well, so crude will be in focus this week as well. >> it's looking good to me as all of us have our home heating bills to think about that's go to do it for us on "squawk on the street. big cap tech losing ground this morning. certainly to be a topic on "techcheck," which starts now. good monday morning, welcome to teck czech. i'm carl quintanilla with deidre bosa and jon fortt a rate decision coming, the busiest week of earnings and jobs all on deck for the later in the week. the tiktok ceo heads to washington what that means for competitors like meta, snap and alpha. later in an exclusive with the ceo of sofi, that stock popping on a pretty upbeat forecast. >> let's get a check of the broader markets as we take a look at the last week of january. stocks today are near session lows the nasdaq isleading the

declines, off more than -- nearly 1.5%. that move coming as rates move higher ahead of the big fed meeting this week. the safety trade outperforming this week. staples, utilities, they are rallying tech and energy are the laggards, jon. the ten year at 3.546. >> you could say it is a make or break week for the markets and for the rally. we'll get the fed's decision on interest rates on wednesday. investors are hoping that a slowdown in hikes is here. the street's anticipating 25-basis-point hike. 50, frankly, still in the cards. then we have a slew of data that's going to give us a glimpse into the state of the economy. the jobs report, consumer confidence, ism and factory orders, just to name a few and then there's earnings with the nasdaq's big outperformance on the line. we'll hear from amazon, apple, alphabet and meta. about 20% of the s&p 500 is reporting making it the busiest week of the season, guys

>> it's very true. b of a did work over the weekend looking at how stocks fare on this week. stocks trend not to trade well this particular week it's the following week where you get a lot more green arrows, at least that's what history shows you. >> you take a look at the mega cap on a huge week of earnings, all down by more than 2% guys, it will be interesting to see what this week tells us about enterprise spending in particular i know we're also very focused on ad spending, but i mentioned this last week, that talking to a ceo, he said while not cutting marketing costs but he is cutting cloud costs. you can cut as much as you need to it is a transaction-based model. that worried many in the market but it didn't last long. you have to wonder if aws, amazon, google cloud, those

growth rates could disappoint and get investors nervous about enterprise spending. amy hood from microsoft warned about a four to five percentage point decrease quarter over quarter. what will that look like for aws and google cloud b of a last week said you could see mid to high teens for aws. >> that's true thursday is just such a huge day for earnings i'm trying to look for something sooner that i'm interested in. i got to say, amd, right we had pat gelsinger on on friday just a terrible quarter from intel. and a lot of people wondering how much of that is the pc market overall adjusting to the macro and inventories affecting everybody. how much of that is intel specifically really it's possible that the inventory overhang that intel is experiencing could affect amd in that -- they have a lot of the same customers if these customers have a bunch of intel chips they need to burn

through t could be affecting not just their purchase of new intel chips but also their purchase of new amd chips, no matter how much share amd might be prepared to gain. we'll get more color on that and how some of these -- some of these macro industry issues are affecting everybody, carl. >> indeed, guys. how should investors navigate this extremely important week for the markets? joining us this morning, cnbc contributor megan shue it's great to see you. i wonder how you're processing this month-to-date -- i don't know what you call it, short squeeze, unprofitable tech, last year's losers, whatever it is, has it forced you to have an evolving view of the market going forward? >> thanks for having me, carl. to some degree, yes. i think what we've seen from strength this year in the market has been somewhat technical driven, maybe short covering, maybe rebalancing, which from a

tax loss harvesting perspective was huge in 2022 and starting to show the buy back end of that in 2023 but i think there's also been some really constructive elements on the fundamental and economic side. inflation coming down. maybe giving the fed a little more room to pause earlier or even possibly cut rates in 2023. that's still a little gamble to be betting too much of the farm on if inflation comes down dramatically and continues in this direction, there is a path way for that to occur. >> and yet you're still underweight stocks >> right we're slightly underweight stocks pretty close to our benchmark but neutral to u.s slightly underweight to europe became a little more constructive on international developed over the last few weeks just because of how much has changed in such a really short amount of time, when you think about china reopening, the

