visit coventrydirect.com. good thursday morning. i'm carl quintanilla with sara eisen live on the floor of the new york stock exchange. setting the agenda today, david roeflz as facebook parent soars after crushing earnings. the year of efficiency starts to pay off. hasbro with us, boosting that stock big time, his take on the coming transformer film as well. similar story for tele doc,

trying to climb back, up 9% for the year ceo will be joining us later on this hour. >> kicking off with stocks this hour going strong today we're breaking a losing streak in and the s&p is up 0.8%. it is broad led by communication services, thanks to meta you see the rally in multiple sectors. the nasdaq is up 1.25% topping the tape, an uneven response to earnings mega cap stocks lifting the market in the last few sessions but for other names, the street not necessarily to believe that the positive second half narrative being pitched on the earnings call will come to fruition that trend is what cnbc senior markets commentator mike santoli is looking at. it does feel broadly more positive than we expected going in. >> i think it's definitely more broadly positive on the reports, relative to expectation and even the guidance, i think, is lending some support if you look at the market response to earnings, there's been a few heroic upside

winners, the mega caps, not just microsoft and meta, but then you also have chipotle yesterday was another example. it's covering up for a lot of mixed response we're not doing a whole lot of damage to the full-year consensusearnings estimates. that's a good thing. i think the earnings season is something the market needs to survive, not use at an upside catalyst you want to get through the back and forth. implicitly, a firm guidance after you've beaten in the first quarter, means you might be more conservative by the remaining three quarters and then you have general skepticism that if you're in cyclical sectors, they can make it up in the second half that's where the debate lies. >> we are compiling lists of companies that did raise for the year one of the response is, a lot are in health care lily and merck >> no doubt about that if you look at the auto parts area, even with gm had to say, it's like, okay, we know that's your aspirational goal

we'll see if you get there now, in terms it of the overall market, if you don't look inside it, it looks okay. it looks like a regular pullback the s&p 500 hasn't gone below its 50-day average it went back to where it was a few weeks ago. below the surface, if you care about the breadth of the market, if you care about how inclusive it is, it's not necessarily been as encouraging. >> what i think is the markets taking the inflation number inside the gdp report well bonds reacted to it. they sold off, saw higher yields it makes you wonder if the fed will really be able to pause after raising rates next week. it was the highest in more than a month if you take out food and energy, that pce deflatdeflator >> the dollar popped the fed might not be as dovish as previously thought. 1.14 gdp is what it is again, they considered by powell's acknowledgment, they considered pausing last time because of the regional bank

turmoil. has that gotten better has that gotten worse? are we calling off the emergency? i think we'll go back and forth on that for a while. is may the last hike or not? i keep saying, the market's been able to deal with this fed discloser in large part because it's a quarter point every six or seven weeks it's not that big of a move and you have a lot of time to figure out exactly where we're headed. >> you have copper, lowest since the beginning of the year. oil has filled that opec cut gap back below 75. maybe that's helping out. >> a little takes the edge off >> as sara said, meta is the mover of the morning, hitting its highest levels since february of last year. posting beats across the board for q1 zuckerberg's year of efficiency does seem to be paying off stock's up 60% since he made that call back in february and 100% on the year joining us, wedgewood partner,

david. i know you've been pounding the tablg on it for a while, but are they putting things together in a way that even you didn't see >> yeah, they are. the quarter was a tour de force, carl if you take zuckerberg at his word that there's still a lot more to do, i think estimates are still too low. the consensus in those dark days, just six or seven months ago, carl, the consensus for 2024, sell all the way to $12.50 as we sit here today, it's raced back up to $17 a share 2023 is in the bag when you start thinking of 2024, if you squint a little bit and think improvement can come to a pace that maybe zuckerberg is hoping for, you start getting earning power close to $20 a share. throw 20 multiple on that. that's a $400 stock.

