you again soon right now, let's get a final check on the markets it's friday, and we're ready for it dow futures off by about 93 points, the s&p futures down by 17, the nasdaq down by 87 as we get ready for the last opening bell of the week that does it for us today. go birds >> money line or points? >> come on >> points. i just want to take the -- >> eagles. >> go eagles make sure you join us next week. right now, it's time for "squawk on the street" bye i. when i came in, we talked about cost-cutting right away. we reorganized the company we recommitted to profitability and streaming, so where is the need >> we wish the very best to bob. his management team. the board. we will be watching. we will be rooting and the proxy fight is over. >> 24 hours since bob iger and nelson peltz joined "squawk on

the street" to make news on multiple fronts, just part of a wild week in media and corporate news good friday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer at the new york stock exchange, david faber is in los angeles. got some premarket softness as the s&p wraps up its worst week in nearly two months, jitters ahead of cpi on tuesday. our road map is going to begin with oil, prices popping when russia says it will cut output by half a million barrels a day. plus a bloodbath in lyft after the company issued very weak guidance. and listen, we're keeping an eye on disney. those shares are moving lower again, given up yesterday's early gains after that proxy fight is over. of course, as you just heard, announced by nelson peltz on our show guys >> what a show that was, david let's start with the aftershocks from yesterday's show featuring iger and peltz jim, why do you think the stock settled back >> actually, i feel like there

was one or two really big sellers. what happened in the parlance of wall street is they just kept hitting the bid, hitting the bid, knowing what the bid stabilized, so typically, when that happens, someone says, i got ten million shares to just get out. i don't care get me an average price that's better than the last price and david, you know there were some people who feel like after these thingshappen, we've learned it, and i think you see it in salesforce today there are register readers, people who say, i made my money, go buy i felt that's what happened yesterday. there were people who just said, get me out at any price because my price is so much better than it was three weeks ago >> i wonder if peltz was amongst them he booked a big gain obviously, people say, well, he lost the proxy fight, so to speak. obviously, they never went to the proxy itself he indicated he's going to hang on as a long-term shareholder. you may have more of a sense of that you may wonder, is he done he had a big gain already. maybe he wants to sell

>> you raise a good point. i can try to get more up to date information, but my thinking is that he believes in the plan and therefore, he believes -- and he believes in bob, but i can be -- i really am going to take the jonas course a adam jonas today, with the finest piece of research, which is, i don't know i don't know why things are happening. i'm going to invoke the new corollary to the fifth amendment. i can't say anything i have the right not to say anything because i read adam jonas's piece. i don't know >> it's a morgan stanley about why used car prices were so strong in january, david, and they talked to a bunch of dealers of the toyota side and the ford side, and people are basically throwing up their hands. >> i think that's what's happening with the disney situation. by the end of the day, by the way, you truly had what i regard as being a mass capitulation by people who -- david, they had no reason to capitulate

what the heck was that i talked to a guy who blew out of it, and he said, listen, anyone could have done iger's plan fire people, maybe pay a dividend later on. that was the plan. no actual vision david, i listened to your long interview. i felt there was multiple cases of vision, including the idea that we're going for profitability, which is having very contrary to what i felt that chapek was going for. >> i think it's very clear there's an expectation on iger's part, certainly, that they're going to be able to generate more free cash flow eventually obviously, reinstating a dividend plays into that confidence that said, i will end on disney just, jim, by saying, i think there's concern about the linear cable networks, and obviously, espn amongst them. espn is now separated out from the other entertainment assets kind of interesting. some people think even though iger said, we're not doing anything with espn, it does set it up for being able to do something.

but they were weak, the linear cable networks and the guidance wasn't great either and so, there may have been some concern about that, jim, that was reflected in that stock price sort of trending down as the day went along >> plus, david, as you asked over and over again yesterday, what do we know about hulu what do we really know what did you come up with at the end of the day about hulu? >> well, it's a negotiation that is coming. it's always hard to understand exactly what everybody's posture is with that, but it's between our parent company, comcast, and disney clearly, there was a change yesterday. it was one of the more newsworthy things that iger said during the course of the interview in terms of, hey, we may not be the buyer we may look for another opportunity. we'll see. i'm going to have a little bit more on it it doesn't necessarily seem that clear as to who another buyer might be, other than our parent company, and then of course the question is, do we want it well, at a price, certainly, but maybe not at the price that

dina disney's willing to sell it at >> at a price was my takeaway. i think anyone who thinks there was no strategy was just watching cartoons. >> yeah, we'll obviously keep in touch with the stock today, watch disney as well as media at large. lyft is the big story, though, on track for its worst trading day since going public back in 2019 company posts a fourth quarter miss, issues this weaker than expected guidance for the current quarter. they cite some seasonality, some lower pricing, jim a return of supply, down 30% premarket. >> right i mean, it was -- i understand why dan ives from wedbush last night said lyft east's call was the third worst call i didn't like the otherworldliness of it two days ago, there was this fellow, dara, he has this

company called uber, and this is such a winner take all, loser take none situation that i was shocked. >> i was going to ask you whether lyft is the intel to uber's amd >> oh. you know what made me think that sw zimmer is so nice, and pat gelsinger is so nice no fight, right, david two nice guys, no fight. >> right does lyft have a reason to exist anymore? should it just sell itself and do the best it can >> not unlike sart >> existential philosophy. >> i think camus 2014 is the best camus i've ever had david, this conference call is like this industry is from hunger and there's no reading. we're going to do our best dara's call, which, of course, he does have food, is talking about having a billion dollars

in ads what happened here is that you diversified or you died. and that's what i think dara did was to develop a model that is just not hostage to the number of drivers >> it's weird because two years ago, we were saying, if you're going to buy mobility, you want pure plays, and then would uber be distracted by mini-silos? >> maybe some executives are better than others i would go back to the intel thing, but it's such a dead horse situation. even butte wouldn't say that but anyway, i looked at lyft, and i say, don't don't go that way. admit that you didn't do as good a job. but ceos are so loath to say, we have to catch up, we didn't do that good a job, that i gist don't know how to put it memo to ceos out there it is okay to say, we did not deliver, and we're going to deliver. >> that's kind of what mac said at affirm the night before last. >> yes, he did max is very interesting.

immediately people jump to conclusion, that they must have credit problems. some people would say, they have loans on the balance sheet they didn't expect to, but their credit problems, they have less of a credit problem than anyone else in the industry it's just that they had less business paypal signalled they had more business dan shulman in a call, and people are quite reverential to dan, dan said, january was strong mastercard says january was better january used cars were better. there's a belief that january's, carl, brought a comeback in spend. i can't prove it yet but it's interesting >> i think it was b of a this morning, david we've seen signs of a strengthening in consumer spending at the start of the year credit card, debit card spending per household up 5.1% in january, compared to 2% year on year in december, so we definitely got a bounce once we turned the calendar. >> yeah, and a lot less talk about recession overall, right

large article yesterday in the usuall "journal" about jobs that are getting filled in a more easy fashion, in hospitality, for example, but more people now available to fill them doesn't feel like an economy in which we're headed towards a real deceleration of growth. guys, yesterday, we also didn't really get an opportunity, given all the events that took place during the show, to talk about something that's gone on this week, and jim, i want to come to you on alphabet. as the day went on yesterday, even though obviously we want to talk about disney, the weakness in that stock for yet another day, the continued concern about the idea that they've already lost out in the a.i. race to microsoft, what do you -- what is your sense here, and there's obviously plenty of research now that everybody's getting in on in terms of how microsoft is benefitting and going to benefit from chatgpt's inclusion in bing, but that loss of market

