that range we have been there about three weeks. remember, guys, we were below the october low, the close was 3577 so we're reliably bchbabove that right now. >> in fact, goes back almost four weeks right in this range we last traded above 3900 december 15th. that's going to do it for "squawk on the street. "tech check" starts right now. good friday morning. welcome to "tech check." i'm deirdre bosa with carl quintanilla and jon fortt. too early to rush back into tech the sector's severe downturn still has legs and we'll ask the ceo of the nasdaq about that, along with the trade desk ceo and amazon's head of devices later, call it a tech tug of war on chat gpt's new evaluation we'll debate it it's one of our friends.

>> let's take a look at the market reaction to the jobs numbers. all the major indices moving up as non-farm payrolls beat estimates for december everything up about 1.5% more important, wage growth came in belowexpectations, indicating inflation may be reaching its peak. that's not the whole story still lower this morning you can check out there on the scre, asana down almost 2%, roblox about flat. coinbase down 1.75%, bill.com also flat. carl, it's not all together clear that the wage growth is all that's being focused on here we have quite a few hours left of trading to go >> indeed. but your point about technology certainly communications services, info tech, the ndxd, five weeks down. clearly has been a source of

funds in the eyes of some, and you look at what's happening with the cycle in semis and the guidance out of software it's hard at least as cramer would say to get overly positive right now. >> this isn't just an interest rate story for some of these high growth names. over the last year or so, their fundamentals have come down as well their growth prospects i think about what the microsoft ceo said earlier this week, there's more room to grow, more pain for the techistry you also look at a salesforce, easy to blame the macro, but their growth is coming down as well they have done a ton of acquisitions adoption could essentially slow, that's what we're looking at perhaps it's not just interest rates driving these high growth names which we thought over the last year, and certainly plays a big part, but more to the story here >> one question is what narrative do you follow if you're an investor this year inflation appears to be slowing. the fed, will they back down or is there still more wood to chop whatever side you fall on, try

not to follow the sell side, especially in tech joining us here at post nine, adam parker helps us start the hour that's the name of your report, listen to the sell side, then do the opposite >> we studied four large baskets of stocks, the stocks that are the most loved tend to underperform i think it's because of momentum by the time stocks go up a lot, everyone piles in and likes them then it's a little later in the game i don't think you should be obsessed with what everyone loves. find things that are a good deal i kind of agree with your narrative that you said is cramers, it's hard to get overweight tech in a portfolio, because if you look at the mega caps or you look at semis and software, you're going to have some hair on every one of those stories. it's a little hard to get bullish right now. >> you think estimates in both of those areas are still too high, even with a weaker dollar this year, it would be a bit of a salve? >> for the mega caps that could

be helpful we had weakening over the last six or eight weeks you haven't seen pain in terms of the earnings estimates. they're still pretty loved, kind of per your point. microsoft is probably 90% buy ratings and a lot of people are defending those names. so you know, service now i think has 37 buys, one hold, one sell. some of the big cap names are still pretty loved and there's not been a lot of throwing in the towel yet that would make me feel more comfortable. >> you think actions like salesforce, amazon, the head count reduction, should those names be getting more attention on the upside because of it? >> i think of those two names as completely different yeah, software, tech, amazon, what investors would say is look, i think they can have much higher revenue, probably higher profits in 2023, 2024 than they did in '19, even in an eroding economy. salesforce, it's more

interesting. they have done some deals. they don't really make a ton of money on a gap basis so there's probably more hair to pull at for them i think what probably is the thing investors are trying to figure out the most is midcap software and semis those are the two areas i spend a lot of time with investors semis are very bifurcated right now. you see the news out of consumer electronics. pc, memory, pretty bad and getting worse. industrials and autos, much better, but people suspect they'll decline. they're trying to figure out can i own these more defensive semis with industrial exposure and still be okay even if estimates are 5% or 10% too high that's where half the investors are. midcap software, i would say less popular people are afraid to own things that lose money. i'm starting to warm up to the idea that i want to own some of those this year. the debate, deirdre just nailed it, you have pe ratio maybe can expand when the fed gets done,

