a lot of people going with 10 bucks. speaking of spending, i want to call out royal caribbean, up 4% right now it goes back to the conversation we had with hertz, this idea that people are continuing to spend on travel and on experiences, even as we've seen the weakness in retail look, carnival and norwegian are trading higher as well that's going to do it for us on "squawk on the street. "techcheck" starts now good tuesday morning welcome to "techcheck. i'm carl quintanilla with juliannajon fortt and deirdre bosa we'll tell you what's driving the latest buzz word. the exclusive with arm ahead of the coming ipo. later on, the future of television, the biggest media insiders in the industry predict the next three years for tv. jon, you definitely have the lead today >> yeah, carl, i'm here live at

microsoft headquarters in redmond, washington. this is about artificial intelligence openai ceo sam altman tweeted a photo of himself with microsoft ceo satya nadella. microsoft's multibillion investment in that company comes atdz they pushed hard on ai being the next great accelerator for their software business. i'm going to be speaking to satya nadella live on cnbc this afternoon, late morning pacific. the question now, how much of a first mover advantage does microsoft have with this openai partnership? i recently spoke with the ceos of c3.ai, forthought and large language models and how those are improving their ai models. i spoeke with the ceo of navan, integrating chatgpt to automate expense reports. that news out today.

google and amazon aren't just sitting back, of course. they are making the case that they're running fast to erase microsoft's advantage, dee we're starting to see this ai story play out in real time, in actual products and, perhaps, in revenue generation we haven't quite seen that in a significant way yet, but we're about to. >> revenue generation may play out a little slower, but certainly the idea of this, the breakthroughs is capturing imaginations jon, you said you're at a last-minute press conference for microsoft. google will have its own last-minute press conference tomorrow where we expect they'll be talking about their ai products it's interesting, google called itself an ai company for years and years, but openai has beat it to the bunch. that's what has led to this code red situation. i have the reporter that's been breaking a lot of that news beside me, who we'll bring in in a moment, but it tells you that even a company this big is scrambling somewhat. yes, they've been developing

these products for years and years, carl, but chatgpt has really captured the imagination and captured the mainstream. today will be further evidence of that. sam altman with satya nadella in a picture, kind of sums up the last few months, hasn't it >> yes he was not shy about that photo of him and nadella, jon. the market has been so jumpy looking for the next big growth opportunity, secular growth opportunity in technology. look at some of the price action of other names like c3.ai. we talked about it the last few days i wonder whether or not microsoft will say, guys, get ahold of yourselves. we're working on this, but baby steps. that's going to be an interesting tonal effect today >> yes, that is a great point. >> they're not going to say baby steps. they are not going to say baby steps. they are going to say, full steam ahead, i expect. and they're going to make the case, as they have been up to this point, we've heard satya nadella talking on earnings calls and other places, that they're ready to roll this out

i think that's, perhaps, going to be the difference between some of these companies talking about ai and other companies able to show offings in products that others are able to build on top of if this is a scale game, we're starting to hear that argument for some of these companies i've been talking to, how much can you feed into these models how quickly to make them smarter, then who has a great product that's out already that's a big part of this, dee. >> scale is going to be key. some pointing to the fact that bing doesn't have a lot. we know microsoft and its suite of office products has scale in the billions if this is really a licensing play here. guys, we know microsoft is showing off their big investment today, as we've been talking about the competition, it's certainly heating up cnbc's jennifer, i just referred to her reports, that apart from google's report yesterday, google ceo is calling for all hands on deck to make sure its own chatbot, bard, can compete with chatgpt have a listen.

