>> people asking me about uber i still like it. i'm still in the stock, nothing has changed. i hlike the stock >> all right that does it for us. you can see right now, stocks are at session highs right now it's pretty much green across the board. let's send it over to kelly evans and "the exchange. ♪ ♪ >> thank you very much, dom. welcome to "the exchange." i'm kelly evans. ahead this hour, who better to ask about the state of the economy than the people who run america's businesses you'll hear from four of them, ceo hayden brown on the freelance economy and what it may tell us about tomorrow's big jobs report. that stock up 42% in today's session after earnings and for a snapshot on the service economy, the ceos of wyndham and porzillo

and the ceo who has been to space. he started his company at just 16, took it public three years ago, and shares have doubled years ago. he joins us live ahead before all that, let's get a quick check on the markets session highs, it's better than the red we saw earlier dow is up 42 nasdaq up 53, outperforming as we await results from apple and amazon after the bell. the biggest moves are once again in the bond market today, with a massive treasury supply surprising and unnerving investors. the green number, 4.17% on the ten-year is what we are looking at on the 30-year, just under 4.3%, nothing compared to where bill akman thinks it will go. maybe to 5.5%. he said he's shorting it so for more on how investors should position from here, my next guest has played the market

well so far. he continues to be pullish and still sees some undervalued names here joining me is the chief market strategist at hennasee funds neal, welcome back >> thank you >> we spoke earlier this year. you said don't be concerned. where are you looking now? >> i think it's still a value market out there you have to look -- everybody is looking at the market long in the tooth, kelly i say no, simply because the s&p, you know, is up 27% it's really up only 10% if you think about or actually 7% if you think about taking out eight stocks, the same way with the nasdaq it's up 37% for the year, but would only be up 10% approximately if you took out the microsofts, the facebooks,

the nvidias. you take the googles those eight companies you take them out and you've got a normal market so it's not up as much as people think it is, and looking for a collapse so i'm still looking at value, at companies that still have low price sales compared to other companies, meaning less than $1.50 in sales is what we are going to start to look at, so you can look at a lot of good companies, academy sports, others that have great earnings and dividends that can be raised >> academy sports, that's one we followed quite closely they have a new ceo now and they are nervous whether that can continue but you say don't fear >> i don't think so, because you have a price to sales ratio of approximately seven. the dividend is very well covered.

they're earning tons of money, $2.50. nothing is going to change the leisure market, especially outdoor leisure market, is going to continue to grow, because that during the pandemic really got into the american's blood stream so they want to continue to go out and explore the outdoors and fish and hunt and camp they're right there with almost 300 stores to capitalize on it, even going forward >> so graphic packaging we don't talk as much about, some of your other top holdings, again, we're in the mid cap part, i see auto nation on here, as well. do you get concerned about recession, about downturn? >> no, i don't think -- everybody has been looking for the last couple of years talking about a recession, but people don't realize, the number one component of a recession is high unemployment we do not have that. that number is down at 3.6,

3.5%, and we can't fill all the jobs the second big thing is economic activity, and that has not slowed down. if you look at the largest companies out there, they're now committing at least 15% of their cash flow to cap x expenditures. so they're trying to now exploit their businesses going forward by putting more money into it. those are the two factors. i don't see a recession whatsoever >> that said, a lot of us -- i guess the whole point, is to try to go, okay, i just want to know when the recession is about to start and i'll get out before everybody else does, or maybe i'll rotate. i don't know how you typically play these cycles. >> i think, kelly, it's the old adage, if you buy quality and hang onto it, you'll be fine over time. that's no different than the stock market than it is in marriage so it's very simple -- buy good quality, hang onto it, and don't

worry about it >> there's a lot of jokes i could make, but i'm going to leave that right there thank you for your time for joining us, and just getting the pulse on the economy we appreciate it >> thank you, kelly. now to one of the biggest movers in today's session, shares of the freelance job platform are at 42% and on pace for their best day since november of 2020 this comes a of the company swung to a surprise proficient nit the last quarter, and upped its full-year guidance for more on this and what it tells us, maybe even about tomorrow's big jobs report, we turn to ceo hayden brown great to have you back here. welcome. >> thanks, kelly great to be here >> what drove this kind of surprise to the upside last quarter, what's going on >> we delivered a great q2 we had a strong top and bottom line, $168 million on revenue, a 10% growth, and really strong on profitability, as well