cap in alphabet is extraordinary. >> yeah. but when we think about it, the most lucrative part of alphabet's business is search, and sadya said that. if you eliminate the ability to look at a lot of ads because you just spoke to your hand held, tapping it in, then you have everybody who's second, third, fourth, fifth will pull their ads. they can't solve that. in the meantime, bing was such a second rater that if they get anything, david, they're back in business so, i mean, search -- i said this to club members i said, look, it is tough when you have the justice department saying you have a monopoly and then you have the monopoly destroyed at the same time by microsoft. i mean, you can't be in a worse position >> that's the worst two days for google since 2008. >> it's bad. it's bad >> worst versus microsoft ever on earnings day, and this morning, i know you saw doug at

jpmorgan, a 5% loss in short share could drive a 9 to 10% drop in eps. google's in a difficult spot >> david, you have always been confounded as i have about the price journeys ratio sometimes the market's so smart, the price earnings ratio, which is incredibly low, maybe deserved to be low, unlike what zuckerberg did where he just fired a lot of people and got things changed i question the alphabet business model right now. they've got to do something fast, david, because their attempt to be chatgpt, which, by the way, they're working with nvidia they've got all the horses but they had an embarrassing three weeks, and it all starts with that justice department brief, which basically said that they rigged bits and therefore took money from both the publisher and the advertiser brutal just a brutal, brutal brief. so, it's just harmless, quarterless for these guys >> if they're unable to maintain

a lead in a.i., i mean, they have poured billions into it over the years remember the guy who resigned because he said a.i. was gaining consciousness at google? that was a while ago it seems hard to imagine that they're not going to have some sort of a product that is going to keep them even with if not exceed what is already out there, and yet, it's unclear that that is going to be the case if that is the case, if they fail here, that's a significant failure of leadership at the company, isn't it? as contrasted with satya nadella who keeps managing to reinvent microsoft, not just with azure >> i know they have a crack team, that alphabet has a crack team, and what happened in their showoff of it was not in keeping with their crack team, and where you're going to see more -- i tell you who we're going to see more from, though, that is going to shock people, i think facebook's got stuff lined up. >> on a.i. >> meta's got something lined up

big. i'm not kidding. i got all the other stuff right about this darn thing. you are going to see something from meta that's going to blow your brains out. >> that's really exciting. yeah that's a really nice vision. thank you for that meta and a.i., what could possibly go wrong? i'm sure it's all going to be great. i can't wait >> hey, i'm very happy the proxy fight is over. >> we got that under our belt. now we're moving on to bigger things coming up this morning, more on today's movers. also ahead of the super bowl this weekend, the betting set to spark a record year for sports gambling we'll talk some wynn and mgm both have been on the move the last couple days futures, a little softer resquawk on the street" straight ahead at morgan stanley, we see the world with the wonder of new eyes, ♪ helping you discover untapped possibilities

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as we count down to super bowl sunday, 2023 is shaping up to be a record-breaking year for sports gambling companies. contessa brewer is at fanduel sportsbook in phoenix today with more >> hey, carl, fanduel's ceo just told me, super bowl sunday is likely to be the biggest day in that company's history look, this is a historic super bowl the first time the big game has ever been played in a state where sports betting is legal, and at the stadium, fans can wager on their phone this is an incredible about-face six years ago, nfl commissioner roger goodell said, we're not changing our position as it relates to legalized sports

gambling we still don't think it's a positive thing later that year, 2017, he issued a statement saying, all right, but there has to be protections for the integrity of the game. fast forward 2018, the supreme court overturns the law forbidding states from legalizing sports betting. 2019, new jersey adds sports betting. they can bet on the super bowl two years later, fanduel, draftkings, caesar's become nfl partners, and then you have a move in 2022 that the cardinals here in arizona launched the first sports book in a stadium now, five years later, players in 33 states and washington, d.c., can place a bet where they live massachusetts launched retail sports betting less than two weeks ago, ohio, at the beginning of the year. new york just launched mobile in january of last year it skyrocketed to the biggest, most lucrative state for sports betting in the nation. by november, guys, the commercial gaming industry had smashed all previous sports gambling revenue records,

$55 billion for last year, and that doesn't include tribal gaming or illegal wagering or december there's no bigger opportunity to win new customers than the super bowl now eagles hail from pennsylvania. sports gambling, legal, both online and in-person the chiefs, from kansas city, in missouri, which tried and failed to pass an initiative last year. so, now, all those fans in missouri have to cross state lines into kansas or illinois or other places which all offer a legal option to place your bets. do you think they're missing out on it? coming up on "tech check," i'll talk with draftkings ceo and founder, jason robins. >> all right, so, contessa, texas, florida, and california, huge states, no legal market ship what will happen there >> okay, so, we just seen this

week that in texas, republicans have introduced a mobile sports betting bill i talked to some insiders who think this may be a game-changer, the real problem in texas is that the lieutenant governor has been a strong opponent of gambling, and he has given no indication that his mind has changed and he's in charge of the senate, so we'll see what happens there in florida, it's passed, but it's caught up in a court battle over the state's rights and tribal gaming. the seminoles have a -- that's hard rock -- the seminoles have pretty much the monopoly in florida. california, we're likely to see it come up again in a couple years, but for now, it's a dead issue. >> you had a great piece this morning on the five. we're talking about addiction. if there are 50 million americans who are going to bet on this game, how many of those -- this is a hard question, i know -- but how many of those do you think are addicts? >> i'm not a scientist, but i know that there's a lot of research that goes into this,

and the real concern, especially for fanduel's ceo, amy hao, who's been outspoken about it, is that if you want longevity in this business, if you want regulators to keep their hands off you and let you run your business in a way that makes the most sense to the bottom line, then you have to self-regulate, and they say, it just doesn't happen if people are becoming addicts and they're blowing up, you lose them as customers forever. but one thing i will point out is what they've seen is in places where states legalize sports gambling, that the action comes back to the legal, regulated marketplace where people can self-exclude and where there is a focus and tools available for responsible gaming, and on a lot of these offshore, illegal sites, where people who want to bet can do so in california or texas, they're using them those tools don't exist. they're not highly promoted. >> we haven't even really

touched on macao, contessa, but first things first, the big game on sunday. contessa brewer, we'll talk later in phoenix today when we come back, we'll get cramer's "mad dash," countdown to the opening bell. little jittery sense, vicks mo back to 22 today. more "squawk on the street" when we come back 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™. [music - cover of blondie's “dreaming”] [music playing] ♪ imagine something of your very own. ♪