>> on the ai side, it is really exciting time. it's clear the market is ready consumers are interested in trying out new experiences i think i feel comfortable with all the investments we have made in making sure we can develop ai responsibly. and we'll be careful we'll be launching, you know, morris lab products in certain cases, beta features in certain cases and scaling up from there. >> competition is coming from beyond the mega caps they are piling in, begging the question, is ai the next big thing or is it the latest buzz word or, dare i say, bubble? joining us is kate rooney and jennifer so far the last few months, as i've said, chatgpt has captured the buzz, the imagination, all things you can only really interact

with it, sign up with your phone number do you think this is the week that people start to use it in everyday life? we see it on the search page of bing and maybe google later this week >> right now it's not publicly available through google it still has limitations with chatgpt specifically sometimes you can't get on sometimes the servers are overload people can't get on and ask it questions. but i think that this is like one more step to kind of magnify the popularity and draw all the eyes to the capabilities of, like, what this type of conversation technology can do. >> it will be amazing to see, too, titans of tech really trying to outdo each other this week kate rooney, you've been covering the crypto, the block space for years. you've seen how a word, a buzz word, a technology can captivate and everyone tries to jump on the band wagon what do investors have to be careful of when it comes to ai and you look at a company like

c3.ai that's up 150% in the last month. >> there's a lot of cautionary tales from crypto, but it's reminiscent of that hype cycle if you look back to 2017, the biggest example was long island iced tea company that changed its name to long island blockchain and it got delisted you see this absolute frenzy to pile into everything related to ai or crypto vcs have said, we pumped the brakes on crypto and blockchain, but you're starting to see founders send out pitch decks and pretty much add ai they originally were telling me, you know what, it feels like ai is the new blockchain. also if you look at google trends, google searches, i was looking at this yesterday, couldn't believe we looked at crypto and blockchain versus searches for ai that tends to be a good barometer for research. >> earnings calls, too an explosion of that term. >> yeah. ai is not the new blockchain in the sense that i'm talking to

companies who are actually incorporating ai capabilities into their products in meaningful ways they're able to demonstrate today. we've never seen that with blockchain yeah, sure, we've heard about kind of shipping products around and keeping track of things and supply chain, but that never manifested itself in a scaled way. jen, i wonder, over at google, is your sense that even though they've been working on ai internally for their own products and purposes, they're ready to release the tools for others to build on top of that, or is that sort of the blind spot where they've got a lot of work to do over the coming weeks to show they have that capability >> jon, you nailed it right there. that is their weak spot. as they've grown bigger, it's been harder for them to actually ship products. they may have the working technology, but the bure aucrac and other things we have

reported on have kept it from delivering things that are really competitive we reported on a an all hands meeting in december that executives said they are taking caution when it comes to releasing this technology. they have a lot of responsibility they have a ton of users this is way more than the users of openai, for instance. we have people that use gmail on a daily basis. so, i think they actually have to be very cautious in terms of that but they do have very good working technology i got a look at some of the tests they ran with bard and their technology and testing it against chatgpt. so, that is there. it's just a matter of whether they can really deliver this >> that's something that sunday dar pichai has talked about. balancing boldness with responsibility, you know, i think investors are trying to figure out, is that a crutch to give them a little more time or -- these are real concerns at the same time. >> right that's the rallying cry behind,

let's try the early google days, hack-a-thon type environment yeah, i think they're going to try it more. >> talk to you again soon. as this competition heats up among our mega caps, our next guest turns to the vc space, sees a lot of excitement but worries some startup ideas may be features rather than fully-fledged companies. joining us, former zillow group ceo, spencer great to have you. everyone is buzzing about this you know people building startups on it and you know funds being raised around it. >> yeah. it's everywhere. it's all anyone can talk about in tech. there are entire funds being raised on it dot la with new $600 million fund here in l.a what we're seeing today from microsoft and baidu is what everyone expected, everyone is going to have one of these google will have one, amazon will have one, apple will have

one, et cetera the startups being built on top of them are becoming verticalized i've been pitched 15 startups in the last couple of weeks trying to build real estate specific chatbots, for example, to create listing descriptions or customer service chatbots these are good ideas, but the question really is, won't ai just be incorporated into existing software, like existing customer service technology providers, rather than being built as a totally separate company? i think that's -- as you say, these are ideas that might be features not companies that's what vcs are trying to sort through right now. >> how do you as someone who looks at stocks, even publicly available stocks, how do you distill that what looks attractive to you in the space in a way that's actionable >> well, i think cloud is going to be a decent comp here cloud is the better comp than crypto or web3 for sure. what i mean by that is there will be a couple big providers of these huge data sets, just like a couple of big cloud

