>> contessa brewer, thank you. definitely one to watch. some of those numbers are eye-popping, david taking a look at the daily averages, we are lower. >> as morgan said, down 0.50% on the s&p. "squawk on the street" is over "techcheck" starts now happy tuesday. i'm jon fortt along with deirdre bosa and carl quintanilla. we'll look at what that means for the markets and the high bid of plays plus, checking in on the semi. we'll speak with the ceo of global foundries as that stock rallies more than 6% on the back of strong results. coinbase up nearly 2%, looking to break its eight-day losing streak as the stock fell more than 18%.

is this a sign the selloff was done let's begin with inflation numbers. shelter and energy some of the top contributors to the upside let's bring in cnbc senior economics reporter steve liesman, senior markets commentator mike santoli as well steve, i think you're also watching dallas fed. >> lori logan making comments, and talking tough. she is worried about a costly cost sprirl. anticipates they need to keep gradually raising the funtdz rate she says before she's going to stop, conditions need to be restrictive. she says the fed has to be prepared to continue increasing rates for longer than anticipated, and doing less on the other side if that's also necessary. the fed needs to be flexible to tighten further if needed. carl >> mike, let me turn to you.

we talked this morning how fed speak would chew on this data point. >> there's certainly no all clear anywhere in sight. with the economy coming in more than their standing forecast i understand the indecisive reaction to the market the stock market is basically chased every twitch in treasury yield since. s&p up 1.1%. yesterday we closed exactly where we were a week ago friday. we made up last week's losses. range bound as we eye what yields have done and whether the higher for longer scenario is well priced in the markets or there's still, you know, room for more to be done. >> steve, give me a level set where we are here. there were some revisions to the inflation numbers. seems like a couple months ago

there were so many people -- i talked to people in tech saying the fed's going to crash the economy, they're raising too much, too quickly. if anything, it looks like the market has gotten excited to start '23 and maybe the fed needs to do more than people expected >> yeah. let me go back to what mike was talking about. what's now in the market is high for longer mike is right to talk about this idea of higher as in higher than we thought before for longer take a look at the august contract that's at 5.27 average rate is 5.13 the market initially at least toying with an extra quarter point than previously thought. that's higher for longer take a look at the end of the year we used the january 24 contract to show the end of 2023.

just by eight basis points separates the market and the fed now. what's interesting, that was an 80-basis-point gap where the market was thinking what you were talking about you'll have rate cuts at the end of the year. that's been wiped out. now the market and fed are in line with this thinking. and to me the risk is the fed does more than the guys penciled in at 5:40 for year end. that's where the risk is right now. >> mike, talk about the quality of this rally that i heard someone this morning calling it a crap rally as i look at palantir it's up double digits on disappointing guidance total contract value wasn't all that great they mentioned ai and they were off to the races you've had mega caps regain. >> i think january was absolutely characterized by lower quality leadership, which

is a very, very typical january phenomenon so, especially after one of the worst decembers we've had in a very long time to me, it's not something that disqualifies this rally from having any credence there was something more behind it i'm looking at things like the more traditional cyclical sectors doing fine, consumer discretionary on an equal weighted basis looks okay, pockets of industrials as well they don't get a lot of attention because the daily moves don't tend to be all that dramatic i think it's okay. i wouldn't necessarily ding this rally for saying, it's just been led by short covering and people chasing all the old speculative favorite there has been that aspect of it to me that's the side bar, not the main story the main story is market's not cheap. we've had a nice move off the low and we're sort of trying to figure out what balance between a sturdy economy and how much more the fed has to do is currently correctly evaluated by the equity market right now.