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. all right, let's get in a cross-country "mad dash," last one of the wenek, of course, as

we count codown to the opening bell >> the stock that's going to be up the most when people look today is a company called cloudflare they do load bouncing, way to improve your video, but also do cybersecurity. they have 33% of the fortune 500. they've got a big white house contract if you send an email to the white house, they handle it. but i thought it was most important. we keep hearing there are not enough engineers, too many jobs. well, get this they have 1,300 jobs that are largely engineering jobs they had 400,000 applicants. so, maybe, david, this whole notion that there aren't enough people to look, you know, and there's so many jobs, well, that would -- 400,000 going for 1,300 jobs, david, would indicate to nee maybe it's a little bit tighter than we think, and maybe jay powell should be looking at what cloudflare is doing in order to recognize, wow, maybe we've won in some of these

markets that we thought we were losing >> which means what? it's not going to change your opinion in terms of what powell's going to do, is it? >> no, but i think he's going to do two quarterly -- but i think that, you know, we've seen all these layoffs, like today, yahoo, 1,500 people, and a lot of these companies have been tightening belt, but one thing we haven't seen is someone having a problem getting a job this is the first time i've heard lots of people having problems finding a job, but over and over again, we hear that there are -- that you -- way too many companies, way too few people how about way too few spots and way too many people? that would be a nice change of pace, and cloudflare, run by matthew prince, they may be the leader, most cutting edge. people want to work for them if you got fired from facebook, this is where you want to go >> well, carl, we're one week out from that monstrous employment number we got, which was triple the estimates and we're still at a 3.4% -- not

still, since 1969, the lowest unemployment rate we've had at 3.4% >> let's get the opening bells, guys at the cnbc realtime exchange, the big board, it's m&t bank celebrate black history month. at the nasdaq, it is solar tech company next tracker, celebrating its ipo. we should mention, jim, that premarket really did start to repair itself here ahead of the open >> yes, it did when i got up this morning, i said, all right, another really bad day, this time it's going to be the dow and the nasdaq. and we're going to finish this, another bad week this bell -- the magical spell is broken. i say, no, it's just profit taking and what makes me a little bit more bullish is it sounds like lyft, which was bad, and down five, at one point, i think that even, i don't know, earlier this week might have had some

reverberations affirm, which did not do the number, i thought there would be reverberations no there's not. paypal, lot of congratulations to dan shulman on the conference call paypal's up today, and the buy now, pay later for them in the month of january was strong. so, we've got some data on january that's coming in, and it's stronger than we thought, and i think that's coloring a lot of what would otherwise be a sense of doom that we got yesterday. >> yep that's a great point yelp, up almost 10%. >> by the way, it wasn't restaurants. it was their other suite of product. >> when we're all wringing our hands about the ad market, i wonder what expedia is doing we again, a situation where they argued it was temporary, weather-related, double miss >> i think that expedia, look, i think that peter kern is terrific expedia is more of lower end travel the higher-end travel guys are doing so well. i really want to distinguish exp expedia from some higher end, and by the way, american express

travel is on fire, even during the storm period american express didn't have any bad weather. their whole quarter was done -- i don't know where they're politic locate, but boy, it was sunny. >> i want to ask you if you think bonds have repriced enough >> yes, i do that's really why we won't down. it wasn't just google dragging everything down. google did catch the ball on things but it was the two-year that really made the week feel like a year. >> german two-year, by the way, guys, this morning, highest since '08. as for -- we mentioned alphabet and microsoft and all the a.i. stuff we waded through during the week, david, but bill gates talks to a german newspaper, reuters wrote it up, and said, this is going to change our lives. the advent of a.i. in language-based search is going to be as significant as the internet itself. >> it's been an interesting week or two, hasn't it? that we've been watching sort of the reaction of course, we've taulked about it, most focused on microsoft.

despite what was not a great week in terms of their ability to buy ookts, nonetheless, the stock has been benefitting from the fact that they are well positioned in a.i. and that could be a lot more important than whether or not they own activision google losing $165 billion in two days, in market value, but i have a feeling this is going to be the year we talk about a.i., with the product out there, the next it runnieration of chatgptn soon i can remember us also talking about cars that were going to be able to drive themselves, and that was years ago i mean, by now, we'd all be, you know, calling our car that would be coming for us without a driver haven't seen that happen yet >> i thought what was really interesting was nadella talked to the verge, jim, where he was able to paint google as the 800-pound gorilla. you got a $2 trillion company

saying, oh, we're just frytryint keep up with the big guys, actually, in this case, a smaller company. >> he's got so much humiliate as he trounces everyone, kind of the andy reid of tech. oh, those guys are so great. andy plays it that way he's humble, and then he just crushes you. >> we mentioned cpi and inflation concerns this week today, jim, barclay's adds a quarter point to june. they see 25s through june, which would take us to almost 5.5. >> that could happen if we get a bad cpi number, and we have another employment number like this one now, there are 128,000 jobs in travel and leisure that were created, and yet, we're still not back to pre-pandemic levels. that is the fulcrum of pressure. and if -- when we look at where those jobs are in travel and leisure, it's for the rich people, and cruises. i don't want to be too economic about it

but i think that's -- that's the kind of -- part of the economy that's so on fire that a lot of people are gravitating to it, and that could cause a couple rate hikes that could cause a couple rate hikes. just going back on chat, just one last thing people do not understand that chat is really something that happened when jensen huang came up with it, decided to create a real super computer that can get a "d" right now on a medical paper, but they're going to get better grades. and jensen's got a speech coming up on march 21, 2023 this is going to be maybe the most important chat speech i just want to flag it we're way away from it, but this is the man who thought of it, realized it could happen he was telling everyone for years this could happen, and no one was listening to him and now, they listen and hang on his every word about what their software bundle, hardware, super computer is going to let facebook do.

it's going to let alphabet and is letting microsoft >> it's a key point, david i mean, a lot of the desk commentary this week was that the selling in alphabet was emotional and based in fear, but i wonder, jim, whether you think the buying in nvidia year-to-date has been equally emotional. >> there are a lot of people who say it's greatly overdone. it's selling at 45 times earnings, so it's got the highest pe of the companies that we talk about, but it's a company -- and people keep saying, don't feorget, it really is just about gaming david, gaming on pc. i think there are people who are saying that it doesn't matter near term because if you listen to a bill gates and you want to know who really makes the technology for everyone, you are going to keep coming back to nvidia, so it's very hard to value. my trust owns it we owned it. we've owned it for a long time i named my dog nvidia. that was a very profitable endeavor, even though the dog died, which is probably, i don't

know, maybe a gratuitous piece of information if you were to have iger right now, right here, and you asked them, what are they doing in the metaverse, they own the technology for the metaverse, and they would make it so if you can't go to disney, you could go to disney because of how well nvidia has worked with iger, and yet, we haven't had a chance to ask him about it >> no. hopefully we will. there were amazingly enough, even after a 41-minute interview, there were a number of questions that i didn't get to with iger we didn't talk about the parks, frankly, much at all yesterday >> no. >> jim, when is jensen giving this annual -- you know, you've pointed people toward it in the past >> march 21. >> i've read it in the past. >> he's already working on it. he's already working on it, and you know, i know that it's bad -- i mean, my ma would have said -- by the way, very nice birthday card from your mother to me, bill. thank her. >> okay, i will. you just thanked her >> well, yeah.

true these speeches, i go over them again. he's not of this world he doesn't write of this world you have to parse it very closely. people read every single word. they watch him and he is the man who understood this ahead of everyone, so that is what we're going to find out, what's the next generation but remember, i was able to paint a cezanne the way i wanted it or a manet, the way i wanted it, instantly, because all i did was say, i want a manet that looks like this, and we haven't even seen that iteration that allows us to be leonardo da vinci. he's making us be people we never thought we could be. >> another compelling figure that we follow closely, of course, is elon musk, for any number of reasons. it's only a few days ago when you and i had a conversation onset about tesla, and you had said, at this point, at least, you seemed to favor it over ford i would note that the stock is down today, but it actually had

a -- has had a nice move this week, i believe. and you know, i just wanted to point it out, guys, because that momentum has continued i mean, look at the move 7.5% this week and of course you just saw the monumental move in the stock, 65% plus year-to-date the market cap of this company roughly around $650 billion. can it keep going? is this think going to run out of steam for a little bit here in this latest move? >> no, i think it can keep going. by the way, just so we know, jim farley, ceo of ford, was not happy with my comments, because he -- well, motivation put them in your locker so when the big game comes, you annihilate those who have sided with musk. i don't know about musk himself. but the reason i think it can is because they raised prices in china. now, he does do kind of a surge pricing, like uber, but not lyft, because no one takes lyft, and david, have you noticed that he raises prices, lowered