providers. they'll have a lot of revenue. then the rest of the tech ecosystem, companies like trip action that you talked about or picasso or zillow, they will use ai in their services by sitting on top of somebody's models. and there will be a small number, in my opinion, of dedicated startups that don't have their own models but are verticalizing the use of genretive ai into their particular verticals you know, trip action is a perfect example. where they're incorporating ai into their existing expense management program i'm sure there are dozens of startups out there trying to launch new expense management software just focused on genretive ai here you have a legacy company like trip actions, which has already responded by bringing ai into their product that will be the challenge for these disrupters trying to use ai as a wedge into a space >> spencer, i think it's important for investors to think about and realize that there's

not just one approach to ai out there. and one rules them all it's kind of like clouds there's software service, infrastructure, platform as a service. yes, you have these conversational ai capabilities, large language models, et cetera, but you also have companies that are working on industry-specific ai applications, right, that are able to mine through data, present it and then when it's time to present that data, sometimes that's when your chatgpts and large language models come into play to help make sense of that. there are companies, aren't there, that are working in that vertical area, whether it comes to defense, government, intelligence, et cetera, customer service you mentioned, where there's a possibility to capture quite a bit of mine share. >> absolutely. the people that must be laughing about all these are the ask jeeves folks who had a search engine, the whole point was to ask a question and get an

ai-driven response what's new about this technology is it's customer-facing and it has struck a chord one of my side projects for the last many years has been a tech podcast for kids with my son called "dad, i have a question," and the what is chatgpt episode is our most popular episode by a mile it's gotten into the mainstream as quickly as the advent of the web browser in the early '90s. that's how quickly this has become mainstream. the technology has been around for a long time. we're just seeing the more consumer-facing aspects of it. zillow, for example, has used ai to improve its zestimate for many years picasso has ai infused throughout its products. it's not entirely new. what is new, full credit to openai, they rushed out a consumer-facing product which captured imagination and now google and baidu and everyone else is scrambling to respond, as you point out. >> and made it mainstream.

spencer, everyone seems to agree here that the promise of genretive ai is huge, but what about the less desirable use cases that, as you've seen in the evolution of technology have been thought of maybe too late look at social media as maybe a cautionary tale. we gave up all of our privacy and data just to put the genie back in the lamp later m pla plagiarism, ip theft - >> and education i'm on the board of a high school here in los angeles we're spending a lot of time trying to figure out what to do about chatgpt, right i mean, kids are lrl writing papers using genretive ai and what impact will this have on education. and you see public stocks trying to explain to the public markets they won't be disrupted by it. again, like cloud, it's going to impact really everything in technology without cloud, there wouldn't be netflix. without cloud there wouldn't be spotify. five years from now, we'll say

without genretive ai there won't be, perhaps, google. we'll see. it's a technology totally pervasive and consumers will experience it in some sort of obvious direct ways. like perhaps through a search engine more importantly and more ubiquitously, they will experience genitive ai in lots of ways they don't even understand, they don't realize the recommended songs in spotify are using ai models that are kind of behind the scenes. same with cloud, where it's sort of just something that we as consumers don't really think about day to day >> right spencer, we'll have you on another time to talk housing and mortgages, which is another fascinating story. this is good radar on ai good to see you. spencer rascoff. >> thank you for having me and if you're looking for more public companies that have their foot in ai, cnbc pro put together a list of stocks in the sector that wall street is leaning bullish on right now some of them include berkshire

gray, soundhound, you can get the whole list on cnbc.com/pro. up next, softbank's fund takes a $6 billion hit as investment trickles. the group is focusing on the potential ipo chip arm we'll speak to arm's chief exec when "techcheck" continues we're 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™. good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back.

i screwed up. td ameritrade. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck.

