there, allstate, the second property casualty insurer this week to basically come out and preannounce because of that bad winter weather we saw, those storms that represented across so much of the u.s. last month, shares are down almost 6% on that insurance rates have actually continued to move higher as we do stock about sticky inflationary areas. >> s&p is down about 1%. that's it for us on "squawk on the street." yeah, going to "tech check," starts now. good thursday morning, welcome to "tech check." i'm carl quintanilla with deirdre bosa and jon fortt we're going to tell you more top picks for meta why the street is so bullish on mark zuckerberg and company. jim briar will join us from davos.

later on, the reason why a new ceo could be coming soon. >> carl, it is anhour and a half into trade. let's check out the markets as concerns about fed overtightening start to take hold today's jobless claims signaling that this labor market is still resilient. right now you're seeing the dow industrials down 0.7 of a percent. the nasdaq composite is down 1.2 of a percent we've got a speech from fed price chair lael brainerd and we are going to be kicking off the tech season. >> earnings is where we begin today. netflix as youmentioned, the first big test for tech investors bracing for a sharp drop in earnings dom chu with us now, has a look at how the street is thinking about declining profits, to the extent there were any profits. >> there are going to be profits but there will be declines and

big ones to your point, jon. if you take a look at the ones that we focus on so often, which are the so-called former faang names. if you throw microsoft in there as well, so maybe mmaang, those stocks have been driving the underperformance of the nasdaq overall. with regard to just how bad the earnings story could get, according to data, the expectation for earnings to climb this past quarter versus the same period last year is very stark if you look at amazon, the earnings per share is expected to drop by a full 87%. netflix, down 66% from the same time last year meta platforms down 40%. alphabet down 23%. microsoft and apple, the relative outperformers with earnings per share dropping just a modest 7% year over year but the issue now is with six of

these big names that drive so much of the action for the overall market, just because stock performance is so big, the earnings per share is the huge question that's the reason why with meta platforms in particular, facebook, and amazon after the bell the biggest ones to watch but amazon down 87%, dom. >> my big question, dom, what does the investor care about from these companies now it used to be for netflix, it's all about adding members, right? >> yes >> but growth at all costs is no longer the thing so are they going to care about monetization through ads, are they going to care about keeping up the membership? same thing for meta. zuckerberg is spending all this money on the metaverse i don't care how long the core business is turning around as long as he's burning cash. >> it's a combination of all of them and separately for each

single one every company has their own cross to bear for investors. when it comes to companies like meta platforms, it is about what that spend will look like and whether it ultimately has any return on that investment on equity so that's going to be big. we know that's a multi-year story. netflix in particular is going to be about subs but how much that rising cost of content will affect those profits with earnings growth starting to slow, that's going to be key but what the interesting part about this is it's not necessarily gloom and doom fundamentally speaking for big tech it might be the cost side of the equation that's driving a loto that the reason why is if you take a look at the revenue story, check that out right there if you look at revenues, there's only two stocks among those six that are supposed to post on a consensus basis revenue declines yore over year and that's meta platforms down 6.5

they are all expected to post revenue gains. >> for q4. >> year over year. >> but what did they guide to? >> and that's a key thing. boy the way, this could be that kitchen sink quarter if you are a ceo of a large company in america publicly traded, it's almost perhaps irresponsible to not talk about being more conservative, because everybody else is being conservative right now. >> a few of the notes this morning mention that, dom, that investors probably want to hear about cost cutting and better profitability versus top line revenue growth you talked about some of the doom and gloom going into this earnings season but it stands in contrast out of what we've heard from tech ceos at davos the last few days a lot of people are focusing in on bill mcdermott's statements he said not a chance we see a recession in i.t. spending

he's hiring. he said the cycle is nothing like 2008 or the dotcom bubble is that sort of different than what we've been hearing the last few weeks heading into this season >> what's interesting is you're a bit of a maverick if you say that right now what wall street is expecting and what investors are hearing so much about is this consensus that there could be a, quote, unquote, mild recession or maybe at best a soft landing if you're the ceo of a company, this is the time to set expectations low because you can. investors are waiting for this kind of thing to happen. so it's almost, like you say, hey, you now, if i can set these things low, by the way, that gives me the license to overachieve at some point versus a low bar. if that's the case for these tech stocks, it could be a decent off to the races approach here but remember there's not a big consensus view that technology is what leads in case we get things going to the upside again. although if it does, the market is just so highly levered to those big cap technology and

