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, but on pace to break a five-week

win streak that divergence between the performance of the major indices is a big one the nasdaq outperforming the dow by double digits in '23. although i know mike santoli has taken issue with some of how that's sliced. >> well, it's factual. and i think the main takeaway is that you just turn last year's standings upside down. that's what you got. so, this january into february in particular, you have one of the more pronounced worst to first type dynamics. i think you can pull back a little bit and say 2022 was probably the peak of technology and other mega cap growth being the downside pressure on the market they had a lot of the work done. now it's much more differentiation, i think is happening. for example, you know, you talk about lyft well, uber is outperforming lyft dale transports look good against lyft even affirm getting taken apart

today. capital one financials has been a good performer over the last six months it's not about in 2020 and into 2021, buy everything that looked like tech and last year, sell everything that looked like tech there was a rates pressure and all the rest of it, but all of it now is a little more nuanced. i still continue to see apple and microsoft at the top of the nasdaq with super premium valuations and everything else is kind of had holes punched in it. now, you have alphabet and meta trading after a market multiple after alphabet getting crunched and meta coming back from the crunch it's less coherent story than just all tech or no tech. >> your other point today has been markets essentially erased the notion of rate cuts for the year we've added 50 basis points to year-end fed funds and yet we're down, i don't know, 1% as you said we've been resilient in the face of getting more real with what the fed has told us. >> yeah. i think it's because we're talking about smaller inc

increments we're talking about nip and tuck type differences between the more hawkish and more dovish scenarios. i'm not sure we've completely eliminated a prospect of a cut late this year that's more just like the market's way of a just in case risk management if things break a certain direction, you can't be shocked if you're going to get a cut a few months after the last hike. i don't think the stock market story this year is dependent on outright dovishness, but it's got to be -- the fed must be - >> how about the notion we were going to pause in march. today barclay says 25 through june that would take you to 5.50. you're getting to where dimon said you need to end up. >> we don't know how the economy is going to respond to that. will that build mortgage rates back up. but right now january looks strong earnings estimates -- earnings revisions are starting to bottom, according to citi right now. now, they're still going down, but in terms of the acceleration

lower, seems to have peaked. so, all these things, i think, are more of a give and take and we're arguing over the middle ground as opposed to open-ended aggressive tightening or the economy falling apart right away. >> it's a much more fun conversation. >> hopefully. >> than knowing we have a huge hole to dig still. mike santoli, thanks. mike mentioned lyft. let's take a look at it. it is losing more than a third of its market value. this comes after rough fourth quarter earnings report last night. the company barely beating on revenue for the most recent quarter. next quarter isn't looking much better the company is expecting a miss on revenue and contribution margin alongside with a miniscule adjusted ebitda. the profitability bend it's been on looking weak right now. the street not thrilled. issuing at least eight downgrades from buy to hold so far today. if the company cannot regain an aud audience, is there an appetite for a buyer? lyft doesn't need to compete

with a competitor. didi trying to rebound from beijing's crackdown. the fact we're having this conversation, jon, says a lot. this is a company that went public at a more than $20 billion valuation. kind of same story with uber these gig companies haven't lived up to their expectations i guess the question now, does uber continue to ride higher on lyft's miserable quarter and what happens to lyft >> yeah, what happens to -- i mean, this is shockingly bad i mean, they actually beat -- well, in line on revenue and profit for the quarter it was the guide it's so bad sign of the times. the revenue was weak contribution margin was weak analysts just questioning whether there's any leverage to be had whether they'll grow into profitable wedbush saying last night's lyft call was the top three worst call we have ever heard. ever heard and they go from outperform to

neutral. i mean, what does it take to get a sell i guess maybe you're neutral if you think someone will buy them but you just laid out the reasons why a buyer would be hard to find even if didi wanted to, do you think the government would look kindly into a government having insight into where we are? probably not great carl >> i do love the b of a desk today. two years the bull case on rides they argued all the vc money would start drying up and all the competitors nipping at their heels would go away. now you're left with a huge number one player with generating free cash flow, self-funning, has experience all around the world and that's just bad news for lyft. >> okay, let me pour a little cold water on that you may have a number one player that's still losing $9 billion a year, which is what uber lost in 2022 a lot of that has to do with its investments and other