i think there's plenty left in this stock over the next 12 months. >> we had jpmorgan on last hour. they go to 305 not quite 400. we had a big discussion about how they manage executing in the near term and yet continue to invest but then show cost splin. this operating expense figure is coming down a bit. capex jpmorgan said could go up in '24 it's interesting we're no longer in a period where the street is looking at that. >> it's been a high wire act certainly last fall, you know, the ceo, mr. zuckerberg, fell off that high wire, regrouped. he has considerable breathing room to spend that 4 plus billion in capex, probably ramping up when you think about where the stock last time was at this level and all of those negative headwinds were just starting to

come to the fore, and now look where we're at so, i am actually thinking, it's kind of surprising to hear this, carl, but i think the stock still may be on their own. i'm seeing it in a variety of portfolios, certainly grow core portfolios and even large value. there aren't many stocks that are going to have this size that are going to have this type of earnings acceleration for the next 18 months i think it might be underowned stock probably has to rest for a little bit here, but the acceleration in earnings over the next couple of years is going to be a sight to behold. >> is the listen here that you just have to be careful with which tech stocks you own in this environment you know, they're subject to macro risk, they're subject to inflation risk and higher interest rates, which we were just talking about, which might come, but after microsoft and meta, all the reasons that we hear that everyone is so bullish have nothing to do with the macro environment, which

everybody says remains challenging. >> that's a great point. some of the other tech stocks in our portfolio, the numbers weren't so hot i think you would call alphabet a minor plus we own cdw that was negative. so, to your point, it's -- tech isn't a machineono lit. i don't think you can call it faang. it's company by company, but back to meta, wouldn't it be great if we owned a grocery store and 3 billion people came through the doors every day? it's -- you know, it's a global giant, but in the big scheme of things, maybe it isn't as big as we think when we just think about the size of the market cap here in the united states and the move of the stock. it really shot us some pessimistic lows last year probably never should have gotten that low to begin with. in comparison to six or seven months ago, i would like to make

the case it probably never should have gotten down that low. it did this rise is more than deserved. >> just on that point of picking winners and being able to spot losers, you were on with us at the end of last year it was a tough year for growth managers this year probably feels better. i'm wondering you've made any portfolio moves given the environment we're in and the kind of year we had last year. >> nothing dramatic. we nibbled on a little bit of alphabet we've been nibbling on taiwan semi quite frankly, probably the best move we didn't make was selling meta in those dark days a few months ago, six months ago there was a lot of reasons to sell it. you know, broken growth stock, the thesis has changed, it maybe wasn't as bad as those very difficult conference calls were back then late summer, early

fall >> there was some discussion this morning, david, on why the semis were trading so heavy. we got some decent commentary about memory from samsung. they appear to be bringing to an end sort of stuffing channels. again, one of those stories where how long are you willing to look through the trough in pricing in the peak in inventories, right >> right we tend to be patient. we're patient on taiwan semi we know it's going to be a difficult year i think a kourm of months ago we thought it would be just a difficult first half of the year looks like it's going to later this fall. again, you know how it is, carl, with -- i love when too many people focused on the short term and knocked stocks down to where maybe they're not even thinking for two years out. so, that's the reason why we've been slowly accumulating taiwan semi love the stock earnings maybe aren't so hot for

the next couple of quarters. that's okay. we think next year is a reasonable rebounding year for them and the stock probably hasn't priced that in yet. >> maybe we'll talk geopolitics related to that next time. as for meta, it's definitely a top ten day going back to the ipo. david, thanks. >> thanks, carl. after the break, the ceo of monopoly maker hasbro is with us the consumer is embracing the shift to digital he'll give us his insights into the strength of the economy and outlook for toy sales. stock up double digits. caterpillar with a 31% jump in profits that stock moving lower, however, after saying they see further weakening in china the ceo will be on "mad money" tonight at 6:00 p.m. eastern time stay with us on "squawk on the street." we're just getting started dow's up 150 points.