eventually, but that's a time where the earnings are starting to disappoint. i think we're still a little early there, but i guess the sentiment i'm reacting to, do the opposite of the sentiment, is man, everyone is saying i can't own any companies that lose money we all know, plenty of businesses lose money for a few years and try to be great. we're trying to identify where the ev to groce profits come down a ton >> on semis, you're absolutely right. every company seems to have a different character to it. maybe amd is going to lean into data center, and maybe nxpi is too heavy into auto. can you be that selective? can you time the inventory cycle? is it doable >> you know, i think for the real commodity parts, micron, d rem, everybody in that business overbuilt in the first half of 2022, and investors probably think it will recover a little faster than it will. so i think that's the easiest part tostay away from for now. i think the debate is, everyone

knows that there's probably eight or ten amazing semi-conductor companies the world can't live without, and even if the numbers are 15% or 20% too high in an eroding economy, if you kind of close your eyes and wake up in three hours you probably want to own cadence and synopsis and kdi and lam and so yeah, the numbers are too high, but they're good businesses that's a certain debate people have i just get a little worried because there's an arrogance in that call of almost like a triple bricking pud, it will be okay and it will be worse and better, and it's hard enough to get the four-foot uphill putt right. i probably could get a better entry point if the numbers are still too high >> it is like playing the masters right now. adam, that's great thanks for helping us start the hour jon. >> thanks, carl. from the floor of the new york stock exchange to the floor of the consumer electronics show.

consumer demand clearly, some cracks in the armor. here with her view from the c-suite, adina freeman, chairman and ceo of nasdaq. adina, happy new year. welcome. i really want to start with your view on where we are with the market to start 2023 versus where we were in '22 and '21, particularly when we're talking about the spac evaporation and retail investors' attitudes toward risk and their impact on the market >> right great to be here thanks, jon. it is an interesting start to 2023 i think that frankly, i think over the last few years we probably haven't been able to predict how the markets would behave over the year when we started the year so really, retail investors and all investors have been on a bit of a roller coaster ride for the last couple years. i'm hopeful in 2023, a lot of the unknowns that are really driving the markets today,

things like where are the interest rates going to end, where is inflation going to land, where is the economy going to go, those will start to become knowns and the most important thing for investors is to be able to predict the future very difficult to predict over the last couple years. i do think as we get into 2023, those unknowns will become more known. it will become more predictable, and hopefully that will mean investors will be more ready to put capital to work and start to be more discerning about which companies to invest in i thought the last interview was great in terms of showing not all sectors, not all companies in every sector are going to behave the same. how do we start to make those conviction decisions and give more confidence to investors particularly retail investors who have been on that roller coaster ride >> one of my favorite things jeff bezos has said about management, leadership, we give a lot of attention to what's unknown, bought lot of good leadership is focusing on what you really do know is going to happen in the future and making investments there.

what is that for you, maybe in the context of why you're at the consumer electronics show. ceo of nasdaq at ces, what's going on there >> well, first of all, we're really excited because we announced a change in the way that we're structured as a company at the end of last year. and we now have three key divisions that are driving our company forward. and we're really focused on three key mega trends. one is the modernization of markets. i met with you last year at the aws, in 2021, announcing we were going to bring our first markets into the cloud in 2022 and we did that. we launched our first options market in the aws cloud in partnership with them, and we just signed a client, we provide technology to 130 other exchanges around the world and one of our clients is also decided to take that cloud journey. that's a big focus of ours the second area is in transparency working with corporates and investors to make it so you can navigate the markets more sea seamlessly, particularly in esg,