much better weather for europe, the fact that we were basically all but guaranteeing a recession in europe and looks like that will be averted. i think just shows how quickly things can change on the ground. you really have to be both nimble and also not taking gigantic bets. the strong start to the year is another reason why you don't want to be too defensive as it relates to tech specifically, if we are looking at a mild recession this year, we would expect tech and the cyclical parts of technology to be leading us out of that. you're not going to know when that occurs but we want to be in the game when it does. >> what do you think the major catalyst is this week for markets? there's so much going on, as we outlined at the top of the show. there's the fed meeting, what are you looking at your next indication whether you want to dip further into equities? >> the fed is a big driver for

this week. actually, probably not the biggest driver we'll get the employment cost index tomorrow that is a key indicator that the fed is watching to see how much pressure is behind wages i think that is why something that is key to understand what the trajectory of inflation and how sticky inflation will be ultimately, i think it comes down to earnings bloomberg has $200 on the s&p 500 this year. roughly 17.5 multiple broader index. that's a little rich if you do see some softening or a mild recession, we would expect those earnings to come down i think hearing from big tech and some other mega cap names will be really interesting, particularly from a guidance perspective. technology's got a number of headwinds, whether it's ads, consumer spending and consumer-facing electronics or chips in some of the overhang on

the memory side. at the end of the day, it's really an inventory management problem, which just takes time. >> big question is how much time and how quickly or how much in advance the market wants to start discounting that inventory trim meghan, thank you. good to see you. >> thank you. from a busy week in the u.s. to historic week overseas, january's been a blowout month for chinese equities as big money continues to favor international stocks over domestic our seema mody has more on the pivot. >> we've been tracking these gains, jon, day by day really an explosive start to the year, names like alibaba and baidu up 20% since january both of these stocks are up 80% to 90% from their respective lows hit late last year. that's, of course, pushing valuations hitting higher for funds like emqq, now trading 18 times earnings versus the broader emerging market at 12.5 times earnings other chinese etfs that don't

have as big of a tech weighting. julian emanuel at evercore isi says the reason he expects chinese adrs to outperform is divergence story between chinese and u.s. names while u.s. is expected to see profit market squeezed china is still expected to experience eps expansion in 2023. morgan stanley's $14 billion emerging market fund deputy head of macro says nothing goes up in the straight line. the fundamental in china are aligned as long as the government continues to provide ample support. goldman has been tracking the reopening over the last two weeks and found movie box office sales in china, postal package delivery and restaurant sales in china have exceeded 2019 levels but add it's still too early to tell from this high frequency data how strong the broader economy will rebound in the coming months. jon, in march, that's when the chinese leadership is expected to set out those big gdp

targets. we'll see what they do then. >> i have to ask you an unanswerable question, but i know you'll take your best stab. is this big bounce in chinese tech stocks a bet that the chinese government crackdown is over or a bet that the covid lockdowns are going to result -- you know, the fact those are over, result in this big bounceback, or just the risk-on trade focusing on china or a combination of all that stuff? >> it seems like a combination, plus you have to add the weaker dollar when it comes to the emerging market trade plays, such a huge role in the outperformance when it comes to the last three weeks, we've seen an abrupt reversal in how china is navigating the technology sector as a whole while we still might have concerns around a broader crackdown, the message has been around growth and supporting the chinese economy and not seeing companies leave. they're trying to change that messaging. they were at davos trying to tell ceos there, china is back,

don't leave. that messaging seems to be echoed broadly. >> they're doing a decent job of it we've been talking about how many of the chinese tech companies are in particularly overbought territory the kweb is up over the last 36 months it's interesting when you contrast that to the indian etf, it's down 6% at the same time, you hear apple, chipmakers, other companies moving or trying to move some of their manufacturing there. what do you think is holding back investors from the indian markets? >> a lot comes down to valuation. over the past two years, india has vastly outperformed china. now you see investors, perhaps, shifting that trade with china outperforming india. plus there's a huge corporate story happening on the ground there. the richest man under attack by short sellerer hindenberg. i spoke to morgan stanley's emerging market manager and she said it's a concern but more of a short-term risk for the india

trade. >> okay. that's not going to muddy the waters for the indian government overall? >> we'll see. >> they are kind of implicated and being close to him, right? >> he's known for having close ties to the prime minister the concern is has his close ties allowed him to prosper in certain ways in i think now the big question is whether indian regulators will step up and conduct reviews. so far we've heard no word of that happening that will really tell us how regulators there are handling the story and whether there's more to come. >> great insight into that international stock action seema, thanks. still to come this morning, the ceo of sofi, that stock is surging after upbeat earnings guidance shares on pace for their best day since early november "techcheck" is just getting started.