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take a look at hasbro, big mover. shares up 11% after delivering a beat across the board in the latest report. a surprise adjusted profit on the quarter. forecasting flat to declining toy market in 2023 joining us with his outlook in a

cnbc exclusive interview is hasbro ceo chris cocks welcome back top good to see you. >> thanks for having me back. >> help explain this quarter to me i get profitability was a nice surprise but we're talking about declining in revenue and declining in the different categories, but clearly a big step in the right directions how does it look to you? >> we definitely came in with pretty reserved judgment about what the quarter was going to do in the first half coming into the year we handily beat our expectations we did that based on strength in our overall gaming portfolio, specifically magic the gathering, up 16% year over year and we had nice strength pockets. p play-doh was up, peppa pig was

up hasbro is in a turn-around and that turn-around is taking hold in q1. >> inventory is a complaint. what's the progress look like there? >> so, on inventory you have to look into it retail inventory is down 15% year over year our own inventory is up a bit. that really has more to do with magic the gathering and how we build sets in advance of q2 and q3 and stocking up for a huge content lineup in q2 and q3 on action figures including transformations and marvel properties coming to feature film and streaming if you take away those two aspects, growing parts of our business, our own inventory is down in q1 and we expect it to be down substantially in q2 and q3 >> magic the gathering, the

crown jewel, what is that driving that continued strength? >> i think we have a good focus on the consumer. we're doing a good job of bringing in new players, existing players and we have new initiatives like universe beyond we launched the first one last year it involves collaborations with other popular ip our first was with a game called war hammer and we're on our fourth reprint for that. we have a huge one coming up in q2 with lord of the rings. that's already setting records for preorders. >> something that's gotten people's attention are some of the licensing agreements with mattel i wonder is that like pepsi and coke working together? how unique is that in the business >> i'm a fan of mt dew and coke. we have licensing agreements i'm excited with the mattel

collaboration. it joins collaborations with other companies like spin master, lego and other smaller movers that are fast moving. so, it's a way for us to extend our brands, monetize our ip and also leverage our own cap for things like a barbie crossover with monopoly. >> we keep talking about the consumer's apparent unending willingness to spend some excess savings. they obviously have a lot of confidence in the labor market it's very hard to get ceos or earnings calls to predict when that runway ends, right, because it's gone on a lot longer than we thought how are you trying to model that out? >> we've had a kushs outlook to the economy since, frankly, the beginning of 2022. we know inflation is starting to chip into consumers' pocketbooks and overall savings. we're cognizant of that. when we think about the core toy

market, we're working hard to reduce prices, find value, work with our retailers to have excellent promotions and raise our overall advertising rate so we win share even if the market is challenged. the other side of the market is a fan economy. we're seeing excellent results in that. our hasbro pulse business, direct-to-consumer business oriented to fans was up 40% in the quarter. and wizards of the coast business, a more fan-oriented business, was up 12% in the quarter. we continue to see those growing, and that fan segment, which has a bit more discretionary income and buying for themselves, has a lot of staying power, even in a down economy. >> i'm wondering, because i've been following you since you took the job, you're trying to engineer this turn-around. there's evidence it's working. how much harder that is given we're going into this macro economic environment, that is weakening. there are forecasts for the consumer to really slow down first of all, is that something you're seeing? second of all, is it harder to

get the turn-around going? >> well, you know, i think it's always start to do a turn-around and cost-cutting when you're strong we started that nine months ago so we have a nice head of steam under our belts. it's helping us fund investments, work with our retailers to find inventory management programs. and even in this down economy and relatively challenged toy and games market, we see hasbro doing better than the markets and we see our ability to grow our profitability year over year >> everybody wants to know how the sale of the entertainment app is going, which is part of the plan any update there >> like we talked on the call. we're pleased with the progress and we'll have an update within the next couple of weeks, probably some time in q2.

>> appreciate the time today. >> thank you so much >> thank you, chris cocks. by the way, that crossover he mentioned between barbie and monopoly, like, where was that when i was growing up? my two favorite things in the world. >> number two gainer behind meta today. that's a big gain for the company. still to come this hour, another earnings exclusive with the ceo of teledock, expanding telehealth services to capture the obesity drug market. something eli lilly is making a big investment in. that is up on the back of strong earnings, guidance about its new weight loss drug, and david ricks did join "squawk" earlier this morning. mangaunching new azi products and we announced obesity results in patients with diabetes again, setting a new bar for weight loss and people with diabetes how far we take an idea