media names, that if there were a bull run for 2023, it would be those stocks that are underperformers that tend to do it here and this could be the catalyst, although no one is expecting it that's not the consensus by any means. >> eagerly awaiting those numbers, dom netflix, revenue growth will be in focus along with the new ad tier service. julia boorstin with a look at what to expect, especially given that we're not going to get some of the guidance metrics that we're used to getting. >> that's right. netflix really wants to change investors' minds about what matters. so they're looking to shift focus away from subscriber growth, which is why they will no longer share forward guidance when it comes to subscribers, and they're going to be emphasizing profitability. but for now, investors will still be keeping an eye on that subscriber number. investors are looking for growth to accelerate to about 4.5 million subscriber additions that was the company's own guidance last quarter after

netflix lost subskrcribers in te first two quarters of 2022 the other key thing to watch, revenue growth it is expected to slow to 1.7% that would be the lowest rate since the company went public after hitting another low in terms of revenue growth last quarter. there are two key factors to watch. one is commentary about its new ad-supported service and guidance on the impact of a crackdown on password sharing. wells fargo writing we think password sharing is the bigger catalyst near term we see it as upside torevenue growth estimates morgan stanley raising its guidance saying that to get more bullish they'd want to see evidence of improved return on content investment, so i'm sure we'll hear about that as well. guys >> a lot of reflections today, julia, on the q4 slate how strong wednesday was, for example. but a reminder that netflix sort of has this interesting habit of

trading a lot better in the second half of the year than it does in the first half. >> yeah. you always have to look at where the subscriber additions have been and that's one reason they tend to do better in the second half of the yoear in terms of trading. but they saydon't focus on subscriber additions, focus on how much we're generating revenue. we've been at this longer than some of our counterparts there's always a little shade throwing at some of the other streamers and saying we're more mature and sophisticated when it comes to understanding how to monetize our content so i think there will be questions about that and also maybe "glass onion." that wasn't left in theaters very long and maybe some conversation about maybe some money was left on the table. great piece in the "new yorker" about taking global content and tailoring it for various markets. but there's always this lingering question about rpu meaning the u.s. consumer is

still so much more valuable than, say, a user in a developing country >> and i guess that's the thing, rpu, average revenue per user. how many users are using netflix and not paying for it and that gets to the password sharing issue. i think the thing for netflix and all of these streamers is it's not a one size fits all model in terms of how much they're charging and their margins around the world the markets they have been in the longest such as the u.s. tend to have higher average revenue per user but an even more important question is what they're doing for all of these users who have been coasting on their friends and families -- their passwords and getting free access. >> i've got a few of those it's coming for them they're going to have to get their own accounts for more on what to expect after the bell, let's bring in senior managing director mark mahaney the price target is $340 the stock is at $135

what are you expecting tonight do you think that the street is going to be focused on that profitability side versus net ads, which we typically look to and the whisper number i'm hearing above 5 million. >> i think that whisper number is probably right. i think that's the over/under. the stock has had a big run so you expect the estimate or the whisper to be higher than where the market is now or what the company's guidance was i know the company wants to take attention away from subscribers, but that's what the market will focus on even if they don't guide for subscribers for the march quarter, we're all going to back into it so i'm not sure i see the logic about no longer giving subscriber guidance. i think numbers are reasonably set up this is my favorite stock for the year i don't think earnings will be a dramatic catalyst because i don't think we'll get a lot of new news on their advertising offering i think it's a real winner for the company. i like the shares here