in tokyo after they posted a quarterly loss of $5.5 billion the company led by japanese billionaire masayoshi son, riding the lows of the tech market over the last four quarters, it's been consistent lows as it continues to lose billions on startups and its publicly listed companies. masa son is taking a backseat, letting his lieutenants run the earnings presser last night they reassured investors that the balance sheet was safe they point out net asset value

is larger than the share price he is focused on one part of the company they can amortize, the arm ipo, which they hope to pull off next year. meantime, the company is cutting back on investments. slow to trickle for softbank, that is, just $300 million in two companies versus nearly $10 billion of investments in the quarter a year ago >> yeah, softbank's been the pre-ipo version of cathie wood and ark, right and the problem is, as valuations in the private markets come down and the ipo window remains closed, it's really tough to turn around that situation. until the ipo window opens and maybe some of these things can come public, it's sort of hard for them to turn that situation around >> it depends, too, what they go public at. remember, softbank is a late-stage investor. if those valuations never come up, and we've seen it for the

likes of private companies like uber and lyft. it will be important for them to at least get liquidity valuation, that's another question. >> speaking of, let's talk more about that with the ceo of arm, perhaps a bright spot. this is a company that's got a known business it's been public before. and chip designs that practically everybody uses i'm joined now by the ceo of arm, rene haas good to see you. you just kind of reported earnings not as a public company but letting people know what's going on total revenue, $746 million, up 28% year-on-year but the inventory overhang in the chip business affecting you as well. how does it all work out >> good to see our partnership 800 billion dhipz in the quarter, an all-time high.

i think that speaks to the diversification we've had in our business over the last number of years. we were largely associated with smartphones previously, but right now we diversified greatly into cloud, automotive and iot we fared quite well. 3. >> so, i hear a lot of similar positioning from qualcomm, which is diversifying into industrial iot manufacturing, automotive, not just smartphones that's still a big part of the business, though and over the past couple of decades, arm has tended to be smart about doubling down on areas like graphics chips, on areas like servers where you think you can have unique designs that make a difference what are you focused on now for that kind of value add where you think you can get more revenue, more profit dollars, how much are you investing, for example, we've been talking about it today, in ai >> the dna of the company is really around power efficiency if you think about how the

company was born into smartphones, that kind of sensibility really served is us well fast forward into the data center and evs, power efficiency becomes increasingly critical because more and more of these compute workloads demand more and more compute power in the data center you have kilowatt hours up. have an ev with a limited amount of energy, which lends itself well to efficient architecture, which is where we fit in areas such as the cloud, automotive are great for us, and now with these ai workloads we've been talking about this morning, it's even more opportunity. these large language models required a huge compute capabilities which need to run on power efficient architectures, which is what we do. >> good morning. arm occupies a unique space in the chip industry, but an up and comer that more folks are talking about is a company called riskfi that helps

companies develop their own chips. it's open source unlike arm, and that eliminates the need for licenses fees. some argue that makes it cheaper and faster how are you thinking about that competition and making sure they don't eventually eat your lunch, especially in some of the newer spaces you want to diversify into >> the real strength of any computer architecture is the software investment. you know, we, for example, in the cloud, we've been at it now for about ten years or so. you know, finally we have all the distribution models ready, all the software ready and now arm is in every major -- in the planet. that took a long time. there's a huge software investment that's required with any architecture there's been over 1.5 billion developer hours. we did some estimates, our team did, in terms of the investment on arm we're going to keep investing there. that is really where all the energy needs to go in any new computer architecture. so, i think we're very well positioned there we'll continue to invest and develop our ecosystem. >> what are you doing with head

count and balancing fueling growth, especially as you want to remain ipo ready with also controlling costs? >> yeah. so, you know, you talked about this morning, particularly with the large language models, chatgpt, et cetera, et cetera. the need for compute is insatiable we need more engineers to fulfill those needs. we are hiring. we're being very careful as we are preparing for an ipo we are fully committed to making that happen in 2023 and plans are well under way we need to balance that with hiring and making sure that we're able to capture the long-term opportunities we're most excited about we are hiring, but we're being very careful about it. >> that's going to be a big public offering. there are a lot of people, a lot of investors in the market looking forward to seeing how that turns out rene haas, looking forward to seeing you a lot more in 2023. >> thank you so much still to come this morning,

the fed chair set to speak in about an hour. will he walk back some of those dovish comments following friday's blowout jobs number if so, what does that mean for markets? meantime, keep a close eye on pinterest, results clawing back losses we saw in after-hours trading last night as we're back above 4100