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watching shares of dropbox,

the company announcing it will reduce its global workforce by about 16%. the ceo writing in a letter to employees, quote, while our business is stable and profitable, our growth has been slowing. he added that headwinds from the economic downturn have put pressure on their customers. that feeds into the other layoff news this week from the likes of 3m and tyson and amazon and possibly stelantis. >> we saw initial jobless claims rise 200,000 it was down 16,000 from the week before so, again, those mass layoffs, it's not mass. it's not happening in the economy yet. doesn't mean it's not coming tech is sort of the tip of the sphere here. that data was pretty decent today on jobs. >> meantime, european markets set to close in a few minutes. ending the day mixed despite

banks there. that's our story abroad today. typically strong results out of deutsche bank and barclays deutsche reporting 11th straight quarterly profit but had significant drop-off in deposits the company disclosed job cuts for nonclient-facing staff saw a nearly 20% decline from last year in investment banking revenues we saw that across the big banks here barclays, higher rates and 47% growth in its consumer cards and payment division barclays up 6% here's some cnbc pro analysis for you on how to trade those two. over the last 20 quarters, shares of barclays have outperformed the ftse, the main stage nearly 70% of the time during the week following an earnings beat. you can see that trend starting today. interestingly, deutsche bank has historically gone the other way, underperforming the dax, the german market, the week after earnings more than half the time with or without an earnings beat

take that for what it's worth. pretty good track record. >> still strong top line for deutsche since 2016. those are things you would want to see given all the stlresses we've seen in earnings >> remember we saw the cvs rising cost to insure. analysts did come out and say, it's profitable. deutsche bank is in much better shape than it was a few years ago when we were really worried about it the company sort of vindicated that position today with earnings. >> close to session highs here hello, 4100. let's get a news update with courtney reagan. >> the u.s. is working to extend a cease-fire in sudan that brought a lull to fighting more than 400 people have been killed in nearly two weeks of conflict the existing three-day cease-fire is set to expire at midnight local time. daytime television pioneer jerry springer died in chicago today at 79 years old.

the former cincinnati mayor helped start daytime tabloid where chairs were thrown, punches were thrown on the regular. and south korea president performed a republican addition of "american pie" at the white house state dinner it came hours after the u.s. and south korea unveiled an agreement to counter north korean threats president biden said he had no idea the south korean leader could sing one time i saw jerry springer at a starbucks at miami university, being from ohio, and i wondered, is he he going to throw coffee at me? but he didn't. >> he was always polite. it was the guests on his show that were not so much. >> great that's a good sighting he was beloved as a former cincinnati mayor courtney reagan, fellow ohioan. the divide between financials and the rest of the markets. we'll discuss how to position as earnings season rolls on. another all-time high for consumer discretionary name, really a staple name, hershey.

out with a q1 beat, stock is higher for the fourth time in 18 trading days this month. they expect sales growth of 6% to 8%. they had good volume growth as well in north amicera. the stock has been a quiet juggernaut and outstanding performer.

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s&p 4102 a couple hours into trading. let's get post to post with probation pisani >> a lot of companies are beating estimates and a lot are reluctant to raise overall guidance there's detergent, arm & hammer. second quarter guidance points to being above expectation by a couple of cents. you think they would raise the overall yearly guidance. they're not doing that they are raising the low end they said earnings would be up 0 to 4%. you think they would raise a little more considering the beats they're anticipating a couple of companies are bucking the trend.

hershey's is doing this. 268, that's an historic high for hershey's. they had great numbers overall their prior guidance for 2023 we think earnings will be up 9% to 11%. now they say earnings should be above 11%. you want to raise the upper end. when you say above 11%, now you're talking about a real genuine earnings raise for the overall 2023 remember, they not only have chocolate, they have salty snacks as well and they're killing it, all the product divisions. caterpillar is a problem this was $250 a few weeks ago when we were going into the banking issue. the numbers were okay, and they saidish, the company said overall tee manned remains healthy over our products and services there's some concern about weakening in china overall here. and this is being reflected in some of the material names, some copper companies, for example, also weaker on the idea that maybe the china reopening story is not as powerful as we had