unprofitable ride-sharing companies around the world you could argue will this space live up to the promise for me, the only number that matters for lyft is the active riders number. it says it all it's floundering, plateaued and never made up the pre-pandemic highs. so, they talked a lot about competition on the call last night. they would not, no matter how much analysts tried to get them to talk directly about market share, they wouldn't say that, but there were hints all along the way and their competitive position is becoming more difficult. they'll have to lower prices that's going to hit that barely there profit margin anyway, ebitda profit margin how do they dig themselves out of this? >> you have to be careful when companies start talking too much about the faraway future in the ipo, like self-driving cars with these to gopro, they were a media company, that's a tell a little

bit. let's get to another name. is ai spelling disaster for alphabet, or at least causing them to have some difficulty spelling shares of the google parent regaining some ground after a rough week for the tech giant on the back of microsoft's search challenge and google's jumbled response between tuesday and thursday alphabet lost a whopping $166 billion in market value. that's more than 40 lyfts. the question now, what does this mean for ceo sundar's outlook? today marks 7.5 years since he was named ceo. the stock is up nearly 3x. just last month "the new york times" reported founders have re-entered the fold to review the company's ai strategy at the invitation of pichai himself carl, this is awkward. you have satya nadella, who you guys were talking about this earlier on "squawk on the street," very good at being nice

and diplomatic this week he -- he talked about make making google dance, right? >> yes. >> it's like western imagery you can see him shooting the dirt at their feet and they're not doing a very good job dancing. over the past couple of years we've seen apple make meta dance with ad targeting at their core business now you have microsoft taking aim at google's core business. we talk all the time about regulation and whether that will come in and hit these stocks what's hitting them is each other, carl. >> i agree and the market -- well, at least the sell side now, dee, is really starting to model it out. jpmorgan today, take away five points a share from google in search talking 10% drop in operating income google is in a difficult spot. >> search has been an incredible business to jon's point, sundar pichai

has done an incredible job building motes i don't know if google is dan dancing. microsoft is posing a big challenge. it may want be a graceful dance but google moved fast. it wasn't good but they moved. >> it moved down pretty fast >> no, i'm - >> but what do they do i mean - >> they rushed out we know there's bard we know bard is coming out it was not a good rollout. i will certainly give you that it seemed rushed it seemed reactive but do we think it's going to get worse from here or get better google has been investing in ai for many, many, many years before this week they were probably seen as the leader. if there's anywhere to go from here, the dance has got to get better. >> i think the problem is, microsoft was investing in data center for a long time, but didn't put the pieces together in quite the right way to get to cloud first. and the question is, has google

been investing in ai for years but didn't put the pieces together to get to a business model that makes sense first i mean, they've been doing it in ways that link in to some of their web products and, up be, driving advertising. they've been doing it in pixel phones in ways that really haven't gained market share for them everything has been about advertising and driving people back to that model the way microsoft is now attacking them, they've got to have a little bit more of an enterprise approach to ai, because, yes, microsoft is attacking them in a business sense, add ver tiesing driven but google alphabet has to get partners to build on top of their ai that's going to require currian to have more of a seat at the table. the founders and pichai have not shown savvy over their tenure to this point. >> if google has to show enterprise savviness, microsoft has to show the scope in search.

just by putting chatgpt on search doesn't necessarily give them the dominance here. they still have to get all the other pieces in place. and google has been building a mote here for many, many years. >> all they have to do is score, not win. >> that's jpmorgan's point today. that's one reason bing downloads, which we never paid attention to before, are going to be huge data points for the market over the next couple of months. shifting gears to the super bowl, despite a slowdown in the overall ad market, the price for a 30-second super bowl spot still at record highs. our julia boorstin with us with a look at what advertisers are spending to get that air time. hey, jb. >> well, carl, no sign of an ad recession here brands are paying up to a record $7 million for a 30-second spot, up from $6.5 million last year and that was nearly $1 million more than ads in the game a year before now, even several companies that have announced major layoffs, such as google, workday and

warner brothers are investing in super bowl spots >> these environments where things are fragmented and, quite frankly, the ad market probably isn't as strong in general as it has been in years past because of the economy, there's a flight to quality and when there's a flight to quality, those dollars are chasing scarce ad units. as a result, the pricing is up >> in this weekend's game, expect more beer ads now that anheuser-busch no longer has exclusive rights molson coors has partnered with draftkings to invite fans to bet on what happens during the commercials. that's worth at least a half dozen partnerships between brands, including one between netflix and gm some other key trends, celebrity cameos, everyone from will ferrell to serena williams to john travolta. also qr codes, which are expected to be in about half the super bowl spots one thing you won't see a lot of is automakers this year.

