fact that we are seeing this is part of the reason that moderna's popping on this is -- i guess it's not a one trick pony we are at the end of the show. we will hold that question for another day. thank you. >> you are right thanks. that does do it for us on "squawk on the street. time to send it over to "techcheck." ♪ good wednesday morning welcome to "techcheck. this hour microsoft cuts 10,000 jobs is that a warning of a severe slowdown in spending plus, a pending deal for activision a year later. back in davos with an explosive from the ceo of mastercard retail sales indicating a weak consumer to close out the holiday season the outlook for q1 is next morgan stanley likes uber as the top pick for 2023.

plus, we will hear from the ceo -- >> and let's get a check on the markets with stocks looking for direction on the back of weaker than expected inflation data and falling yields right now you see the overall indies not doing too much. the dow is down about 150 points the s&p about flat in the nasdaq, also about flat maybe peaking into the green a little bit nasdaq aiming for the seventh straight positive day, something that didn't happen at all of last year. that many days in a row. energy and discretionary are the leaders. the safety plays lagging chip sector getting a bump with seagate, qualcomm and nxp and. and moderna that vaccine targeting rsv. carl >> today's feed begins with cost cutting for big tech microsoft laying off 10,000

employees or about 5% of the work force the ceo announcing that decision this morning in a memo shared with staff this after axios reported microsoft laid off 1,000 employees this past october. of course, microsoft is just the latest big tech company looking to improve efficiency. meta, amazon, coinbase, salesforce have made similar moves. the chief joyed "squawk box" in davos and had this to say how tech companies are navigating the environment. >> this notion of growth at all costs is gone for the foreseeable future is gone money costs money. so access to capital is going to have some sort of consequence. that will make it so companies are macking more discerning investment choices in terms of growing and expanding the business focused on cash flow loot more and i think investors are going to underriwrite companies that show growth or a clear path to

profitability. >> it's interesting. he talks about companies trying to do more or the same with less although half the memo is about investing in things like the next wave, in his words, of computing. that is open a.i. >> not missing an opportunity, exactly, to point to that and open a.i something that has been the buzz here and beyond. that notion that she brought up of growth at all costs, no longer really being in vogue, that has been playing out throughout the markets the last year or so in public and private. some of the most interesting disruptive companies have been built on that easy money idea. we have been tracking this as it goes away. of course, that profitability that we are always talking about. >> yeah, they don't get hyped as much some of these are actually pretty good. i think the impact on startups and the ipo market on this time is clear you've got to generate cash.

don't expect a lot of money to be raised in the next 18 to 24 months the ipo market is going to be iffy what about the impact on bigger companies? i think for them it's not so much about the cost of capital it's about the opportunity cost of capital, right. every dollar you spend on something good is a dollar you don't have to spend on something great. and these are the periods of time where the giants tend to stumble. think about around 2000, right, right before the dot-com buzz. we saw open source, the pc as digital hub taking off not everybody was prepared for that seven to ten years later, mobile and cloud took off and people kind of saw that am coming, but a lot of the big companies weren't prepared for that. now i think what they are signaling it's going to be a a.i. related we are keeping our eye on the ball we will continue to invest there even as we cut we will see if they get it right. >> he points to that notion. part of that letter satya says

these are the hard choices we have had to make throughout the 47-year history to remain consequential in this industry so it's sort of what you are saying carl, as we hear more cuts, some of the giants, but also some of the smaller tech companies, alphabet remains sort of the elephant in the room the only one on an island that hasn't made major cuts they are expected to hire, what, 6,000 employees this past >> i know you read the bernstein desk note this morning they say, hey, google, your island is getting lonelier, referring to the prospect of layoffs. interesting at microsoft the emphasizing hardware less on a day we got the downgrade of ibm at energy energy and this argument that in an early cycle environment they underperform, taking chips off the table. >> a little controversial here these are real cuts and they are