thought before that is a big right now in the industrials and a bill issue in materials right now, that china reopening story. sara, back to you. >> the and metals, too bob, thank you bob pisani. it's not a bull market, it's not a bear market, it's a stalemate. that's our next guest's analysis the earnings season everyone was waiting for, no one to be found with an earnings per share beat right 73% in q1. joining us, bespoke investment co-founder paul hickey hi, paul beat rate of very high, 70%. what about revenues, margins and guidance >> what we're seeing is everything is relative to the last few quarters is -- has been a weakening trend. relative to long-term history it's been better than average. this earnings apocalypse everyone has been looking for hasn't quite happened. you just mentioned the eps beat rates. if you take the financials out of the equation, not that

they're a big part of market, but the eps beat rate, 80% the revenue beat rate, 74% financials you're looking at closer to 50%. 60% beat rate on eps, less than 50 on sales. so, outside of the financials, we've seen some relatively strong results to your point about the -- where are margins, you look at consumer staples companies the numbers they're reporting and you listen to the conference calls, they are raising prices even though their input costs aren't going up as much. >> right but i feel they're a little unique in the pricing power they're able to get right now. consumer has been spending and not cutting back in groceries and in travel. it's not universal. >> no, it's not universal. but we have seen broader economy over the last 12 months. tpi has risen at a slower rate than cpi 10 of the last 12 months that's a situation where on a broader macro perspective, producers are feeling less of a pinch than the consumers >> so, if margins are not as squeezed as we thought they might be, does that mean that

companies will be slower to lay off, meaning a better longer-term picture for the labor market >> well, so we are seeing some softness in the labor market yes, you could see that happen but i think what companies are going to do, they're hostage to stockholders, and if they can save money, especially with all this new technology we're talking about these days, that's going -- i mean, they're going to take -- we saw especially in tech, so many companies hiring that even after all these layoffs we've seen, they're only getting back to levels they were at pre-covid. >> which is part of maybe why we're not seeing the broader weakness in the economy and it's still tight overall. why do you think we're in a stalemate market if you're so encouraged >> i'm just describing the back drop it's like trenches of world war i here on the one side you have the bullish camp, this side you have the bearish camp it doesn't feel like a bear market because we haven't made a new low in more than six months, which is very rare. >> you've written a lot about that. >> yeah. in the flip side, when you're in

a bull market, you're usually up 20% by this point. you don't know what to feel. there's so many crosscurrents. each side has a ton of ammo to look at. on the bearish side you look at the economy, the internals are starting to weaken and the debt ceiling. debt ceiling, i think, will resolve -- we'll hem and haw about it for the next six weeks, but eventually we'll get past that and it won't be the disaster that it could be. >> you mentioned the six-month thing, and you looked at -- i think it's 13 instances six months without hitting a new low. >> right. >> in 12 of them -- >> at that six-month point, 12 times a year later, 6 and 12 months later you were higher 12 out of 13 times. what we're seeing in the first months of the year is the buy the dip trade has come back. the s&p on a down day is up 25 basis points on average so far this year. you look at the first four months of every other year since world war ii, every other year you were higher with a median

gain of 14%. there's certainly things to be concerned about in the short term here, but over the longer term, i think we will get through this period of uncertainty and stalemate and resolve it bullishly. >> part of it has to do with the fed, a really big part you study the historical patterns what is the correct positioning into a fed pause, for instance, and then what is the correct positioning into a recession, if that's where we're going >> right well, two different positionings when the fed pauses, when you go back to 1994 when they actually started announcing what their policy was, you look at the performance after the last hike in rates, you were positive four out of five times. there was only one time you really saw the market decline going a year later if you're going into a recession, all bets are off. by the time we -- we all know it's a recession, the market's usually bottomed at that point. >> on financials, there's been work done looking at earnings momentum getting better since