>> finally, steve, market's going to start looking ahead to retail sales py wonder how you think influenced january -- there's a big school of thought that it definitely goosed the january jobs print >> it could have goosed the retail sales as well, carl it's interesting you had two lousy months, november and december, to end the year after a strong october. and now we'll see if the consumer picked it up. one little notice factoid, i guess that's what i do for a live on cable television, earnings went up a real earnings rise that's going to be an issue. more people employed and on an inflation-adjusted earnings, and that could help january as well. >> we're not done for the week by a longshot. thanks for helping us kick off the hour.

with cpi coming in hotter than expected, one deings flagsary source is artificial intelligence palantir, member of the ipo class of the last few years popping after beating on top and bottom lines for q4 after first profitable quarter ceo tells investors, quote, when we were starting out many doubted our ability to evolve beyond anything more than a specialty software to a handful of government customers. they were wrong. still, profits are there but business is bumpy. total global contract value fell about 70% from the third quarter and more than 40% year over year showing maybe business isn't quite as good as he was imflying they talked about chatgpt. chief revenue officer says there are many different ways we can integrate it, but didn't exactly

elaborate on how they would do that. >> cost controls are the new revenue, is what it feels like i've been taking attention to altrx, popped 6%, popped another 9% they also have costs under control. another company that's been really in the data and analytic space and is beginning to talk about what happens when you can layer some ai on top of that investors just need to be really careful i think, carl, about distinguishing between what's data and analytics and what's ai all of that can be important think about how that measure ss out in the steak who gets to use it and who gets the margin benefit. >> it's interesting we're talking, jon, more about that than whether you and i are going to search with chatgpt there's a building argument that the low cust of the activity will start in enterprise stack,

maybe not at home. i've been playing with bing powered by openai and gpt. it's interesting i keep going back to it. is it perfect? it is want especially searching in financial information. sometimes it gets mixed up between a fiscal quarter and calendar quarter, dee. sometimes it gets numbers completely wrong you have to check its work >> that's going to happen on day-to-day use what was amazing that we glossed over is that the demos microsoft used at that event had incorrect answers as well, even when they compared to financial spreadsheets to financial reports. they had numbers that were wrong. this was a demo. i understand it at the consumer level when you're playing around with it, but google got a lot of grief for its incorrect answer and it feels like bing is going to have that problem as well which, jon, i know you're with me on this

as a reminder of the responsibility, the fact-checking you still have to do still very new technology. >> the issue is google had problems in the materials they put out to market what they could do it's another thing if somebody's in the demo area with bing and finds errors in it it just sort of shows google wasn't ready to get this out of the oven ai companies could motivate an entire generation of workers to upscale. 82% of full-time office workers who fear automation could replace their current role, their motivated to improve their skill set, according to a new survey from jeffrey's. the firm sees platforms benefiting from the shift, pointing to corsara and udemi, both up double digits year-to-date there's an interesting dynamic, though when the economy is feeling pretty strong, as a lot of it does, say, outside of growth tech, people don't want to go to

school that's why cheg was suffering because a lot of those younger, potential students feel like going out and earning a check. >> certainly ever since we exited the worst of covid, dee, and wages skyrocketed, the incentive to study has gone down there's this interesting conversation i know jon and nadella got into i it. >> it's something amazon and other tech companies have been talking about for a long time, the ability of automation and ai to free up their workers for other skills interesting cheg was not mentioned in that jeffrey's report it's down more than 30% year-to-date again, highlights some other risks of new conversational ai products and that is plagiarism and ip theft. now let's get to kristina

partsinevelos for a news alert. >> i want to talk about shares of silvergate capital. they did pop 9.5% for 45 minutes this morning that's because citadel took a 5.5% passive stake there was a pop and that was because the move was disclosed in citadel's 13g filing. the 13f -- it's not the 13f. it's an interesting move given silvergate is a crypto bank, one of the most shorted stocks in the past few months, according to cnbc data citadel joins blackrock which also took a 7% stake in silvergate as of january 31st when they filed with the s.e.c it shows citadel and blackrock are both in silvergate, a crypto bank. >> thanks so much. still to come this hour, the ceo of global foundries with us on the heels of earnings,

announcing a deal to supply chips to gm. iac with its results and airbnb, quarterly numbers after the close, one of the few sharing economy companies to report a profit in consecutive quarters and on the heels of marriott as well [music - cover of blondie's “dreaming”] [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪

