise than he is. so we're focused on twitter somewhat, even though it's private, more than facebook. but also zuckerberg doesn't seem to be focused on facebook. does this work for meta's stock as long as they're spending on the metaverse.

perhaps the attention at least seems to be going elsewhere. >> when you say that, he's too focused on the metaverse he recently indicated that he does understand that facebook and instagram, which are the bread and butter of facebook's revenue generating edges are important right now, but you are absolutely right, john, that tiktok is a major threat to facebook but also to snap and you cannot underestimate the effect tiktok had on these companies. you have seen them imitate what's been so successful for tiktok if tiktok is limited, if there is a for sale of tiktok to some u.s.-owned entity, that would all be a positive. we see meta shares up. we have seen in the past when there has been a big push to regulate the company, to regulate ticking to we have seen that positively impact meta

shares i would say that's not likely the cause of this gain today i think it is really interesting to see what kind of regulation could happen to tiktok, how that could be beneficial or even if it is simply a distraction for tiktok how that could be beneficial for meta and also potentially for snap you're right, that meta has been the source of so much attention and criticism and critique i mentioned the facebook files right now you have these other companies that are drawing some of the heat. >> yeah. meta's bounce could have something to do with that. the amount it's up more than 3%, it is mostly chinese tech stocks that are up that much or more. thank you. meanwhile, morgan stanley's software play book that's on the other side of this break. "tech check" is back in just a minute

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welcome back to "tech check. i'm bertha coombs. after a dip in november and december, mortgage rates are higher today the average rate on a 30-year fixed home loan is more than 6 p6.5% with the buyer of a medium-priced home that translates into a monthly payment of about $2,100 not including taxes and insurance and an increase of 60% from this time last year paypal stock trading higher today after getting upgraded to buy from hold at truist. the firm raising its price target on the stock to $95 a share saying revenues look reasonable paypal is trading at around $74 a share. and casino stocks are rallies on hopes of renewed

business in macow as china relaxes its policies wynn getting upgraded at wells fargo. the upgrade also giving other names in the space a boost like las vegas sands, malco and mgm reports. although, i was in vegas a couple months ago. it's packed. conventions are big. ces is back. >> agree agree. i was there a month or so ago as well bertha, thanks meanwhile, as the saying goes, it is always darkest before the dawn. that's how our next guest views the software industry, especially if you have a long-term horizon. let's talk enterprise software your top pick service now. why? >> so right now -- thank you for having me on the show. right now i think software overall is in a very interesting

spot sentiment is low we see that in low multiples overall. two, the stocks have a business model that i think proves more durable than people imagine with recurring revenues lost 90% of revenues for the space. and the spectacular growth trends powering software are still very much in place and will be invested behind cios service now incorporates all three of these aspects good secular positioning, a reasonable multiple, especially if you look at it on a free cash flow basis and a company who is not just a subscription model but the epitome of a subscription model in that the recurring revenues are over 90% of their overall business, the retention rates of which they refer to revenues super high i think over 97%. >> so there are a lot of choppy waters for investors to figure out here, though, including this move toward consumption-based

models and the question of who will be able to maintain their margins. there are some names that you call out in this report, including crowd strike, data dog, snow flake, toast, zoom info a lot of those names way beaten down how do you sift through those and figure out when it comes to margins or consumption based pricing, who has the most experience and who will fair the best >> got it. when it comes to the consumption based models, what's really interesting is the ability of those models to see the changes in demand that impact the fas fastest. if you look at a company like snow flake, they start to see impacts earlier than other vendors. you saw their revenue growth expectations come down sooner because of that consumption model. on the flip side, when the demand starts to stabilize and improve which we think happens on the back end of this year, they will see the revenue growth stabilize faster and that's going to enable them

to see better margins on the uplift, if you will, when the demand starts coming back. even thousand investors should start looking at the best in class growth names, the names with the highest overall growth, best secular positioning that would be the snow flake, the data dogs, who of our favorites. >> is it worth trying to guess who private equity might take out next as an investing strategy, as a trading strategy? or are you noticing characteristics of the companies that pe is taking out? and do those characteristics provide some guidance for investors on what has value? >> yeah. i think the answer is both you can look at those characteristics of what pe is buying and, one, understand what else are they likely to go after because there is still a lot of wallet that these have to go after more software companies. so the company attributes, high

levels of recurring revenues again. over 90% recurring revenues. good gross margins, over 80% gross margins and good retention rates, meaning over 90% retention rates on those recurring revenues that's been the formula of all these private equity takeouts. they stay in place at a level above. the average price in 2022 was that over ten times trailing 12-month revenues. there is a lot of software that's trading over that level 80% is now trading below those levels so, one, you can take those attributes and sort of target which names are more or less likely to get acquired but also it is a longer-term signal that these long-term investors is what a private equity firm is. they're seeing value at a level they understand they have generative value of these big subscriber bases that these companies are from. >> yeah. flip side what we heard earlier who was saying to stick with the

bigger tech companies, hey, the smaller ones, some of them have good metrics behind them thank you. >> excellent thanks for having me. >> check out shares of amazon and roblox last year they got hit hard. this morning both stocks getting named top picks. read more about those calls. the nasdaq near session lows to start the w ar a bk twoneye