december what do we make of them not playing along? >> financials have been a big drawback coming into this earnings season, sentiment in the financial sector was among the most negative of any sector. when you look historically when sentiment was that weak for financials, they tended to perform well in earnings season. average gain of 5% so far this month, financials are outperforming the market most people wouldn't have expected that. >> that's xlf? >> yes, not the banks, the entire financial sector. and health care is another sector you saw very negative sentiment coming into earnings season and, you know, historically when you get that bar set so low, it's easy for companies to exceed it. >> paul, thank you. >> good to be here. >> you're an encyclopedia. paul hickey of bespoke. the teledock ceo coming up after the break. a big holding of cathie wood's

ark fund check out barnato, commercial real estate company delaying its '23 dividend payment until the end of the year and announcing a $200 billion buyback. street not liking the news at piper cuts today to underweight. want to take a moment and mention today is bring your kid to work today. each is getting more energetic. >> animals and shapes now. it looks like a blast. >> stay with us.

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they lower guidance and reports a disappointing quarter. the company is a spinoff from intel earlier this year. intel reports next the big culprit was china, the auto market being a big headwind there. teladoc a bump after beating on the top and bottom line it launched its new weight management program, helping members gain access to ozempic still a far cry from pandemic highs. joining us at post 9 is teladoc

ceo, jason gorevic >> good to see you. >> the landscape is changing to quickly. how are you communicating what's different and how the pace has changed? >> it's certainly a dynamic space. we have a whole suite of cardio met metabolic solutions. we started with mental health and then went to diabetes and hypertension now, of course, pre-diabetes and weight management. all of those together really then take advantage of the glp-1s and other medications it's important it's done in a way that's clinically overseen and part of an overall program not just the medication but nutrition, behavior change and monitoring someone's biometric information. >> so, long-term opportunities here and, two, does -- do you think the investor base and client base truly understand what's

happening? >> i think the client base really does. you know, the cdc estimates that obesity costs the u.s. health care system over $170 billion a year so, our clients are looking for us to lean in and help them manage that cost and deliver better clinical outcomes for their populations. >> some analysts were wondering why you didn't just go direct to consumer like weight watchers and others with this product obviously, the category is so hot right now. >> yeah. i think the medications can be seen as a silver bullet, and it's really important from our perspectives and for our clients that it's part of this overall solution that's focused on managing disease, especially obesity as a contributing factor to that disease. >> how do you think about the virtual health landscape post-covid right now even the -- even the analyst communities says it's still very cloudy, how it's all going to shake out. do you foresee a period where the stock gets back to prior highs or was that truly a black

swan period we were in >> when we think about health care, we don't think about virtual care versus nonvirtual care we just think about great health care simply great health care can be delivered in a multimodal fashion using the medicaid

market we see consumers as they flow through commercial and government programs. >> last couple of weeks we've seen examples of an hca or intuitive where at least procedure growth is back, right? people are sort of done worrying about going to the hospital, certainly, at least the engagement with your medical providers seems to be on the uptake, would you agree? >> i think that's definitely right. i think people are investing in their health as they do that, they're reaching out to companies like teladoc health with a full suite of services. >> you note some of the criticisms around the stock. they're still there, right, on the future of telemedicine, but on the numbers as well still negative cash flow, right?

ebitda. >> we definitely said we expect over $100 million positive free cash flow this year. cash flow is really important now. a lot of -- we've seen a lot about small competitors and new entrants into the market most of those are venture-backed companies who are in a tough cash-raising environment, burning through cash i saw something recently that said 44% of digital health companies have less than 12 months of cash on the balance sheet. we have almost $900 million in cash on the balance sheet. again, we'll throw off over $100 million of cash this year. >> you get more inquisitive rather than less >> i think we can be opportunistic. we're definitely seeing some companies struggling to get to the next fund-raising opportunity and to the degree we can make the financials work along with our strategy, we can be opportunists. >> what's the most misunderstood thing do you think about the story right now? >> i think people think this was

some sort of a pandemic fad. we're clearly past that and we put up 11% growth in the first quarter. >> good to have you in thanks for the time. jason gorevic joining us. >> meta and microsoft both surging this week after reporting results. amazon is on deck tonight. how you want to be positioned into that print next. watching hertz as a mover. travel demand stays strong the ceo telling me march was considerably better than february, both pricing and demand it's spilling over into april as well when i said, are you bullish because you have such good, strong pricing power he said it's actually more demand than pricing. pricing is relatively stable from last year at very elevated levels no sign of abatement in this strong travel demand we have seen across airlines, hotels and now rental cars. hertz is up almost 3%. stay with us from hvacs to elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it.