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welcome back take a look at global foundries. top gainer in the nasdaq up 7% this morning after delivering a beat across the board in q4. mixed guidance for the current quarter coming days after the company announced an exclusive new partnership with gm. in a first on cnbc interview, global foundries ceo, tom caufield a lot of folks liking, they know you tend to guide conservatively and the gross margins look good. tell me, first of all, about this gm deal and how this fits in to what customers really want post-pandemic, bringing supply in a more kind of streamlined

fashion. >> first, good morning, jon. thank you for having me on the show i would be remiss if i didn't want to thank our team once again for delivering an outstanding 202. and a strong close to q4 in the face of strong headwinds look, the auto play is, as companies look forward and see how much semiconductor content their cars will need, they need to get ahead of that curve they need to create capacity on technology notes that bring them the features they need for the automobile they want to be built in a place in the world where they want it they want it secure. and they want the best economics. that's what feels like this, that we did with gm. >> so, what is happening also to longer term contracts that customers signed with you during the pandemic, say, 2021, when they were desperate for supply

and it was hard to come by in this environment, how were you able to serve those customers' needs and also lock in the economics your investors want to see? >> i think we need to take one step back. the journey of creating those long-term agreements really started five years ago when we pivoted the company. where we needed to convince our customers that we had real differentiation. they could rely on our execution and rely on us to be a financially sustainable company. it was during that journey our customers then saw a differentiation, were willing to bet in partnership with us these long-term agreements are not just to protect gf and making sure we have the capacity or demand against the capacity we've been investing in, they're for our customers to make sure they secure their supply chain these long-term agreements, as they were structured, are delivering on that for both. both our customers and us as we work through this inventory correction we see in our industry >> let's talk for a moment about one of the things that in my

mind distinguishes you you're not focused on leading edge process technology in every case so, what's happening in the pc market doesn't affect you as much as it effects some others but you did have some good results connected to consumer markets. talk about what you're seeing there and how that's going to effect you for the rest of '23 >> very good we have a good share of our businesses on our smart mobile devices where we have feature rich semiconductors that have all the features on a smartphone, whether connecting to the smart tower, securing pay transactions, audio functions. that's the type of feature rich silicon we do. in the fourth quarter in particular, in 2022, our home and industrial had tremendous growth for us. automotive business had great growth in fact, we were earlier looking forward thinking we would have a

fourth quarter run rate of revenue at 2023 of the $1 million market on a run rate and now we see we're going to bump our heads against a $1 billion auto business in 2023 alone. to think in 2020 that was under $100 million revenue for us. it's these markets growing in the semiconductor conduct. maybe unit sales are not growing up with automobiles but the content of semiconductor content is creating that demand for us. >> what are you doing on costs given you have some areas that are growing nicely are you able to do that with your existing workforce? have you slowed down hiring? >> yeah, we announced in the fourth quarter of last year a rebalancing of our head count. we're a manufacturing company, managing cost is in our dna and we do this all the time. we'll continue to do that through this inventory correction and we'll continue to do it even when the industry comes around again

that's just the nature of our business. >> absolutely. tom caufield, ceo of global foundries, thank you >> thank you and up next, a gap profitable company in the sharing economy. it's not exactly common these days but airbnb reports with shares up 35% year to date we'll break down what to expect when "techcheck" returns