kia is the only confirmed carmaker in the game so far. and, of course, no surprise, crypto companies will be absent this year after a surge of crypto ads in last year's big game for more on the super bowl, you can watch my whole interview with the nfl's brian on our show's linkened in page at cnbc "techcheck" and stay tuned for an interview with draftkings ceo coming up. >> i know fox earlier in the week was giving their conference call they did make a note that some of the super bowl money came in late was there a sense that, although the dollar value is strong, that they are kind of scraping by in this market? >> i mean, i wouldn't say scraping by, considering the fact that the prices are so high i think there's this understanding about advertisers that you get a lot of bang for buck when you advertise in the super bowl not just because so many people are watching in real time but

there's so much conversation about the ads in the leadup to the game and the aftermath of the game what you're buying isn't just those 30 seconds it's the fact you're buying the sort of moment of attention for the whole country. so, i think this is a weird ad market right now there's so much uncertainty. there are so many questions about whether or not the ad market is going to come back, how long it will be weak or uncertain. i just heard a lot of ad decisions are happening closer to when the ads are being shown because, in part, the brands want to make sure they're getting the temperature right in terms of what's going on with consumers in that moment. >> that's a great point. and to your larger point, i mean, we don't just watch the ads during the game. it's a week-long focus of attention, to be sure. julia, thanks. >> you don't just watch the game, you have a rihanna concert as well. the ceo of draftkings coming up a record amount of money expected to be bet on this year's super bowl. we'll also sit down with the ceos of expedia and doximity

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uptick in cancellations due to weather. seema mody joins with the expedia group ceo peter kern >> welcome back to cnbc. >> good to see you. >> let's start with the increase in marketing spend i think there's some questions there that includes tv ads and youtube, in total up about 20% compared to 2019 levels. right around the time you became ceo of expedia, when you pledged to make the company more efficient. how do you justify this increase in budget and the expected payoff >> yeah. so, there's a few things going on there, seema, that we talked about yesterday. one is that our b-to-b business is growing very quickly and the commissions from our b-to-b business throw through our marketing line you're seeing the actual benefit of the growth of that business we also saw a lot of weather impacts, particularly at the

beginning and end of the quarter. and when those cancels come through, we bought business that doesn't actually happen and our marketing seems inflated relative to what comes through the results. but had those cancellations not happened, obviously, those marketing dollars would have been efficiently spent overall, we are spending more for long-term customer value so, you've seen us increase our investment in app downloads and other things that are a little longer live than the old performance marketing where we used to spend most of our money on the seasonal trends are slightly different. you're seeing a little bit of that in the seasonally lower q4. that's really what's going on. >> what do the trends look like in 2023? you mentioned the rebound in bookings in january. can you -- any data you can point to that shows us the incremental trends >> the trends have been strong since january. we said in our call we're seeing over 20% lodging demand, which is considerably higher than where we were in the fourth quarter, even ex the weather

so, there's just been a ton of demand apac is starting to come back quite strongly that's helping our b-to-b and b-to-c business. a small part of our business relatively, but that's been quite strong generally the market has been robust across the board in the western world and latin america. >> i wonder if you can talk about the mix between home rentals and hotels you said that has normalized is that the result of more urban travel, business travel? >> what we saw last year, omicron was going on in the early part of the year last year and now it's not, gratefully and what we're seeing is home rentals have gone way up we talked about it for the last couple of years. vrbo has been very strong for us that's been a great business but hotels have been making up ground and i think we're getting to a much more normalized level so, in omicron, everybody was keenly focused on going away but