>> let me correct myself, the stock is at 320, so you're $20 above that in terms of your price target mark, what do you want to hear from the company in terms of advertising, their ambitions there? what do you want to see so far even though it's early stages? >> let me work backwards first julia and dom both talked about profitability. netflix has been a consistently profitable business. it's about 20% gaap operating margins. they have talking about margin pressure this quarter because of currency currency has moved back nicely in advantage of a lot of these mega cap tech names with international exposure so they should be able to sustain operating margins somewhere close to that and they'll guide for it for this next year so we want to see they can maintain that. free cash flow, they're supposed to do a billion in free cash flow they talked about increaseing that in '23. then you're starting to get some

really nice free cash flow yield on this name on the ad-supported business, i think we'll be two or three quarters away. it's a tiny single digit percentage of users that are on the ad-supported plan. the win is netflix painted itself into a premium price corner because they kept taking up the prices. this gets them out of that corner when do you ever see that in business history, you're cutting the price by 30% but generating more revenue per user? it's a huge win for the business and i think there's a ton of demand for inventory on netflix. so i think this is a really nice business pivot or business expansion, extension for the company and that's why i like the stock here. >> that's interesting on pricing. hbo max, mark, added to their price by about a dollar. are we in deflation or inflation on streaming prices? the industry could make an argument that although we think of price hikes as earthquakes,

because there's a value relative to the price of a movie ticket. >> i think there's a dramatic money proposition. it's clearly going to be somewhat soft this year and consumers will be looking for deals. here you've got netflix at $6.99 a month. i think that's the cost of a grande latte so it's a great deal consumers will stick with during a recessionary environment it's a great deal. and what i find interesting is we've been talking about accelerating, increasing streaming competition the last three or four years. i think we're beyond that. when the ceo of disney gets fired for operating losses in the streaming business, that's the first time of industry rationalization. netflix has more subscribers than anybody else and the best business model because they have a nice scale i think it's a really nice

industry moment for netflix. >> netflix called that out our best guess is that our competitors are losing money, losses of $10 billion or more. mark, thanks always for your insights talk to you again soon. >> thank you advertising tightening meta gets two more bullish calls on the street. plus we'll talk with jim breyer who joins us live from davos "tech check" is just getting started. [music - cover of blondie's “dreaming”] [music playing]

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well, it may have been a rough 2022 for meta, but hopes are high for 2023. the stock is up 12% so far this year if ad mogul martin sorell is right, the rally is just getting started. here's what he told "squawk box europe" earlier today. >> i think you'll see meta come back strongly this year, and deal with the competition from tiktok and other short form video competitors. >> the street agrees

they are naming meta as a top pick wolfe and wells fargo expecting digital ad growth to heat up and the latter expecting reels to step up. and when compared to other big tech names like amazon and alphabet, both jpmorgan and barclays prefer meta jpm saying an easing dollar benefits meta the most and barclays expects ad revenue to recover by the second half of this year. but carl, this metaverse pending. i just wonder, does any of that matter as long as facebook/meta keeps piling money, billions, into the metaverse or is it really more about does zuckerberg pull back on that spending a little bit and let that ad benefit show is that what ends up mattering to investors >> i think that's always been sort of the creeping bull case, dee, even when they gave that

operating expense guidance last year, that eventually those numbers might be trimmed a little bit it might not be as dramatic as it was when first announced. certainly we've seen some names in media that performed well this year. >> none of those four notes talking about the metaverse as the driver as to why they're getting more bullish on the company. ai increasingly important. wells fargo calling out one data point. a single ai advancement led to a 15% increase in reels watch time that's pretty incredible and maybe it tells you they are starting to compete a little bit with tiktok. carl, there's also the idea what happens to tiktok this year, if it is indeed banned here in the u.s. and the reels algorithm is getting better, meta could be well positioned. >> let's keep that conversation going with someone who knows a lot about hunting for value in names like meta. sara eisen joins us from davos, switzerland, with jim breyer

hi, sara. >> good to see all of you. i am here with jim breyer. >> it's good to be back. >> do you agree with sir martin about meta >> i do not. i do not my view is over the next 24 months, there will be a big rebound, but they're going to be under a lot of pressure for the next 12 months and they're not cutting costs fast enough in my humble opinion. >> what about the metaverse? >> the metaverse is years away virtual reality is going to be a very big deal this christmas holiday. it will be apple, it will be google, it will be sony as well as oculus. but watch for a big holiday in the world of virtual reality. >> i think that's more bearish than i've heard you on facebook, a name and a person you know very well, mark zuckerberg you met him when he was how old?

