very forgiving multiple at 16 times. 2% dividend yield. i'll leave it there. >> okay. the markets here are still higher on the session, can you the dow jones industrial higher by 0.2%. nasdaq higher by 0.8%. the s&p 500 higher by 0.4% materials leading the way, real estate, the laggard. "the exchange" starts now. here's what's ahead. the market all but certain the fed is going to raise rates tomorrow, but it's not what the fed does but what powell says that could determine where the market goes next we'll look at how to position from here. plus, shares of alaska air down by 9.5% on disappointing revenue guidance it's dragging the rest of the airline stocks down wit. we'll talk with the ceo about what's going on with that guide and what it means for air travel

and ticket prices ahead. and we look at alphabet, on deck to report. our guest says now is the time to buy he'll make his case and we'll start with dom chu with more >> you can see we are just about at session highs right now, with the s&p 500 up about 18 points again, session highs 4573, just a notch below the 52-week highs we got over the past week. the dow up one quarter of 1%. and the nasdaq composite up. mostly green behind me, but it's some of the economic sectors leading the way higher with regard to one of the trades playing out today, the housing sector, real estate markets are red hot. if you look at some of these home building stocks, check this out, one of the better performers in the s&p 500, up

5.5% afterprofits and revenues came in better than expected, because people are still demanding new housing construction and they're raising prices, expanding profit margins. so ndr, horton, some of the big companies there. and itb is up 1.5%, as well. one of the bigger downside moves that we are seeing today, outside of the s&p 500, comes from streaming audio and podcast giant spotify. those shares down 14.25% right now, after its revenue comes in lighter than expectations, as does the full-year revenue forecast they did add some subscribers and premium subscribers, as well so there's a little push/pull. for a stock up over 130% and dropping about 23% from that high, you can see there, spotify, really a big mover on the day.

back over to you >> investors turning down the volume on the share price. thanks we've got just 24 hours until the fed's decision on interest rates forecasters are feeling a bit more optimistic about the economy. steve liesman has the details on that steve? >> hey, good afternoon this is a consistent pattern where the most recent quarter, which is supposed to be terrible, is revised up and somewhat less than terrible. and it's finally being projected forward where odds of a recession are being reduced. take a look at the gdp forecast for 2023 in january they thought it was be 0.4%. now they're up to 1.23%. they have taken that out of this, where they expected to have something of a bounceback from a really low rate now, it's more along the line of 1.3%, which is below potential, but far from a recession you can see that yield at the

quarterly numbers. they were all pretty much revised up a big number there second quarter, the one we just finished it had biteen 0.5% in may. i have seen numbers as high as 2.5, and same with all the other numbers. they're all anemic, but they're also not negative and above where they were. it's not a recession built in. another reason respondents have a hard time forecasting recession is what they think will happen to the unemployment rate they see only a modest increase. 3.6% goes up to 4.4% so not quite a percentage point, leading to what we are talking about here, the decline in recession probabilities. for the first time in a year, now below 50%. the low point had been 19% in december 2021. they went all the way to 63 and fears of recession

now it's back down, still elevated but at 48%, the lowest since may 2022 and look at the fed outlook here, 5.13, thinking that it goes up by a quarter some people are baking in that, but the overall opinion is that it's one more hike and done and stays there through december we talked about the cuts built in for next year risk levels are still high, just not as high as they were and the chance of the fed doing too much, as you know, john, remains one of the risks they're talking about. >> things are just working out i'll mention all the major indices, near session highs. things are economically working out. stick with us, steve the next guest says a disinflationary soft landing is what the fed is doing. joining me now is the former chief economist at pinco, and a

professor at mcdunna's schoolo business paul, this hasn't shaped up like you thought it would say three-ish months ago, because yeah, they're looking at possibly two hikes they're not done and yet things sort of seem to be working out so what's powell going to potentially say one side or the other that will affect the markets after tomorrow >> yeah. i think the markets have been in line with the more positive outlook, a soft landing outlook. so the markets have been there but the fed does not want to declare victory that is the bottom line they paused at the last meeting but put two more hikes into the projections for end of year. so the bottom line is the economy is doing better. disinflation is happening. soft landing is coming into