and the third is anti-financial crime. we impact consumers all over the world with our anti-financial crime solutions. we want to try to protect every transaction in the banking system we have 2,500 bank clients and we use very advanced technology, cloud and a.i. capabilities to manage that anti-financial crime business and of course, we also have our indexes. the consumer technology association, we partner with them we have these index products that are really geared towards the next generation of technology, cyber, a.i. capabilities, cloud index. so being here at the consumer electronics show gives us a really good front line view as to what are the trends that are going to define consumers going forward. >> i want to go back to anti-financial crime you made comments in the past about how crypto needs to be more regulates i think the sam bankman-fried mess, what's going on with gemini and genesis have really raised the retail investors and

really the culture's attention to, hey, even though there's innovation, there still has to be protection. how do you think that narrative plays out throughout 2023, what more do you think needs happen are there opportunities for nasdaq's business there? >> yeah, first of all, trurs is the underpinning of the financial system whether that's in the digital asset space or in the traditional asset space, trust is everything. and so as we look at the three key pillars of nasdaq, liquidity with our markets, transparency with our data and analytics and integrity with our anti-fin crime solutions. what we have been doing is really broadening out and creating capabilities that serve the digital asset ecosystem so we have digital banks and digital exchanges that use us for anti-fin crime capabilities. what we have done is bring a lot of those traditional bank solutions and adapt them for the digital asset solutions. i personally feel that the

digital asset ecosystem has really suffered from severe lack of trust and now it's a matter of how do they rebuild that trust, how do they rebuild the integrity to make it so it can become a sustainable part of the economy. that's the real test in 2023 >> you have a lot more company than you might have had a few months ago adina freeman, thank you and coming up, we have even more from ces. amazon senior vp of services and devices, dave limp, and we'll speak with jeff green, speaking of advertising, needham calling uber a top pick for 2023, saying ads is emerging revenue stream for them the analyst behind that call joins us right after the break we have plenty more "tech check" ahead. we're at session highs, up 1.5%.

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we are getting some breaking headlines out of federal reserve. governor lisa cook, steve liesman has those for us steve. >> hey, jon. lisa cook speaking here at the

aea annual conference. inflation remains far too high, but she sees encouraging signs on the inflation front and some of that comes from her deep dive on supply chains, and she says there are indicators that input shortages have eased, transportation costs have fallen, supply constraints, she says, rents increases also have slowed substantially core service inflation remains stubbornly high and the pandemic has affected labor supply much longer than she expected there is concern on her part about inflation expectations she's committed to bringing inflation back down to 2%. and increasing inflation expectations could indeed run into inflation and drive it higher guys just before i go, i want to have you take a look at what's happened to the two-year today it's been a massive decline in yield and a big rally there, almost 25 basis points, if you have that chart. it's really quite remarkable the yield has gone up in two

different -- yields have gone down in two different moves here on the one hand, it was the jobs number helped out. when you zoom in, you can see two shelves there. and then that ism services number came out weaker than expected and it fell again. if you had a cam on santelli, he would be doing double flips and cartwheels right now this is a big move in the two-year and somewhat of a reset in expectations for the fed as the peak rate has come down from above 5% to now in the 4.90% range. i think if you want to know what's with the rally today, i think it's a big part of it. >> and certainly the nasdaq, which has lost a little bit of ground, but still up some 1.3% steve, thanks very much. bl we're doing to turn to a name that is rising in today's market, uber needham out with a new note, naming the stock their top large cap pick for 2023. a price target of $54, in part because of some emerging revenue streams like advertising

the analyst behind the call joins us now bernie mcturnen, good morning and thanks for being with us for as long as i can remember, the street has been bullish on uber but it spent most of its life as a public company below its ipo price and below the private market valuation when it was thought of as an extremely disruptive company what gets it to $54 a share? what is that based on? >> i think there's a couple things we're looking at here first, i think the valuation has -- is much more reasonable than it was in years past, especially when we were talking about revenue multiples now that we can look at ebitda multiples fully and they're actually one of the, we'll call it a fender of stock based compensation, only about a mid-single digit percent of their revenue goes to stock compensation still trading at 20 times 24 ebitda but one of the reasons why we're bullish on uber heading into next year is this emerging revenue stream with advertising.