$14.4 million, and we raised our top and bottom line guidance for the rest of the year this is evidence of our commitment to strong, durable growth with this business, which we always know we can do, and investors see we're delivering on that promise. >> let me put it this way. would you say your results are driven by macro or mike cro last quarter? or was it we executed better on price hikes or cost discipline or some personal company specific stuff >> we delivered a great quarter because our team was focused on driving profitability for the business and executing with customers on the needs that they have, even with this economy, customers continue to need freelance workers, they need people for those generative ai projects, and every other type of worker. we have over 125 categories of

work on our platform, and we executed really well to deliver talent to companies of all sizes through this quarter >> that's interesting. so is the -- sort of the marketplace for ai skills driving a lot of engagement on your platform? >> yeah. in total terms, this is a small area for us. in terms of the growth, we saw a 1,000% increase in generative ai job posts in q1. 1500% growth for generative ai skills and work on our site. so we are seeing tremendous appetite from clients who are looking to find talent to deploy generative ai models, figure out how to integrate this new technology into their website, the services they're building for customers. this is certainly a small piece of our overall business. as we think about the future of our business, and the fact that

every business is trying to figure out how they can use this technology, these businesses are coming to us as the destination for those skills we also announced a partnership that was very exciting with open ai, just this past monday where open ai and upward has teamed up to bring to market the talent that open ai customers need, specifically that we have put together to offer their customers to really get the talent they need from upwork to deploy those technologies into their end-use cases. >> i can see why investors are excited, especially if you add to the list of companies that could be ai plays, although the stock is not where it was a couple year as at the height of the pandemic but what would you say you are seeing in the labor market because it seems like the labor market is getting more traditional again, okay, we see, you know, full employment to population ratio, those back-to-normal things. but i hear your results and it

feels like there's been a permanent shift in behavior out there. >> it definitely is a quarter of mixed signals for customers in terms of how they're navigating this macro larger customers continue to operate with some level of caution. they are experiencing budgetary caution, they are still exhibit ing sale cycles, and yet our team was executing better against that backdrop. in the marketplace side, we do see a lot of resilience in that side of the business, which is consistent from the adp and other jobs reports that are coming out >> true. >> i think customers are more confident in this economy. >> amazing, given they would face 9, 10% borrowing costs and to circle back, you wonder how much ai has -- i don't want to say masked, because it's real but has compensated for what we

have seen in the business cycle. microsoft or other major players have talked about this, the enterprise demand for cloud, it's rationalizing, it's slowing, but at the same time, companies know they have to be in the ai race it's fascinating how that is coming at just the right time. >> absolutely. i think businesses of all sizes are definitely leaning in to figure out how this impacts our strategies, how they can digitize their businesses around this we did some research that showed 64% say they're going to hire more because of ai, not less we see that's the companies that are moving the quickest in the space are mid market size companies, adopting the technology fastest, putting it to work the fastest. so you're right, every business is trying to figure this out some are moving faster than others but certainly it's impacting everyone in the landscape. >> fascinating thank you so much for joining us appreciate it today.

>> thank you, kelly. coming up, apple expected to post its deepest third quarter revenue drop in seven years. that sounds dramatic, but it's just 2%. the question is when will they return to growth we're live in cupertino with more details and wall street's take and our executive exchange continues with a trio of ceos still ahead, including wyndham and portillos. and let's get a quick look at the markets. the dow up by 50 right now the nasdaq, up 42. there's the ten-year note on the right, at almost 4.18% "the exchange" is back after this

welcome back to "the exchange." apple rallied almost 50% this year, though it's slightly down today. the market cap is over $3 trillion since june, but it's about to post results for what is typically the slowest three months of the year the street expecting a little under $82 billion in revenue for the quarter, 2.3% year over year decline. is it a fluke or will topline growth remain challenging? joining me is martin yang, who covers tech at oppenheimier, and steve kovak.