vision all of that is good news, but the fed's not going to declare victory until it sees the whites of the eyes of a weaker labor market it hasn't seen that yet. so i think that they will tighten obviously tomorrow, and i think chair powell will reiterate that projections have another hike before the end of the year, and that he thinks it's still likely, unless the data come in on a positive surprise, both on inflation and softer labor so we're almost there, but we're not there, and he ain't going to declare victory early. >> paul, hang tight. we're going to bring in rick santelli here. five-year notes up for option. let's see how they did rick >> yes, john, it was a very interesting auction. 43 billion five-year notes, 4.17%. the market was around 4.16 and

5. so lower yield, higher price that's where the biggest demerits come in with respect to the gray, which is a b minus but a b minus for a bad pricing is a great grade so what's up i'll tell ya, if you look at one of the metrics, the direct bidders, pension funds, insurerers at 22.1%, that was the most aggressive bidding by that group since july of 2014 nine years, nine years and that really put it over the top, because all the other metrics were pretty darn good, priced a little sloppy but trying to catch that falling price, buying on the curve is definitely a bit of a channel. john, back to you. >> b minus, rick, thanks steve liesman, getting back to the conversation that we were just having about what is the fed to do, and paul was

mentioning not declaring victory, they can't, because inflation has been relatively, you know, core inflation, stubborn >> yeah. i think i heard a sound of a large exhale around noon, and it came from the federal reserve, john, when ups signed that contract with the teamsters. i think they're very happy about that i'm also really interesting in what rick was reporting. i want to engage mr. mcconey on this, which what you don't want to be is an institutional bond investor and look back on the possibility that the fed is at or near the end of its hiking cycle, and you missed a big juicy 4.17% possibility on the yield on that five-year. at some point here, those long-end yields will start to look good if there is a sense that the fed is done here with

the question whether or not somehow that curve reinverts, but perhaps it pivots along the long end and comes down. what i'm really asking about is this the time to think about locking in some rates because perhaps the long end is done >> yeah. and just to add a little to that before paul jumps in, everybody is feeling good about what they're getting on savings right now, but that will fluctuate when rates come down so if you lock in, you don't have to worry about that, paul >> i think there's a lot of merit in moving into the belly of the curve, which would be the three, five, seven area of the curve. not so much the longer end of the curve. but yes, i think now is the time that if i were still managing portfolios for other people's money, i would want to be at least neutral operation versus the benchmark. and i would want to be in the belly of the curve in anticipation that the fed is

going to stop, and then looking out into '24, that as the economy soft lands and jobs slow down and so forth, then we actually will get an easing and a resloping of the curve in fact, i think that's the most exciting and interesting thing to talk about, looking out to '24 is the fed itself is forecasting easing, not this year, but next year. right now, they're in the endgame for the tightening process. but soon, perhaps this fall, perhaps at jackson hole, the fed will have to start talking about the easing process for '24 >> let me ask another one for the folks at home. what about some of these bond funds out there, where the yields are pretty good, you know, there's not an inordinate amount of risk in some of these, but people are feeling spooked based on what happened in 2022, you know, the prices came way

down the flipside is the yields are now up, but there's been such a bias towards equities for years, that they might be staying away. similar situation when that's away for the folks at home to perhaps play this, and kind of rebalance their portfolios >> for folks at home, the equity versus fixed income, but as you get older, you're more focused towards fixed income obviously, a lot of people got surprised last year that actually bond prices go down when interest rates go up. so they get to see that red ink on their statements. but from this perspective, you know, in the four to five range for the belly of the curve, then i think it's a good opportunity to lock in those yields, and if you can, try to have, you know, the memory of what happened last year with respect to the prices of your funds be in the rear-view mirror but i know it's hard