going somewhere safe now people are going back to resorts, back to anywhere, big cities you're seeing normalizations but vrbo is much stronger than it was in 2019. much, much stronger. >> looking at your customer base, your fastest growing cohort is in the united states how do you play a bigger role in this international rebound we're anticipated to see in 2023 with the china reopening? >> yeah, so there's a few things we discussed, which is first of all, we've been focusing on the u.s., because that's where we've been making the most technological moves forward, most marketing changes, and playing out our strategy of really playing for long-term customer value and that's really been working in our expedia brand in the u.s. now that we've proven it, we'll bring it to our other brands as they bring it to tech stacks like hotel.com and others and more geographies where we're getting more and more of the same capabilities as we roll out our technological improvement. that's the biggest part of it. but in addition to that, our b2b

business plays a big role in geography play in places we are not as strong, and that's big in asia and china, for example, where we don't participate as a consumer brand we have a relationship with trip.com for outbound travelers. there's still a lot of opportunity in china. >> that seems to be the big story. you know, there's a lot of talk around ai and chatgpt, essentially on this show i'm curious how you're factoring that into your discussion how it influences travel and the experience this year >> yeah, we've been focused for the last couple of years on improving the shopping experience, improving the search experience, improving the service experience products like chatgpt and other genretive ai, i think, will play a big role in the future we are experimenting with a number of ideas. and i think we're the furthest along in using any of those kinds of products. but we think it will play a role certainly be valuable in certain areas like service, like the shopping experience, potentially like voice or chat shopping.

there's other opportunities there. so, we're pretty excited about it we already had a big investment in machine learning and ai for our own products but obviously there's some exciting things going on that might further improve the customer experience. >> look forward to seeing how that plays out that's peter kern, ceo of expedia. thanks for joining us. >> thanks, seema take care. coming up next, bitcoin hit again nearly three-week low, on pace for its worst week since november, coming off the mid-24,000s. we'll hear from the s.e.c. chair on the latest push for regulation. a c-suite shakeup at paypal. we'll break down those earnings and dan schulman's departure later this year when we're back in two ♪♪ for skin as alive as you are... don't settle for silver. harness the power of 7 moisturizers & 3 vitamins to smooth, heal, and moisturize your dry skin. gold bond. champion your skin.

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crypto kate, i was listening to that interview. i feel like the takeaway for our audience is if something is yielding 20% t might just be too good to be true. >> that was one of his points. they didn't disclose that. the s.e.c. yesterday finding c coinbase's rival, kraken, not registering crypto products. it was up to 21% as gary gensler put it this morning on "squawk on the street," he said this should put everyone on notice, this type of offering. staking is something coinbase has on its platform. coinbase ceo brian armstrong tweeting ahead of this he said, it would be a terrible path for the u.s. if that was allowed to happen. he also said, if regulation by enforcement doesn't work -- or he said it doesn't work and encourages companies to operate offshore, which is what he says happened with ftx. i caught up with coinbases chief

legal officer who said coinbase's offering is not a security he said the s.e.c. doesn't have jurisdiction he also says they tried to engage with the agency to no avail and that a lawsuit is on the table. he said, we're not eager to go to court, but we believe that the law does matter. if we're not able to resolve this -- these matters through an administrative process unfortunately, sometimes courts have to be involved. coinbase's staking business makes upabout 3% of its revenue. you can see shares down sharply this week, dee. >> just how difficult it is for them to diversify away from those trading fees kate rooney, thanks. up next we're joined by the ceo of draftkings ahead of the super bowl, and then during february we're celebrating black heritage through the stories of our own cnbc teammates, contributors and leaders in business here is news street adviser ceo and cnbc contributor >> so, the people i looked up to

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a couple hours into the trading day. let's get you caught up on the markets. rear struggling to hold onto gains at the moment on the s&p right around 4075. obviously a lot of the weakness is in tech some of your movers today, spotify adding to its yearly gains as valueact taking a stake in the company, saying it will push cost cuts news corp. on pace for biggest percent decline since may of last year announcing it will cut head count by 5% tesla having its first down day in nine. and only the second down day in 16 the stock has now rallied nearly 100% from the january lows let's get a news update with frank holland. >> hey, carl here's what's happening at this hour israeli police say a palestinian man rammed his car into a crowded bus stop at a jewish settlement in east jerusalem