a $350 million run rate with a goal of getting to a billion dollar run rate at the end of next year. we hosted an expert call with an ad i buyer and the time is now given what facebook is facing to really go after and especially if you're a closed loop ecosystem, where advertisers can advertise on the platform and that consumers making the purchase there there's a huge opportunity sowe think that will prove to be conservative for uber in '24, and importantly, this is high margin revenue for uber as well. you're talking about a 90% gross margin so that's one of the reasons we're bullish, and secondarily, on mobility, a core business for them, the mobility tracker that we do tracking pricing and wait times, we have been doing it for over 18 months now uber tend to do better relative to lyft when the market is closer to equilibrium. we think everything we have seen

is that we're certainly heading in that direction more and more every day. so we think the potential for shared gains in '23 is higher for uber as well >> let nee go back to that advertising thesis you have and sure, uber is growing this business, but at the same time, we're te10 entering year is in which ad spend is one of the easiest for companies to pull back and you have netflix and disney plus ad tiers coming online why is uber set to gain share here >> a great point, and one of the things that's going to become increasingly important with macro headwinds in '23 is performance advertising is going to matter more and more. over the last few years, brands have been spending a lot on brand advertising. that's where you could see the pullback, and more of this direct response advertising is where it's togue to matter a good example of this is where they are already successful is drizzly. it shows this works.

as they continue to roll out things like grocery, that's really where this advertising opportunity is coming from >> not just uber i know doordash and some of the other names are looking towards advertising, especially as that higher margin revenue stream bernie, thanks for being with us >> thanks for having me. >> coming up next, amazon's svp of services and devices joins us live from las vegas, and ces, why your auto might soon be equipped with alexa. dow is up 565. "tech check" is back after a brk. ea

welcome back amazon continuing its focus on autos at ces, in the works, a dual facing dashboard camera, voice a.i. for the car, and later, ev drivers will be able to ask alexa for directions to the nearest charging station with us now, amazon's senior vp

of devices and services, dave limp dave, welcome. thanks for joining us. i want to start off talking about layoffs and changes. particularly when it comes to alexa, what changes are you going to make? andy jassy in a blog post said we sometimes overlook the importance of the critical invention, problem solving that goes into figuring out what matters most to customers. how do you focus even more on what matters most to customers >> good to see you this is a very uncertain economy. as we looked at it across amazon, i think we had don't have a lot to add to what andy said, but we found we need to look at certain areas and be more disciplined there unfortunately, that does affect people we're doing everything we can. in december before the announcement that came out this week, we worked in my

organization just under 2,000 people, we had to notify, but what we did is looked at projects that were probably in this uncertainty, the risk/reward for those projects and what they might deliver for customers wasn't quite there and part of that was in aluxa, part was in other parts of my organization i can assure you, we're still fully committed to things like alexa. there are thousands of people working on this project. if you walk around ces ere, you'll see the results of that hard work and the many different places that alexi is getting integrated >> let's talk about some of that maybe not exactly alexa, but i'm fascinated by the ring car cam you stick it onto your dashboard. it records in front and in back. it's a popular kind of feature these days for safety, for who's at fault in an accident. even records when the car is off, if events outside the car trigger it and there's a traffic stop feature that i think a lot of

people who look like me are going to be interested ip. but it doesn't record the side of the car, or does it >> it's got a wide angle lens. it gets a big portion of the car both inside and out. it doesn't catch the side, but audio is recording in those events i would say we all have experiences in our car it might be an accident, as you mentioned on the road, but also increasingly, in everybody's neighborhood, you're getting cars broken into, and one of the nice features that is in the cam that we built with ring is that if you're in your driveway, for example, and something untoward is identified with your car, your spotlight cam can go off, the alarm system in your home can go off it's a fully integrated system both when you're driving and also when you're at home >> it's deirdre. happy new year you talked about being more disciplined against the macro backdrop does that include alexa devices like the echo which have been subsidized by other parts of the business will you raise prices on