it's probably the biggest question i get asked when i'm out and about here, interest rates went up bottom line. you need to buy some bonds >> you heard it here paul, steve, thank you meantime, alaska air having its worst day in 16 months after forecasting annual revenue below estimates. the company sees sales growing 8% to 10% versus expectations of 11%. for more, i'm joined by the ceo of alaska air. phil, you can kick it off. >> thank you, john ben, thank you for joining us. you have seen the reaction of your stock today doesn't matter if you beat the street in the second quarter and you had a very nice quarter, your guidance has people spooked. what's changed >> good morning, phil, good morning, john, from seattle. well, phil, let me unpack it a little for you

q2 was a fantastic quarter for us you know, we're probably going to lead the industry in pretax margin i want to thank our employees just for a fantastic quarter, not only on the financial side, but we led the industry in operational performance. heading into q3 and you have interviewed other airline ceos, you are seeing a massive surge in international travel. i think that's a good thing for the industry to have international come back the way it is, because we serve a lot of our global partners internationally. but that's having a little bit of a modest impact on domestic fares. so we're still going to have a strong qu3. but we are seeing some deceleration in our revenues heading into q3. >> that's why you have guidance in terms of revenue per seat mile, below what is expected for the third quarter.

how much pricing power are you losing, and are you basically saying the domestic travel boom is cooling off >> you know, quite the opposite, phil demand domestically is still strong so that's one thing we just have to remember. so low factors are high, demand is strong. the international surge is impa impacting domestic fares, but that is still higher than they were prepandemic 2019. we feel good about where the industry is and where alaska's position now to the end of the year so we're not hitting the panic button if we have to make adjustments, we will. we think we're in a solid position >> indulge me a second why are we seeing the loss of pricing power if demand is still strong >> you know, phil, that's a

great question in terms of context, you know, there's a few points of load factor moving through international and just for context, we put our loyalty members are filling up the equivalent of 18 787s every day. so these were customers -- and that's 50% higher than last year so these are customers last year flying domestically that are now flying internationally that's why you are seeing a little bit of that drop in domestic fares but demand is till strong, fares are still strong i think what we see is, you know, this international surge is going to last between maybe june through september, october. but when kids are back in school, you know, the balance between domestic and international will normalize, and you will see this get back to a more steady state >> ben, you're focussed in the western u.s., so you have been able to avoid alot of the

storms that have made schedules a mess primarily on the east coast. but you have a strong heatwave that continues to really hammer the southwest where you have a number of operations, and it's a big area for you in terms of where your flights are to. is that impacting your operations at all? >> phil, what i will say about extreme temperatures, whether it's too hot or too cold, it does impact operations because it's hard on machines, and it's hard on people. so you have to put safety first. so we are impacted by those extremes but what i will say is that in the areas we don't have extreme temperatures, we're operating extremely well and kudos to our people that are running the best operation in the country but those are extremes, phil, that are tough to operate in, no question >> how much of a head wind is it >> it's few points, for sure in the new york area, we've got over 30 flights a day in the new york area. that impacted us significantly

we didn't have many cancels. those are flights delayed significantly or even diverted before they can get in it does have a huge impact on us >> ben, thank you very much for explaining the guidance, which obviously is hitting your stock today. we appreciate you joining us from the alaska airlines headquarters in seattle. john, i will send it back to you. >> phil, thank you important details there in the balance between domestic and international. it happens after september the extreme weather. thank you both coming up, alphabet up about 40% to start the year, but still underperforming its mega cap peers. that's next. plus, rising rates have real estate firms racing to cut costs. ♪ ♪ as we head to break, let's get a quick check on the markets

the dow is higher by nearly 80 points, the s&p up and nasdaq the best performer of all, up about 0.85%. "the exchange" is back after this you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