steve, you're there, you've got to be there to get the results i guess my question would be a little about this revenue decline. just broadly give us what people are expecting. >> sure, kelly this is going to be most likely the third quarter in a row that apple has guided and estimates are revenue decline. that's because of a lot of headwinds that they have been facing demabldz is falling in the u.s., in china, there's another important market and we hear this story coming out of emerging mafgt markets le india and indonesia. but what you should pay attention to is the outlook, because the question going into today's earnings is whether or not apple can return to that growth after the three down quarters so any kind of bullish commentary we hear out of tim cook and his executives on what they are seeing, after we have

gotten so many positive data points in recent months. also on the china side, which is the opposite story, we have seen so much negative economic data points coming out of there, and how that all shakes out. again, of course, in september we are expecting new iphones to get a couple of weeks of new iphone sales at the end of the current quarter. >> marten, what is the key driver for the stock here? >> the key driver for the stock is for this year is no longer going to be the sales, -- coming out of covid. [ inaudible -- not as strong a product cycle as they have in the past two years. we are expecting apple to make comments regarding the limitations --

in the coming years beyond the fiscal year. >> so when do you think they're going to return to the topline growth, and does it matter >> return to topline growth doesn't matter in the near term but does matter in the longer term if you look at apple, the iphone prices -- [ inaudible -- coming out of this lull from covid. i think it matters beyond the six-month period and in the next three to six months it doesn't matter as much >> quick last word to you, steve, what else are you going to be focused on >> yeah, services. on the outlook also, morgan stanley expecting the services to return to that double digit growth, and any commentary from apple about the install base, because that's the key for services for all those users,

how they can charge them more for all the various services we have been seeing some resurgence on the services side from others that reported last week, other tech names, advertising seems to be coming back a little bit. that's important for the app store and even gaming coming back nintendo reported incredible results earlier today. if gaming is coming back, that's great news for the app stores and services >> thank you so much, steve. coming up, this industrials name has more than doubled to start the year hitting a new all-time high. this is not caterpillar by the way. if you think you know what it is, tweet me or whatever and we will reveal it later on and what the ceo is saying about the macro environment ahead. and here is a quick glimpse, intel and chevron leading the way today with caterpillar with honeywell and salesforce among the worst performers the index is still higher by

about 50 points. back after this. from big cities, to small towns, and on main streets across the us, you'll find pnc bank. helping businesses both large and small, communities and the people who live and work there grow and thrive. we're proud to call these places home too. they're where we put down roots, and where together, we work to help move everyone's financial goals forward. pnc bank. (fan #1) there ya go! that's what i'm talkin' about! (josh allen) is this your plan to watch the game today? (hero fan) uh, yea. i have to watch my neighbors' nfl sunday ticket. (josh allen) it's not your best plan. but you know what is? myplan from verizon. switch now and they'll give you nfl sunday ticket from youtubetv, on them. (hero fan) this plan is amazing! (josh allen) another amazing plan, backing away from here very slowly. (fan #1) that was josh allen. (fan #2) mmhm. (vo) for a limited time get nfl sunday ticket from youtubetv on us. a $449 value.

plus, get a free samsung galaxy s23. only on verizon. we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or

visit coventrydirect.com. welcome back to "the exchange." putting together a rally as we move throughout the day. 64-point gain for the dow, five-point for the s&p nasdaq up a third of 1%. this is especially interesting, because it's not as if interest rates have moderated today we see upward pressure on the ten-year across the long end in particular almost 4.18% really. but not much of a headwind here today. so many movers to get to, and so little time. let's start here, leading the s&p after a beat on the top and

bottom line, shares up 9% today. elsewhere and to the downside, this is the worst name in the s&p. 30% drop now for these shars lowest level under $19 they posted weaker than expected sales and slashed its annual revenue forecast and expedia is the second worst name, having the worst day since the start of the pandemic, a 15% drop here. they beat the bottom line but fell short on revenue and bookings again, a lot of people had their chips on the travel trade. not working out well for expedia today. and someone is surging after posting a surprise profit in q2. the stock is upgraded to a buy with a 60% rally after today's 11% move again, solar has been volatile