devices? >> i think our business model is going to continue to be relatively the same. commodity prices have increased so those generally get passed on to consumers over time, as we have to absorb those commodities. that could be memory, displays, but our business model remains the same we want to make money when customers use our product. we try to sell our products roughly at break even, sometimes a little more, and then as customers use them, say on alexa, they shop from their alexa, that benefits all of amazon, gives the customer a great shopping experience, and that's how we want to monetize these things as we move forward. >> really interesting that you also announce an expansion of the number of devices that use matter for home connection look forward to talking to you more about all of that technology that you're working on dave limp from amazon devices and services thank you. that flywheel he's talking about. good money maker piper sandler bringing ad names

into focus naming amazon, google, and pinterest among their top internet picks for 2023. julia checks in on the space with the trade desk ceo right after this break

welcome back to tp"tech check. i'm contessa brewer. december's jobs report came out better than expected with

223,000 jobs added while it's a slowdown from the month before, the labor market is still strong despite the federal reserve's efforts to slow economic growth the unemployment rate fell to 3.5% >> southwest airlines said it expects to report a net loss for the fourt quarter after the mass cancellations over the holidays. the travel chaos could cost that company as much as $825 million in lost revenue from scratched flights and other compensation to stranded passengers southwest canceled more than 13,000 flights from december 24th to the 31st, according to airline tracking website flight aware. shares are down nearly 15% in the last month and costco is one of the leader on the s&p so far today up about 7%. the wholesale giant releases its sales number for last month which came in above estimates. e-commerce sales were down slightly, but customers are still showing up to shop in person carl all right, contessa, thank you so much.

get a check on the market with stocks awfully close to session highs. the dow up 525 semis, a big component among the winners. broadcom, lam research jumping oil moves higher baker hughes among the leaders and shares of pfizer spiking to session highs out of reports out of reuters china is in talks with the company to secure a generic license on paxlovid. they're hoping to get that finalized by chinese new year. >> interesting spike now it's no secret that the adtech business is in the midst of a slow down with names like snap and meta seeing declines. that's one focus at ces this year, and julia joins us with a special guest on that. >> hi, jon that's right i'm joined by the ceo of the trade desk, jeff green thanks for joining us here from

ces. you have big announcements here, but i want to get your big picture outlook on what's going to happen with the ad market this year. there's so much talk of a contraction. your platform is a place for buying and selling of digital ads, particularly premium digital video content. >> first of all, there's some amount of pressure on everybody in this environment. and of course, advertising is something that cfos and cmos look at as something they have to make every dollar count that's where we come in and do a very good job of helping cmos be data driven. we also have this amazing secular tailwind around streaming, which is when consumers are under pressure, they will often look at their subscriptions and say i would rather see ads and pay less, and as a result, we get this secular tailwind actually accelerate when there's economic pressure so it could be hard for us to see what's happening on the macro because we benefit so much from even those small adjustments. >> you're benefitting from the launch of netflix with ads and

disney plus with ads overall, are you already starting to see brands spend less or be more careful about where they're spending >> they're definitely being more careful about where they're spending what we're seeing is a lot of brands being careful not to spend as much on ugc >> user generated content. >> user generated content. things like twitter, pinterest, youtube, and instead move towards more premium content and because those premium content providers are giving more opportunities to advertise and you're associated with premium content, the ads are big on the screen that capture your attention. there's a lot of people in advertising that are flocking to that >> let's talk about your announcements here first, your announcement with paramount. you already had a deal with disney to sell ads on their digital platforms. what's the news with paramount >> we have been working with them on the ad side. we'll continue to expand that. this is partly about that expansion and also about using a currency for the internet called

