year >> that's the key question, of course we may get a little bit better more information when we hear from fed chair powell later today. of course, one of these key questions, it's not just that we get to a terminal rate, but how long do you stay there all right, speaking of staying, we're done, we're leaving. i'm going to send it over to "tech check. >> happy wednesday welcome to "tech check." i'm john fourth with carl quint nina and deedra bosa the readthrough for earnings tonight with meta and alphabet set to report. those results against the backdrop of the fed this afternoon, with the nasdaq already up double digits so far in 2023. how today's decision will impact the tech stocks in your powerful that's next. >> and we've still got the megacaps left to report this week so markets, they are muted today ahead of that and the fed

decision this afternoon. plenty of earnings movers to mention already. both juniper networks and match group are down big this morning. we have the ceo and cfo respectively coming up this hour as you can see, the nasdaq hopped down about 0.6% let's take a look at ea, falling farther than juniper and match just really a brutal quarter for them, down nearly 12% in the session so far all three of those stocks near the bottom of the s&p today. we'll talk about the gaming impact on amd as well, as two chip names go opposite ways on earnings, carl >> we'll start with this sharp move lower for shares of s.n.a.p. advertising revenue definitely a focal point for investors, as they await results from meta tonight. our julia boorstin is with us and has more on the readthrough. we always know there's a little bit of volatility in the print when it comes to s.n.a.p what do we think of this quarter? >> there wasn't a revenue miss for q4, but the real revenue

miss was the guidance for q1 ceo spiegel warned that revenue challenges will remain challenging and headwinds will persist through the first quarter. he guided to a revenue decline between 2% and 10% for q1. now, the key factor that seems to be weighing on snap's results, brand advertising it declined 11% in the first quarter while direct response advertising, those are easier to measure click-to-buy ads, that category actually increased 4% now, meta and pinterest shares also declined on snap's warning. ubs writing, quote, we see downside first quarter outlook rest across the online ad space, especially at pinterest, and we expect meta to guide first quarter below consensus revenues but meta should see less pressure from brand ad struggles. mark mahaney estimates that meta's revenue is 75% from direct response, compared to snap, that has 50% from direct response and 50% from brand.

guys >> julia, by category within google, alphabet, does this potentially point to difficulty for youtube? >> so the thing is that this might point to difficulty for youtube, but you also have to remember that google has search, which is the most valuable type of direct response advertising, because people are searching for things and they sort of inherently have interest in clicking through and buying them that's a category that will be protecting google. youtube has been working on having more direct response there, but among the different ways that google is exposed to advertising, youtube would have more brand advertising there, because it is a great place for a tv-type advertisements, but there is the potential to increase the direct response ad component there as well. >> as for meta, julia, some notes this morning, talking about the buy side, at least hoping to see a little bit of a trim to the capex range and what that might mean for operating expenses going forward

>> remember that meta already did its layoffs. but meta did its layoffs last year they talked about focusing in on the key things that are so essential to the company, that i heard as mark zuckerberg signaling that, yes, we are continuing these long-term metaverse investments, but very focused on creating new monetization opportunities near-term, there have been some interesting notes flagging the opportunity around messaging baird saying that they see messaging as a massive long runway for growth, estimating $12 billion in click messages. so i think that's a key one to watch. and i think to go back to that conversation about direct response versus brand messaging ads, that's a perfect example of a direct response ad opportunity. >> julia, some on the street are saying that snap may not actually be a very good indicator for meta, because meta has made all of these changes that are taking place. and one of them is really its reliance on artificial intelligence

of course, such a buzzy topic right now given what microsoft is doing, chatgpt. do you think that that might actually increase investor patience for this huge capex number, if they see that it's having results, no, not necessarily in the metaverse, but engagement back with reelz and on facebook, its main platform >> look, all of these companies are already using artificial intelligence to some degree or another. the question is whether they're starting to use that chatgpt category of generative ai, and that's really what chatgpt is all about. interestingly, we heard a question about this asked to evan spiegel last night on the snap call, and he said, we see huge opportunity in generative ai and this idea of having more interactive conversations with effectively a bot. i think that this is something that we're sure to hear about on the meta call today. they're going to say, we're already using ai and machine learning to target ads, but there's more opportunity ahead there's no question that chatgpt has started a very intense conversation that's going to be