lately, and today, a bit of a rebound. for more on that analyst call and the biggest calls of the day, go to cnbc.com. and now to tyler mathsen >> thank you very much former president donald trump left his private golf club and home in bedminster, new jersey moments ago and will fly to d.c. to face charges that he led a wide-changing conspiracy to overturn the 2020 presidential election among the charges trump faces, conspiracy to defraud the united states, conspiracy to obstruct an official proceedings, and conspiracy to not have one's vote counted he will be fingerprinted but no mugshot. general motors's robo taxi unit says it signed the driverless car industry's first labor agreement. and queen fans who see eddie

mercury's personal items on display before they go up for auction. it includes stage costumes, hand written drafts of "bohemian rhapsody" and a piano expected to go up to $4 million nice thing to have in your home. kelly, back to you >> i would be afraid to break it coming up, we are talking hotels and hot dogs with the ceos of wyndham and portillos. and a special edion itof "earnings ex-change" is next we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance

policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

welcome back to "the exchange." the ism services report came in slightly cooler than expected this morning, with employment in similar almost contracting last month. if you are scratching your month about why, perhaps my next two months can shed some light portillos had disappointing results today, while wyndham reported a beat on earnings. wyndham, shares up about 6% year to date in what is a huge travel year

they have been boosted by the international travel rebound, and they expect a $3 billion multiyear tailwind from infrastructure spending. joining me now to discuss is wyndham's ceo. jeff, great to see you again welcome. >> great to be back, kelly and welcome from greensboro, north carolina, w people are traveling in record numbers. this is the busiest tournament that we have ever had. this city is packed, and people are still out and about and travel thing summer. >> it does feel like that. an ecdot anecdotally, wherever we go, some of these people are seeing people shift to international travel but what's going on with the softness and this being picked up here? >> well, last year was an astronomical year. we did report earnings last week, and we continue to see an acceleration back to that 2019 record year,

where it was the best year the industry ever has experienced. we saw a second quarter that was up 8% in 2019, accelerate into july the first three weeks of july, up 12% we have seen continued acceleration here in the united states and so much of that is fueled by leisure demand >> so do you think basically it was last year was so strong on the reopening, that even though we're still up, people want to be dazzled more by the numbers >> people continue to want to see a pickup to 2019 we saw that last week and last night. people are still traveling disposable incomes are up, earnings are up. people are vacationing more this summer, kelly, more than they have ever been they're vacationing more in terms of getting out there's certainly a lot of -- there's a lot more options this summer cruises are up, international

travel is up and the demand continues to be out there from a leisure travel demand >> so people want this to be, okay, we're back to 2019 levels or better. let's talk china if we can what are you seeing there? it's been a very odd year for china so far >> the last six, seven weeks in china china, have, again, been up. there's still a way to recover occupancy, we're around 80%. international inbound is still coming into china. domestic continues to accelerate we had a very busy holiday season over there in may it's just been great to see so many consecutive weeks, both in china and in europe, and across africa and the middle east, that leisure demand continues to pick up >> i'm trying to think who else it was, it could have been one of the companies that had china exposure, maybe it was starbucks, just saying in the last month or so, chinese demand

is picking up. is that what you are observing >> travel demand picks up and development demand continues to pick up. it's been quarter after quarter for two consecutive years where we have seen a double digit increase in our development pipeline and our direct franchising business so they are just as anxious to open and develop hotels as they are here in the united states. we have had 12 consecutive quarters of pipeline growth globally, and we're seeing that domestically and internationally. and our small business owners, it's never been a better time to build a new construction prototype of ours and the economy, because of the blue collar everyday business travel out there. we're seeing it in china and here >> so fiscal infrastructure, as you mentioned, you think is going to be a huge tail wind we talked about this before, but