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expectations can build for airbnb with shares up 2% results suggest revenue and booking growth above street consensus. that sent shares up 7% yesterday. we'll see if that carries over to the actual results. airbnb outperforming the sector this year. investors will be watching average daily rates, inventory and quarter-to-date trends guys, i'm reminded of what expedia told us last week, seeing a normalization of

rentals and hotels you wonder if airbnb has a hotel supply to meet demand increasing on its platform. i remember there was a time when airbnb was actually going to build and operate its own hotels that was a very different company. one that likely would not have reached this gap profitability to quickly, jon. >> airbnb went into aus austary they have tough comps these days, given how well they did. i wonder if they are going to have to do more of those adventures into new businesses in order to keep this going. >> like -- >> meantime, you look at marriott's rev par up 5% versus '19 but the guidance, they're talking 6 to 11. whatever downdraft there is in

excess savings, at least the hotel chain is not seeing it yet. >> i think the commentary we've heard from airbnb consistently is they keep seeing demand has been really strong quarter-to-date trends will be important. they do speak to that. wernd get that if people are traveling more internationally, are they looking to home sharing versus hotels that will be a question. >> right as the seasonality of the days of the week has completely collapsed as we adopted hybrid work models around the world. check out lyft a couple of downgrades to neutral after that 35% drop last week you can read more about that on cnbc.com when we come back, the chief of iac we'll talk ad market, q4 results and why now might be a good time to hold onto gains dow's down 220 we all have a purpose in life - a “why.” no matter your purpose, at pnc private bank

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a couple hours into the trading day on this tuesday. a check on markets stocks are definitely off the lows nasdaq down more than 1% in earlier trading. currently you can see 11824. some of the big movers at this hour, first solar among the worst performers after evercore downgrades that to in line nvidia is moving higher. b of a raises its target saying the ai arms race could lead to a big acceleration of

data center sales in the next five years and a vis with a big fourth quarter, saying performed above 2019 levels. let's get an update with contessa brewer. the u.s. needed two missiles to shoot down a still unidentified object over lake huron. general mark milley told reporters in brussels, quote, the first shot missed. the second shot hit. he said the first missile landed harmlessly in the water. vice chair of the federal reserve lail brainard and jared bernstein, an economic adviser for joe biden when he was vice president, are expected to be named to top white house economic posts after today's market close, according to reuters. last week cnbc reported it was likely they would get those jobs. and president biden is celebrating what he calls an historic agreement for air india to buy 220 boeing jets with a list price of $34 billion.

he says the purchase will support more than 1 million american jobs in 44 states jon? >> thanks. this morning's hotter than expected inflation data giving the fed more reason to continue its hawkish policy and with higher rates comes the end of the free money era feels like it ended a few months ago. forcing companies to revamp their growth strategies. >> you can't just buy market share with the weight of money and be successful. so, there were some winners, but that was a bad strategy overall driven by cheap money. back to basics means you have to invest in businesses that grow market share, that have new products, that have acquisitions the market is -- has come down some companies are still overvalued. >> here to discuss matt higgins. also the author of "burn the boats," which launches today

i don't even have to hold it up because it's on the screen i'll hold it up. >> thank you happy valentine's. my gift to you. >> that means you love me. >> i do. >> what does this mean for direct-to-consumer companies we have some in tech, some powered by tech, some didn't raise enough, some are public, and maybe their models aren't fit for this environment. >> the era of free money is over but the boom times were great. ten years of digital adoption was compressed into 12 months during the depression. a lot of these dtc darlings became dependent on cheap acquisition. the world opens up and it's hard to compete customer acquisition costs are through the roof supply chain, your costs of goods are through the roof the model is temporarily broken. now the vc community is paralyzed. we're all waiting for some clarity as to which way the economy is going what i found, and i teach a course at harvard business school on this topic, we just had all the founders in, i think

a lot will have a hard time raising a series b there's going to be a wave of bankruptcies and consolidation. >> what do you think that means for investors trying to assess which companies have business models that will be healthy into the future you could argue the likes of a shopify, which supplies tools to smaller businesses, including customer acquisition tools within an app store could better, or you could argue, maybe they won't have as many customers around to do business because some of them are going to go bleh what do you do >> we don't have a demand problem. i would be looking at infrastructure i think shopify long term will be a winner. they were talking about omni channel, the word, is gone everyone understands channel conflict is not a thing. you have the major players moving into dtc and they don't care if it competes. so those companies able to adopt with tools that enable lower customer acquisition are the