>> he was 20 he was not yet able to go in and get a drink, so i ordered wine. >> that was nice of you. >> is it because you're an investor in bite dance, tiktok >> they are brilliant in terms of their investments in artificial intelligence. they are clearly taking an enormous amount of share instagram being the other worldwide horizontal platform. i'm very optimistic long term on tiktok. >> you're not worried about it getting banned in the u.s. >> my hometown in austin, texas, at the university of texas, they just banned tiktok from all devices. so for sure the data questions and where the data resides is not going away >> right it could be a challenge. you said a lot there maybe i'll go to china then

because you have been in that country almost 20 years. >> absolutely. >> early in bidu, tencent. would you invest in chinese tech stocks now or companies? >> my expectation based on everything i've heard here at davos and from the 20 partners on the ground in china, the second half of this year will be a boom period, particularly for the pent-up technology companies and health care companies. we are aggressively investing in building out hospitals, nursing homes. >> in china? >> in china. that is the single biggest chinese investment theme for us. >> and what about the geopolitical head wind and the relationship with the u.s. isn't that a big risk? >> it's beyond my pay grade. the answer is it's absolutely a risk. >> but you're still investing, clearly. >> yes. >> what about u.s. tech. the meta conversation is part of a broader one about the tough time for stock prices, layoffs,

cost cutting where do you think we are in this process >> we have another 12 months when i see truly extraordinary ceos like satya here appeared they're laying off 10,000 people, these are the best companies. so there's a lot more pain to come in terms of employment. >> you've seen a lot of cycles the boom/bust, the tech bubble bursting, the great financial crisis what do you think this period is like what does it remind you of >> this reminds me very much of 2000 to 2004 it took about 18 months for a lot of the froth in 2000 to come out. but i bought public shares in amazon in 2001 and so we are going to see similar types of dynamics 90% of the companies may very well see big market declines however, there's a whole new

generation of winners around ai and quantum and how it applies to medicine and health care. >> yeah, we're going to talk about ai because i couldn't believe how much of a topic it was here in davos this yore. just on the 10% of the companies that will come out of this do better on the other side, how do you find those values and is now the time to get in >> the values are still in the private markets far too high i'm involved with a couple of major endowments they have not marked down, nor the managers of many private equity and venture capital firms the way public stocks have been written down and carried by endowments i think we have a 12 months valuation correction in the private markets. >> what about the public markets, some of your favorite names have been so beaten down nvidia are you buying more? >> on weakness, i would buy nvidia forever. >> why >> they have right now about a two and a half year lead over

any semiconductor company in the world. again, if we want to feel very optimistic about the u.s. position, we are so far ahead in semiconductor technologies than the rest of the world, the gap is only increasing >> ai, and that brings us to ai. >> ai and quantum. >> and it really was like federal reserve and the global economic outlook is topic number one, geopolitics appeared the war and i would say ai. >> absolutely. and let me offer this to you for late night reading. >> quantum reading i promise you'll fall asleep after 15 minutes. >> if you say so how do you invest around this theme? who's leading? >> i have spun out 12 companies from our great medical schools, memorial sloan kettering, m.d. and anderson, uscf, stanford, on and

on it starts with great intellectual property and very defined data for example, in cancer memorial sloan kettering and m.d. anderson are far and away the leaders in breast and prostate cancer so typically i'll license the technology, create a startup, have great medical professionals join, andmy job is to recruit the brilliant ex-alphabet, amazon, meta -- >> you've got a lot of choice there now because they're all laying off workers. >> it's easier to recruit from ever before from apple, microsoft and other major companies. >> do you see the $29 billion valuation, the microsoft investment, is that a sign of what's to come is this a sign this is going main syndrome? >> it's a sign to me of the froth. it's a strategic deal for microsoft and they are going to catch up quickly to google and

others however, i can't justify the valuation as a private investor. >> so there's already froth in ai. >> absolutely. >> which is why you probably see more correction coming in the private and puck blic market in technology >> exactly. >> jim breyer, thank you very much and good to get your perspective. >> sara, always a pleasure happy davos. >> that's the grand finale for me i'll send it back to you guys. >> sara, that was great. froth, julia boorstin, particularly when it comes to meta, jim breyer saying, hey, mark zuckerberg isn't cutting costs fast enough over there he doesn't have sheryl sandberg there to help him anymore. it sounds like he was saying what i was saying about the metaverse, years away, ver expensive. so what about these analyst calls? >> it's so interesting, though, because no one is talking about the metaverse when it comes to meta right now when you look at the challenges