unified id what that does is makes it possible for us to provide better personalization on paramount, the same way we do on disney and many others we work with all the major providers. what that does is makes it so the ads are more relevant to the person watching. >> your other news here is called galileo a new tool to help advertisers get around some of the limitations that google is going to be putting on their ability to target. >> yeah, so what many of the big tech companies have been doing is limiting the ability to use their data in any capacity so what's happening is advertisers who have lots of data about their customers that they built relationships with their customers over often decades, they want to put that to work so they provide personalization to them and provide relevance to them. so it becomes more important to use that first party data now than ever. it's more valuable now than ever galileo is a very streamlined way for them to put that to work, using their partnerships and integrations with companies like salesforce and snowflake

and others >> for people who have been watching this industry, google is expected to get rid of cookies in 2024. so making it much harder to target consumers this comes after apple made it much harder for the likes of meta to target consumers that was one factor that was really weighing on meta shares my question is do you see these changes coming from google being as damaging for the likes of meta and snap and others as apple's changes were >> i definitely don't think that they will. but part of that -- part of the thing that is different for us and for other segments of the ad ecosystem is that there is cookies that affect the browser web, but so many dollar have already moves to in-app and mobile which has a different limitation and there's also streaming. because our focus is on streaming, it's immune to the problems of cookies and because almost everything in streaming you log in, personalization is available on almost 100% of what happens in streaming >> do you see the ad dollars coming to your platform, are

they moving over from traditional tv, traditional radio? >> it's really from all of it. there are those you can't be very data driven in digital. those move over. there are those where you can't be as driven in traditional television, whether that's broadcast or any form of traditional media. those are moving over as well it's coming fromarve where because of the fact it's data driven, it makes it possible for people to be more relevant for less >> looking over your stock chart, we see the stock decline as we get news, every quarter you have seen it decline as you have gotten the news out from meta and snap as they have been talking about their challenges in the ad market then it goes up on your own earnings news but it seems to suffer as the broader market indicates challengers. what are investors getting wrong about your story >> they think we're all in the same bucket of ad tech or technology companies that are funded by ads. and what we do is we're a buying

platform to help people make better decisions about which platform to buy on we're not a destination. so if snapchat loses users, then they're going to suffer. but that doesn't have any impact on us because we're representing the buyer, helping them select across millions of websites and hundreds of streaming services all around the world so if one loses users because it doesn't have as good of programming as it did before, we buy on something else. >> wehave been talking to a lo of people here i have been hearing from my sources that tools like yours are increasingly important as brands want to make the most of their ad dollars thanks so much for talking to us here and talking about your announcements. we hope to have you back on soon guys, back over to you >> julia, thanks for bringing that to us from ces. we'll check in with you later about the latest metaverse tech from ces floor >> first, is chat gpt the future or just a gimmick? jon and i will tumble in a tech tug of war over the answer and a

special guest judge joins us after the break to declare a winner "tech check" will be right back. experience always driven by data we're left with that tension

between lots and lots of data but not enough connections where brands and retailers really know how to delight consumers >> you can businesses use data better >> the real opportunity is around data analytics. we're really helping our clients think about which kind of data, inside the enterprise, across the ecosystem. what types of technology, like predictive analytics or blockchain could really drive data insights to build those experiences. the brands and retailers that come out of this are going to be the ones that really nail this in the near term >> thanks so much for sharing your expertise >> it's been fun unmovable stren? (eagle call) nope. how do we show that we'll stand tall through the storms? nah. (thunder) how do we make our clients feel secure and- ugh... not lions. (lion rumbles) we do it with our people. people who've been looking after people for over 170 years.