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shares of google parent alphabet, outperforming the nasdaq, but not doing as well as microsoft, which also report today. for the year, alphabet is up about 38%, still underperforming mega cap peers overall, not just today. that's one of the reasons why my next guest says the time to buy is now while the stock is trading at a discount. ai concerns he says are overblown. he's got an outperform on the stock, $145 price target, which implies a 20% move from here jason, you know, i'm looking at the chart. i'm no chartist, but the question is, does it go back close to 150 where it was in late 2021 or closer to 100 where it was in march and april? what's the key number or two from the report later today that

will determine which way it goes does it have to do with youtube or google cloud? >> i mean, i would say that the core advertising number is probably the most important. it drives most of the earnings of the company, looking for 4% growth the general view is that add verytizing, you know, did not get worse in the quarter and should get better in the next quarter. you also had cost cutting going on at the company. they don't give a lot of forward commentary so we do think you should start to see margins flow through, while there is concern about ai's impact on margins, that's not going to happen yet. >> is the core business performing to expectation enough to take it up to the 150 area, or do they have to have one of those growth areas or one of those areas that have been shakier, sort of outperform perform well to show people oh,

it's not just microsoft that can do well in this game and have a portfolio that performs in uncertain times? >> yeah, i mean, you're not going to see ai in the numbers yet. we don't think ai is doing anything right now traffic was down in june so that should make people feel better about the impact on google you know, howdy luted-- >> you know, the buys that have -- there's just no -- there's a lot of confusion on where margins will be in the back half of the year and concerns that the margins go down next year >> why is aidilutive to margin just because you have to pay nvidia to do it? >> gen ai searches are more

expensive to run right now, we don't know what percent of google searches will be gen ai in the future. i think people have found for most things they want to do, a traditional search has better results. that being said, ai will be integrated in all parts of the business, in g-suite, and everybody will have to deal with that i do think the cost to do this will get a lot less. >> does that have to do with custom chips because amazon's talking about that microsoft certainly doing it, so is google. if their chips can reach a performance level where they don't have to buy as much from say nvidia, because stock price has gone way up, if they're aible to do more in-house and vertically integrate, does that help the margins on the ai

story, maybe not within search itself immediately, but longer term >> i think really it's about alphabet using what they understand about all the information out there. and actually shrinking the data that you have to look at to train and use ai so when you have to understand everything that everybody in the history of all time, that's quite expensive. if you can narrow that scope, because you understand based on your existing business and your existing data, look, the users is probably just looking for a solution in this narrower set, that's much less expensive yes, google keeps talking about, you know, pushing out their depreciable data centers, that's additive to margins, causing confusion about what the right number should be, but that's additive to margins. so the longer ai is around, the more efficient it will continue to get, and google will talk about that this quarter. >> what does the street need to hear on costs? expecting to see more cuts or

just discipline in hiring or what >> it's a little of both it was up 14% last quarter we have it pretty flat the next few quarters and then to our cost per employee was down 7% last quarter. there's been a number of press reports trying to be more efficient with office space and other things that being said, they've been trying not to fire people. the question is, with an improving ad market, which we think you will see that in the numbers this quarter, cannot flow to the bottom line. >> all right we'll see what others have to say. jason, thank you coming up, the latest read on luxury spending in china. what that means for the health of high-end retail here at home. ishe exchange" is back after th ♪ opportunity is using data to create a competitive advantage. ♪ it's raising capital to help companies change the world.