[drone speaking] technology lets drones deliver pizza. no,no,no! have a nice day. but to deliver powerful insights that are on target you need more than technology. you need cdw. we can help transform and manage your it environment with a dell technology solution, so you can use your data to innovate. wooh pizza is here! i'm still gonna eat it. me too. tip please. dell technologies makes data driven insights possible. cdw makes it powerful.

welcome back pinterest shares initially fell almost 15% in after-hours trading following those results last night trying to claw back some of that despite the revenue miss and this pretty weak forecast, our julia boorstin has more on the quarter and the ad interest, which we talked about yesterday, jb. >> that's right, carl. pinterest missing revenue expectations and guiding to lower than expected revenue in the first quarter. saying near term everyone is experiencing softness in the ad market but the stock did rebound off

its lows on bill ready talking about cost cutting and a meaningful decline in growth operating expenses he also laid out the opportunity to compete with tiktok with short-form video, which they're going to make shopable >> gen z is the fastest growing cohort for us. we see that accelerating a big part of that is our progress in short-form video video is now more than 10% of the engagement on our platform in contrast to others, it's more than 30% of the revenue on our platform. >> atlantic equities had a buy rating saying the company's push into video does appear to be yielding benefits and with the potential to increase the ad load, they believe ready deserves more time to re-accelerate pinterest growth b of a with a neutral rating saying pinterest could be at more risk in an ad recession scenario given its smaller scale than some of those rivals. guys

>> julia, thanks very much for that breakdown. after the break, fed chair powell speaking next hour. investors looking for any change in tone following friday's very hot jobs report. was it too hot for them to start slowing the pace of rate hikes we'll ask. uber is on deck to report ahead of the bell. reporting 33%. will the results justify the rally? we're back in two. to adapt in the changing world, you could hire a professor of theoretical mathematics. we all know this equation, right? he'd crunched numbers day and night. that's it. to maximize profitability. morning. i have quarterly numbers that are beautiful. and forecast revenue from every corner of your organization. is that important? or you could use workday. the finance hr and planning system that helps cfos make better decisions faster. for a solve problems like a genius world. workday. for a changing world. [music - cover of blondie's “dreaming”]

for a solve problems li[music playing]ld. ♪ 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. ♪♪ inner voice (kombucha brewer): if i just stare at these payroll forms... my business' payroll taxes will calculate themselves. right? uhh...nope. intuit quickbooks helps you manage your payroll taxes, cheers! with 100% accurate tax calculations guaranteed.

welcome back to "techcheck." i'm contessa brewer. in france, thousands of demonstrators are back on the streets protesting raising the retirement age from 62 to 64 the legislation was introduced in france's parliament president macron says it's necessary to keep funding for one of the most generous pension systems in the world federal prosecutors have charged 23 people in michigan with running medicare fraud schemes that netted more than $60 million. the justice department alleges two groups billed medicare for a variety of unnecessary medical services many of which were never even provided. and a new survey indicates about one in five americans plans to bet on the super bowl that's more than 50 million people, a new record they're expected to wager $16 billion, and that's roughly double last year's estimate. big bets jon? >> yeah, contessa, thank you. this morning meanwhile minneapolis fed president neel kashkari telling our steve

liesman explosive job growth is evident the central bank has more work to do. that's ahead of roshgs from fed chair jerome powell in just over an hour. for more on how the market is thinking about another rate hike, let's bring in cnbc's senior economics reporter steve liesman. steve, are we going to get any kind of a shift from at least what the markets interpreted as a more dovish powell last week, after that huge jobs number? >> yeah, so, i think it's worth thinking about how dovish powell really was last week he did acknowledge that there had been disinflation, but i think there's a difference between the fed chair acknowledging that the data is different and that data affecting policy i don't think powell shifted very much from his outlook on the terminal fed funds rate being around 5.8 he said there is disinflation. it creates the risk they do less but it didn't really shift