painful for of course the people and families that are experiencing them. i am not sure these are major cuts, especially given how much some of these companies have grown the last two, three years. microsoft more than 70,000 employees since 2019 cutting 10,000, okay all right. well, apart from microsoft's massive layoffs, if they are massive, some layoffs, facing another major issue. today marks one year since the company announced its intention to acquire activision for $69 billion. still hasn't sealed the deal microsoft has faced pushback from competition, including sony, google nvidia. currently being sued by the federal trade commission and the eu is set to put forward a antitrust warning. guys, welcome. i don't know if anybody would have expected this deal to go through in a year. i think it's clear microsoft's

overpaying for activision blizzard how much are some of these expensive acquisitions waiting in the wings playing out in the amount of cost that some of these companies may have to cut now? >> yeah, i think it's very real for microsoft. and they gave themselves 18 months close this deal their targeted timeline is june. we are a year in and on their own schedule they have six months i think they always knew this would be a regulatory slog i just think for microsoft in this moment the question is, how much do you want to spend your time on integrating this other huge company that has pretty massive culture problems, that is going to make you figure out video game unions, all this stuff. all this baggage of activision is pointed at one thing. mobile game revenue. when i talked to xbox ceo, microsoft game ceo, he said everyone is focused on call of duty i'm looking at candy crush microsoft doesn't play in

mobile when you look at the letter, it's really important. the biggest layoffs in microsoft's history, that was them getting rid of nokia. this is a second time, second biggest layoffs, 10,000. he is saying there is a platform shift coming is he going to fight the next war, a.i., whatever it might be, or is he going to spend his time trying to buy mobile game revenue to fund what's coming next i think that's a big question. >> satya kgot the last transitio right. he was sort of the guy -- >> he said that's where we're going. >> he was the guy under balmer who was focus inside that direction. the previous one microsoft got wrong, right web and mobile so how do they look in this transition how are they positioned do you think versus the competition, if it is a.i. we don't know. if it is a.i., how do they look?

>> remember a year ago they were on our air, bobby kodak from activision and phil spencer from microsoft saying this a metaverse play that was their top line. that was their reason for this acquisition because think back a year ago the hyper on the metaverse hadn't burst meta had downfall in stock price, so forth, so they had to appease investors. we know you guys are geeked out on this concept. we will do it, too i haven't heard brad smith from microsoft say the word metaverse since that day as he is trying to push this deal forward. it's all about gaming. in addition to mobile, cloud, too. about growing the azur e-business they want subscriptions for that xbox cloud gaming service. you don't need to buy, you know, expensive console, just a screen and an internet connection and you can play all our games that is the vision

that's why they are spending 69 billion. as they are laying off 10,000 people today on the one-year anniversary of this deal, therg saying we are going to spend $69 billion to buy this video game company and on top of that we have these reports that are going to dump 10 billion more into open a.i./gbt meanwhile, they have to or worly about the azure business we spoke to the only celebrating, the analyst behind the celebrating for microsoft yesterday. he said that most people do see microsoft as a company that can weather the storm, but it does have vulnerability, some could, exacerbated by the slowdown. how much of this has amount today this regulatory slag been a distraction at a critical point for the company? >> i think it's been a distraction. i think microsoft thinks it's going to be it in this country their confidence about the quality of that lawsuit is off the charts i don't think they are very worried about that

i think particularly in the united states, microsoft is excellent at working the government it's a huge government contractor it's good at this country. i think you add on the pressure of the eu warning that's to come add on the pressure of integrating a company like activision and maybe that calculation starts to change a little bit but there is a reason they gave themselves 18 months to close this deal. i think they saw all this coming the big question with me, even with the cloud stuff, microsoft is able to do cloud streaming because they run azure they have to decide this a market they can be in, apple will let them do game streaming on the phone, which is still way up in the air, and expand the market for gaming on mobile, which is the only place gaming is growing, with either streaming or this acquisition of mobile games company i think that's still a big question mark. >> it is then there is a profit question. even if you don't grow the top line, if you get better margins, that's good. thank you. coming up after the break,

we are live in davos with the ceo of mastercard. the stock a big outperforming the last 12 months we will ask about today's ppi number and more when tech neck continues the dow down 265 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.