meta faces this year, it's about a contraction in the ad market and competition with the likes of tiktok, which he's very bullish on, jim breyer is very bullish on i think a lot is an assumption that tiktok will work through some of these regulatory hurdles here in the u.s. i was reporting on some of the progress that they have made in the past several months earlier this woeek. it's interesting to think about how a rebound is coming, it's not going to be next year, but it is going to be many many years before the metaverse piece of this really comes into play. >> so how can we not talk about the metaverse when meta has said we're going to -- 20% of our spending in 2023 is going to be on this thing where there's going to be zero return for years, right so many other technology companies of all sizes are saying got to tighten the belt, it's going to be a rough few years, we have to be very careful about what we spend

money on it's going to have to deliver some return in the relatively near term. meta bucking that. >> yeah. puc bucking that, but mark zuckerberg did say in the last earnings call that they are very focused on their core business he wants to remind investors yes, we have this long-term metaverse plan but we are trying to generate more revenue from the low-hanging fruit that we haven't touched yet and that includes messenger and some of the other platforms. there's a lot of opportunity perhaps in whatsapp so they're continuing to invest a lot of money in the long-term bet the near term they have to figure out how to make more money from the likes of reels as they compete with tiktok the question is not whether meta should be investing for the long term but whether they're spending too much on technology where the demand is so unproven. >> are they overearning on the

ad stuff and spending, to borrow from nelson peltz there. i got a note that he was pretty pessimistic and a lot of the tech ceos, bill mcdermott saying this is not like the dotcom bubble. after the break we'll talk elon musk's potential twitter tax problem. why being super hard core may create a residency issue "tech check" is back in two minutes.

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welcome back to "tech check. buying twitter has brought a number of headaches to elon musk, not the least of which is tax bill robert frank has more on that. >> this is another potential cost of this deal that no one has really talked about. remember, he left california and its high taxes about a year ago. now california could come calling again and that's because of twitter as the owner and the effective ceo of twitter, musk has been working at twitter headquarters in san francisco, as we know

but we don't know exactly how many days. california law states that any time spent in california providing services to a company could be subject to state tax. so if he was working at twitter while also answering emails or calls as the ceo of tesla and spacex, any compensation for all three companies earned during those days could be subject to state taxes. california franchise tax board, that's kind of the irs, could also argue because he's running a california-based company, he's not really a texas tax resident. even for nonresidents, california requires any visits to california to be, quote, temporary and transitory if he owns and runs a california company, tax authorities argue it's transitory. at stake is billions of dollars in potential taxes musk was of course awarded a $55 billion pay package back in 2018 that's earning out over time and he sold $40 billion in tesla

stock over the past two years. no comment from musk and no comment from the california franchise tax board. but, jon, they are very aggressive, especially when it comes to high-profile taxpayers. >> maybe this is why elon needs to worry about people tracking his jet. if the tax man tracks it and sees here's in california and tweeting about tesla, bam, that's money robert, thank you. time now for a news update bertha coombs has that for us. >> thanks very much, jon here's what's happening at this hour new mexico prosecutors will charge alec baldwin with involuntary manslaughter in the fatal shooting of a cinematographer on the set of "rust. baldwin was pointing a pistol when it went off. greta thumberg is in davos she told a cnbc international

panel that the energy industry will not slow down without a groundswell of opposition. >> as long as they can get away with it, they will continue to invest in fossil fuels, they will continue to throw people under the boss for their own gain so i believe that the changes we need right now needs to happen on the outside we need to build and create a critical mass of people who demand change. and northern trust is down about 9%, making it one of the biggest losers in the s&p 500 today. fourth quarter earnings fell to just 71 cents. that's more than a dollar shy of estimates. revenues were also well below street expectations. carl, a lot of their customers were moving things out of a number of funds. that's where things got difficult in that difficult market we saw last year. >> yeah, certainly a difficult morning for some financials, bertha, thank you. still to come this hour, the

fed calls the shots. one fund manager predicting the u.s. experiences a shallow recession this year. he'll pick a few stocks he thinks can beat the broader rk a se tm ghmaetndomofhemit even be overseas [music - cover of blondie's “dreaming”]