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on us when you switch. it's your verizon. welcome back to "the exchange." i'm tyler mathsen. ups and the teamster's union have grereached a tentative agreement on a new contract. a ups ceo told nbc news that the parties reached a win-win-win agreement that covers hundreds of thousands of workers and is waiting employee approval. minutes ago, joe biden established a national monument for emmett till and his mother the black teenager was abducted and killed in 1955 the monument is located across

three sites in two states including a church in chicago where thousands gathered for his funeral. bad news for people with summer travel plans. gas prices are on the rise aaa says the average price is up to $3.63, nine cents higher than last week and four cents higher just overnight john, back to you. >> tyler, thank you. coming up, new numbers on where home prices are headed a look at how realtors are dealing with rising rates. that's on the other side of this break. "the exchange" will be right back

welcome back the home construction etf climbing today after the index showed some prices in may rose -- home prices rose for the

fourth straight month. but there is a trends emerging, and diana olic joins us. >> it comes despite a strong jump in mortgage rates prices nationally rose 0.7% month to month, seasonally adjusted still done 0.5% compared with may of last year, but just 1% below their june 2022 peak home prices began to fall in june of last year after mortgage rates took off higher. experts at s&p dow jones say this bolsters the case that january -- this january was the bottom for the cycle they also noted regional differences in prices are striking the rust belt is suddenly taking off. prices gained the most in chicago, cleveland, and new york the midwest took over the south's reign at the strongest region it's been five years since cold weather cities took the top

spot cities in the west were the worst performers mortgage rates came down in the three months that make up this running average of the may report, but they shot higher in mid may. the 30-year fixed prospect over 7% just this morning jumpjumped. >> what does this mean for post covid trends, you know, maybe adding in the other things that you see about -- when people were moving away from cities, along with this data, what does the picture tell us how people are treating real estate >> i don't know what it says about the trend post covid the issue there's no supply, nothing for sale and people are still holding onto their homes that sellers don't want to put homes on the market, because they likely carry a mortgage rate that is 3%, 4%, and they don't want to trade up to 7% for buyers, they're getting used to this new normal of 7%

the builders are seeing demand it's just in the existing market, there's not enough supply >> diana, thank you. those higher rates are having a big impact on my next guest's top line a 22% year over year loss in revenue in the second quarter, as the higher rates kept people from selling their homes but shares of any why have been up more than 11% after the company reiterated full-year guidance joining me now for an interview is anywhere's ceo ryan schneider. welcome. this efficiency is a huge part of your story, and you're moving ahead, expanding your franchise business explain why that's important to where you are take thing model >> john, first off, thank you for having us. we're excited about a number of the things we are doing,

including expanding our high margin franchise business and leveraging our national assets across the great grands you named like southerby's and global banker. we reported about $125 million this quarter, which is awesome in the challenging housing market we think it distinguishes us from our competitors if you pair that with the cost changes we're making to make ourselves more streamlined, you can imagine the octane we'll have economically when the housing market comes back to much more normal levels. so we are excited about it, and we like the market's reaction today to our news. >> where does -- in your operations, where does technology, does data fit in how will that factor in as part of this strategy to prepare for when the market turns back up? >> it's a big part of the future we're the largest player in this ecosystem across brokerage, title mortgage, et cetera. so we have the unique data set

in our industry. we have been leveraging it for years with machine learning, but i spent a lot of time on our call today talking about some of the things we are seeing with generative ai and we think that's going to change both how people execute in the real estate transaction, agents, consumers, people like us, and how we run our company my message to our investors is we want to be on the forefront of that journey. we can train the models better, tune them better and get more insight out of them for the future >> one of the first places i heard about this vision of the metaverse, probably 20 years ago, where we're going to be doing virtual tours of homes, red fin and others were saying we're not going to need real estate agents any more but it turns out people really want to trust someone when they are making a transaction that big on either side and people like going to see a

home before they buy it. what is really going to change most likely in the next five or ten years or what sfwhont -- what won't >> the technology has -- increasingly it will augment humans, agents, augment people like you and i as we do the things we are trying to do real estate transactions are huge, high dollar things they lends themselves to a trusted adviser like a real estate agent, and we have seen people vote with their feet and keep using real estate agents. i think things that we are doing today with generative ai, like virtual renovations, are going to be awesome to help consumers make the journey easier. but it's not going to change the need for that add visor and the need to go see your house in person before you put down life-changing amounts of money to get your next home and move to what's next >> even as you expand your strategic franchise focus, what