prices, don't you think if you bought it the week before a price increase, you feel great, but if you bought it during the price increase, you're a loser how does that work >> i don't know how that works i agree with you, jim, you're going to not be happy if he cuts prices as sharply as he did not that long ago, and you bought one a week before. you need some sort of price guarantee, don't you >> yes, you do >> or look ahead within a certain amount of time >> you're right. is there a price guarantee for the people who bought salesforce.com yesterday at $173 and what the heck is going on there? did an activist declare victory, just didn't call in? >> listen, they're not going to have a good quarter, are they, jim? it's not going to be pretty. elliot may choose to have -- initiate a proxy fight, and by the way, given that we have people now like nelson peltz, up with of the most prominent people in activism, to come on our air and say, proxy fights are air, elliott, come on our

air and start the proxy fight right now. love to see you do it. we'll bring marc on too, we can court rep create the pow wow i don't know i don't have up-to-date reporting on this, unfortunately, i'm trying. whether they're near a settlement, are is thatthey goi get this commitment to margin targets that are far higher than they are now are they going to get commitment on real succession from benioff? but the quarter, jim, those who look at the fundamentals here are not expecting it to be a particularly good one. >> look, it's enterprise software there's a slowdown worldwide marc has a huge amount of business overseas. a lot of their work is done to try to drum up subscriptions, you know, to -- but a plot of it also is just the traditional bank of america trying to get more customers, home depot trying to get more customers, so, yes, i'm going to say it's probably not going to be a good quarter. it's a bad quarter >> yeah, jim, sales and marketing teams are getting cut,

right? sales and marketing teams are getting cut. the people who hire salesforce may not be doing it as often that's at least the thesis >> that's the weakness of the economy. people are saying, listen, the consumer's -- that's why i thought january being better was good people aren't spending and it's concentrated this is where you cut your spending not that you and i would think this is the right thing to do. you cut your spending on marketing and advertising, and salesforce is in that silo this is the product you take when everyone else is cutting back that said, recession's a terrible thing to waste. but most people cut. and these are the guys who do get hurt, historically >> yeah. it's been quite a week for layoff news, whether it's yahoo or news corps. >> or disney. >> by the way, speaking of a activism, the wire has value taking an interest in spotify. >> spotify is doing great. by the way, sonos is doing great. these are things that i had

thought would run out. sonos had a really excellent quarter, by the way. but spotify is something that i got so inured to it that when i saw the quarter, i said, oh, another bad quarter. then i actually read it and realized, no, it wasn't. there have been a couple companies that people have given up for, left for dead, and they are making comebacks, and i think that spotify made the pivot. this is the pivot. at palo alto, he was the first guy who did it cloudflare did it last night we've seen a couple companies now who say, you know what we've listened and we know you want us to make money, not just revenue growth, and it's really -- alturex did it they've gotten religion, and we've got to give them credit. they realized that nikesh got his company to do better by saying, i mean not just about growth the guys who are just about growth are losing. >> they are, and you can -- it

is also being rewarded, which tends to reinforce that behavior it's been rewarded in the stock market one stock yesterday we didn't get to, jim, you know, we talked about it a bit, you followed this company international flavors and fragrances >> oh, my. >> that was -- i mean, it's up today about 3% that was brutal, and i wanted to get your take. you know, it got so bad, i think they ran the wrong conference call for 15 minutes yesterday. i don't know if you guys heard they played a recording of the last quarter's conference call before they realized it. i mean, when you get to that level, you got to wonder >> they're going into syndication? >> that was a good call. >> let's not talk about this quarter. let's do last quarter. >> this is actually something that jeff marks, my colleague, made it very clear to me about what happened. when you're on the quarter for kellogg or pepsico, what they did was they raised price, and therefore, sacrificed volume well, international flavors and

fragrances is a volume play. they need more volume. so, the part of cpg that was sacrificed, volume for price, was the part that crushed iff, and that's really what happened with i ifff, and there's not muh more to it they were the one that got crushed when the volumes went down so, david -- >> is that a lesson you think that, for example, pepsi's now figuring out we talked about -- >> yes pepsi had a great quarter, but the strategy was -- chipotle did the same thing let's just raise price there will be a certain cohort that we price out, but we'll do better if you raise price and do less volume, therefore you have less business with iff that provides a lot of the taste of the product that you have. they're casually the cpg companies deciding not to go for volume they're not chasing volume, david. they're just saying, listen, we're going to make as much as we can we're going to raise price it's a better way to make money. and we're not going to pay iff as much, because we're not going

to do as much. it's a pretty compelling negative -- >> that was a very much unexpectedly bad quarter some people questioning, obviously, the ceo, frank clyburn. we'll see. but i know you follow it more closely than i do. >> people questioned the previous ceo they questioned the dupont deal, the stock up dramatically. they also bought a company in russia, an israeli company, that was doing -- >> that was a horrible deal. >> so, this used to be one of the great blue chips of our era, is iff, i'm no longer putting in that camp. >> quick premind e you can get i on the cnbc investing club you can sign at cnbc.com or use the qr code on your screen it takes you right there watching bonds closely, of course ten-year still trying to sniff out 3.7% as we are just a few days away from that important cpi number on tuesday.

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we have a real treat. you know, big game on sunday, and i always love football and i love the eagles and the person who has defined the eagles for me is someone that played on super bowl lii and won brandon happens to be here. >> appreciate it. >> first, i want to just let people know that there is life after football some of the things you're doing. >> yeah. so after i retired last january,

i applied to round three for work and was accepted and in my third semester of my first year, and yeah, life after football, i wanted to get into business and, you know, what better place than to go to the first and best school out there of course. >> you're going to work at the best firm this summer, correct >> that is true. i did accept an offer to go to goldman sachs and work in their investment banking tnt group, and i'm excited to go in and work hard and learn. >> if you want to work hard and learn and understand life, there is a commence ment address this man gave march 6th, 2018, at your alma mater, miami of ohio, where you talked about the desire to be perfect and how that necessarily is not the way mental health wise to pursue life. >> yeah. you know, the thing with perfection is, sometimes you feel like you're never good enough and you have to understand that, you know, every time you do something, as long as you're putting your best effort out there and you can

look yourself in the mirror, that's all you can do. so, you know, although we want to be perfect, sometimes you do fail and most important thing is, how you bounce back from it. for sure. >> you reached the pinnacle of your business in football. i'm curious, mahomes kind of talked this week in the presser the days leading up to the game, as you go, media day, the prep, what's going through the players' minds >> you have so much more media than you're used to. you have local reporters or espn, the nfc championship games, you know, lead up to the super bowl, but once you get to the super bowl it's a whirlwind. there's reporters from different countries around the world who are here specifically for this game, and, you know, especially if you're a quarterback like they want -- everybody wants to talk to you. there's more media and coverage as far as what's going on and this is the biggest game of your career so you have that pressure as well. >> now, one of the things when

i -- we talk about it's a philly thing. >> philly thing. >> jalen hurts came up with it, but a philly thing means, one, you're in tough ground, but two, means if a fan invites you to something, you go to them. that is not true you went to a lot of fan things, because you said it's philly. >> i love philly, and i know that, you know, philly sometimes gets a hard time, but for me, where else would you want to play where it means so much to the fans i want to go where they're hard on you when, you know, they feel you can do better and you know you can do better, right like, for me, that's what i needed i thank god i was able to go to philly, be around, you know, tremendous coaches and tremendous players and play for that city that held me accountable week in and week out. >> accountable. >> to raise my game. for me, where else would i want to go to a city that hangs their

hat on consistency and persistence. for me that's all i care about. >> will that pay off on sunday >> it will i'm rooting for the birds. i've been telling people the birds were the most complete team throughout the season and jalen hurts, i don't think he has gotten enough credit look at all the adversity he's overcome. >> oh, yeah. >> the alabama situation went to oklahoma and then got to the nfl. can he be the quarterback that he was in college? and can he lead the team can he throw can he do this every, you know, adversity situation he's been in, he's overcome handled it with class. also, i don't think his parents get enough recognition as well his father was a football coach. his parents deserve more credit as well. >> you deserve a lot of credit all pro, unbelievable, humble, teacher. he's a teacher. >> thanks for coming in. that's fantastic stuff by the way, a ring would be a great birthday gift for somebody else. >> yes. >> thank you. >> thank you. >> happy birthday. >> thank you, thank you.