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wrapping up some of this week's big tech earnings amazon after the bell. investors watch are for growth in cloud computing unit aws. that is the focus of today's tech check >> yeah, amazon rounding out this week's big tech earnings. it's not over, apple reporting a week from today. here's what to watch out for with amazon. continued deceleration in aws cloud growth expecting $21 billion in sales aws missed 12i789s in q4 last year, a sign they're trilling

cloud and i.t. spending expecting 13% growth year after year down from 20% in q4 now, that mirrors what microsoft reported tuesday with its azure cloud showing growth to 27% though a up smaller base than aws and advertising, despite the tough environment, it is fast growing and analysts expecting over $9 billion in sales and meta's surprising resiliency, unexpectedly growing in q1 and e-commerce and amazon, the pandemic shopping boom is basically over resulting in a deceleration of growth in that division, the ceo telling andrew ross sorkin he's seen consumers trading down and looking for deals and all of this is coming, of course, after massive job cuts in the middle of laying off another 9,000 employees in aws and hr and that's on top of the

18,000 job cuts already made for a total of 27,000. and even more cost cuts, just yesterday amazon canceling its connected fitness gadget called halo, for example, and then on the ai front that's a cloud story. aws is pitching itself as a neutral ground to host rival ai services to microsoft's deal with chatgpt and openai, guys. >> i don't know what that means but i guess we'll learn more about it on aws is the feeling they're losing share to microsoft or that the pie is growing more than expected and it should be a tailwind because amazon has outperformed since that report. >> exactly it's not necessarily they're losing share, it's just that people are trimming their budgets. we heard this with microsoft we saw even though google cloud was -- they said it was profitable last quarter for the first time, but, yeah, it's still the same breakdown as far as market share, sara. >> are we in a race right now to

see how many times each company can mention the phrase ai. >> 60, 70 times in a call. >> whether or not that's a proxy for the gap on earnings. either way. >> that's right. i like what josh brown has been saying on "fast money" expecting ang ai bubble because we're talking too much about ai right now and maybellining too hard on what that could mean but at the same time what we heard from microsoft on tuesday night, nadella saying we plan to make money on this. another product they can sell to people and benefits the cloud business amazon is a little behind. they do have that capability but t not as robust as microsoft. >> the companies that are able to spell out the benefit of ai on monetization, like meta yesterday, 24% increase in time spent on instagram reels because of recommendations is something tangible >> not ten years away. >> not just mentions, steve, thank you. up next wall street is

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shares of lyft the company will cut 26% of its workforce scaling back hiring and eliminated over 250 open positions and the company estimates that will incur a cost of 41 million to 47 million related to severance and employee benefits in q2 this year, not too far as to what was reported. >> it shows us where the cuts are coming multiple rounds of this for tech and a lot of the analysts don't expect it to end any time soon because we're not even getting back to prepandemic levels a lot overhired and lyft has been struggling in particular. a quick programming note here. we've got a huge lineup on the show the investor conference begins monday we'll talk to the ceos of kroger, bnc mellon, levi, so

nice cross section of the asset managers and ceos as well to tell us what's happening in the economy. that's starting in california next week. >> one of the most influential conferences businesswise of the year. >> all the big investors, yeah that's why we're all over it. >> nice to welcome back the judge to post 9. let's get to "the half." >> carl, thank you very much welcome to "the halftime report." megacaps momentum. why it doesn't look to be slowing down as all eyes turn to amazon earnings in just a few hours from now the investment committee sizing up all of that debating where the tech trade goes from here. joining me, josh brown, steve weisselberg, liz young, jason snipe. let's check the markets. we're in the green decidedly so and the nasdaq is outperforming gdp, meta, however, did not and this is very much about meta's momentum its mojo and, josh brown, th