winners. i can't believe i'm going to say this hopefully my kids don't see this, but i'm about to give a plug for facebook. what facebook is doing with advantage plus, using ai to help dtcs acquire customers saying, i can't figure this out, you do it, and they're returning amazing results. i think facebook would - >> dad, you're such a boomer. >> i can't help it i had kim kardashian at school. >> to counter your facebook usage, you had kim kardashian drop into your course. what did she tell the group? what is she doing at skims that perhaps no one else could? >> the premise is tiktok is your kid's google they're turning to tiktok for search the real winners like kim are able to reach those customers directly and subsidize their acquisition costs because they're in the conversation.

so the winners of the next year are going to be the storytellers everyone can learn from kim kardashian the restaurant on main street can realize, if i'm in the conversation, i don't have to pay to insert myself into the conversation >> right so for other brands that don't necessarily have kardashian star power or tiktok power, what happens to them? the d to c companies that went public we can't even mention anymore because they're penny stocks is there an opportunity for some of them to be acquired, be takeover targets of the walmarts and amazons of the world building their own private label businesses and might like to have one of them in their arsenal? >> at the end of the day, there are still some great ones. i'm a believer in allbirds they'll figure it out. some might have gone prematurely with spac. it's all about ltv, lifetime value of a customer, figuring out more products to sell that customer that can enable you to justify customer acquisition

costs. how do i sell more things and how do i get my customers coming back more frequently >> kim companies full on build in acquisition, engines ontic tok, or is tiktok just a digital version of a big white balloon hovering over the u.s. with cameras in it, watching what everybody's doing and eventually the government's going to shoot it down? >> are these mutually exclusive thoughts we used to give facebook a hard time for taking our data but tiktok, that's fine. you can build a massive business on tiktok. everyone who's not investing, i don't care what business you're in, you're making a massive mistake. bobbie brown is in her 60s it's doing okay. she put the camera on herself, embraced tiktok and doing incredibly everybody can embrace tiktok until the government shuts it down. >> that's right. matt higgins, author of "burn

the boats". >> an all-star lineup at harvard business school, we should add. the ceo is with us next for more on the quarter and ad market from iac. coinbase falling 20% in the last week. has the risk-on rally run out of steam for coinbase we'll talk to one analyst looking for the company to make a few very specific investments to accelerate growth "techcheck" will be right back

welcome back iac with a beat on the revenue line let's get over to julia boorstin who joins us with the ceo. >> thanks so much, carl. i'm joined now by joey levine from iac fresh on the heels of the earnings call. thanks for being with us. >> glad to be here. >> on the call and in your letter to shareholders, you talked about cutting costs and focusing on basics tell us what your outlook is overall for this year? >> iac overall we're planning to grow meaningfully on the profit side and that's because we make huge investments in 2022 some of which are continuing some of which are not continuing we had an opportunity to cut back on some of those costs and

focus on the basics and i think we have the opportunity to grow profit in a meaningful way this year, which is what we pointed people towards. >> one of the most interesting things in the call and also in your letter to shareholders was about m&a. you talked about mm& a what type of deals are you focused on right now >> probably the most attractive place is public companies. first of all, there's a lot of public companies that we're involved in. also when you look at the market, i think the market treats things more honestly, more quickly than the private markets. we talked about this a lot, how private markets take a long time to adjust. public markets have adjusted to a new reality, a new price of risk i think now that public companies are starting to get comfortable or used to their new prices relative to the prices they saw 12 months ago, i think you'll start to see transactions happen later this year

i don't know about for iac specifically for us it's more if there's a specific opportunity at a specific time and we're focused on the individuals i think generally as people get involved in this new environment, you'll see transactions pick up generally. >> talk to me about the different sectors that you see opportunity in right now you're in so many different types of businesses between turo and care.com and gm and the betting space. is that an area you want to invest more in or buy other companies in what are you looking at? we love those areas. generally we're still seeing consumer spending a lot. corporations, advertising market is still weak but consumers are still spending in areas where consumers are spending, we see the benefit of that turo is doing phenomenally well. mgm is doing phenomenally well we like those businesses and those opportunities. and new categories, too, is