another busy day? of course, you're a cio in 2023. but you're ready. because you've got the next generation in global secure networking from comcast business, with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want... your team, ours or a mix of both... with the nation's largest ip converged network, from the most innovative company. bring on today with comcast business. powering possibilities™.

look at sofi that stock is up more than 14% after beating on the top and bottom lines in q4 earnings guidance coming in well ahead of consensus, sending shares up 50% since the start of the year

with us in a first on cnbc interview, sofi ceo anthony noto anthony, wow why is the market surprised at this what led to these results? and tell us a bit about personal loan originations, which are a bit lower than some might have expected. >> thank you, jon, for having me on we reported our seventh consecutive quarter of record revenue with growth of 58% year over year, which is an acceleration and year over year growth to what we did in the first quarter with 55% we combined that with strong profitability. 70 million of ebitda, up 55% compared to q3 we finished the year with a strong quarter we finished the year with $1.5 billion of revenue, up 50% year over year. our member base grew very meaningfully ending at 5.2 million members, and we had strong product growth from cross-buying

the strategy is really coming together our national bank charter has put the wind at our back we're offering 3.75% interest on savings and 2.5% on checking we're doing that in a way that's very unique. there's no fees, free overdraft protection, full function on your phone to be able to pay or spend when you want, where you want, and that product is helping fuel our ability to drive deposits we're using those deposits to fund our loans and about 190 basis points lower than if we borrowed money from banks to lend to our customers. the overall strategy is working. we have the flywheel going it's going really well >> in the quarter i became a lot more familiar with the sofi app and those interest rates it's not an endorsement. i'm watching the interest rates like a lot of consumers are. tell me to what degree the customer acquisition has changed as the economy has shifted

particularly over the past seven, eight months. how much are people coming to you for the apy on deposits versus loans or any of the other, perhaps, more speculative things they might have been coming for before? >> yeah. the checking and savings part, jon, you hit the nail on the head it's our ability to differentiate our product, the most significantly versus other competitors that aren't able to offer that same interest rate. because of the collection of businesses we have and that diverse portfolio, we're in four different lending products, in home loans, personal loans, refinanced student loans and college loans. in addition to that, we have a credit card as well as an invest product. in addition to that, we offer many other services. so, we want to use the checking and savings account as that product that really builds trust and reliability with our members. once they need a second product, because they do trust us and they've gotten a very unique offering, they choose us for their second product

that's when the flywheel really starts to move so, the checking and savings account and that high a. y is attractive to them but the functionality and ease of use and trust are also important elements that wrap it all together. >> anthony, good morning we just showed our audience a screen of different savings apys at different banks yours is up there, as you said, plus 3%. marcus from goldman sachs is at 3.3% we've been talking over the last few weeks, certainly, about how much money that division is losing at goldman it's also under scrutiny by regulators what are you doing differently that's going to allow you guys to become gap profitable in the fourth quarter of this year? >> yeah. the first thing i would say is we are a one-stop shop for all of your financial services need. the other companies you mentioned only have one or two point solutions. the specific product you mentioned is just a savings account. our account is a checking account and savings account.

typically, you can't use those accounts interactively the way you can with us. we do not limit the number of transactions you do from your savings account at sofi. we want you to make money on your money, not pay us money or restrict your money. we're willing to bet on the value proposition we have and the trusted experience we deliver that people do all their primary banking with us. the second unique element unique to us is four different loans and the ability to buy robo accounts and fractional shares as well as insurance we're finding multiple touchpoints to build a business and the number of members we have and that's translating into more products. >> you have lots and lots of products i know you've always said when you come on here when you look at those top line numbers, lending business, that continues to make up the majority of revenue and contribution profit. how might you respond to those that argue sofi is primarily a personal lender and may not