[music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪ ♪ dreaming is free. ♪ accenture, let there be change.

let's head from wall street to washington where the other big story for the market is playing out. the u.s. officially hitting its debt limit now the treasury department taking extraordinary measures to

pay federal government bills ylan mui has the latest. we've seen this story and movie before what's happening right now >> reporter: treasury secretary janet yellen has notified congress that the nation is using extraordinary measures to keep paying its bills. the deadline for default is f usee she wrote the period of time that extraordinary measures may last is subject to considerable uncertainty, including the challenges of forecasting the payments and receipts of the u.s. government months into the future i respectfully urge congress to act promptly to protect the full faith and credit of the united states but a compromise in washington feels very far away. house republicans have said they won't agree to an increase in the debt limit without significant spending cuts. in fact they're discussing a bill that would let treasury prioritize certain payments if the debt ceiling is not raised in a statement today, jason smith called on president biden to work with the gop and address the debt ceiling in a way that imposes some fiscal sanity.

but democrats are placing the blame on republicans accusing them of playing political games. senator ron wyden said it's a hair-brained idea that's doomed to fail. we'll hear a lot more of this rhetoric over the next few months before we can get to a r resolution >> we know you'll be following it all, thank you. the nasdaq's seven-day win streak came to a close yesterday and it's building on those losses this morning. we're down another 1.25% our next guest says the bearish expectations that you've been hearing about aren't actually bearish ouengh "tech check" is back in a moment i know what you're thinking - it's cool, i don't want anything too serious either. just a fun, spontaneous thing. i'm looking for someone who will let loose. dress up a little. see a show. order the steak and the lobster. some people say i'm excessive, but who cares.

i'm just looking for a saturday to remember, and a sunday by the pool. think you can keep up?

welcome back to "tech check. the nasdaq breaking its win streak but still positive for the month. our next guest expects another challenging year for investors, releasing his top ten predictions for 2023 where he calls for a shallow recession in the united states, earnings falling short of expectations and international names outperforming the u.s. for the second year in a row here to break it down, global investment cio bob doll. bob, great to have you back. fascinating list of predictions for the year i would say net-net, most of them gimply some caution on your part for the coming year, right? >> i think that's right. i it's going to be a lot better

yore than last year, i hope, but it's going to be tough to make money in the environment that calls for economic weakness, probably a mild recession and earnings estimates falling, carl so we've got some slog to get through here and the perceptions change so fast if you go back to mid-december, well, we'll probably have a recession. you come into the new year, well, i think a soft landing is likely it seems like in the last few days, maybe it's a recession again. things don't change in the real world as fast as we want them to change in the financial markets. >> right a big part of your thesis sort of pivots around whether or not the fed is going to be insistent on a 2% inflation rate or whether they can get away with maybe something a little bit higher. >> yeah, i think that's a key one. our overall theme is the fed calls the shots of the and the reason we say that is if they really insist on 2% inflation, they have so much work to do

inflation is falling and it will continue to fall, but i don't know how it gets to 2% without a lot more work on their part which would ensure a recession on the other hand if they back off and say, well, you know, maybe 3 is okay. if we get into the 3s, 3.6, they might say that's close enough to 3, maybe we'll pause for a while. then we might have the so-called soft landing so the fed has a lot of explaining and, more importantly, a lot of work to do. >> but then you went into the problems of fed credibility, right, what it would do to the dollar if in fact they would break that unspoken promise. do you see danger in that? >> without question. look, 2%, we got spoiled with 2% it seemed like forever there are a lot of structural parts of inflation, wages, rents, that sort of thing that as you know are unlikely to allow the overall index to fall to 2 so how they engineer 2 or talk

about 2 i think has a lot of explaining to do and could get them into some hot water sometime later this year. >> right i know you think that nergy, staples, financials, do much better than technology basically value beating growth but how does energy outperform if real gdp is going to be historically weak? >> well, that's a great question maybe it won't but the discipline these companies have had compared to prior cycles when they have had so much cash flow is amazing so we think if they continue with that discipline, they will continue to earn good money, have good free cash flow and the stocks are still not expensive. the sector is earning almost double what its weight is in the s&p 500. that's unusual and probably calls for more outperformance. >> it's a good way to set the table for the months ahead obvious ly there's a ton we don' know, things we don't know we don't know, bob, but will talk about it in the coming months. good to see you again.