continued through all the big earnings this week, including google on thursday >> indeed, but the hype meter is going off a little bit like, that metaverse hype meter that got me nervous, you know, the little tick that i had going last year and the year before. >> the hype meter. that's why we have to be careful to talk about ai ai has already been in use for many, many years the question is just this generative ai, what the potential is there >> exactly julia, thanks. let's turn now to the earnings reports that could decide the fate of this rally in the next couple of days, we'll hear from meta, apple, amazon, and alphabet all have seen a really great start to the year and the four names represent nearly 15% of the s&p, by weight if you include microsoft, that's up to 20%. but is now the right time to buy? looking at pure forward price-to-earnings, the stocks are pretty expensive, but relative to the rest of the s&p, more or less in line with the exception of amazon. meta is trading closest to the

rest of the index, but is bullish as the market is on meta, the street is still cautious when it comes to returns. expecting nearly flat returns in the year ahead carl, i think apple is going to be particularly important, because it's one of those names that's the best in the category. when it comes to hardware, when it comes to loyalty, and if their guide is a little on the weaker side, what does that say, what does that do to the rally also wonder about amazon and how much these cuts that they've been doing impact the margin and profit expectations going forward in the face of weaker consumer demand. carl >> it's rare that we get -- we don't always get them in the same evening, but clearly, there's going to be individual results, "d., and what consumer spend likes and how that filters

down, given the numbers we've been getting from retail sales and ism today, it's clear at least on the manufacturing side, domestic weak snness is the soue of its woes. >> we just showed you how critical these four names that are reporting and the new in the days ahead are critical for the wider trajectory of the market the nasdaq was up some 9% in january. does that fall apart tonight investors with patient with microsoft. they looked at that set of earnings who said, this is more cyclical versus fundamental. what is the story with the rest of these names and it's about the e going forward. the earnings and we're expecting big declines i mean, nearly 90% earnings decline for amazon, year over year 40% for meta so the street is really going to be looking at that profit margin for more on the street's big tech outlook, you just heard our conversation, what are you looking for in the two days ahead, and what are the implications for the market? do you think it's going to be

like a microsoft, even if they're not great, the market will give them a pass, because these are fundamentally good businesses >> i think it's going to come down to a couple of key themes over the next couple of days number one, are businesses getting better off the bottoms we saw in the second half of 2022 for us, we would put meta in that category, where while you saw weakness at snap last night, we believe some of the investments that meta has made over the last two years are starting to bear fruit in q4 and rolling into q1. as a result of that, we've been talking for a couple of months now about seeing a better revenue trajectory for meta coming out of 2022 and going into 2023. for amazon, we think it's mostly about the commerce margins you know, once microsoft gave you the narrative of a cyclical slowdown starting to play out in cloud computing, we think the market has already digested that it's all about commerce margins and reversing some of the headwinds that we've seen over

the last two, two and a half years in their ecommerce profitability that we think is going to be the incremental driver for amazon shares and for alphabet, it's really going to be what julia was talking about. it's going to be some of this mix between youtube and search, how mature versus growth are some of those assets within alphabet's portfolio and is there a broader profit protection narrative that comes out of alphabet's results, given that we've also seen some cust-cutting from that organization in the last month >> do you think the theme will continue to be cost cutting? i think that's clearly what the market wants to hear and is there a sense in your mind that the layoffs that they've done so far have been enough, or do you think there will be tough questions on whether there needs to be more at the big tech companies? >> i think the pressure will be the continue to focus on protecting margins, protecting earnings power even if results are better on the top line, i think investors right now are fairly uncertain about the environment looking out over the next six months

i don't think anybody really believes that they have great visibility into how the consumer and the enterprise and demand trends evolve in the next six months, so with that as a backdrop of uncertainty on the top line, management teams that do a better job of returning capitol, protecting margins, generating earnings power above expectations, i think that's what's going to get rewarded through earnings season. >> eric, with that said, contrast amazon and meta for me. because it seems to me that there's been this increasing expectation that meta's core wiz is going to be okay, but i still have not heard mark zuckerberg say he's pulling back on this meta verse investment. that's got to be a drag, right are investors going to look past that meanwhile, you've got amazon, which overinvested in logistics during the pandemic, has admitted that, right and do they now get a fresh look from investors, because they are doing some optimization?