deserve a fintech valuation? >> he would say they have to look at the three business segments we have lending today, which is about 60% of our business. we have the technology platform that is a huge differentiator. it allows us to not only leverage end-to-end technology and payment processing and core technology, but also allows us to generate revenue. we are generating meaningful revenue and profits. our third segment, which consists of credit cards, brokage as well as checkings and savings and insurance is also growing really rapidly we did $64 million in the quarter. that's -- that growth rate is only going to continue we expect that to be as big if not bigger than our tech platform in 2023 we have three big scale businesses working at the same time the fact we had our seventh quarter record revenue reflects record revenue in all three segments this quarter. >> anthony, what's happening with investing and crypto for

sofi give us your thoughts on what's happened with genesis and gemini and this whole thing around promising an interest rate based on crypto accounts that ultimately they were unable to deliver. >> sure. first thing i would say is crypto investing or investing in crypto assets, digital currencies, is a very, very risky assets ins vesters need to be educated and understand those risks and make sure it's appropriate for where they are financially a warning that we give at sofi before anyone bias any cryptocurrency and every time they do is that it's a risky asset and they could lose all their money. the reason why we say that is because it is an unproven asset and also market participants that are unproven as we've seen more recently. investors need to be ver cautious about investing as they choose to take that risk, we would recommend it's a very small percentage of what they do i think giving yields an asset that's not proven is highly

risky and something we do not offer to our members nor would we consider doing it until it was a proven asset i think the mistakes you see in the marketplace are people taking unnecessary risks and too much risk relative to safeguarding their shareholder value. just to be clear, it's a very small offering at sofi we've talked about that in the past we do not actually take cryptocurrency or move cryptocurrency we just facilitate a third party platform supporting our members that want to buy it and they do the transactions take custody of the assets. >> people reconsidering all of those assets in real time. anthony noto, ceo of sofi, thank you. >> thank you after the break, it's a tiktok ban imminent? watch carvana stock. it was halted earlier with shares now surging possible short squeeze with more than 60% of the float sold short. a lot more "techcheck" still ahead.

the first time you made a sale online was also the first time you heard of a town named... dinosaur? we just got an order from a dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. godaddy. tools and support for every small business first.

if your business kept on employees through the pandemic, getrefunds.com can see if it may qualify for a payroll tax refund of up to $26,000 per employee. all it takes is eight minutes to get started. then work with professionals to assist your business with its forms and submit the application. go to getrefunds.com to learn more.

the ceo of tiktok will appear in front of house lawmakers have passed a ban on tiktok on government devices, concerned about the security practices of parent company, bytedance. they called it a political gesture that will do nothing to advance national security interests. ju julia boorstin, great to have you in studio. >> great to be here. >> tiktok moving to the offense. is that going to work? it seems like a bipartisan issue. >> it is a biparton issue. siphius and tiktok came to an agreement months ago they expected there to be an

announcement of the terms they agreed to already. tiktok, it seems, is getting frustrated, which is why they have taken more of an offensive stand to get it out there that they're doing what it takes. they said they spent $1.5 billion to make sure all the data was being moved from china to the u.s it doesn't seem to be satisfying lawmakers. the longer they come out to say, we came up with a deal with tiktok, the more the growing bipartisan roar of criticism from congress. >> the more they pile on so bytedance is a chinese company but there's a lot of american money, especially vc dollars in bytedance i know there's this question, what would they do if they had to would they spin off tiktok in order to save money? the chinese government may not allow them to do so. who do you think is pushing for this, the chinese or american investors that are like, go to washington and try to do something? >> i think american investors want to make sure they're getting the most for their

value. i can't speak to the chinese angle. you know more about what's going on there than i do it's looking at the power of tiktok as far as advertising and user engagement. there's striking, dramatic statistics showing how tiktok is a risk to market players meta, youtube have seen tiktok and they have emulated tiktok with some of their most popular featureses regardless of who's pushing it, if there's a crackdown on tiktok, if there's a push to spin off u.s. assets separately, who could benefit if those assets are under pressure? i think meta, snap, i would say youtube certainly, and i would even point out the likes of google search and amazon search. these are areas which have actually been impacted by tiktok because it's so popular. young people are going to tiktok to search for things rather than

search on amazon and google. >> it will be fascinating to see how this all shakes out. >> yeah, can't wait to see what happens. this hearing isn't until march. >> something to look forward to, yeah carl >> thanks, guys. coming up next, investigating the qqq revival. why that overly bearish sentiment on tech has led to this retail resurgence tesla and nvidia, top performers for the index. we'll trade it next. speaking of tesla, check out ark, the innovation etf on pace for best month ever, going back to inception in 2014 shopify among the top gainers.