when you stay at a vrbo you always get the whole home because is it really a vacation home if you have to share a house with a host? ♪ only with vrbo open a.i., the research lab behind that gpt chat bot, hit a sky high valuation the company reportedly in talks to sell existing shares in a tender offer a deal would value the company at around $29 billion, making it one of the most valuable start-ups on paper despite little revenue the a.i. chat bot has soared in

popularity, recently hitting over a million users in less than a week from its launch. microsoft invested a billion into open a.i. back in 2019 and the company saw initial backing in 2015 from the likes of elon musk and reid hoffman, but does all of that justify the company's hefty valuation? let's debate that. deirdre is going to take on jon for a tech tug of war here cnbc contributor joanna stern of the "wall street journal" is standing by as our guest judge jon, kick us off >> yeah, i will argue, carl, that chat gpt is not worth open a.i., i should say more broadly, not worth $29 billion. i can understand why some people might think it is, but research projects aren't businesses this is like betting that xerox graphical user interface was worth billions for xerox it was apple that ended up bringing that to life, not xerox. there's a big chance other companies and start-ups that are smaller and yet to be born will

end up making the money off this also, there's the metaverse fallacy here just because this thing grew fast or got hyped fast doesn't mean it's a big deal you know what else grew fast clubhouse. remember that, a year ago, two years ago. nobody talks about it. technology lovers fall into the trap of assuming eye catching features that they can build are things customers are going to buy and often they don't and finally, this thing has got to make $3 billion a year probably growing at around 20% in order for it to be worth that at what point in the future is it going to make $3 billion a year can you really realistically sketch that out, even within five to ten years? i don't think so >> some might have said the same about amazon and tesla they both didn't make money for a long time and look at where they are now be it resolved that open a.i. is worth $29 billion and potentially a lot more i'm not going to call it the google killer. that's a bridge too far even for mow, but it has major backing from microsoft

that's interesting forget about bing. that search engine doesn't have the scale, but ort applications do like office and teams imagine chat gpt licensed out to those billions of users. that solves the revenue question not just microsoft, but perhaps others and the company saying that by the end of 2024, it actually could be generating about a billion dollars in revenue through that licensing, and jon, let me go back to the chart we showed you at the top of the segment. you mentioned clubhouse. fine, but take a look at how quickly chat gpt reached a million users. it was a matter of days. some of the most disruptive technology we use every day took a lot longer than that, such as spotify, such as instagram here we go right here. that stylealized path to 1 million users. it has done what no one else has been able to do, bring artificial intelligence into the mainstream that is what could make it worth this much money.

judge joanna, i'll leave it to you. >> you both made very, very compelling arguments here. i want to ask you -- i'm going toask you both to answer one quick question what do you think is the number one most compelling business model for this company right now? >> i'll answer first i think selling to government and enterprise, think about spy craft. or even diplomacy. sifting through thousands, millions of pages of documents and creating a coherent narrative about what a nation state, what a particular leader is likely to do. not that you would take it on face value, but it's a great starting point >> i'm similar to jon in that it shows you you can unbundle chat and that may reduce the need to go to google to search for something, so it's that licensing idea >> hmm the other question is do either

of you go to law school? >> no, but i did stay at a holiday inn express last night >> i was there a lawyer there? >> my brother is in law school i'll ask him your question >> okay, you both, again, made very compelling arguments. i think -- first, i would like to call a retrial, but producers are saying that's not an option so i have to decide. deirdre, i think you made a very compelling argument. again, this is not what i think. it's about the arguments you made, and i think that this company has shown incredible quick growth i also do believe, i think your arguments about versus clubhouse, against jon there, very strong. this is a company that is deeply invested in a.i. it has microsoft's backing they have a lot -- they really have wowed both investors clearly, but also consumers. and so i do think, deirdre, you're taking the lead here. you win this round i will come back i need a job

>> i will say jon is on the other hand pro he could have done the pro argument probably better than i could have because we don't really know what you think are you going to tell us what side you're on >> i'm on the conside i don't know if microsoft bing is even worth $29 billion. good luck. >> not about bing. >> well played, jon and dee and joanna our thanks to you. >> the nasdaq is on pace for its fifth negative week in a row some of the biggest losers on the ndx include software names, data dog and crowdstrike among them along with tesla which has lost nearly half of its value since december we'll take a closer look at that later on this hour right now, s&p close to a two-week high. 3874 "tech check" is back after a break. to adapt in a fast changing world, you could hire a professional pit crew. go, go, go. sorry. nope. okay. fresh donuts - hot coffee!