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retail sales falling over 1% in december, slightly more than the even 1% forecast potentially indicating a cooler consumer what does it mean for the payment processors let's get to davos, switzerland, today, sara eisen with the ceo of mastercard. hi again, sara. >> hi, carl. i am here with michael miebach, the ceo of mastercard. it's good to see you. >> hi, sara. >> carl was talking about retail sales. what's your read right now globally on the consumer >> so the consumer has been resilient. that's the headline. and if you peel the onion a bit, what you generally see is depending on the country, the inflation is clearly a trend that is global, but the impact on the consumer has been

different country by country depending on policy reactions. a few gives and takes on how the rates raised so forth, how that is playing out there are a few common trends across the world for the consumer the first one i would call is that there has been a shift post-covid from buying goods, stuff essentially, because we are all stuck at home and services, number one >> you see that continuing >> yeah, that is continuing. that is continuing really not impacted by higher inflation rates. people make ends work. that is the second trend consumers trying to find ways to make ends meet and make choices. if i still want to go out because i haven't been able to do this, what do i do? i make discretionary trade-offs. i have to pay for my food, obviously, i do that then i buy less goods. the trade-off making all of this work for the household budget is another one.

there is another impact here in terms of low unemployment rates. and higher wages that is again different country by country and so forth broadly speaking, as a result of all of this, the consumer still keeps being resilient and that is a good sign when we look economy. >> in the u.s. in particular, we are watching for things like delinquencies and rising credit card debt. what are you seeing on that front? >> we are not actually seeing that pause with a network that connects consumers to banks and places where they want to buy something. if you look across the industry, we talked to our financial services partners, banks and the like, we are finding our way back to pre-crisis delinquency levels on the long-range norms it's still in below average territory. there will be people that feel the pinch of it more, of course, and others feel it less. as a general trend from consumer perspective to be willing to tap into credit more than they have

before, to make those trade-offs that i talked about. >> you are not seeing anything recessionary coming necessarily, are you? >> no, we are not. >> at all? no sign of it? >> no, at this point in time making things work, resilience is the name of the game. if you look to next year, i think these gives and takes on what is positive and what might be negative will continue. we will see how long the central banks and around the world will keep raising rates to make sure that inflation is on the curve that will be one part of the answer >> so what about inflation we are seeing it moderate a bit. inflation has been helpful to your business. so where does that stand is it good or bad? >> fundamentally, you know, inflation, longer-term inflation and high levels is never good for anything that's the starting point. medium, short-term, moderate inflation has been good for business because it raises the

overall volume this is the impact on the business you don't really want as you look at having a sound economy. >> all in all, how fast do you see it coming down from here >> we, you know, looking around the world, we will -- we are expecting that rates will continue to be raised by the central banks until you really see the economic activity moderate so not in a short while. >> what about china? and the reopening of the economy? >> right. >> what's the impact on spending >> northeast asia has been shut and now it's starting to gain a lot of momentum. so i think we should all look forward with optimism on what that will do for global economy. we have seen the last few years, whenever travel restrictions have been removed, people just travel they go and they go out and we expect the same thing here and it's going to be big volume. >> cross border? >> cross border travel domestic travel starting in

china, obviously, as people travel there but more impact for us globally. going to the classic tourist destinations that you see chinese travel that was a big part of our business before and it will come back. >> we unveiled the just capital rankings for business on cnbc and you scored very well, particularly high marks when it comes to workers, taking care of your employees, communities, also you were number one i am curious how you think about that in a environment with a tight labor market and also starting to see layoffs in tech and financial services, both places where you play. >> fundamentally, when you look at the labor market overall, where we look for talent, that's a part of the labor market that's still hotly contested you think engineering talent, you think emerging technologies, artificial intelligence. so you really have to put your best foot forward to attract and retain talent in that space.