>> i think on amazon, you squared it up perfectly. i think if we get visibility into a march back to more normalized commerce margins. for example, we probably haven't seen normalized ecommerce margins at amazon since late 2018 through the middle of 2019. because they went into an investment cycle at the end of 2019, and we all know what happened in 2020 and beyond, result of covid and everything that's happened since then so i think of visibility back to those levels is frankly the key driver of the stock coming into and out of thursday night. on meta, i would not expect mark zuckerberg is going to retreat from the meta verse dialogue i think it's going to remain a heavy investment year on the metaverse for 2023 and i think you'll have some proof points on product as you go out of '23 and into 2024. but turning to the core product, i think an improvement in the revenue trajectory, and little

bit more dpiscipline around the core apps family, that is what's going to be the incremental driver and could be the incremental driver of the revenue trajectory that i highlighted earlier. >> interesting because we were just talking about this, eric, a desk note from a competitor suggesting that they trim the capex range by a couple billion, feels like 2 billion is needed for the stock to continue to work. you're not playing high odds on that >> i think there's some rationalization that could happen on the capex budget and the opex budget. i mean, as we track things globally, there are corporate real estate projects, data center projects that they're clearly either delaying or potentiallily canceling that we track. there could be a downward note to the capex budget. but i wouldn't go into tonight nigh that you're going to see a 20, 30% cut in the capex budget. i would be surprised by that but i still think that you could see some continued pruning in the outlook that they gave in late october >> if it does trim that capex budget, though, eric, what does

that mean for some of the chip makers nvidia specifically? i know that some on the street are watching the follow-on effect for network and chip equipment. >> yeah, i don't know that there's going to be a direct readthrough, because i just laid out two buckets. one would be data centers, where there obvious would be a more direct readthrough to the semiconductor industry the other would be less physical footprint in corporate real estate for employees and they've already been cutting employee head counts. we'll have to get color tonight if they do do it, which of those areas and what the degree of cuts actually are. >> it's a relatively high bar. meta shares are up about 20% over the last month or so. eric, thanks for being with us eric sheridan, goldman sachs we're just getting started here on "tech check. still to come, you'll hear what amd's lisa sue told us earlier this morning about the demand for chips. the gaming spot a weak spot on that quarter and speaking of gaming, shares of ea are down pretty big. we'll get more on those numbers.

and match group getting crushed in what's admittedly a tough take the company's newly appointed president will join us on those results, when we're back in a moment

as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service

designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to 60% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.

time now for a gut check on amd. shares are higher this morning by more than 7% after delivering a beat on the top and bottom lines. guidance for the current quarter, slightly lower than estimates. in an interview earlier with squawk on the street, lisa sue emphasized how balanced it is now. >> we are a very diversified company now, so we very much like our data center exposure, as well as our broad embedded exposure that came from this acquisition. and we're watching the macro, especially as it relates to, you know, prc ss and gaming, which a bit more dependent on how the macro plays out over the year. we like the position that we're in and very focused on execution as we go through the year. >> also predicting the first quarter is going to mark the bottom for the pc market that's a bit more optimistic than intel, that said that inventory drawdowns could spill

into the second quarter as well. intel is still trying to get a handle on cash preservation. ceo pat gelsinger taking a 25% cut to base pay. others in the organization, mostly management, also taking a cut, as they try to, i imagine, protect that dividend and shore up resources to be able to keep this turnaround going, d >> yeah, intel, that quarter really set the bar lower for amd. so an upside surprise there. it was interesting, too, the team over at amd on the call last night talked about gaming 16% of revenue, compared to 23% a year ago so this is also a space post-pandemic that continues to revert to that mean. and just take a look at ea today, carl. it's down, what, 11% maybe that raises questions about the gaming space at large. of course, the microsoft activision acquisition for $68.7 billion. that was seen as expensive, in