two people are dead, five are hurt officials say the driver was shot dead at the scene president netanyahu calls it a terrorist attack. the manhunt has ended for the shooting of two baltimore county police officers he was taken into custody after an eight-hour standoff and another senior biden adviser is leaving the white house. communications adviser kate bedingfield is stepping down that's the very latest carl, deirdre. >> i'll take it back thank you. according to the american gaming association, a record 50 million americans plan to bet on this year's super bowl, wagering a total of $16 billion one of the big beneficiaries expected to be draftkings, whose stock has already rallied more than 45% contessa brewer live in arizona with the draftkings ceo, jason

robins >> we're here on a breezy phoenix morning. dust flying in the air but there's so much excitement here for super bowl. the fans are coming in how big an opportunity is the game for you to win new customers? >> this is the biggest sporting event of the year. not surprisingly, it will be draftkings' biggest customer acquisition event of the year. this should be the biggest ever for us every year it seems to be growing. at some point that will end, but we're on a nice growth trajectory so we expect big numbers in the super bowl and going to be a great day to get new people to try it out a lot of people have friends that they'll be at super bowl parties with that will show them how to do it it's a great time for people that are interested but haven't tried betting to check it out. >> two years ago there was a snafu, so to speak, on super bowl not just for you guys but across some sportsbook. has the technology significantly changed since then >> the big difference then is we

were not on our own tech platform we were on a third-party partner. we switched over this will be our second super bowl on our own tech platform. i'm happy to say last year was totally smooth we had just migrated so definitely nervous people around the office, but everything was smooth i think a lot of -- a lot of the industry is dealing with huge volume increases that's tough to keep up with >> especially in -- on super bowl sunday, because now the game will be played for the first time in a state where sports betting is legal. but at the game, the people can be on their phones wagering. are you confident that verizon has put enough broadband into this, that the tech will work perfectly for those who are in-state betting >> i can't speak for verizon, but i definitely think it's a cool -- what you just mentioned is so cool this is the first time that people will actually be able to at the game be placing bets, live bets. i think it's going to be such a

unique experience for fans that nobody has ever done before. i'm really excited about that. and i think all throughout arizona there's -- arizona has been a great market. i mean, really just a great market >> i broke the news last week about some job cuts at draftkings, about 3% or so of your workforce is that positioning draftkings in case of recession is it broader macro economic concerns >> no. i think this was just something that we felt was the right choice for us as -- the company has been very focused on efficiency over the last year. not surprising a lot of tech companies, companies in general have been focused on efficiency. and we just took a look at all the different areas and how we are organized and decided that reorganizing some teams was the best way to become more efficient. and that's really what happened. really nothing to do with kind of any sort of preparation and more just trying to make the company as efficient as possible. >> i want to ask you two questions about -- here's the tram going by. i want to ask you two questions

here about profitability and the strength of the consumer but i just want to acknowledge, your earnings are next week, so you have to be careful about what you're saying at this point. >> yes, i do. >> but on this path to profit profitability, penn just announced profitable quarter for sports betting business. f fanduel has already had a profitable quarter under their belt are you feeling that pressure? >> our company is the whole company. they're talking about segments it's tough to compare. that said, of course, i think everyone in the industry is feeling pressure i think it's good. i think it's healthy i think that's what was needed candidly, at this time last year we were still in the midst of somewhat irrational behavior last nfl season, not this current one ending, but the previous one there were quite a few undisciplined promotions and things out there that's gone away this year a lot of that is great analysis by companies looking at profitability and returns, but a

lot of it is the market saying, look, we're not going to tolerate this kind of thing anymore. we're going to hold people accountable for doing things that are unprofitable and overall for the business having a clear path to profitability. we've heard that mandate loud and clear and it's been the main focus of draftkings over the last 12 months. >> i sat with bill hornbuckle, i interviewed wynn they set all-time records in vegas. regional, just remarkable. but there's not been an indication that customers are pulling back on spending yet are you confident that even if there are economic pressures, your customers will still see draftkings as a good bet >> you know, i think what's interesting is that most of our customers are betting small dollars. so, i think it's one of those things that is probably pretty sticky and i think most research will show that gaming in general, lotteries, those type of things