>> don't forget, "mad money" 6:00 p.m. tonight as we take a break here, relatively mild losses on the dow down 19. we're back in a moment

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back to "squawk on the street." rick santelli here with some of the last breaking news of the week in the form of february preliminary university of michigan sentiment headline number 66.4 that's the best since january of last year. if we look at current conditions, 72.6 best since december of '21 that's a pretty strong number there and what lies ahead expectations, 62.3 that is the only metric thus far that came in below expectations and below our last look. and 62.3 actually is -- isn't a bad number keep in mind, it's still relatively close, 62.7 our last look in the rearview mirror january '22. the money numbers, one-year inflation hotter than expected, 4.2%

this is going to push rates up a little bit we're expecting the number closer to 4% in the rearview mirror, 3.9% 4.2 takes us to some of the highest levels going back, again, towards december of last year when it was 4.4 we breached that with our january number going under 4%. if you recall, that made interest rates move down a bit and finally 5 to 10-year inflation this pretty much has hunkered down in the 2.9 zone. we've had many 2.9s over the last six months. unchanged from last month. exactly as expected keep in mind, with a yield now of 10-year notes at 3.70, up 4 on the day, up 17 basis points on the week, carl, back to you. >> all right rick santelli, thank you very much good friday morning. welcome to "squawk on the street." i'm carl quintanilla with morgan brennan at the new york stock exchange david faber is in los angeles today as the markets sort of swirling around the 4060 area.

the numbers just now gave us a small leg lower. >> 30 minutes into the trading session. here are three movers we're watching this morning newly after the parent company of yankee candle missed, company blaming a tough operating environment and slowing consumer demand shares are down 6% right now shares of affirm are under pressure again after morgan stanley downgrades the stock from equal weight to out perform. shares of the buy now pay later company are down 30% for the week following quarterly results. finally let's end wait gainer, cloudflare, coming off the gains that started the morning as earnings beat and guidance came in above estimates, the internet infrastructure firm noting businesses are being more cautious with their spending, but you can see the stock up 2% right now. over the past 12 months it's down almost 50%. >> meantime as we said, markets

lower. s&p on pace for the worst week since mid-december mike santoli here to tell us whether there is something to worry about on tuesday with cpi. >> yes i think it's safe to say there's always something to worry about because we've taken a lot of credit in the markets for inflation being last year's problem and, you know, we kind of shoved it aside in terms of the main worries i don't think that means that it's the make or break type of number we talk about worst week since mid-december s&p is down a percent and a half from the highs of this rally last thursday we're down 2 or 3% did we think that's a reasonable pullback after an 8% sprint in five weeks yes. has any of the premises of the rally been invalidated this week i would say no, but getting tested, meaning you have this momentum burst into the year a lot of these technical signals started working. credit markets are very well behaved. cyclical stocks tending to

outperform defensive ones. all that stuff remains in place. it's a question of what are we most worried about we're more worried about the hot side, the economy being too strong and inflation not giving up very easily, to the too cool side for the moment. >> which speaks to some of the commentary we've gotten from fed officials this week as well, that maybe perhaps not only is it a matter of going higher with rates for longer but even higher and maybe potentially considering a higher terminal rate explicitly or implicitly depending on the official that gave an interview this week. if some of this data, particularly around labor, continues to stay as strong and resilient as it is, mike, i know we've been talking about this a couple times this week, but the dollar, the strength of the dollar index, has tested the 50-day moving average every day this week and what we're seeing in interest rates with the 10-year yield in particular, how important is that to the stock market at this level at this juncture >> it's the same trade in a sense because that is how we kind of dial up or down or concerns about fed hawkishness, whether the job is done.

i still say they're in a range where it's not as if they're really impinging on a stock market upwhere it is when the s&p is up 18% off the low in three or four months a lot more has to go right to keep it there i do think you're going to get a little bit of take on some of the fire from things like a strong dollar once in a while or a hot jobs number. one really strong unexpectedly strong jobs number in january where the seasonal adjusted matter the most will not be the killer to that sort of soft landing goldilocks thing two in a row, seeming like a trend, that's the issue. >> that was the take, another one of those put 50 back on the table. who knows. a question about the low hum conversation about options activity, vix back above 21 and whether or not that's reintroduce something kind of liability to the overall market? >> there's no doubt you see this massive rush back into retail, call option buying, people

chasing the same stock it's very much the 2020 type playbook the other element is, you have these single day essentially options, so, you know, zero days until expiration, and they're huge stampede flows in and out i am alert to the idea that it changes the rhythm of the market, can exacerbate intraday moves and create a lot of importance to certain price levels on heavily traded stocks because that's where the clustering of open interest is i don't know that it changes trend. i don't really think it's a tail wagging the dog thing because if we get a hot inflation number and real investors start selling, you know, high multiple stocks for that reason or whatever it is, or vice versa, if people love the market because the economy looks great, it's not going to -- it's not going to be held in check because of the one-day options it's something to be alert to. >> yeah. something we'll definitely keep on our radar in the coming weeks. mike, thanks. >> all right. lyft shares are plunging in early tradingafter issuing wea guidance in its latest report.

deutsc deirdre bosa joins us with more. it seems like it's a good thing in terms of the supply-demand situation beginning to even out here, but not good for the company itself and not good for the stock. >> good for the consumer if lyft can lower prices there's the question some are asking this morning, how long is it going to be around to do so it has ceded market share. we talked about these competitive forces during last night's call one analyst on the street called it a debacle for the aims, and it certainly felt that way as we saw the stock plunge after earnings 25% then during the call 30% now it's down 35% today. this is its worst day since the i po this is a stock that went public at $72 a share that tells you how far it's come and fall p what's really important here, is the divide between uber and lyft since they began their

lives as public companies they would trade mostly in tandem over the last year or so that relationship has fallen apart, as the street sees uber as pulling ahead. the value the pure play lyft focus, but that has really been out of favor recently, especially as uber is able to show investors that a diversification, it's moved into food delivery and advertising will lead to better adjusted ebitda profitability speaking of profitability, this is still an industry that is still highly unprofitable. uber lost $9 billion in 2022 uber, lyft, lost and a billion a lot of questions here including what is next for lyft. does a buyer swoop in? would anyone want it i'm not sure. >> yeah. deirdre, that's what i was going to come back with, m&a and who might -- by the way, we should point out uber is below its ipo

price. >> thank you. >> and uber's ipo was a disaster as we recall on the m&a front, any logical potential consolidating play for these guys >> there's a possibility names have been thrown around but logical, i don't know. uber would never be able to do it or want to because it's pulling ahead in terms of market share. now, there's the idea of a doordash maybe tony chu and his force use the driver contractors lyft has he's made clear he doesn't see benefits people who drive for ride sharing don't necessarily come to food delivery so that's unlikely he's also kind of struggling to integrate the last acquisition they did which brought them international. why would they turn back domestically it's a question of maybe of a chinese ride sharing company or asian ride sharing company would they want to come to the u.s. >> dede unlikely in a position to do so because it's trying to get out from beijing's