welcome back to "techcheck." i'm contessa brewer. here's your cnbc update. natural gas prices are down another 4% today forecast, of course, calling for mild winter weather in the coming weeks lower heating demand and high inventory levels have driven gas futures to a 21-month-low. nat gas is on track to fall 40% in january, making it the largest monthly decline since 2001. the faa says it adopted a number of safeguards to stop a repeat of the computer problem that grounded more than 11,000 flights. it will require a manager to are present during maintenance of the key messaging system for pilots and airports. and toyota is the world's

top selling automaker for a third straight year. sales for all of 2022 were basically unchanged. 10.5 million vehicles. despite covid lockdowns in china and the war in ukraine up-ending supply chains everywhere there you go, toyota it is, carl. >> contessa, thank you. the qqqs are surging january is on track to notch one of its best months in the past decade as stocks skyrocket this earnings season, where can we find some value? let's turn to one of the biggest drivers of the qqq spike, that's tesla. shooting up after bet beating on the top and bottom line for q4 while want a cheap stock, our next guest sees freight train momentum is it too late to get in joining us steve sosnik is with

us >> good morning, carl. looks like the train is talgts a little breather. it's tough to put together sequential up days greater than 10%, two days in a row the stock had been up prior to earnings, a good 40% or so this month. so, it's okay that the stock is taking a bit of a breather it has been a major momentum play i'm going to argue it's a major beneficiary of the january effect, which is -- it saw a lot of tax loss selling into december, which intimated in january and sparked a lot of the momentum we've seen across the board in beaten-up stocks. but the investors heard what they wanted to hear from elon musk we continue to see our customers and the street buying lots and lots of tesla, although some have started to take profits, which is understandable after a run like this. >> you say at this moment you find it fundamentally expensive,

so the playbook would be what? >> well, one of the things i find fascinating about tesla, its options, of course, have been well reported, are phenomenally volume-heavy. we see tremendous volume in them one of the things that's interesting about this stock is the skew tends to be inverted right now. what that means is normally we see below market options out of the money puts, higher traded volatility than the money call there's a greater premium on risk aversion than speculation that's flipped on its head in tesla. what that means is traders who want to lock in some profits, at least instill a little bit of profit taking discipline are incentivized to write calls against their tesla position if they're so inclined. that could be a tough sell in some cases because tesla investors can be almost fanatical in their love for the company and its prospect those who take a more disciplined approach might want to generate a little income and take advantage of these high

volatilities for upside calls. >> let's turn to the chips nvidia is one of the other biggest gainers in the qqqs, but it's a tough buy for investsers. trading at more than double the forward pe of peers like amd and qualcomm steve, you point out a cheaper way to play the space. i also want to know, how much, i don't know, risk is there in these names, particularly this week with fed messaging on demand with implications for inventory and earnings for amd and qualcomm coming up, when we might get insight into inventory? >> this is a tough week to predict. this is why we want to be very nimble and offer the understanding that anything can change on a moment's notice because of all these earnings coming out particularly because of amd coming on the heels of intel amd, by many measures, is an inexpensive stock, but if the pc

industry is going into hibernation, that really doesn't matter in the short term when we brought up nvidia before, that's been the stellar performer among the semiconductor industry to a certain extent, it's been supercharged by the fact that cryptocurrencies have been doing well nvidia always shows a high correlation between the semiconductor index but it shows a high correlation to the price of bitcoin and i think a lot of the outperformance has been related to the outperformance of cryptocurrencies, at least the unexpected performance of bitcoin recently if you want your exposure to semis, you're probably better off by moving it to smh either through a pairs trade or outright changing your -- changing your exposures. >> i wonder also how much risk is there in data center overall slowing down, maybe not as much as the pc industry, but something similar. we just heard from intel at the