policy i have to take that same framework and overlay it onto today. i don't think powell is ready to move off the idea they'll hit above 5% by the end of the year. i do think it may increase the risk if the strong jobs number continue kashkari said he's going to 5.40 but the big story is how the fed -- i'm sorry, how the market has moved towards the fed. that gap between the fed and the market had been 80 basis points. it's now just around 33 basis points >> right as that's come more in line, what do you expect from fed chair powell if he perceives the market to have taken his comments as dovish does he overcorrect here what's the risk for the market as they come more in line? >> if we hadn't had that big jobs report and the stock market and the bond market -- the bond market hadn't gone up as much in yield, i would say he has fixing to do. but i don't think he does. if you look at the two-year yield since that wednesday meeting, you see it goes down, it goes flat, and it comes back

up on the jobs market. and it's gone further up over the past -- there it is right there. i don't know looks like a cross-section of a tanker right there you're looking at in the middle. and then it goes up to the right. it keeps going up. i don't know, but i suspect he might be happy with the tightening of financial conditions the question is, does he want even more than he's gotten >> well, we'll see all eyes are on that speech later today. thanks, steve liesman. as we look ahead, how should you be positioned? our next guest says don't trust the tech bounce we've seen the last few weeks joining us, george si. good morning to you. i'm sure you just heard that discussion with steve liesman. if fed chair powell doesn't have to do much fixing, as he put it, and the rally has continued at the same time the bond yields have moved up, what could ruin this rally here? >> hi, deirdre there are so many things that could ruin the rally the animal spirits are back.

everybody wants to go up and to the right. what we hope happens and what actual lie happens rarely aligns themselves does chairman powell have to stop at 5 or 5.25 range? the market is predicting he'll stop there or even earlier than that he doesn't have to if he doesn't like jobs number and inflation creeping back. i think people who are putting on their animal spirits hats might be a little premature. might want to take risk off or hedge their bets a little bit. >> how do you judge the quality of this rally, then? i know some has been made about the low quality, unprofitable names have seen a surge, but we also saw the mega cap tech companies post results that, yes, they weren't all that great, but it seems to be baked in because they've also regained their leadership this year >> this market reminds me a lot more, deirdre, of 2000 to 2002 than 2007 to 2009. i don't think the valuations

were extreme now as they were back then. in fact, i think quantitatively you can make that a certainty. i do think we have a lot of false starts in that 2 1/2 year period before we finally left that bear market behind. i think this is probably a false start. i think it's going to take us more churning and more working out where multiples settle down towards more where earnings growth is. and earnings growth is slowing i think the multiples still have work to do left. going back to the races, i question that. i just don't think that's going to hold. >> george, it's curious. i mean, people have talked about, you know, the fear about earnings revisions being pretty tough, but there have been some high-profile cases, spotify and netflix and meta, where revisions went the other way do you think that eventually does turn back, though, to the downside >> i think it depends on the company, carl. you've got to go company to company basis on a one-to-one analyses there's such a mixed batch of earnings we've been seeing some companies have surprised the upside

it was euphoric and i'm glad i'm a stockholder. i'm also a stockholder of amazon and it got absolutely drilled last week. i hope it gets drilled a lot more so i can buy a lot more a lot lower. it's very company-specific that's not a super healthy margin you want to see breadth. right now we're seeing a lot of speculative tech breadth among the blue chips, as deirdre said as well it's not sustainable i think we'll have a lot of start and stop and chop. i think young investors who didn't go through the great recession or tech bubble bursting aren't used to seeing a market go up and to the right like we've seen for a decade i think active investors have a leg up for the first time in a long time. >> what do you do in this kind of environment, george, do you sit on the sidelines and hold cash if you're a long-term investor, though, and we talked about the ai promise and how microsoft and alphabet are pushing further into this, do you look for higher quality names or sit out of tech all together >> i really believe that timing

the market is a complete fool's game i don't think you go to cash i don't even think you go half to cash. i think you trim around the edges and take a barbell approach and have a nice exposure to value and international, which are still dish delta between their pe multiples and tech and growth is still gigantic you want some presence there you want to hold high-quality tech the companies you want to own for long periods of time when we get corrections, reposition yourself and add the companies you really want to own and maybe even get into some more high fliers like nvidia and some of these stocks that have gotten hammered and bounced back tremendously you could probably wait for another correction until you get into the highly priced stocks that are high growers. >> we'll see how it plays out. thanks for being with us today talk to you soon ahead, as workers return to the office, they're also returning to the sky we'll look at the return of business travel. we're back in two.