light of these recent data points in ea looks tough >> as cramer pointed out during our interview, for a ceo who is pretty conservative with her promises, d., to see that q1's trough pc, to talk about second half cloud inventories clearing up, maybe that's a little bit more than we normally get from amd. >> and i heard you guys press her on that, too, saying, how can you know and she says, they work very closely with their very large cloud provider customers that was a really interesting data point, perhaps, more optimism for the cloud providers too in the second half of the year we also hear this morning from c cathie wood, arc innovation posted its best month since its inception, rallying 28% in january. "squawk box" asking cathie about ai as the cbuzz aren't chatgpt continues to grow. >> i think there's going to be a lot of modernization in this industry, around the whole

artificial intelligence area data is the new gold as they were talking about cloud and other movements in technology. i think that's even more true now with artificial intelligence >> wood offering her view. i don't know how many times we have said ai 20 minutes into the show the hype machine is going, yes but, you know, i was thinking, cathie woods a few months ago announced that venture fund, which invests in public and private companies. one of its biggest holding is freenum, a public company in cancer detection, uses ai and learning to identify patterns. it's an interesting way to think about how in this industry that's garnering a lot of hype, a lot of the companies may still be private and cathie woods' arc funds may be an interesting way to tap into some of the companies that you can't invest in the public markets yet. >> i look to history with things like this.

and i was talking to mark mclaughlin about this, chairman of qualcomm, former ceo of palo alto networks. very often, the industry kind of knows what the next big thing might be like, they knew mobility was the next thing back, you know, 20ish years ago and microsoft had pocket pc, hp was doing stuff, but they didn't get it right apple got it right so, yes, ai might be the next thing, carl. but the question is, who's going to get it right. mclaughlin believes that it's integration of ai at the application level in ways that are significant and deliver value. and as exciting as the open ai stuff is, you can go in the browser now and try it out, how does that get integrated at an application level, in way that delivers value that customers are willing to pay for at scale? we haven't seen that yet >> no,although, i would note that "forbes" today has a story about sergey brin making his first code request in several

years. and everyone rushing to approve it of course, semifore with his piece on bing' revenge, bing playing the long game finally seeing things turn his way after the break, we'll talk to the ceo of juniper networks. that stock is lower post earnings the company with some key insights into enterprise, of course check out shares of peloton, as well, getting a lift from these better than expected results barry mccarthy with jim a few moments ago as losses shrink, sub-revenue once again outpacing equipment sales. we'll keep an eye on that with shares up almost 20% we're ba ia me ckn mont ♪ icy hot pro starts working instantly. with two max-strength pain relievers. ♪ so you can rise from pain like a pro. icy hot pro.

welcome back to fact check let's get to juniper networks. the stock down about 5% this morning after a surprise miss on fourth quarter evenue. that's thanks to moderating demand, lower product orders than expected. joining us now, juniper network ceo, ramey raheem. so good to see you quite a complicated story for

investors to nderstand you have some share gains, but also a cloud slowdown. help us sort through it. >> yeah, so we just wrapped up a record year for juniper from a revenue standpoint a record quarter from a revenue standpoint our enterprise business had both a record year and a record quarter. we had our second highest cloud provider revenue quarter in q4 and weed up our full-year revenue guys for next year to 100 basis points of operating margin expansion i think we're executing quite well, despite some of the risk factors associated with the macro today, and worldwide i feel very good about the future we've got -- we're sitting on some incredible ai-based technology, that's driving real results for our customers. cloud provider, 400 gig projects continue to happen so there's a lot going well in the business right now, that i think we're very happy with. >> okay, so at the same time, though, you talk about additional scrutiny that some of these deals are getting. when you talk about cloud providers are you talking about