somewhere where we'll look any time we look at opportunities, we're value waiting that against internal opportunities. the consumer still spends. i don't know that consumer spending is going to last forever. i think there's underlying signs that would worry us on the consumer's ability to spend forever. we do expect that spend to pull back but for now they continue spending >> you have interesting insight into the consumer spending market on one hand you have angie's list and you see what people are spending money on when this comes to doing projects around their house but you also have insight into the labor market. you have this health care employment market, vivian revenue doubled and exposure to the ad market. are there any trends or things you've seen in the past couple of months that give you insight into what 2023 could be like >> again, consumers still spending it surprises us. it's amazing

labor market's still strong. obviously a lot of people have seen layoffs in the tech market and those kinds of businesses. that doesn't seem to have made a big impact we're still seeing it challenging to hire certain employees and those things are tight. vivian, the health care marketplace is doing phenomenally well. health care is perpetually understaffed so, they're a beneficiary of that and independent of anything in the macro environment, i do think health care will be understaffed for the foreseeable future so, those are some of the trends we see but ad market overall and corporate spending still pretty weak >> i have to get your thoughts on genretive ai. you have asked jeeves, which was meant to be that kind of conversational search engine you compete with google, which has invested a lot in this

space, as well as bing is this a threat is this an opportunity where do you see this going for iac and your companies >> i think we were too early on ask jeeves it didn't have the product to support it any new technology is a threat and an opportunity we look at it from both angles and we have to study it and prepare for it on both angles. i think it does have the potential to disrupt the search landscape to some extent where it will mostly disrupt is people -- i think people getting sort of commodity content and generally the search engines have already hoarded the commodity content, meaning they don't send that traffic out to other sites anymore. they keep that traffic themselves i think there are stats now that google keeps 50% of traffic on its site right now that's generally around the commodity content. what we're excited about and what we do with dash meredith is

differentiated content, where weave done the real work to going to stay in a hotel or testing a product or trying on the shoes ourselves or working the vacuum ourselves, we put our brand and experience and multimedia around that, we think that is a really exciting place to be relative to some of the automated things but the opportunity is this helps a lot of people creating content. i'm looking forward to starting to use chatgpt to write our shareholder letters at some point. that would make my job a lot easier in all of our businesses, there really is opportunity to use this technology to improve efficiency. >> well, we'll have to figure out if we can guess which part of the letter was written by chatgpt and which part wasn't. thank you for joining us today iac shares up about 4%. >> thanks, julia >> i just hope he doesn't use it to collect the financial results, julia we saw how bing did with that. interesting conversation there

i like how he started with profits. he said planning to grow meaningfully on the profit side. it feels like in this market environment, a lot of companies are focused on delivering value to shareholders in terms of stream lining and efficiency, but that top line revenue growth, once we get through all the cost-cutting, that's going to be important. and i would like to hear a little bit from him on that and how revenue is going, and if that's the thing from companies we look forward to continue this year >> certainly there's a lot of opportunity just in the variety of spaces that iac operates. if you look at the turo, effectively a car share market, car rentals, and then you look at angie's list and care.com, the factthis is such a diversified business with touchpoints at so many different pieces of the economy, it has its challenges but also has

opportunities. i'm focused on the ad market at the various companies i cover. people are describing it as choppy and challenged. it seems like maybe it won't be challenged for that long there is this anticipation of a rebound in the ad market or at least stabilization, perhaps even a rebound in the second half of this year, dee. >> and he was optimistic on deal activity, saying you could see transactions later this year during february we're celebrating black heritage through the stories of some of our cnbc teammates, contributors and leaders in business. here's vista equity partners ceo robert smith >> today one of the primary barriers to access in african american communities is internet connectivity affordable, reliableable internet activity is something many of us take for granted. 40% of african american households don't have exist to broadband. as a pandemic has shown the internet is no longer an

accessory, it's a necessity. if we can provide access to digital infrastructure, we can provide more on-ramps to opportunity.