bob doll, thanks. >> all the best. up next, jpmorgan chase ceo jamie dimon doubles down on his crypto call. fraud and pet rock are a few of the terms being thrown around. plus check out the price of bitcoin, fairly muted but up 25% this year. still down 50% over the last 12 ecchk"mohs "th ec will be right back. thanksas pretty life changing. dude it was eight and a half minutes. i didn't even get to finish my burrito. technology lets you vacation in space, but to get work done on earth... you need more than technology. you need cdw. so with the cisco hybrid work environment, we can deliver the same network experience to all your offices. space spaghetti. no. securely connecting your team from anywhere. houston we... have a solution. we get it greg, you've been to space. cisco makes hybrid work possible. cdw makes it powerful. [music - cover of blondie's “dreaming”] cisco makes hybrid [music playing]

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we pretty much always have some crypto conversation with you. i'm just curious -- >> all that's been a waste of time and why you should waste any breath on this is totally beyond me. >> because you think this whole thing is zero and fake >> bitcoin itself is a hyped up fraud. it's a pet rock. you can own it all you want i don't care about bitcoin we should drop the subject >> well, he does clar a little bit about block chain. chase ceo jamie diamond doubling down on his pet rock analogy for crypto elsewhere in the space lender genesis is preparing to file for bankruptcy according to people familiar with the matter goes really at the heart of institutional money in crypto.

>> it was at one point bankruptcy would some after months of issues for the crypto lender it facilitated some of the loans and risk taking in the past year or so. it originated $131 billion in new loans last year. in november it stopped lending after the fall of ftx. the parent company it used to trade at a premium and now trades at about a 42% discount and that discount has been narrowing and moving around a

bit. the failure of genesis may also mean more trouble for the winklevoss twins they've accused the lenders parent company as i mentioned of fraud and faced class action lawsuits from their own clients. on top of all that the scc violated both of violating security laws. they're one of the biggest players in what you would call a private block chain. they've invested a lot in that technology and space

with genesis now out of the market people are looking to banks and more institutional players. but it could be an opportunity >> yeah, everything comes full circle thank you. up next we will hear from the qualcomm chairman. he weighs in on i.t. spending and enterprise demand. and do not forget to follow and subscribe to our podcast tech check is ckn stba iju a moment - psst! susan! with paycom, employees do their own payroll. - what's paycom? a magic payroll genie? - it's a payroll app. - payroll is way too complicated for the average person. - paycom guides them through it. missing or duplicate punches, pending expenses, unapproved pto, on and on.

- why would employees wanna do all that? - this could be a stretch, but i think it's 'cause they wanna get paid correctly. i like getting paid correctly.

one more thing before we go. global spending on enterprise tech devices took a more than 10% hit in 2022 according to gartner. in a fort knox update yesterday i spoke with qualcomm chairman and palo alto ceo. he said companies will have to keep spending on cyber and a

techight now, and if that has reduced spend in the i.t. department particularly as it comes to security, well you can be sure bad actors are going to take advantage of that. what i've seen is that it's very resilient so i think it's in these kind of markets this is where you get to find out whether you're a must have technology and security makes that cut >> calling for steady discipline and patience this year >> it's going to be key. i'm still shaking my head after briars comments about sort of the reckoning tech is in for.

>> i'm so glad you bring that up showing there's not a lot of consensus in this market >> meantime the s&p below the 50 day moving average for the first time since january 10th. netflix tonight is going to be the megacaps turn in the earnings spotlight let's get to the judge and the half all right, carl, thank you very much. front and center this hour the real start of earnings season as netflix as you know by now reports in less than 4 hours time, the first of the faangs to deliver its results. will it be enough to carry the nasdaq's early run even higher we discuss and debate that with the investment committee stock is off to a weak start as you can clearly see in front of you. joining me for the hour today. now let's check out the markets. we're just past 12:00 noon and you've got thedow down u