- "best thing i've ever done." - "best thing i've ever done." - it was the best thing i've ever done, and- - really? - yes, without a doubt! - i don't have any anxiety about money anymore. - great people. different people, that's for sure, and all of them had different reasons for getting a reverse mortgage, but you know what, they all felt the same about two things: they all loved their home, and they all wanted to stay in that home. - [announcer] if you're 62 or older and own your home,

you could access your equity to improve your lifestyle. a reverse mortgage loan eliminates your monthly mortgage payments and puts tax-free cash in your pocket. call the number on your screen. - why don't you call aag... and find out what a reverse mortgage can mean for you? - [announcer] call right now to receive your free no-obligation info kit. call the number on your screen. business travel is back. both traveling to close customer deals and build internal teams ft. knox update i spoke with arial cohen. he is seeing business travel rebound to pre-pandemic levels as executives want to close deals face-to-face >> what we're actually seeing is

kind of the old kind of salespeoples, execs are traveling to close deals actually, came back to the same place. in fact, as recession started to get in, we did see more of this travel and i think the reason is, it's actually more important for customers to meet -- for our customers to meet their numbers before they report and so on >> i also spoke with brex co-ceo, who says his company's pro proceed prior tear spending data is saving on office space but having to spend on travel, focusing more on team offsites >> so, we went from basically, hey, you know, kind of road warrior, i'm going to go see ten customers in new york to, like don't we do an offsite in santa monica or something like that? that's a much bigger percent of now travel transactions compared to before.

to actually look at the actual data, you know, like startups had around 19% or 18% pre-pandemic of their total spend in travel. now it's around 16%. >> so, carl, navan trip actions has probably more of a mix of larger companies brex, smaller startups the consistent message from both was, business travel is back to near pre-pandemic levels, but just the tilt of it has gone a little more to traveling for internal reasons versus sales. but that sales need, for example, seeing customers, still important. >> yeah. that's where you get your edge i mean, dee, we were talking about hertz this morning we had stephen scherer on talking about a large transaction strength and pricing strength has been corporate. hertz stock, it's almost a six-month high today. >> you still have to do those deals in person. i know you're always interested

in the results of build.com, ceo was on yesterday painted a different picture. in terms of spending, a lot of medium and small businesses are pulling back in a major way. total payment volume is down i wonder if that corporate travel continues to be strong or it sees another leg down this year as companies try to cut costs in more places >> well, i'm not sure it's a totally different story. brex in its report showed that later stage startups are actually trimming costs more, so they're spending less. maybe they're hiring less. but they're also still spending on travel. earlier stage companies who maybe didn't hire up as much are still growing, spending or maintaining spending at a higher level. but that mix of spending has gone back to travel as people realize they can't sit at home just on teams and zoom calls got to go out and meet people. >> just wait until some of these

leases start rolling over. that process is just beginning. coming up after the break, industry insiders at netflix, tiktok and the ringer and parent nbc universal share their take on the future of legacy television and streaming that's coming up next as the s&p's gone green, right ahead of powell you ok, man? the internet is telling me a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? you want to trust me on this one. [inaudible] wow! yeah! it's time to take control of your investing education. cut through the noise with best-in-class education resources that match your preferred style of learning. learn your way. not theirs. td ameritrade. where smart investors get smarter℠. with gold bond... you can age on your own terms. new retinol overnight means the smoothing benefits of retinol are now for your whole body. plus, fast-working crepe corrector diminishes wrinkled skin in just two days.

gold bond. champion your skin.

will legacy tv be dead in three years?