are the areas perhaps where you bulk up and purchase in order to pursue your vision of that future >> yeah. so we're always looking to purchase in areas of technology that we think can be additive to our ecosystem. we hold a very high bar on that. it's something that matters. with our market leading scale of 15% market share, we can take a technology and really deploy it out there. that's absolutely one thing we look at. the second is, when you've got franchise brands like century 21, some of the others you mentioned, but we also have brokerage brands in caldwell banker, and others, we can integrate across those also and use scale, whether it's on purchasing, technology, data, et cetera, to make those diverse businesses successful. >> ryan, perhaps finally, how concerned should i be about this airbnb effect i keep hearing about where people have held on to properties that in other

markets and previous times they might have unloaded because they are hoping or expecting they will get enough cash flow from them, to make the numbers work, and that those numbers are dropping in terms of who is willing to go and spend time and enough money at these airbnb properties to make the math work, what are you seeing in your data to shed some light on that >> i don't think you should worry that much about the airbnb effect you should worry about that as a small component to the broader point that diana made, which is we do not have enough houses in this country and not enough houses for sale. if we have more houses for sale, we could sell them we want the home builders to succeed and bring new stock to the market if there is a airbnb effect and people put those houses on the market, that would be awesome for society. so anything that will unlock more housing supply in our

economy will be awesome. i'm bullish on the medium term for housing because of the trends that we need all the different pieces of supply to keep expanding to keep up with that >> ryan schneider, ceo of anywhere, thank you. out with earnings moments ago, shares up more than 25% so far this year. a sign of slowdowns in two key markets. that's next when "the exchange" comerit cks ghba with gold bond... you can age on your own terms. retinol overnight means... the smoothing benefits of retinol. are now for your whole body. plus, fast-working crepe corrector diminishes wrinkled skin in just two days. gold bond. champion your skin.

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this is your moment. take the first step to see critics declare oppenheimer is magnificent. the new york times calls it staggering. it's utterly enthralling and one of the best movies of the century. welcome back to "the exchange." lvmh just out with earnings. while the chinese economy overall is slowing, the high end consumer is still spending robert frank has the numbers >> lvmh reporting 17% sales growth in the quarter of warning signs, flashing here in the u.s. with sales in america falling

1% the cfo saying the aspirational consumer in the u.s. is "not shopping the way they used to. this is showing up especially in cognac and spirit sales, but also in saeter goods and jewelry. he said it's the entry level items falling, the goods for the wealthy, they are still performing well. there was one caveat, and i highlighted some of this last week that was americans who are shopping in europe, there by cannibalizing sales here in the u.s. half of that came from tourists, and most of those tourists were american the one bright spot in all of this was china despite fears of a e sloslowing economy, the chinese wealthy are spending strong. sales were up 34%, especially

sales of leather goods and julie. lvmh was also hit with higher experiences, especially for that fashion show in june, citing one-off promotional expenses that put a lot of pressure on margins. luxury stocks have been under pressure since they cited the slowdown in the u.s. last week expect more pressure on these stocks tomorrow morning when they open because, again, john, china with an upside surprise. but the u.s. has been such a powerful engine of growth for these companies, and suddenly, they're seeing that aspirational consumer drop out. >> robert, i want to try to connect some dots. i don't know if they deserve to be connected, but we just had the alaska airs ceo talking about international travel being strong that hurt him a bit. high-end consumers are doing that he expects that to rebalance in september. does that hurt the likes of lvmh

benefiting from u.s. travelers going to europe, if, in fact, in september they're more staying home, or is this such a high-end customer that lvmh has that they're still taking the trips in the winter in the alps? >> well, those high-end consumers, if they come back to the u.s. in september and start buying more of their luxury here rather than europe, which they're doing this summer, that will help their earnings and sales in the u.s but the big question is, what happens to that aspirational community? people think about luxury as the wealthy. in fact, the bread and butter is that aspirational upper middle income customer that splurges when flush with cash they're not flush with cash right now and not spending so each if you get those wealthy people coming back to the u.s. and even spending, it's not going to make up for the aspirational consumer that is very quickly dropped out of