are fairly stable and fairly recession -- i won't say recession-proof but hold up well during recessions. we don't even know if a recession is coming. and the industry is still growing so quickly it's hard to kind of tell. would it have been 5%, 10% better if we had a recession and still put up great growth numbers at the end of the year i don't know i think as far as us, we definitely feel like, you know, if we continue to make progress on the product, continue to engage customers, if there is any negative macro effect, we can offset that with some of the things we have -- we're working on in the product and marketing. >> draftkings' ceo jason robins. it's great to be here in phoenix ahead of the super bowl. thanks. >> thanks for having me. >> it's so incredible to watch the casinos and the sportsbook operators coming in and really taking aim at these brand-new casual fans to try to win them to the platform. >> yeah. absolutely, contessa we've been talking about it for

so long, but it's really starting to get contraction now. by the way, draftkings was once a cnbc disrupter 50 company. we're now accepting nominations for the 11th annual list of innovators scan the qr code on your screen or go to cnbc.com/disrupters to learn more jon? >> after the break, despite massive layoffs in tech, help is still wanted we'll take a look at the state of the job market outside silicon valley. plus, check out shares of micron, western digit and seagate, all updated to buy at mizhu after significant rallies. "techcheck" is back in a moment.

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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 more details on tech layoffs yahoo! plans to cut 20% of its staff by year end. news corp. cutting 5%. microsoft has announced cuts will affect xbox divisions and micron will cut 10% of workforce. meanwhile, the economy is still adding jobs at quite a pace. so, where are the tech workers impacted by recent layoffs finding new employment our kristina partsinevelos has some details >> well, you just mentioned all these companies, and there's almost 100,000 tech layoffs. and we're only in february

so, it does sound dire, but tech employees are actually still in very high demand according to indeed, almost half of the top 25 are tech jobs with data and cloud engineers the most sought after. the difference this time around in this labor force is that the job wanted signs aren't coming from big tech firms. instead, they're coming from -- well, they're not coming from big tech firms because there's so many layoffs. instead, more than half of those job postings are coming from fields like consulting, finance and defense. the aerospace and defense industry making up the majority of indeed's top 20 companies hiring tech workers right now. take, for example, defense giant northrop grumman listen in. >> we continue to grow and we're forecasting growth we see the same. we have thousands of open jobs we are looking at silicon valley we are looking at amazon we are hiring entry level, we are hiring vets, we are hiring experienced. >> so, companies are -- that's

just one example, are desperately looking for employees. we saw that with the 500,000 jobs added in january alone. which means the current tech job cuts are not necessarily indicative of the labor market. >> i think there's often this sort of fallacy that people get into just because a tech company is cutting jobs, doesn't mean they're cutting tech jobs, right? a lot of times it's recruiters, it's sales and marketing people who are most affected, not the engineers. but i guess the point is that a lot of nontech companies are still hiring tech workers. one of the questions i would have, are they hiring the sales and marketing people i'm guessing some of those, but it's different, right, if you're talking about just demand for workers who are technical. >> yeah, it is different however, i looked at specifically even the semiconductor space. it was a lot of high-level ph.d.s let go as well as managers managers, maybe that's an easily transferable skill the interesting thing is they're

not being laid off for very long actually, a short period i spoke to zip recruiter economist about that and listen to what she had to say. >> they're re-employed within about eight weeks on average, which is extremely, extremely quick, especially since many workers laid off right now, about 30% are receiving severance packages the average length of a severance package is 16 weeks. >> and zip recruiter has found 42% of those surveyed and laid off as of july 1st found even higher paying tech jobs, whether it be marketing, sales, like you mentioned, leaving many better off because they're getting hired within eight weeks, some of them have severance, and they may even be getting paid more than their previous job. >> all right thank you. still to come, doximity is dropping after reporting its results. disappointing guidance is weighing on the stock. the ceo joins us next. plus, a dan schulman successor