hyperstealers are perhaps going through a digestion cycle along with enterprise. might that hit the likes of nvidia and others, maybe even marvel >> absolutely. that's right now the fundamental risk to any tech investing we really did bring forward a lot of demand. now we're trying to figure out how we're digesting that the risk we need to understand, and this will really only come from the conference calls and the results, is how much of that was brought forward versus how much is still intact long term so, a lot of this outperformance may be more afemoral because we've seen -- because we've seen this outperformance in the past and now we're sort of digesting it >> that's a good segue into the mega caps. a few of the hyperscalers that jon was referring to, alphabet, meta, amazon all reporting this

week is there ar urgency for them to get out their own ai product to encounter that incredible rise of chatgpt >> yeah, it's tough to really bet against alphabet google -- i'm just going to keep calling it google. it's tough to bet against them there are definite headwinds you have to deal with, besides the fact that it looks like microsoft might have gotten the jump on them involving chatgpt you certainly have this existential problem of the ftc looking into the ad space. but on the other hand, it is fundamentally not a very expensive stock. it's only trading at a peg ratio of 1.1, which means you're really not paying any real premium for the growth that this company's been able to do. again, we -- we will have to wrestle with any company's ability to offer growth in this environment. and also how much has been brought forward into the current

quarters google, of the bunch, is certainly the cheapest priced. and one thing about when you buy inexpensive stocks is, they tend to have less downside because that's a certain amount priced in it's basic simple -- it seems silly to say this, but they have less to fall because there's less inflation >> well, investors looking for some value in this market. steve, thank you very much >> thank you, deirdre. coming up this morning on "techcheck," moffett says after a decade of growth at all costs, the bumpiest parts of the ride are in the rearview mirror we'll break down bullish calls on both uber and doordash when "techcheck" is back aine.in mut

we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows

coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. >>,

outperform rating on doordash, price target $79, calling this a long-term play in local commerce as for uber, moffett thinks the post-pandemic reopening trade still has room to run. giving the stock an outperform rating at $47 target all of this as amazon announces it is raising the minimum price for online grocery delivery. now $150 for prime members with new fees for any order under that threshold

carl, very different propositions, uber and doordash. we think of them similar they both do food delivery but doordash is moving more vertical they don't talk about it a lot, but they're building their own dash marts, a bigger capital outlay for them. it's owned and operated by them. uber remains this horizontal platform. >> yeah, it's a fascinating note out of moffett they're definitely more convicted on -- had more conviction on dash than they do uber, jon. a large part of their thesis is about strength in core restaurants. in their view, the economics there are inflekting where demand is robust but maybe their marginal costs have stopped going up that has big implications well beyond these two stocks. >> tony schu at doordash has a different view of economics and arguably structuring the business for times such as these. what i mean by that is doordash's strategy has been pursuing flexibility for restaurants for them to be able

to churn out more different concepts, for example, out of one kitchen, to have the option on how much they want to pay for marketing versus do they even want to just offer pickup. and then offer flexibility for customers, which things like dashpass where you have the subscription, and double dash where you can pick up extra things along with just a restaurant order i think it will be keep for investors to see how much is that working for doordash, perhaps, differently from uber do they start to pull away from them like they did during the pandemic because of their presence in the suburbs, or are people just ordering in less, though we didn't see that in the last earnings report from doordash, and is that hurting them because they don't have a ride-hailing business along with it. >> good questions. i would argue the other side of this, the investment they're making in their physical microwarehouses, though, less appealing potentially for investors looking for more profitability. we'll see how those plans shake out. after the break, we will enter the biggest week -- busiest week

of the earnings season meta, alphabet, all set to report results this week tech continues to rebound in 2023 we will look at how bad the ad recession could be or not be more "techcheck" after this break. the first time you connected your website and your store was also the first time you realized... we can do anything. cheesecake cookies? [together] the chookie! manage all your sales from one place with a partner that always puts you first. godaddy. tools and support for every small business first.