i mean, everybody who works at mastercard matters but that's a good starting point to orient yourself, you know, set the level on what we need to do. >> are you hiring? >> we are still hiring we are still hiring. the payment business is more competitive. we have a more digital conomy. we are growing therefore, we need to hire in terms of things we do that led to this ranking is we give flexibility on work front and how you want to organize your life, work from office, work from home. we have -- we give our employees an opportunity to engage with their passions, their passions outside of the job for example, let's say you have a particular natural go that yo support, time to spend time on that and use corporate resources to support that. another example. we tied our compensation for all employees to our esg goals a lot of mission-driven people say that's the kind of police place i want to work we play to values, benefits,

flexibility and that makes an attractive package and you have a brand like mastercard that, who wouldn't want to work for mastercard >> i have to ask you, you have been one of the more aggressive and bullish on crypto. >> right. >> have the recent events in the last few months changed your mind >> so i think it's important to distinguish between crypto investment assets, you know, non-backed cryptocurrency vis-a-vis where we have been bullish. we have been bullish on blockchain technology and what it can solve so that's really where with our investment went, where we went out to the market to partner with banks and so forth and see how to fourth optimize payments. that's where our focus was so the noise that we have, unfortunate noise, those are things that we are staying close to do make sure that we protect mastercard holders there it's really the focus on technology and what can it do. as a network, we enable broader

ecosystems as we enable banks on the payment side here we went out with consulting services for crypto with custody service, you know, there is a partner of ours that wants to enable their customers to hold crypto he don't do that but then we get license partners in with regulatory compliance that offer these kinds of services >> you are not backtracking? >> we are not backtracking we believe in the potential. technology and fsupport the ecosystem with what you do connecting people. >> michael miebach, thank you for taking the time to talk to us in davos. good to get an update. ceo of mastercard. i will be back with interviews for closing bell from davos, switzerland. service now ceo bill mcdermott, of course, big player as you guys know, and ceo of pepsico, ramon laguarta on global consumer demand. you heard from michael miebach, says remains pretty resilient. >> that was his headline, right?

the consumer remains resilient and that's something we heard from the uber ceo this morning at davos he is not pumping the brakes despite the broader volatility, offering his outlook earlier with "squawk box." take a listen. >> consumer spend remains strong and a lot of people are thinking about, oh, there is a recession coming, et cetera, there is demand weakness. we, obviously, haven't announced our results, but generally i would say across the world the consumer stays strong and we are a consumer company in terms of -- >> adding that the company is actively hiring with no plans to slow down. those comments as morgan stanley names youtuber a top pick for 23 giving them a $54 price target, more than 84% upside we talk about this the street is bullish on uber. it is a good time. he told me months ago there has been no slowdown, ridesharing is

well positioned for this and even food delivery has been maybe stickier than some have thought, but of course that hasn't changed much the profitability picture. uber still lost almost $1 billion over the last 12 months. >> fascinating watching these storylines play chicken. carl, i swear that the savings rate was coming down, that consumers were loading up credit cards quite a bit and jamie dimon, otherswere saying weeks ago around mid 2023 there would be have to be a wreck nipping and the consumer might be tapped out. right now companies are cutting work forces but saying the consumer is fine even as we have retail numbers that suggest the consumer wasn't feeling exactly as fine in december as november. i don't know >> yeah, although some of the more bullish commentary we have gotten pivots around the idea that energy prices are low, financial conditions have been loosening a bit.

obviously, excess savings is getting drawn down maybe a little more slowly than we previously thought if you were to throw uber in with transportation stocks and some airline names that are literally up almost 40% since the beginning of the year, people want to move around >> yeah. it's that services versus goods shift, which may be why retail sales are lacking but people are still going out, still traveling, using ubers and mastercards. meanwhile, guys, after the break, media's recession playbook names like warner bros., discovery, roku, disney, paramount, they are serving to start the year plus, netflix reports after the bell tomorrow. how will the company deal with the slowing consumer "techcheck" is back in just two minutes. over of blondie's “dreaming”] [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪

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so far a pretty good year for media names, netflix, paramount,

warner bros. all seeing double-digit percent gains warner bros. up 38%, but can that last as recession fears loom over the consumer and investors? our julia borstein has more on that. >> netflix kicks off media earnings tomorrow afternoon at a time when an economic downturn could reveal weakness in the ad industry the media giant stocks have surged in the first few twweeksf 2023, they underperformed the s&p in the past 12 months. they are doing layoffs as they transition from chasing subscriber growth to focusing on profitability. ad-supported tiers are in focus. they work to attract and retain cash-strapped consumers. indications of how disney and netflix's new lower cost ad supported offerings are doing so far. for paramount, shares suffered after it lowered their ad

revenue forecast their free ad-supported pluto could have an advantage with consumers. meanwhile, from warner bros. discovery, we are waiting for details of the combined streaming service that is set to launch this spring also see how ads come into play there. jpmorgan warning, quote, direct to consumer platforms need to right size their content offerings and consolidate to achieve lineal levels of profitability. raising prices while rationalizing content offers could challenge subscriber growth now, another thing to watch, comcast and disney's parks could also give us a sense of the health of the consumer up until now, the parks business has been pretty robust carl. >> it's going to be an interesting week for media beginning really tomorrow, julia, with netflix. seen a couple of pieces of commentary arguing we might get more on password sharing than the ad tier. what do you think? >> i think it's early days for the ad tier. there has been a lot of noise

about how well or poorly the ad business has been going for netflix. i think we may get some information, but it's very much early days i think password sharing is going to be a key way that netflix really maximizes its user base. they have more people watching netflix than are paying for it i think that's going to be a big focus for the company. we could learn more tomorrow. >> yeah, we'll watch it. they up their target to 339. we will see what happens tomorrow thanks. after the break, is tech positioned for a long-term bounce the nasdaq coming off the seventh positive session in a row, the first time since the 11-day win streak in november of 2021 a ragi ssttestays a massive rally might be coming. don't go away.

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ad-supported a check on stocks. weakness creeping in mid session here the average at session lows pretty much. dow down 341 some of the big movers, oatly getting a boost. the firm is positive on plant-based beverages going forward. it's a small stock united with the earnings beat, guiding q1 above forecasts but the secc sector is falling with the broader market today charles schwab, banking fees came into light today.

john. staying with the markets, wholesale price falling sharply in december. that news not enough to keep the nasdaq in the green today. the index looking to break a rare seven-day win streak. we didn't see a rally of this length at all in 2022. the recent momentum has our next guest feeling optimistic he points out that the index has held its upfrtrend and adds if t holds we could see a breakout in tech good morning i think about a month ago we talked to you, the nasdaq and s&p were about at this level, you said we had a recession coming, that the fed was going to cut in '23 despite what they were saying, and that rallies were selling opportunities do i have that wrong >> no, that's exactly right. i mean, the fact is that you see

again today despite falling data, they are still on very much the higher for longer narrative and that will ultimately risk a recession unless they flip-flop at the right time my sense is that inflation will continue it come down and challenge their hawkish narrative. since september and october we have seen a dramatic rollover in yields and dollar, which were, obviously, headwinds in 2022 but now turning out to be tailwinds. despite the hawkish talk financial conditions have easing and that's, obviously, contributed to the rally action in dip buying action in the recent months. >> that's what i'm wondering people seem to be taking this like a warm bath like, oh, yeah, the soft landing, that's gonna happen now. look how well things are turning out. why would the fed have to cut rates in late 2023 unless there is a harsh recession, which it seems like now the popular

wisdom anyway is, isn't gonna happen >> well, i don't know why everyone is insistent on that. the fact is we are tightening the path into the highest debt construct ever we have seen key economic data rolling over look at the industrial production today yesterday we had the new york fed index dropping dramatically and today also retail sales. the challenge is to negotiate between slowing growth but the lag effect of these rate hikes from next year, from last year, are going to start taking hold further. so think there is a really, really narrow window, and the fed ultimately will be challenged in staying on this hawkish. now, the tailwinds are i just mentioned, we are seeing evident in the market action, specially the internals. while the s&p today, by the way, the reason we see a pull back now is because the s&p again hit perfectly its down trend line that has been in effect since