the hyperscalers or kind of middle of the range and what's the difference in certainty that you're seeing across those >> yeah, so when we talk about customers across all of our segments enterprise, cloud providers, service providers, we are seeing more with budgets, the timelines of projects. the good news here is that the projects are they tend to be very strategic, very multi-year. this is especially true for cloud providers. and they continue to happen. maybe a little bit slower than in the past, but they do continue to happen we are sitting on massive backlog that we've accumulated over the last couple of years that gave us great visibility into the future and will help us navigate some of the shorter-term uncertainty but at the same time, our enterprise orders and momentum continue to be extremely solid right now. and our outlook for 2023 in the enterprise looks really solid. and this with enterprise being our largest segment, for the

first year ever at juniper, enterprise is in fact the largest business segment and i think that presents us with great diversity and resilience in the business. >> you've been at juniper for a long time. more than a quarter century at the company. so you've seen the financial crisis you saw the dotcom bust. compare this period that we're in right now to that and the level of certainty that you feel about what's going to happen in '23, compared to those periods. what are you doing on costs? >> i'm actually very optimistic about the future despite some of the macro risks that are out there. we're sitting on very high backlog. the conversations and projects that are happening across all of our segments right now remain in tact the level of differentiation that we have in our solutions across the board, but especially in the enterprise has never been stronger, especially in the ai-driven enterprise that's

delivering incredible value for our customers. and in our cloud segment, we're working on 400 gig upgrade projects that are going to be absolutely essential for the next five years, especially with new killer apps that are coming onboard, like artificial intelligence s so i am quite optimistic about the future, despite some of the macro challenges that we have to keep an eye on >> rami, thank you >> after the outbreak, we will talk with one strategist who says valuations in the space are looking attractive now he's giving us some names he's looking to pick up plus, we're looking at tesla and the vehicle stocks li auto bucking that trend, seeing deliveries actually rise 24% for the month. tech check is back in just two minutes. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience.

with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back.

♪ every search you make ♪ ♪ every click you take ♪ ♪ i'll be watching you ♪ - [narrator] the internet doesn't have to be so creepy, the duckduckgo app, lets you search and browse pria blocking most trackers all forf your search history is never tracked, so it can't be shared. and when you leave search, duckduckgo helps keep companies from watching you as you brows. join tens of millions of people making the easy switch by downloading the app today. duckduckgo, privacy simplified. (upbeat music)

welcome back to tech check i'm seema mody and here's your cnbc news update in oregon, a standoff with a suspect in violent kidnapping has ended. police say the suspect shot himself. benjamin foster died in a hospital after he was taken into custody. foster was accused of torturing a woman he held captive. she remains in critical condition. >>. australian emergency teams have found a dangerous radioactive capsule after a six-day search the pea-sized pellet fell off a

truck on a 860-mile highway. the australian prime minister thanking street searchers for literally finding a needle in a haystack and ozzie osbourne may have sung his last concert. he has canceled his tour dates osbourne says his voice is still fine and he can't believe his touring days have ended this way. >> seema, thank you very much. it's been a very busy 24 hours in reports and announcements of layoffs and a news alert on some at fedex. for that, we'll turn to our frank holland. >> fedex shares up almost 1.5% rising after this news broke that fedex will reduce its workforce by about 10% at the officer and director level that's at the management level, not at the ground level where you get deliveries and things like that. saying in part, today we're in the process of informing a number of team members across our global enterprise that their positions have been eliminated, as we reduce the size of our

officer and director team by more than 10% and consolidate some teams and some functions. the memo goes on to say that fedex continues to try to be an efficient and agile organization late last year, the company issued a very dire earnings warning and proceeded to cut some jobs and also some service for his signature air express service and reduce the number of deliveries that it makes with its ground service, that is actually staffed by contractors. so, again, shares of fedex up after announcementing it's going to make some job cuts, mostly at the management level but they say they're going to cut about 10% of their officer and director teams back over to you >> frank, appreciate that. frank holland, also on the job cut front today, reuters just now reporting that rivian automotive reducing its workforce by 6%. they say it will not impact manufacturing jobs at their factory in illinois, but with about 14,000 employees, adds about 850 jobs