you're talking about multiyears at this point. >> multiyear it is so early this is the nation's most historic time. our largest concentration of our hotels are in the five states, california, florida, georgia, illinois that are going to be receiving the bulk of that infrastructure spending. we're here in north carolina we spent the morning, this morning with the north carolina place that has four mega projects under construction. when you look at the $600 millions of incremental infrastructure demand that is going to be spent, less than 5% of it, $30 billion of that $600 billion has been allocated so far. and it's just now making its way out to the states. and that's what has driven the nine consecutive quarters of growth we think there's opportunity

obviously in infrastructure markets where there's markets like mexico next to us yeah, it's a very exciting time for our small business owners to be out there, capturing that business and we're doing everything we can to help them capture it. >> a lot of people have been caught off guard, not quite realizing the scale of what is coming at us we have heard you and your competitors are benefiting from that we showed you some brands. it sounds like you're not averse to adding more brands to the portfolio. is there more hotel consolidation coming at us >> we're absolutely interested in adding more brands. the fastest growing brand is our suites by wyndham brands that is the first all-new construction that brand that you have up on your screen right now, we have awarded over 250 contracts, because kelly, we believe, the

developers that are here with us celebrating the launch of this new brand, believe that the 1.8 million companies that will be contracting to put our nation's infrastructure workers, the men and women who will be paving our nation's highways and building our bridges, they're looking for quality, new construction products in the economy space. we've been the leaders in the economy space for many, many years. we continue to lead in that space, and that's a great example of a new brand addiction that will continue to innovate on >> it's what the consumer wants, new houses, brand new hotels, they want fresh, modern. we get it. jeff, we'll let you get back to the golf course. thanks for making the time today. >> nice seeing you, kelly. meanwhile, sandwich change portillos under pressure after

missing on the top and bottom lines, shares down 12% and shares are back below the 2021 ipo price of $20. the company has hiked prices twice this year, but waging took a bigger bite out of earnings compared with the previous years. customers are also opting for cheaper items. joining us for more is the ceo of portillos michael, how are you >> great, kelly, how are you doing? >> it's good it's interesting to come on the other side of the -- we talked during the pandemic, we've talked coming out of the pandemic what do we call this now >> you know, i don't know if it's full recovery yet i think we're still in the process of doing that, but it's definitely a new normal. let's call it the new normal >> is the new normal like the old normal >> no, it definitely isn't in the restaurant industry, you definitely have seen a secular shift of people wanting to eat

on their terms more than in the past so the growth of off premise, the growth of third-party delivery, those things are real and here to stay i don't think that a restaurant business has a big dining room presence i think we're going to be close to, you know, a new normal >> so revenue up 12% for the year, eps down slightly. was that a wage issue? >> no. look, i would characterize your overview look as -- i think we're right in line on most people's consensus on revenues in terms of the bottom line, what most people look at for us is restaurant -- what matters is how productive our restaurants are, and in general, we beat on the bottom line. so i'm not sure, you know, we're still relatively new public company with a relatively small

float. so a little trading one way or the other can have an impact on us so i'm not sure what explains the stock reaction the analysts certainly were pleased with our results >> so let me put it this way, would you describe anyissues with -- are you seeing anything on the consumer trading down, are wage or the labor market pressures, you know, still there or are they getting better >> yeah. wage pressures are there still and i don't think that's changing any time soon i think that we have seen wage inflation particularly at the lower level employee is still there, and it's real we have wage inflation from municipalities, and we have competitive wage inflation so that is real. it has definitely gotten better. it's not as bad as it was last summer or the summer before. so it's starting to mitigate a little bit over the course of the last couple of years, you have seen

tremendous wage inflation, and still dealing with the reality of that. >> michael, give us a moment we have some breaking news on a major crypto story let's bring in amond for a moment >> reporter: i'm here with heather morgan, just leaving the courtroom. he's not talking with the press. she just pled guilty here to two counts to a money laundering conspiracy count, and a conspiracy to defraud the government you can see her walking away with her attorneys here. what's happening simultaneously, of course, here at the federal courthouse in washington, d.c., we are expecting former president donald trump to appear in court later today so there is a media scrum here for donald trump, not for heather morgan remember, she was part of the crypto couple, she called herself the crocodile of wall street she and her husband appeared in court this morning here in washington, d.c. he pled guilty to one count of money laundering conspiracy,