crackdown. maybe self-driving car proposition here to pick up lyft's network again, come back to the losses this is a company that lost about $1 billion last year who wants to take that on? >> little perspective there. deirdre, thank you. another name we're keeping an eye on, expedia, down 7% right now after disappointing earnings print there too in the next hour on "tech check" don't miss an interview with expedia ceo peter kern. oil is catching a bid as russia plans to cut production beginning next week. pippa stevens at hq with more on the motivation behind that move. >> russia's deputy prime minister and oil minister novak saying the country will cut oil output by fi500,000 barrels per day by next month, 0.5% of global supply. the move comes after western nations imposed sanctions

against russian energy including the eu embargo on russia refined products that went into effect earlier this month alongside a price cap like diesel that followed sanctions against russian oil back in december russia has repeatedly said it will not comply with price caps and novak noted the aim of the cut is to improve the market situation. this retaliation against the price gaps is the latest escalation in russia's use of energy as a weapon in its war against the west there are also signs that russia is starting to feel the pain of the sanctions with the country's revenue from oil and gas dropping nearly 50% in january compared to 2022 according to pbm. crude's jump is lifting the energy sector broadly which is up more than 2%, with every component in the green names like valero, marathon oil and slv up more than 3%. carl >> yeah. ft has a piece citing a well-known top energy trader

says putin has lost the energy war. we'll see how that translates on the battlefield. thank you. pippa stevens today. here's the road map for the rest of the hour a tough week worst couple days since '08 following the botch from the a.i. check. >> the super bowl is coming. it's going to be on sunday we'll check in with nfl super agent drew rosenhaus ahead of the big game. and elon musk's spacex marking a testing milestone for the most powerful rocket ever. we've got those details and so much more when "squawk on the street" returns. everything e

right now. i'm not going to speculate about whether we're a buyer or seller of it, but i, obviously, have suggested that i'm concerned about undifferentiated general entertainment and in -- particularly in the competitive landscape we're operating in and we're going to look at it very objectively. >> if there is -- if there's an opportunity to potentially sell your interest to comcast, if ryan roberts were interested that's a conversation you would have >> i said we're open minded. we will be open minded >> i want to make sure because i think the assumption has been you will buy what you don't own hulu. >> i think i'm suggesting that isn't necessarily the case.

>> bob iger yesterday, of course a wide-ranging interview but one of the moments that created news was those comments about hulu because they did differ from comments, at least made under the previous administration last time i had spoken to bob chapek, for example, it was clear they had every intent of buying the stake that they don't already own in hulu. remember they own roughly 67%. comcast, our parent company, owns 33% has the right to put that back to disney really at the end of this year, january 1st next year about an 11-month period here where negotiations conceivably could take place the who other buyers for hulu would be, other than perhaps our parent company, remain unclear it seems as though it might be too large of a private asset, they don't want to lever too much, maybe there are other buyers throughout. what do you get some you get you get a lot of subs, a brand, technology

you have to have the production capacity as well in place to fuel what hulu needs you get hulu live, which is important perhaps to disney, but maybe not to a buyer interesting comments there let's not forget in the context of a negotiation, there are still those who say, well, i'm not sure exactly what archegos -- iger is doing here, it's likely than not they end up as the buyer of that stake, but clearly he wanted to make it clear that that may not be the outcome. >> yeah. it was such a great -- we've said this before david, such a great interview. so much news and then peltz on the back end of it as well i'm wondering if disney came out and reacted to the fact that proxy war is over and i guess what that means in terms of full steam ahead for enacting all of these changes? >> you know, i've said this many times and companies always want to downplay it, but proxy fights are distracting for everybody

involved you know, it's constantly on your mind. when you're dealing with it in the -- it's an everyday kind of experience where you have to respond or at least think about it in some way, and so this is a big relief, i think, for bob iger, for the senior management team there, just to have it off their plate, for the board really, morgan there's no doubt, i mean, iger can go visit a lot of foreign offices for disney and do a lot of things perhaps that he thought he might not be able to do because he was so in the moment when it comes to dealing with nelson peltz. that is now all over with. >> yeah. i did see, you know, in the devil's advocate department, some opinion pieces yesterday that argued it's a testament to iger's skill as a storyteller that he's positioning himself as a savior to problems that some argue he created, namely succession, what to do with fox and i wonder how fair you think that is? >> listen, there is no doubt that if you look at the tenure

of mr. chapek and the criticism that even is being leveled to a certain extent, although modest extent, by mr. iger, it was not a good choice. and he was involved in that decision with the board, but there's no doubt, you know, should they have gone for peter rice or gone for, you know, kevin? i mean it's certainly a decision that you can blame them for, carl, and any number of the other things including direct to consumer we got into it yesterday to a certain extent in terms of where they priced that product and whether it was really never priced for profitability he pushed back on that yeah, there are certainly decisions that were made under the iger administration, including who succeeded him, that he could be criticized for. but he is one heck of a communicator, isn't he maybe the best. >> exactly right having the millennium falcon behind you doesn't hurt as the communications tool. what a week. david faber in l.a watch paypal, moving higher here

on this earnings beat as ceo dan schulman announces he will step down at the end of the year. not quite actually did take out yesterday's high right now right to the 200 day vi ara ayith usvege

. welcome back to "squawk on the street." the dow is up slightly 81 points right now and the s&p is also higher china may be reopening but the effect may be delayed for a large infrastructure and machinery stocks, at least that's the question investors are grappling with seema moody is here with us now to explain hi, seema. >> it's interesting, right, because travel is rebounding in china, but the industrials aren't really. jennifer rumsy, ceo of the manufacturer of big trucks and engines is encouraged by the reopening and not seeing any improvement on the ground in china just yet >> our view on china is through last year, really low demand, you know, unexpected and very strike lockdowns that impacted our operation as well as our demand in december as they lifted some of those lockdowns, we saw in our own facility, a big wave of covid within our employees that impacted some of our operations and we've seen that start to

settle down as we come out of the china new year we're continuing to monitor to see what happens in terms of covid within our workforce there and really, i think the next few months will tell us a little bit more around how the economy will start to hopefully improve in china. >> it follows similar comments from caterpillar ceo's who told investors last week to expect china to remain below 22 levels. cat makes about 5 to 10% of its sales in china, while accounting for 20% of comings sales the ceo cited the demand of aerospace in china but the reopening isn't helping the supply chain picture when asked about heightened u.s./china tensions following the spy balloon, rumsy says advocating for easing tensions while focused on diversifying the company's supply chain footprint due to geopolitics india is a bright spot for the company as well as its clean tech business which it invested $1 billion, fuel cell, hydrogen

technology, rumsy expects that business to break even this year. >> thanks so much. yeah mother of all capex cycles seema moody. after the break, we'll talk alphabet, down around 9% for the week, trying to bounce off 93 and change yesterday following the a.i. chat bot badete that's lasted all week long we're back in two. 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. realtor.com (in a whisper) if we use kevin's college fund, we can afford this house. the house whisperer! this house says use realtor.com to find options within your budget. good luck young man. realtor.com to each their home.