we've talked a lot about the potential for the big cap tech stocks to dent this recent rally, but what about the fed. will the interest rate decision and more importantly chair powell's comments be a blow to those who think that pausing is ah ahead. and thereby current bond market pricing. our next guest says hawkish rhetoric unlikely to have a lasting impact on the markets and believes that interest rates are, in fact, approaching their peak levels. joining us, chief investment strategy, young yama there is this creeping notion if fed is unable to guide the terminal rate higher, which appears to be the case for a while, that in some ways, the pause is already here. what do you think? >> in some ways, it is here. i think we'll see some fed hawkishness, but it's unclear how much the market will focus on that. the market already doesn't believe the fed's projections and has its own projections. so when we see inflation falling, when we see that across

cpi, ppi, wage growth, moderating, i think the market is getting quite comfortable with its own projections here, even if the fed has some short-term impact. we don't expect to have a long-term impact, if there are some hawkish comments that come out later today. >> so if we're right about that, does that ratify the nasdaq's performance in january does it mean that there's more to come or that we have essentially priced that in >> well, it's been a great bounce, right? and a lot of what we've seen, actually, is some of the laggards and underperformers in 2022 have the biggest bounce so i do think it's time, really, to start looking at where the stable business models, where's growth going to come from? probably a lot of the snackback has already taken back and now it's more, where are we going to see growth in 2023, and where's the stability going to come from i think it's a bit of a change in narrative, because we're not going to see the outsized returns that we saw in january >> there have been some on the street who say, sell the year-to-date rally or fade it.

one of the theories is that if corporate america, maybe not head count, but certainly on capex, comes in, then it's not going to make sense on some of these cyclical names at the same time, some of these, the dovers and the ips of the world yesterday, traded as if we really are looking at goldilocks is that misprice qd? >> well, i think there can be some softening in capex, but at the second half of the year, we think the environment will look pretty good. we think some of the softness is the story of several quarters, not longer than that, not lasting throughout the whole year as we get wage growth starting to exceed inflation throughout the year, we'll see spending stabilize and that's going to filter over to corporations as well and those budgets which have been tight for the past couple of quarters, maybe tight for another quarter or two, but we think they'll start to open up by sort of mid-year and year end. it will be a better environment going forward. >> finally, you know, the ism today was a bit underwohelming,

certainly on the new order front, but people come back again and say china's reopening will give that bounce. it might take a couple of months or three months to filter in i think that jpmorgan took their q1 gdp for china from 37 to 7. i wonder if you're feeling that good about it? >> that's a big move for sure in terms of that upgrade. we think that the china reopening and stimulus that's taken place, both fiscal and monetary policy in china will help global growth overall we think the ism numbers, they were weak today, but we think we're carving out a bottom we don't put a lot of emphasis on those one-month numbers and we think it's much more likely that we're seeing the bottom than a trend that continues downward >> overall, china will help, as will the softening inflation numbers in the u.s and we think the tra jekdry going forward, it's not a gangbusters repeat of january, but it's nice to see january off to a good start. and we think the rest of the year will be a favorable year

overall. >> yeah. well, generally, when january is that strong, especially coming off of a budouble-digit down yer the full year tends to be okay thank you so much. up next, why google is asking its employees to test out chatgpt alternatives the cnbc reporter behind that scoop has that next. t-mobile stock mixed a as the nasdaq tries to claw back some of its earlier losses. a lot more tech check still ahead. stay with us

♪ icy hot pro starts working instantly. with two max-strength pain relievers. ♪ so you can rise from pain like a pro.