coinbase stock is having a rough mark the ceo taking aim at the s.e.c. after competitor kraken paid a

settlement they expect it to be a growth driver our next guest notes that the company is less exposed to net staking and he sees the sell-off as overdone ahead of next week's earnings joining us now, owen lau can you explain staking as if i was 5 years old and how you can get a yield of up to 20% >> first of all, thank you for having me. i don't know how to explain to get a yield of 20%, but staking is a way, it's a consensus mechanism that you can get a reward if you participate in helping the transaction in blockchain so the reason why i think coinbase is oversold, because if you look at the income statement, i know many analysts put out a 10% revenue contribution for staking from

coinbase, but if you look at the net revenue, we estimated that the net economic impact to coinbase is only 3%, so that's why we think the stock is oversold. >> i'm not sure my 5-year-old would understand that, but we'll move on. let me ask you this, staking as a business was supposed to be part of coinbase's diversification with fees coming down so much and trading remaining subdued amid the crypto winter. so where does coinbase diversify to if it's not staking where and how is coinbase going to diversify to justify the target of over $70 that you have >> there's a couple of ways coinbase endeavors to booichlt the number one is a stablecoin they have a revenue share agreement with circle, which is a stablecoin issuer. they also get the interest revenue and coinbase share the interest revenue and book the income into the income statement

so that's one way coinbase can diversify away from trading. the second way coinbase can diversify is go international. that's why it's one important thing in the united states coinbase can get additional revenue outside of the united states it can be -- go ahead, sorry. >> no. i just wonder that idea that it would go international, then it's competing with the other platforms that are way less restricted and feels like it would have a very difficult time offering the same yields and products >> so, first of all, i think coinbase has the brand, has the global recognition this is time tested. this company is better tested. and they would be accepted and recognized internationally so that's the first point. the second point is i think after the collapse of ftx, consumers are smart enough to understand that sometimes they may be paying a premium for

quality. so i wouldn't just look at the cost and the yield to gauge the success of whether coinbase can go international because i think consumers are way smarter right now. >> we didn't even get to the institutional side which i know is probably built into your bull case too but perhaps another time owen lau, thank you very much. uber inking a deal with a couple of big cloud providers. we'll break down uber's efforts to cut costs and modernize technogy wee ckn o.

one more thing uber hitting the brakes on its own data centers, forging deals with both oracle and google to move its i.t. fully into the cloud in the next two years. the motive here at least partly saving and making money. uber is getting oracle to designate it as its primary ride-sharing partner globally. it's also able to use some

google technology to cut its cost of serving its own customers. so it looks like there's some creative deal making happening here and enticing a big customer into the cloud. >> the most surprising part of the story was that uber had so much on prem in the first place. it tells you there is still a lot of room for this and maybe we are in the early innings to moving to that infrastructure. >> i've been saying that. >> and this is good proof of that but i remember drop box was seen as cost savings. maybe that's being turned on its head again. >> in the wake of covid, obviously trying to do better vendor stacking. but there's a lot of share shift going on in the business as companies have to be a little more surgical and invent i've when it comes to managing their

own costs. >> there is a lot that goes into running these businesses that is not optimized in the cloud. >> a very busy day here. the dow is down 350. the market had been in a period where equities and yields were higher that didn't last too long. not much breathing room between this morning's cpi printing and tomorrow when we get retail sales. let's get to the judge and "the half." >> welcome to "the halftime report." i'm scott wapner the road ahead for talks and what the cpi does to the market outlook. we are joined in moments by jeremy siegel. also stephanie link, jim laventhal and steve liesman. let's first check the markets and see where we are just past 12:00 noon the dow is down 1% that's 343