welcome back to "squawk on the street." i'm dominic chu. here's your news update right now. amazing rescues continue to happen amongst the destruction in turkey and syria. it took more than a day but german and turkish rescuers were able to pull this woman from the rubble where she had been trapped for 104 hours. but the number of rescues has slowed as the death toll continues to rise. now closing in on 23,000, more than 80,000 folks injured. ukrainian officials say russia launched another major air strike overnight over 100 missiles and drones

with targets across the country. ukraine claims it shot dour down more than 60 fragments of some missiles falling on houses and cars and blowing out windows as well. >> a kobe bryant jersey from his only mvp season has sold for $5.8 million it's the most ever paid for a piece of kobe bryant memorabilia and the second highest price paid for a jersey overall ever carl, back over to you. >> thanks so much. it has been a tough week for alphabet stock with its chat bot off to a rough start in the battle of the bots that demo ad that ran on google's twitter feed showed barr describing the james webb space telescope as the first to take pictures of exoplanets which is wrong a live event in paris looking to counter microsoft's chatgpt partnership fell short of expectations and that led to a sell-off of the stock. not the first time a tech demo has gone wrong a few other of our favorites take a look. >> let's plug it in. it's going to say, hey, i see a

new device, and it's going to load in the appropriate drivers. notice this scanner -- oh. moving right along. >> that must be -- that must be why we're not shipping windows 98 yet. >> absolutely. >> i'm sorry, guys i don't know what's going on oh here we're actually on wi-fi here all right. well, we're going to hope that things get fixed before my next demo here. >> try to break that glass, please >> are you sure? >> yeah. oh well, maybe that was a little too hard >> so the demo didn't help this week, but the bigger concern is, obviously, what if they even lose just a couple points of share. >> yeah.

>> and just how profitable share is and why it's meaningful for microsoft, which put its event the day before google's slash alphabet's event as well it was a face-off in terms of looking at these two technologies at these two companies in a week where we've got chinese tech companies talking about unveiling their own chat bot versions. jd.com this morning which i think is trading lower on the headlines there. >> jpmorgan great note and their point is that it's not like it has to like microsoft has to destroy google's business. they can be just an announce and just take a couple points of share. they call it asymmetric risk and google's will have to do very well with their efforts to maintain current levels of share. >> i don't know if you've been on bing lately i was testing it out, just curious. >> the downloads went crazy this week. >> they went crazy it has a ways to go in terms of the search but to your point what nadella said $2 billion for point of

market share incredibly profitable. for more on alphabet's rough week let's bring in wells fargo brian fitzgerald who has a buy rating and target of $150 a share. thanks for being with us what did you think of the demo this week? >> thanks, morgan. look, i think those were great clips you showed the reputational risk is large with google, they're the market share leader, and, obviously, the barred rollout was under whelming, but we think a.i. hike cyclical created an opportunity for google. >> you continue to like the company at these levels right now. i guess walk me through how you're thinking the near term opportunity where google, and its current businesses are concerned and how you're thinking about the longer term opportunity around a.i. and around its ability to maintain its dominance in search? >> yeah. thanks, morgan it's a great question. look, we think there's room for generative a.i. deployment without search monetization

disruption only 3% of queries are commercial and drive paid clicks users respond to direct and rapid results. the average search session is one minute and the number one result averages 28% click rates there's room to deploy generative a.i. for noncommercial, upper funnel, top funnel queries and searches without disrupting the critical bottom funnel monetization we think google actually has a tech lead in conversational a.i., any notion that they're playing catch-up here is naive google's model lambda, which is language model for dialog applications has a multi-year head start or lead versus chatgpt. >> so in terms of applications and future applications, it's such a key point that you made where are the biggest

opportunities to monetize? whether you are microsoft, whether you are alphabet is it going to be consumer facing products and services like search, or is is it going to be enterprise opportunities >> yeah. i think you're already seeing it in their search products and utilities. i think the bears underestimate google's ecosystem mobile search is 60% of search and android is the dominant operating -- mobile operating system worldwide so together, when you take that point, plus the partnership between google and apple on the mobile side, we think it's going to be really hard to disrupt google google's search is -- and their a.i. processes are tightly integrated into its consumer products in maps and gmail, real-time visual search and real-time translation. so user behavior has been engrained over decades we like to say, you need to show

a 50 to 80% product improvement if you're going to get people to switch. >> yeah. i mean, i think that's -- i think that's well understood that it's a habit and habits are hard to break. i have, though, brian, seen commentary that looked at bing downloads. we mentioned them and the spike this week and if we get data over the next couple months that shows that that remains somewhat resilient, i wonder how much more you think the stock could sell off short term? >> look, i think the sell-off this week was over done over the past couple days it's trading at a p/e in the high teens it's growing that eps at 18% it's trucked out from a valuation perspective. we'll see. yes, the downloads for bing, people are trying it out is it a marked improvement in terms of search no we'll get more about google's

a.i. initiatives in a couple months at the '23 developers conference, google io. by the way, these a.i. products, the lambda large language model, rolled out, you know, two years ago. it first came out, it was introduced at google io in 2021. we heard more about it last year when they rolled out their test kits and that was gen 2 with the a.i. test kitchen. they're definitely not backing away from their a.i. initiatives. >> brian, just to shift gears here lyft results, the stock down double digit percentage today on the heels of those and a tale of two ride share companies is it in the penalty box here? are investors going to want to see -- we had this conversation earlier in the hour, the company begin to diversify and build out its portfolio given the fact that uber is having such success

given two revenue streams? >> yeah. look, lyft is responding to remaining competitive. it reversed a 4 q rate hike on rising insurance costs they're responding to uber's price cuts the ramp of supply of drivers is reducing prime time pricing. so with lower revenue and higher insurance costs, you know, q1 guide came way below where the street was expecting, and they're reassessing their oow own 'profit targets. yeah, i think they're in the penalty box. they don't have as diverse a model as uber between rides and eats, and they don't have, you know, the global scale that uber has. >> brian fitzgerald, thanks for joining us. >> thanks, morgan. appreciate it. >> as we go to break, take a look at some of the biggest laggards on the dow for the week so far tech in there with intel in first place, although also some

consumer names, procter & gamble, nike, chevron is the biggest winner on the dow for the week jane wells out in los angeles today with a look at what's still ahead in the show. good morning, jane. >> hey, carl yeah, you're not going to have to take out a second mortgage to finance your super bowl party. i have good news about food inflation and i'll he explain why i have a bottle of malt lucker out here, when david faber allegedly joins me and we get the party started after the break.

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take a look at shares of spotify up nicely had been reported by another news organization, we can confirm as well or i can, the well-known activist fund run by mason morefit, has had a significant -- fairly significant position but seems to be in dialog with founder ceo daniel eck

intere from what i hear, all friendly. no real plan, it wouldn't seem, for the company to -- or i should say the activist to seek board seats. you know, this is an activist that has dealt with founder led or controlled companies, kkr they were in when henry was still running it, "new york times" and the salzburger family, fox when oven went on the board there and the murdochs the focus is going to be on cost savings and has been it may put in perspective the comments we got from daniel ek after the conference call which they responded to in hindsight i probably got carried around and overinvested relative to the uncertainty we saw shaping up in the market and went on to say we're shifting to focus tightening our spend and becoming more efficient and remaining efficient with the planned outline investor day that would appear to be value ek likes and believes and the economics of the business as

well being quite positive, particularly when you start to focus on saving money. >> yes spotify, a couple rounds of layoffs now. certainly speaks to the environment for activist investors in tech right now too overall. david. we -- during february we're celebrating black heritage month through the stories of some of our cnbc teammates and leaders in business. here's chairman and ceo james reynolds >> when i think ability the significance of black history month for all americans and we think about the role that black have played in making the united states the most powerful, most significant, most productive country in the world, we have to understand the role that black have played from the agricultural revolution, the

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coming up in the next hour on "techcheck" more on the big game this weekend with jason robins, coming up around 11:30 a.m. eastern time. as the markets have been stubbornly persistent, at least in terms of the selling versus the premarket. we unwound that. dow up 26, s&p down just less than 3 points. stay with us doors can lead us toward what's important. your dedicated fidelity advisor can help you open those doors. by working with you on a retirement-income plan designed to balance growth and guaranteed income. because doors were meant to be opened. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this.