icy hot pro. ubs calls google's upcoming earnings a cache 22 when it comes to regenerative ai, it could fail to live up to the chatgpt hype or its own ai road map could commit either way, the street expects to to be a dominant theme on the call cnbc exclusively reporting google is testing chatgpt products internally with its employees as part of a code red sp response to open ai's viral chat market always great to have you on set. first, i want to talk to you about job cuts we just heard another round from fedex, rivian. there was this thought when, that 6% of their workforce, given how much they hired during the pandemic

is there still anxiety, that there could be more to come? >> there is some anxiety still, especially because the last layoffs caught a lot of these employees offguard they didn't expect it to happen the way it did they started a smaller company, coin base or something, that's understandable after that, for them, all bets are off, and they could think and they do think that there is potential, if it could happen to them, it could happen to us, no one's safe, and who knows if down the line, this happens again? >> we'll hear after the earnings call one area where they're probably not cutting engineers is artificial intelligence. we know this is something that google has been working on, long before open ai went viral. and they've actually been able to run through some of their own chatgpt-like products. what's the takeaway? i know that there was some comparison, obviously skewed towards grade oogle, but what ah early signs saying >> it's interesting, what we reported yesterday is that they have so many different units working on this.

they've redistributed resources and employees and told people, you may not see them on certain engineering meetings, you might see them focused on landa, the smart chat language model and we saw that they have a few different products right now across different areas, not just in ai, in cloud, in the company's brain sector, and one of them is apprentice barred, which is this chatgpt-like chat bot they're using internally with employees, they can write things like, write me a poem in wes anderson-style and various detailed answers and that it uses current events, which is something that they hope will work >> write a limerick, write an ode, write a song. those are some of the most popular cases. something that's been common as well, as people trying to trick these chat bots. and one of the most interesting examples that showed the comparison was a riddle was asked to both the chatgpt

machine and google's own lambda engine, and google came out on top. what does that tell you that it's advanced, further advanced than a chatgpt it's correct more of the time, does that give you anymore faith when you worry about the ethics and the factual accuracy of these new products >> it's still so early, too. it's hard to know whether those early examples will be able to scale on a larger platform but the one that is we got insight into, the internal documents showed that it was able to solve a riddle and chatgpt was not. and this was like a little math problem that an ai researcher came out with. so, yeah, that was an interesting thing to say, oah, okay, it can't be tricked as chatgpt. >> three women are in a room, two are mothers and have just given birth, now the children's fathers came in, what is the no total number of people in the room for our audience to consider >> great scoop, jen.

>> ai not yet smarter than bilbao bagins. coming up, investors swiping left on match group. shares getting crushed after earnings we'll speak with the company's president and cfo, next. plus, check out baidu, spiking as black rock reports it has raised its stake in the company to more than 6.5%. "tech check" will be right back. when you stay at a vrbo you always get the whole home because is it really a vacation home if you have to share a house with a host? ♪ only with vrbo [office sounds] ♪upbeat music♪ ♪♪ ♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪ ♪a lovely day (lovely day)♪ ♪(lovely day) (lovely day)♪ ♪(lovely day)♪

a bank that knows your business grows your business. bmo.

street having a falling out with match group this morning. the stock is down 8.5% after

posting a topline miss in q4 the company giving mixed guidance for the current quarter and joining the growing list of companies announcing layoffs, saying it expects to reduce its workforce by 8%. let's bring in match group president and cfo, gary swidlerc exclusive. welcome. first, set the stage give me the sense how your consumer behavior has shifted as we move out of the pandemic. so much virtual dating and the expectation that would provide a new platform and motion, but that doesn't seem to be holding up in exactly the way some expected >> i think we've been through a pretty volatile last few years when the pandemic first hit people weren't able to go out and meet people in real life, and that did affect our business the need to meet people is always there, and people came back to it in droves once they got comfortable again with

meeting people that fundamental need to meet people is not going away we do a great job capturing it with our technologies. it's a need we meet extremely well >> the as long as are feeling lonely, too, this morning. help them out here with where are you going to invest over the next several quarters to build the product that will fuel growth for the next couple of years? what have you learned during this period that's worth investing, and even as you have to cut head count to preserve capital. >> i think a couple things going on one, we have some really fast growing businesses like hinge and tinder we're investing in. we're highly committed to those businesses we see massive global opportunity. a business that is expanding rapidly around the world we're going to continue to invest in those kinds of businesses we're making new bets into other sectors, other demographics we don't yet serve that we see