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all the time let's get back to the consumer electronics show in las vegas where the metaverse is in the spotlight with the first ever section on the floor show dedicated to ar and vr companies. our jr boorstin has been checking it out. let's get some reflections on this >> reporter: all these augmented companies here showcasing their new gadgets comes after a disappointing year for ar and vr head sets.

a worldwide shipment dropped more than 2% first apple is expected to launch a headset this spring, which is expected to jump start consumer demand. and second, the enterprise market, that is seen as a key growth area even during tougher economic times i got to demo out the architecture and design tools that enabled me to assemble a building and move around furniture. of course this is all virtually. its new augmented reality headset they're partnering with cisco for its webex hologram virtual reality meetings and also tools for surgeons to use inside the operating room. >> the space for me was the first entry point that made sense for augmented reality because there's actual use cases today that customers can find value with and we narrowed it to areas like

health care, public sector, and eventually we'll circle back to consumer >> we also check out a company looking to add another dimension of smell, scent wearable startup ovr gives users smell experiences to help with relaxation and meditation. it also pairs with meta's quest head sets. i used this demo to virtually roast marshmallows at a camp fire >> i think when apple releases their device, that's going to be a tipping point. obviously apple has a track record of doing really, really important things releasing really excellent products, so i think that's going to we a tipping point for sure >> a physical senitation, a company sells vests and sleeves that send timed electric shocks to make you feel like you are fight agvirtual battle and while they and other

companies want the consumer vr market to take off, they're not holding their breath in the meantime they are finding other use cases. for example, those sleeves are already being used with other games like fortnite. >> i just wonder how painful that was we're going to talk a lot more in the weeks to come about how important it is for meta to put up or to watch some of to the other companies and the ancillary halo effects absolutely fascinating we're just at the beginning of this >> tech check plus live stream with ceo peggy johnson today at 12:30 eastern and plus listen to our podcast. tech check is ck iban just a moment

one more thing, at least one. a bumpy start to 2023 for tesla. the stock's been stuck in a traffic circle for much of the year how many metaphors did i throw in here? went positive a few moments ago after a steep drop this morning. the company cut prices on two of its models in china, the second price slash in three months as

it battles waning demand in that country. these cuts come just days after announcing weaker than expected vehicle deliveries for q4, which sent the stock to its lowest level in more than two years the stock is still down several percent in the four trading days of 2023 so far, and other car makers are also electric car makers lucid is actually up a bit, i think rivian is down a bit it's all over the place. >> yeah, iscounting is such a key and relatively new part of the story, carl. china being such an important market there's competition that's part of the reason for that discounting byd may not really gain a threshold in international markets, but in china it certainly is it's increased production. it has new models. and i guess that's one of the biggest questions facing tesla going forward. >> stock husband an awful lot of it thrown at it this week alone.

obviously the news yesterday about bmw trying to step up competition, mercedes. but, john's right it did defend earlier today. interestingly meta with a larger market cap than tesla for the first time in about a year or so we're going to watch that with tesla just south of 112. very busy day. stock's up, dow's up 600 let's get to the half. all right, carl, thanks very much welcome to the half time report. i'm scott wapner front and center this hour, surging stocks what it really means for the fed and your money going forward and day three of our stock summit everybody in the house today let's check the markets. you just heard it from carl stocks are surging dow is better than 600 right now trying to get a 2% gain as is the s&p 500, 3878. bonds up, yields down,