spending >> you know what will happen to that aspirational consumer student loans. that's what happened robert, thanks coming up, microsoft and alphabet, out with earnings in about 2 1/2 hours. we'll talk with the ceo of a companyai to help boost productivity and sales at both next. and there is still a few hours left to get your virtual tickets to cnbc board rooms game plan conference. qr code down there, scan it. that conference is bringing together some of the biggest names at the intersection of sports of business register and buy tickets by scanning that code oheinr adg over to cnbcevents.com we'll be right back.

♪ welcome back to "the exchange." we are just a couple hours away from earnings from both microsoft and alphabet gong an ai startup once valued north of $7 billion already providing software on those tech giants platforms to drive sales, build skills how is enterprise software going to be disrupted and how soon joining me for more is gong co-founder and ceo good to see you. so, tell me, how quickly is this ai usage accelerating? and whose platform of the hyperscalers out there is doing the best job of accelerating it? >> well, we're seeing a huge

boost with the current with ai right now. we started with ai in 2016 on the premise that the enterprise applications were outdated and can be transformed with ai we have been shy about it like until now because it was too revolutionary for people but now companies are reaching out. what can we do with ai can we improve productivity? how can we cut costs so, i think everybody -- a lot of companies will benefit from it all the hyperscalers, the platforms will see huge boosts because ai is also compute intensive. it does take a lot of computer resources, but it can also increase productivity big time >> so microsoft announced this 365 tier that they're going to charge 30 bucks more for the ai flavor that got a lot of people excited last week. stock went higher. but it also got a lot of competitors excited because they feel like, okay, now there's a big player in the space that's

setting the bar high on pricing, kind of signaling that we expect to make some profit off of this. were you happy about that also >> i think it's a good thing for companies to drive productivity with ai and definitely there's profits to be made because, you know, you can think of ai not just as technology but bpo it replaces labor people who are highly paid for menial work. the opportunity is out there i think we're not scratching the surface of what is possible. a lot of companies have been jumping on this bandwagon. some were quick to crank up a gpt this or that but the companies have something real or deep will succeed big time i don't think there's a limit to what the market will pay for that. >> but when? so last quarter was big for me in ai because we saw both the nvidia surprise to the upside

which sent that stock skyrocketing and we saw the chegg surprise to the downside where they warned, got some concern that this is actually getting people to consider not signing up for us. what's the next signal going to be for investors within software that ai is having a near term impact yeah, we can talk what it will do several quarters and years down the line. but when is the next and what is the next nearer term impact? >> well, it is already doing some things. and i don't think we're going to see an overnight impact in terms of profitability of company. it's not like a one week we're already seeing the result of work that took a lot of people's time being done automatically right now. i'm not sure what is the right signal for investors we're focussing more on building the business but there's no doubt that it's coming we see mandates from companies

from the top down reduce cost with ai. it is clear that the opportunity is out there >> one of the areas of most intense focus for you is sales and using gong software and ai to assist salespeople in making the right kinds of followups, to potential leads, doing that in the right time, et cetera. give us an example of one of the best outcomes that you have seen lately from this newer technology >> oh, there are dozens. but let me give you a couple so one of the examples, ai kind of monitored one of our customer's conversation and it recommended when you call on a new customer, please talk about one part of the solution and not the other. so, for example, if they have an ipad and application, talk about the ipad before you mention this that small change increased sales by 12% which is massive the other areas, think about all

the work that people need to do. you meet with a customer over a zoom call and then there are three or four action items. >> wow, okay. >> ai can do all of that for you. >> amit, we have to leave it there. thank you for the examples that's it for "the exchange. "power lunch" right after this break. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

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