should streamers consider a bundle is more consolidation coming for cable? just a few of the questions cnbc's alex sherman asked over a dozen of media's biggest insiders from barry diller to jeff zucker all giving their best predictions on the future of television and which streamers stand to gain the most alex joins us today. alex, this is amazing, not just the names you got but the candor they gave you. kevin mayer sounds like he was talking to iger. >> he was on the extreme end in terms of pushing the envelope to the death of legacy tv and maybe that's not all surprising. he was in charge of streaming at disney if you remember for a brief period of time he was ceo of tiktok he's been thinking about maybe the future of media more than, say, some of the other legacy media executives i spoke to that are very much still in the world of linear tv but kevin mayer said, look, the

death is coming and it's coming soon to legacy tv. maybe even within the next three years where legacy tv becomes effectively dead and almost everyone, at least in this country, is watching their tv through some sort of streaming or combination of streaming apps other people i spoke to said, look, legacy tv definitely will last these things take many, many years. it will never really die, even some at the extreme said, it will just peter out. it depend on your perspective. >> i guess even vinyl records have some kind after life among a certain audience these days. even though the people you talked to come back to the handful of large players in streaming, the idea of a new bundle doesn't get endorsed by everybody, does it >> no, it doesn't. about a mixed view of the 18 or so people we spoke with on the story. some people said it's going to be too economically infeasible to get all of these streamers to come together to have some sort of bundle where, say, you would buy netflix, disney plus, amazon

prime and a few others for a discounted price just because we're sort of too far down the road with how many subscribers are already a viewing member of each of these services, it would be too difficult for netflix to say, look, i want 40% of the economics because most of th people will be watching netflix programming on this bundle or disney says i want 20% whatever it may be so that will sort of, at least i would say, a slight majority view is that one of these larger bundles probably won't come together, but there were certainly people that said, look, maybe we're not going to get a full-on cable bundle, but we will at some point in the next couple of years get something that at least approximate mates a cable bundle, maybe three or four or five that you can buy together and view them all in one app experience >> right my last question, this idea longer term of a new standard in television we obviously are talking about the metaverse and its early

days that kind of got addressed by some, right? >> i think there was a general skepticism the metaverse would kick in over the next three years. there's very little doubt that something will happen. when you have a company like meta that's pouring in $10 billion or whatever the number is, in order to build something, other companies are going to come along and you can see the quote by ann saranov there does that happen in the next three years? the majority opinion, no, it doesn't. it's probably five, seven, ten, maybe even longer than that. look, the groundwork is being laid so the incremental steps toward having a metaverse, we may start to see some of that in the next three years >> it's great work and everybody should take a look, alex our thanks to you, our alex sherman. by the way, you can read the full piece online only on cnbc.com jon? after the break, the gig is

up a look ahead to uber and lyft getting ready to report earnings plus, don't miss my interview with microsoft ceo satya nad it ella at 2:00 p.m. eastern.

one more thing before we go, and let's take a look to a few reports this week. we have the gig economy companies up uber before the bell tomorrow. it is on a tear this year up more than 35% this year. we'll see how a five decade low for unemployment is impacting driver supply. you may remember wells fargo, deutsche bank and bma all naming uber a top pick to start the year and then lyft on thursday, despite a 60% surge in 2023, the street not as bullish. said it was time to take profits. concerned about rider demand unprofitable tax season. uber is on track for losses of $10 billion in 2022. a lot of that has to do with its stakes in other unprofitable companies like soft bank when it comes to the revenue estimates, analysts are expecting a 19% increase for lyft, 47% increase for uber.

that kind of tells you how each of the companies are going >> economics are important, carl every unprofitable company is not a company without a future >> indeed. jon, we cannot wait for you and nadella coming up, one of the highlights of the day. we await powell not too long from now the s&p just above the flat line time for the judge all right, carl, thank you very much. welcome to "the halftime report." i'm scott wapner front and center this hour, a little more than 30 minutes away now from fed chair jay powell at the washington economic club, remarks that are sure to move markets one way or the other we're going to walk you right up to that event with the investment committee today joining me liz young, steven weiss, jenny harrington, josh brown and, of course, steve liesman is with us, too. let's show what you the markets are doing right now in this wait for powell the dow down 66.