welcome back advertising revenue continues to be in focus this week. spotify, snap, google, and julia

is back with us. >> the earnings will reveal what kind of ad contraction the digital giants are seeing. starting with spotify tomorrow morning, followed by snap tomorrow afternoon, meta on wednesday and seeing investors are concerned about slowing revenues and are looking to hear about cost controls. spotify is expected to reaccelerate its revenue growth. its ad exposure is mitigated by subscriber fees. meta is expected to decline by nearly 7%. and in contrast to 2009, which saw fairly rapid recoveries in ad spent, consumer internet is more penetrated today at both the user and advertiser level. we advise taking a more cautiou

stance and what do the companies say good chat gdp? do they see it as a threat and also consumers' experience, we will have to see what the corporate response is to the regulatory threat to google and to tiktok. stay with us we will bring in another guest let's bring in cnbc contributor, alex hendricks you were just hearing julia layout where we are coming from and starting from as we get the reports. this macro backdrop is strange the consumers held up pretty well maybe there's a thought that companies won't scale back that ad or marketing as much as previously thought because there are still dollars to spend >> number one, the expectations are so low at this point investors are

getting a sense as to what these companies are in a nonzero rate environment. advertising spend was all down through 2022, and now we are getting a chance to look at the fourth quarter it's a low bar to beat i would not be surprised if they beat it. and we are finally getting certainty in the economy, right? advertisers pulled back because they had no idea what was going on, and now they are saying we know what the fed is going to do there's still growth in the u.s. economy. i think there's a chance they will spend more than expected. >> interesting especially after our conversation last week about whether or not the ad market really had bottomed in november and december the way you suggested? >> yeah, it's a different kind of ad market, carl remember the big media giants, there's a different ad buy, and the digital ad buying, you can

turn it off with a switch, and sometimes the last-minute ad buys can indicate anxiety in the moment for a lack of a better way to put it. and tiktok could be drawing experimental ad spend. you want to reach a certain number of people and you have to figure out where you are going to have the best opportunity to target, and i would separate those two type of ad spends. obviously they are responding to the macro economic issues. and then there's a question of targeting and how the apple operating system changed that had a massive impact negatively on the companies, hurting their ability to target consumers. are we past that and on to other challenges alex, i am curious to hear what you think of that one. >> meta has been talking, and internally there's a "wall street journal" report saying their ai has hatd a hit, and i

have not heard advertisers target that. what has happened is advertisers have gone around to everybody. they have gone to snapchat and twitter and tiktok, and even if facebook perform kwance is diminished as it was before the changes, a little improvement will make a big deal for sure. >> yeah, and artificial intelligence, it may not be jen rawtive but it will show how they can compete >> we know alphabet has technology that is equal or better -- i think better than what we have seen with chat ept. why have notthey not released it

yet? i don't think it's a threat yet, but could it get there potentially. in the meantime, it could take up a small percentage of search. i am talking about it all day about different things, and even if it takes a small bit of what people used to google for, when you look at the numbers it makes a difference >> yeah, and i know, julie, you will be watching for any mention of ai technology thank you both up next, cut investors slack. why some are calling for salesforce to jettison slack we will evaluate that with the stock under pressure

one more thing cut us some slack, perhaps analysts speculating salesforce could sell off the messaging force and possibly get back half of the $28 billion it paid for it some think the move could lead

to pressure. i would be shocked if salesforce can get a $14 billion valuation for slack, given that i think it had an estimated billion in revenue for 2021 be would be 14 times assuming there was a bit of a pandemic goosing to revenue, and it was never close to profitable. >> yeah, pandemic is saying that is right it was acquired for $28 billion, and seems difficult and raises questions about some of the other acquisitions as well and carl, we know that they have been on a spree and looking for big targets, and that's why all the activist are surrounding the diluted shareholders over the years. >> salesforce was at 228 and go to 236 speaking of rbc, they have been constructive at least on the s&p

the last few weeks s&p tends to bottom three to six months before the downward earnings revision cycles are done and as john said, and dee as well, an incredibly busy four sessions after today get ready. let's get to the judge in the half >> welcome to"half-time. the february meeting, jobs report and critical report ings joining me is shannon, liz, joe. good to have everybody in the house. let's check the markets. we are down across the board nasdaq has been the under performer all day, down about