the beginning of last year so the technicals matter at the same time, however, we are seeing a market shift in internals. if you look at the market in terms of equal weight, we have seen a breakout and now we need to see how the pull back kind of deals with this and then possibly set up for much larger rallies still before -- >> okay. yeah, all of that sounds gloomy. you are saying this possible major rally in tech stocks because of the charts, it sounds like you are saying if we get that rally, you should sell it what's going to spark it earnings after all these layoffs? >> that's the tailwinds i mentioned. the dollar coming down nearly 10% since the peak last fall that was a headwind last year in terms of earnings. now it's a tailwind. to the extend layoffs are contained, they are helping margins as well. and now we are in the process

where earnings will tell us how much is priced in vis-a-vis what is yet to come at this point look, the bears had a chance four months in a row last year, into even this month, in january, to break the uptrend and they haven't done so so that's to me from a technical perspective despite the teslas, amazons, apple, everybody bombing even in the beginning of january didn't happen. that is a sign of underlying technical strength if that trend breaks, we are looking at new lows in probably everything at some point so far, it's holding that's impressive. and now we have this tag of this down trend which, you know, we are compressing. there is going to be a decision here probably between january and february, maybe after the fed meeting that's upcoming, and then we engage the technical reaction if we get that breakout, then we have significant room to the upside, considering also that sentiment is tearably bearish,

positioning is really low. so in principle, people are not prepared for a larger rally. now, we are in the negotiations phase now. we to see how it plays out with the earnings and fed meeting in early february. >> that's a lot coming in the next two weeks two weeks or so. >> yes. >> thank you >> thanks. meantime, one potential reason for the session lows here, some headlines from cleveland. fed president mester telling the ap a few moments ago emphasizing while inflation is cooling more, rate hikes are needed. she added that the benchmark interest rate should rise above the 5 to 5.25 that officials projected. she doesn't vote in monetary policy this year in her words, i still see the larger risk coming from tightening too little. >> yeah, as you mentioned, index at session lows, the nasdaq could break that winning streak. after the break, walmart looks to go high-tech, testing a.i. in automation and in-home

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have their eye on the retail sales and what does that mean for investments and ambitions? >> obviously, this company keeps a close eye on the retail sales. walmart has 230 million weekly shoppers those shoppers using digital payments more and more also making cybersecurity a growing priority today walmart is demonstrating how it secures payment info, birthdays, addresses and medical information. we see that with the company's chief information security officer about cybersecurity and walmart's growing online marketplace with 100,000 sellers as well as its in-house buy now, pay later business. >> cybersecurity is essentially important to new business ventures because they are disruptive anything that disrupts our business causes a loss of momentum we recognize that as we move into new businesses, the things thatcreate value for our business very often create risk in our space. >> he said the shortage of

700,000 cybersecurity professionals in the u.s saying they are recruiting professionals. the company also 2,500 associates in an ongoing program paying full tuition for employees pursuing degrees in cybersecurity. >> so, frank, it's an easy place to invest with a slowing macro backdrop no one is going to complain. you need to make sure that your business, especially one as large as walmart, is safe. but what about some of their other ambitions? walmart has had huge plans to go into live-streaming through tiktok, through its own means. what is the sense on the ground there that perhaps they could scale back, or is it still full steam ahead on some of those what do you call them? more costly tech ambitions >> yeah, we didn't talk about the video streaming. it is certainly full steam ahead when it comes to technology. the capex will increase by 25% this year. when i spoke to him, he made it clear they continue to spend not only on cybersecurity but tech

more broadly he emphasized with the layoff news with microsoft today that walmart is actively hiring, especially when it comes to cybersecurity and tech roles that is dependent on revenues continuing to increase that trend at least there is definitely a tie in to the retail sales number we saw today. as of today they don't have plans to layoffs when it comes to tech roles. and they are actively hiring. >> thank you very much. >> john, that's interesting as we try to figure out from these companies what their enterprise spending will look like over the next 12 months. >> yeah. the story is changing fast. next, despite the cautious commentary and layoffs, a firm naming microsoft as the top pick coming out of a potential recession. we will look at why and check out the price of bitcoin back above 21,000 it is now recovering all of its losses since ftx collapsed back on november 2nd back in two. i'm so glad we did this.