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welcome back the price of lithium, a key element used for the production of evs, also a key nirvana song surged in 2022 i'm so happy because today i found my friend pippa stevens onset with a look at what lithium prices mean for evs. >> hello, john great to be here it was quite a year for lithium, sending the metal to record levels prices surged 150% in 2022 according to data from benchmark mineral intelligence over the last two years, lithium has gained 800 amid fears that supplies can't keep pace with demand but simon moore noted in recent weeks prices have started to retreat for the first time in a while. he pointed to the macro factors including inflation and supply chain issues that slowed ev production ultimately moore set a brake in

the price euphoria and a moment of reality will buy the supply chain time to build out. still, the firm reiterated this is in the backdrop of a tight market, which should support higher prices. despite the metal's surge, it hasn't translated to prices up across the board for lithium miners lithium america also lower one exception is sqm which gained more than 50% last year, but an 800% price in two years is really astro nominal. >> yeah, that's a lot. the u.s. has given up a lot of the battery production supply chain that countries like china have where do we stand on developing a domestic industry? is china's hold going to crack >> it has been a priority for the biden administration we say they invoked the defense production act for electric vehicle batteries.

and then over the summer, we got the inflation reduction act, which really is a game changer in the sense that it both ties the ev tax rebated to where the battery materials are sourced. and then it also has those confers targets inan effort to spur domestic supply chain but these things take a really, really long time especially for a new mine. you can imagine the delays that we might see given a lot of local competition that usually happens around these projects. so having that federal support is key, but in reality, i mean, we are years and years away from a robust domestic supply chain. >> right so is that why the prices of lithium producer shares haven't kept up with the price of lithium. what is it going to take for some of these companies and investors to buy into them >> we have to look at a company-specific basis to see how their contracts are structured we saw movement to change the fixed nature of those contracts

to very variable ones because they of course wanted to take advantage of this huge surge we're seeing in the prices but also it takes a long time as i was just saying to get new production on line even if prices are at record highs, you can't capitalize on that can't you can'tbring new supply on line you have to differentiate between spot prices and these prices that the parties typically pay when they're dealing directly with one another. so there is a little bit of variance there the shares have not kept up with the surge in the underlying metal. >> pippa, thank you. after the break, sam isurman-fried expected in cot th afternoon the details when "tech check" returns in a few minutes

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ftx founder sam bankman-fried expected to appear in court this afternoon. he is being charged with eight criminal counts including wire fraud and conspiracy to commit money laundering happy new year. >> happy new year. >> so we're not expecting fireworks from this, but what could come out of this >> we are expecting him to not plead guilty, which is what we have heard publically. in these interviews he said he didn't commit fraud, as he's put it that is really aligned with what we have seen we have had his other top lieutenants plead guilty,

opposite of what we have seen from other ftx founders and top lieutenants in alameda and the ceo there. the other thing we are expecting we just got this morning he had the $250 million bond, sam frabankman-fried. >> that people aren't happy about, his customers. >> he has his parents as co-signers two other anonymous people they said his parents right now are facing harassment issues and they said it's for safety reasons they don't want to disclose the names that's been a big question is who else is backing these bonds and giving the court confidence that they actually have $250 million if he does fail to show up in court or decides to flee so that's a piece of intrigue we got this morning we should get more on that the appearance is at 2:00 p.m. eastern. >> that's interesting. there is a number of people that are still unwavering in their

support of sam bankman-fried not very many of them out there, too. but there is another saga brewing between gemini, a crypto company exchange and genesis, which is the only crypto lender in the space for how long. break that down for us it kind of tells us, again, a story we have been following for the last year is that everyone is trying to get money no one can get it. >> it is this daisy chain of lending. g g gemini had this interesting bearing product where you get 8% or 10% interest back the way they were doing that is on the back end they were lending. genesis is the first lending desk out there it got hit by ftx, had to shut down gemini locked open a lending platform and they are facing class action lawsuits. their backs are against the wall and they're trying to figure out