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welcome back. there we are they see us. >> hello. >> i wasn't sure. >> shoulders back. suck in. there we go. >> it's so exciting to be with jane wells welcome back, everybody. we'll be talking about the big game on sunday, but no matter who wins, apparently at least consumers will start winning when it comes to this stuff. >> yes because some of your super bowl -- even with food inflation, some of your super bowl snacks are cheaper. the biggest surprise, we'll start with chicken chicken is cheaper now, it's estimated we're going to get 1.5 billion wings this

weekend, which would equate to 750 million birds, if you do the math that's a record. how can they be cheaper, you ask, david faber isn't there a bird flu going on? >> yes, isn't there a bird flu >> yes >> i'm glad you asked. much of the avian flu hit the eggs, and they be less susceptible to the flu tyson says we have a meat glut and that is driving down chicken prices also good news, avocados they always seem to be expensive. they are now 23% cheaper than they were a year ago that's good for the guacamole. >> 23% >> 23% >> what happened there just growing more? >> mexico has a bumper crop. they're going bafo for cados south of the border. it's not all good news usda says cheese prices are up

23%, which will impact the pizza. beer prices, up 7% so far year to date. hard seltzer up 10%. for the first time in my life i have bought a bottle of king cobra because malt liquor prices are up 9%. have you ever had malt liquor in your life? >> i have never had a malt licker in my life, as far as i know i did drink something in china called malti which was just -- oh, wow. but, no, i don't think that was related. >> i haven't either, but i'm going to test it out not now. it's still early by the way, for the first time in over 30 years, budweiser will not be the sole beer add vertisr in the big game. you'll see heinekin and molson

>> you're going to drink that whole thing after this hit. >> but as for beer, according to bump williams, one reason may be because we're drinking less of it, therefore, downsizing to 12-packs instead of 24-packs therefore, per ounce, the price is going up, if that makes sense. of course it makes sense, you're david faber. >> and you're jane wells don't eat that pizza it's old. >> no, do not eat that. >> i'm going to hug you. >> all right >> we got the love here, man i hope it's good for you back there, carl. >> that was fantastic. you got to get on the road more often, david we'll see you later. i think we'll bring in ahead of tomorrow's game, drew rosenhaus. are you in phoenix, drew >> i'm right here in phoenix >> you want to make -- >> for the big game. this is the game before the game, carl this is parties and players and

endorsement deals. i've been here since wednesday >> i know last time you were on, we talked about just the strength of the league, basically as media fractures, what they have gets more and more powerful year after year. and then on top of that, you have the notion being built into this game that the setup couldn't be better if you're looking for a close match-up >> oh, there's so much drama in this game because the head coach, andy reid of the kansas city chiefs, used to be the head coach of the philadelphia eagles the head coach of the eagles, nick sirianni, he was fired by andy reid in kansas city when andy reid went from philadelphia to kc, nick sirianni was the wide receiver coach and reid let him go. so, this is one of the most unique -- this is the most -- one of the most unique match-ups in the super bowl that i can remember and the two best teams, the two

number one teams in each conference they both won 13 games what a great match-up. and it should be an incredible football game and a great scene. >> yeah. i know larry fitzgerald on his podcast, he basically made a call and argued that the chiefs, their offense is incredible, but in the end it won't be enough to offset the eagles' secondary you got to make a call what do you think's going to happen >> well, i've got clients on both teams, so this is a tough one. and i think they're the two best teams in the nfl, but i'm going to pick the eagles, since you put me on the spot and i agree with fitzgerald. the eagles' defense has a great balance to it. they've got an incredible defensive line they led the league in sacks this year. and they also have a great secondary. i'm going to go with the eagles because they've got more balance. while mahomes is the mvp of the nfl, it's going to be the team

for the eagles, from top to bottom, that's going to win it it's a team sport. and i believe the eagles are going to pull it out in a very close game i'm going to predict 28-21, philadelphia over the chiefs >> well, drew, i have to tell you, you're probably making our executive producer very happy right now. he's literally here at the stock exchange underneath his blazer, he is wearing a philly hoodie ahead of the game i'm going to channel him and ask you, another pro league, huge move, big trades announced this week we don't tend to see that type of activity in the nfl in general. i wonder if you think it helps or it hurts the brand? >> i think it's great for the nba. you know, they had 19 trades leading up to the trade deadline and it's a very different league kyrie irving in dallas

kevin durant in phoenix. this is mind-boggling, the amount of trades and first-round picks you had traded i think it's exciting. i think it's great for the nba it's great for professional sports i like when teams are aggressive both of these teams, both the chiefs and the eagles, i would say, have the two most aggressive general managers, as aggressive as any general managers in the nfl. they make trades, they make deals, and it's no coincidence, those are the two gm, howie roseman with the eagles, and brett fritsch, they're like nba style managers in the nfl. >> when you think about dominance in media, and obviously that's how we frame the nfl, and we have for years, when you're that dominant for so long, how long does it take before other leagues start to nip at your heels? i think of apple and their mls deal and you have a lot of young kids who played, now graduating into

adulthood. do you think that's a liability for the nfl long term? >> it's hard to predict anything but continued popularity you know, the nfl's been the king in the united states as long as i can remember the ratings are still mind-boggling. the disparity between the super bowl, the world series, the nba championship is just mind-boggling. in the united states, the nfl is the king maybe not in the world where it's soccer where it's the other football, but at least here in the u.s., the nfl is the champ and by a wide margin i don't think in my lifetime we'll see any change in that capacity >> finally, drew, apple music, the sponsor, taking the reins there from pepsi, who had been the sponsor since 2013 your thoughts, expectations? >> well, the nfl is brilliant. they brought in amazon, they brought in apple, they brought in youtube their partners used to be the

major networks they basically made fox. so, now they're working with apple and all these other unbelievable brands. i think the entertainment side of the nfl is mind-boggling. rihanna, the halftime show is going to be great. i said the game's going to be very close apple's going to put on a good show and they've got a great musical guest. and i'm sure there will be some surprises at halftime. don't be surprised if there aren't some wrinkles in there. >> all right on that cliffhanger, we will leave it drew rosenhaus, thank you for joining us ahead of the big game this sunday. >> you bet. shifting gears, elon musk's spacex moving to the orbital spacecraft in texas yesterday the company attempting to ignite the 33 engines of this massive super heavy booster that's going to power starship the first test-fire of what's poised to be the most powerful rocket ever built. earlier in the week, spacex

president had said if this was successful, which it was, that there could be a launch as soon as the next month or so. faa certificate -- launch certificate is still pending there, but certainly a big milestone for the space industry nonetheless, tesla is trading lower today. in general, mixed picture for the major averages that's going to do it for us on "squawk on the street. "techcheck" starts now good friday morning. welcome to "techcheck. i'm deirdre bosa with carl quintanilla and jon fortt. today, lyft craters guidance, tanking that stock more than 30% after earnings expedia shares also lower after its own miss on revenue. the ceo joins us exclusively this hour. later, the ceo of draftkings live from phoenix ahead of the super bowl with a 30-second ad spot going for $7 million this year, carl >> dee, we'll start with the move lower in stocks for the week the nasdaq up 12% for the year, bu