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welcome back to tech check we're watching microsoft today our next guest is bullish despite the turmoil. what about if you're looking for gains today? he says to look no further than oracle, sap, or workday. mark, thanks for the time. reading the blog post of course

we've bip dissecting it all morning long, the layoffs aside. >> there are those arguing that he's telegraphing it'll be a weaker quarter or the guidance for next quarter will be week. i'm not sure i necessarily believe that i think a lot of what they're talking about is shifts within the business they see this as an opportunity or a moment in time in which they need to shift around their resources our areas in the business and put parts of the business into some form of life support because those businesses

are really growing this is directed switch around in the business as it is a big cut on other numbers >> does it make you less bullish on hardware and more focused on software >> they said it here, hardware is going to shift around they make a lot of different things they make earphones, mice, not just the service laptops, there's a number of things they make we could see some of those products end of living and not toning i think the big future in general is in software and cloud because what happens is they shift to software and cloud, they absorb the spending in other areas. >> finally talk to me about the long-term pick here versus the

short-term picks on oracle sap how do you divide these things by time line >> i wish i knew i'd be massively investing personally, which i couldn't do at bernstein the problem is the following many i.t. organizations have not been given full year budgets for calender year 2023 the cfos don't know how long or how bad the situation is going to be so wooebd see orders in which they look great and people think we're coming out of the recession and next quarter is worse in terms of i.t. spending. he thinks it's going to take two years, so you see the big acceleration in growth in i.t. spending i think is less than that but you know it could be a year

before you've got that point in which things are bad as it could be near-term as you mention oracle, sap down side risks are less and the street i think reflect a bit conservative for what expectations are and longer term as we're coming out of this the amount of i.p., the amount of capabilities and the ability for them to take advantage are likely going to be limited during a period of slowing economic times >> that's interesting. yeah, looking for share goers. certainly an interesting day for microsoft today. mark, appreciate it. thanks >> my pleasure all the best after the break big banks,

fin techs, saying the firm bit off more than it could chew. don't forget to subscribe to our podcast. me a check is back in just mont ness adapt to change? you could hire an office full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world. workday. for a changing world. doors lead us to new opportunities. your dedicated fidelity advisor... -surprise! -for you, mama. ...can help you open those doors. by proactively reviewing your entire portfolio. with an eye on taxes and risk. doors were meant to be opened.

one more thing to bring the show full circle we started with the nasdaq ceo saying money costs money and you know what else costs money, customer acquisition. goldman sachs has burned $3 billion in three years. >> we probably took on more than we should have, too much too quickly, but i think we now have very good deposits business. i think the partnership with apple is going to pay meaningful dividends. we have this acquisition of big sky. >> it's now shutting down that website and accusing the founder

of inventing millions of fake accounts so some stumbles as the backdrop changes. what was rewarded, though, in their latest quarter net interest income, which is considerably less buzzy, less exciting, less digital first and still what they do best. >> i mean it can be exciting because that's the money that's leftover, right, carl, after you've made out the interest that you have to pay and you're taking in what you get to take in i think fin tech and financial service industries largely failed consumers over the last decade on the innovation front the big swing for crypto, free trading and buy now pay later. i think buy now pay later may be a good thing compared to credit card >> to the point regarding i think net interest income,

watching yields fall back to levels we last saw in september or october is getting some people's attention the vix was below to start the session. tomorrow going to be a very important day between proctor and netflix earnings for now, though, let's get to the judge and the half >> thanks very much. and welcome, everybody, to the half time report front and center this hour, our chances of a soft landing increasing as some now suggest and if so what does that mean for your money with stocks 15% or so off their october lows and joining me for the hour today. let's check themarkets because we have a developing story to say the least. we're in the red across the board. 329 to the down side for the dow. s&p has given up