how to get payment and how to get out of this. they have been working behind the scenes with this company it is a parent company of the lending company i mentioned. they have been trying to negotiate outside of bankruptcy court. when cameron winkle lost facebook fame and is now the co-founder and runs this crypto exchange he's come out and essentially blamed barry silver, the head of dcg and said he was using bad faith aboutactics and saying yo not working with saying they owe genesis $1.7 billion barry silver on twitter responding saying they really tried to work with gemini. it is this back and forth, but they all have their own interest here they're trying to get customer money back. >> everyone is trying to find money. >> exactly. >> you know, as happens in crypto, it all spills out into the public and they're going into the court of public

opinion. they say, hey, it is not just us losing money. >> which could blow things up very quickly. >> exactly >> so we will continue to track that thank you. >> up next, two names get upgrades we will break down the bull cases on the other side of this break. ♪ icy hot pro. ♪ ice works fast... to freeze your pain and your doubt. ♪ heat makes it last. so you'll never sit this one out. icy hot pro with 2 max-strength pain relievers.

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2022 capped off a brutal year for fin tech. take a look at the global etf. down more than 50% in 2022 underperforming the broader nasdaq as well as the xlf which tracks the s&p financial sectors. similar was arks and tech innovation etf down 65% last year as for valuations across fin tech, well-let's dive into the majors here. price to sale ratios for the likes of affirm and robin hood also suffering massive lass. still, not all of the straight -- the analyst behind that call joins closing bell later this afternoon

we still remember when the likes of paypal was worth more than the majority of the big banks on the street so now what these analysts are saying is it's too negative. >> i think it's important for investors not to let just wall street define what fintech is or even the popular conversation. but visa is also fintech you mention pfizer, toast is fintec companies are using technology to either smooth or bring data into payment ecosystems. i think on the enterprise side there's lots of different ways to play this, and the consumer side got a lot of the hype meanwhile, let's get another check on tesla the stock hitting new 52-week lows this morning. that's the single biggest day

drop since september 2020. shares getting closer to that $100 level here. we'll see where it goes from here >> ouch. >> we'll be right back

welcome back to tech check deere has been making big investments in robotics, ai and drugs and it would appear to be paying off the stock a big winner seema joins us with the highlights >> one piece of news here from my interview with the ceo, he's in the final stages of picking a satellite partner to broaden deere's digital football of farms. the goal is essentially give farmers a more accurate read of what's happening across their land, find out which parts are more productive yielding a crop or experiencing issues >> we look at the burgeoning efforts that are happening and low ether urbt satellites are an example as a way potentially for us to start to solve those connectivity issues and make kefbtativity truly global for john deere customers >> with farmer profits at record levels, john deere has no plans

to slow down its investment in technology he says the budget for 2023 will be, quote, consistent with last year expect an announcement from deere on clean energy, running more of their equipment. and that's partly why the buy side is bullish on john deere. vastly outperforming its industrial peers a long-term investor, his portfolio manager telling us we would expect the stock to perform well as the year sets up as a good one for the industry the company continues to offer technologies that make the farmer considerably more productive than the machines used in each previous version. the key wild card, i guess for this year is whether crop prices stay high. >> i love how deere is at the consumer electronics show for people with really big gardens and tractors seema, thanks. one more thing before we go, be

sure to tune in throughout the week as we kick off our ces coverage going to sit down with the ceos of qualcomm, crowd strike to discuss their year ahead, the trade desk ceo jeff green and nasdaq's ceo you're going to be there in vegas. i'm going to stay east this year >> i'm going to miss checking out all the new gadgets with you, john. it's going to be really interesting. one big thing we're going to be focusing on i know something you and i debate a lot, john, that is megaverse and vr. we're going to be checking some of it out. the question is will this be the year metaverse and all this vr technology takes off, i think we debate that a lot, guys. sustainability also in focus for tech there >> never mind, tech.

you booked a lot of the tech executives, but a lot of the key notes are not even really tech oriented, dare i say we just spoke about gear that's going to be there, also tell tuairlines, bmw. >> precision agriculture, it's tech you've got to love it. looking forward to that coverage including from you on the ground let's get to the judge and the half all right, john, thank you very much. welcome, everybody, to "the half time report. the year ahead for your money and whether 2023 will provide new hope for investors or another round of pain. we'll discuss and debate that with the investment committee. joining me for the hour stephanie link, joe teranova and josh brown let's check the markets. take you to the wall and show you what we're doing not a great picture. down 200 on the dow, the s&p 500 down a littl