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i screwed up. in overall satisfaction. 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. paypal shares jumping nearly 4% but have come down a little bit, now only up 1% after the company reported an earnings beat and upbeat guidance paypal ceo, dan shulchulman is

expected to retire he will maintain the payment giant's upward momentum to ensure a smooth transition the search is on for his next in line got to wonder, there's been activists in this name, elliott, how much they had to do with it. it's been a rough few years and his potential successors we should note have left to go on and do other things. there was the cfo who went to walmart. one went to pinterest. >> you get the banks getting more sophisticated about technology, some of the upstart firms that are not yet public having to change their tune on customer acquisition and how to be responsible with that paypal a little bit in the middle you have big tech, apple with apple pay pushing from its end

so there was that time when paypal was flirting with buying pinterest. what kind of accsense does that make unless they wanted bill ready. >> is he worth that much money >> it's become a hire after all this time. paypal has been a bucket for everything -- activism, succession, the macro. tpv was a miss but it was up 90. maybe some might have been more worried about given the doubts about the consumer >> the question of stripe. shouldn't paypal have done that and how much can paypal still play in that enablement space that they sort of let go >> it's a good point you could argue there's a lot of things paypal should have done like monetize venmo better it's had so much success in monitoring the check-out

process. venmo has been a struggle, not in terms of gaining users, it's a verb now but in terms of monetizing it, whereas you look, carl, at square cash has done a better job doing so and maybe that's part of the reason you're seeing schulman step down now >> we'll see still a ways to go until the end of the year. a quick market check, the dow hanging on to a 60-point game the s&p marginally in the red. we continue to watch yields to some extent. ten year did cross above 3.7 as we anticipate cpi tuesday and the bond market trying to figure out how big that might be. some of the laggards this morning, tesla, nvidia and airbnb

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cost cutting strategy. julia, we talked a lot about activist this week in fellow content, media company, disney disney was able to get nelson peltz out pretty quick, but there are a lot of investors with a lot of ideas about what companies should do. what are spotify's options here? >> well it seems like it all comes down to cost cutting that was a big piece of what nelson peltz was pushing for at disney if you look at the fact he was advocating for a focus on profitability in the streaming position which had been spending so much. i think it's a similar story at spotify. spotify has talked a lot not just about the job cuts but wanting to become a platform as we know it's a lot more cost efficient to be a platform business where other people are creating the content than when you are solely more focused on creating that content yourself i think this is a similar focus here on cost efficiencies and this idea there's been so much growth over the past couple of years in the wake of the

pandemic and particularly when it comes to spotify perhaps concerns about maybe there was a pull forward as more people found their music subscription services essential when they were spending time at home that i think there's a question now of you've done the layoffs, what do we have to do to cut costs and make sure we're focused on that profitability rather than focusing more so on growth >> is spotify also one of these names? we were talking about lyft earlier where at the time of the ipo, peak hype around streaming, the idea, oh, this will beat the world. it will be huge, blah, blah, blah at this point, pinned between apple and google and other names when it comes to music streaming, a podcast business that, yeah, has done okay but doesn't look like it's going to have rocketship growth do they have to think more about profitability and the model than they do about the spending to grow >> well, look, i would say that the music industry, when it

comes to streaming, has an advantage over the content business because people will listen to the same -- i'm sorry, the content streaming business the likes of netflix and disney because people will listen to the same songs over and over, the soundtrack of their lives, they bring with them in the car. there's the sense you're not going to drop a music service if you're really hooked in it where you might sign up for a streaming service, watch, and drop it after your favorite show ends the whole tech industry has focused on growth at any cost and now the whole industry including the media industry is retrenching and thinking more about the volatility of the stocks in the past 12 months certainly speaks to that >> it's been so fascinating to watch activism as a whole. last year was a record for shareholder activism and, you know, they've spent years, carl and julia and jon, going after smaller firms. now you see big teg targeted, perhaps meta showing how much room there is for these cuts,

carl, and more efficiency. >> it's been pretty interesting. bernstein did a chart of all of the estimate revisions to 2024 adjusted ebitda. spotify is at the top of the list in a good way interesting how much valueact has on the cost side what a week, guys. next week we have some earnings and cpi to look forward to on tuesday. let's get to judge and "the half." all right, carl, thank you very much. and welcome to "the halftime report." i'm scott wapner front and center this hour the growth trade roll over and whether that early year rally is now on its last legs we debate that with the investment committee joining me for the hour jason snipe, brenda, bryn talkington and steve weiss. another down day for the nasdaq, down four or five. it is lower again by more than 1% growth's worst week since late december brenda, i go to you