opportunities. there's a lot of investing going on, a lot of opportunity for us that we're backing with resources. as far as head count goes, we, like other companies, probably got a little too carried away with hiring in the late '21, early '22 period and adjusting to the new reality, not the extend others are but we're trimming more. we've been a financially focused company and will continue to rely on our financial discipline to do the right thing and drive profitability for shareholders >> good morning. it's deirdre does match have an issue hinge was hit by-product delays and that could be seen as more fundamental than cyclical. how do you fix that? >> the hinge delay was really something we chose to do we wanted to spend another two or three months refining the product. momentum has been fantastic. we didn't feel the need to rush a product that wasn't ready.

we delayed it from the fourth quarter last year to the first quarter this year. we have it out in tests. we feel really good about what's happening at hinge tinder did not execute on its product road map last year as well as we would have liked. we made significant changes in the team there in the middle of the year we think they've regained their footing, are executing well. we're excited about their road map for 2023 it's all about execution at tinder it is the world's biggest dating app and there's a tremendous amount of opportunity there as well >> following up on where deirdre was going there, i believe you said in the fourth quarter your number of payers was down 300,000. is that because people can go out to bars versus do it in app? are you experiencing something similar to what's happening in the e-commerce market where the return to in person is continuing tohit your revenues

>> it may be a factor but i don't think it's a significant factor people have a little bit less discretionary income they're feeling tighter from a spending standpoint. people are tightening the belt and trimming features on the a la carte or consumable side. our subscription business is strong and resilient, but people are trimming here and there because they're faced with higher costs because of inflation and they have no choice but to do that. we're facing the same kinds of macro driven head winds like every other business is in this environment. >> gary, thank you gary swidler from match. meanwhile, more job cuts breaking moments ago, this time from draft kings our contessa brewer. we've learned 140 draft kings employees will lose their jobs a company spokesperson doesn't want me to use the word layoffs instead saying these roles are

elim eliminated the job cuts are happening in the united states, but i'm told the majority are focused overseas draft kings says it is shifting its investment focus into mobile developments and that affects engineering staff as well as talent acquisition since it's not hiring as many people in 2023 as it had been. those job cuts amount to about 3.5% of the overall workforce. earnings schedule for after the super bowl, february 16, and i'm scheduled to sit down with jason robbins, the ceo, next week in arizona where we'll likely get more color about this. carl >> thank you, contessa brewer. still to come, michael burry with a one-word message for investors.

today in "one more thing," sell the since deleted tweet from michael burry ahead of today's fed decision and big tech earnings from meta and alphabet, jon. burry likes to tweet and delete.

it is gone we don't have it to look at live he didn't say what to sell but it got a lot of attention last night. >> there are a lot of companies cutting costs heading into this. the 2021 upward trajectory didn't continue. i'm not sure they're cutting because of the demand slowdown we're seeing in 2023 and so are there more cuts to come the fed has succeeded in slowing down the economy but how much is it going to slow down? >> that's the big question in this hour alone, carl, we got three headlines, three different companies doing more layoffs is there more to come? after the january that we've had especially in tech, the nasdaq 100 up 11% could be safe if you're talking tech in the near term, but it raises questions does this cycle have any similarities to the dot-com bubble there was a rebound and a bigger fall on the other side, people

like dan niles talked about, carl >> a great short out this morning, guys, just looking at tech layoffs and arguing it's more or less pushing workers into different parts of the economy rather than removing them entirely. a very busy afternoon. let's get to the judge carl, thank you so much. welcome to "the halftime report." i'm scott wapner what is the most important day this early year for stocks the fed decision two hours away followed by meta earnings in "overtime. here at post nine at the new york stock exchange to get you all set up for all of that joining me for the hour today joe terranova. we wait for the fed. we've been down throughout the morning today. the dow down by 300. the s&p nearly half of a percent, the nasdaq is weaker today, too, as is th