involving the hack in 2016 of a crypto exchange. that was a $70 million hack at the time in 2016, but it ballooned in volume to more than $3 billion worth of value. the couple was sitting on that currency all along, trying to money launder it and get away with laundering the proceeds of it and able to benefit from it they both ended up being arrested and today in court, they pled guilty here to money laundering and conspiracy heather morgan pleading guilty on a second count involving conspiracy to defraud the federal government i don't know if you caught the beginning, but she had nothing to say to reporters as she left. but the crocodile of wall street and her husband now have both pled guilty. back over to you >> thank you very much a very busy day down there now back to michael, portillo's ceo. we were just speaking with wyndham's ceo about the tillwind he expects from infrastructure

spending i'm looking at your expansion plans thinking they overlap somewhat >> yeah. i hope he's 100% right it's the side of two stories though, right? the student loan dynamic, people having to pay back student loans, that is a big, big loss of discretionary income from a consumer set that does love to spend in restaurants i'm hoping the two of them offset one another and we have positive momentum in the back half of the year but he made great points about infrastructure spending saying it will be good for america. >> are you looking to put restaurants in arizona, florida, california, because that's where the population is? >> it's a bit of both. on one hand, texas, arizona, florida, three fastest growing states in america by population count. lots of new development and new construction so for us, it's a wonderful

opportunity to get in on a ground floor in new developments and new commercial real estate development, et cetera but you're 100% right, as well it is a little bit of, we want to be a national brand we are proving it every single day as we build out new restaurants and taking our business to florida, texas, arizona helps validate that. >> you have raised prices this year what do you think it will look like in the coming 12 months, especially with some of the student loan pressure you're facing >> umm, it's going to sound like a hedge, but i honestly don't know one of the things we want to pay close attention to is the rate of increase in commodities and wage inflation we're still a small company. if things get out of hand, we can raise prices a little bit. when i look at our underlying momentum, we have fantastic satisfaction scores, fantastic

value perception scores, and we compare our most popular bund toll the competition, and we're really a great deal. so if we have to, we can raise prices i would prefer not to at this point, with an economy that's a little fragile, i want to provide as much value to the consumer as possible >> michael, thank you for joining us today >> thank you, kelly. still to come, another pulse on the restaurant space, but this time with the ceo who knows elon musk and has been to space. jared joins us coming up on "the exchange." as we head to break, here is a look at the sector, with the dow losing gains once again, up three points energy remains the big winner, up almost 2% utilities, real estate lagging, both down about 2% the s&p is negative agn. ckft ts.ai

i was having relationship issues with my old bank. next to no interest, the fees... it was just take, take, take. so i broke up with bad banking and moved to sofi checking and savings. now i get higher interest, pay no account fees, and get my paycheck two days early. get up to 4.40% apy, pay no account fees, and up to $2m in fdic insurance. download the sofi app and earn up to $250 when you set up direct deposit. sofi get your money right.

♪ ♪

welcome back to "the exchange." the dow has gone negative once again, but it's time for some show and tell, where we show you a chart and tell the story this was a mystery chart we showed you earlier the building supplies and material companies taking a breather after hitting an all-time high yesterday. shares are more than doubled year to late here's what the ceo said about whether momentum can continue. >> we're cautiously optimistic that the single family will be down single digits to 2022, but much better than we expected coming into the year and it also underscores our belief that fully, housing has been underbilled and there's still a demand presence that will carry us through. coming up, reporting strong earnings, raising full-year

guidance, but can it weather a toucher consumer environment ahead? that and more, nt.ex

♪ (upbeat music) ♪ ( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall.

welcome back to the exchange. shift4 was reversing course throughout the day. they have a strong report. they have a full year's guidance. earnings topped estimates by 2%. they sounded unconscious next quarter as restaurant spending moderates. let's dive further into it with jared isaac. >> it is a little hard to stay on subject when i can ask you about space and elon musk. what does the day for you even look like? >> most of my time is spent with shift4. we have a lot of going on. we are expanding globally. we have a lot to talk about today in that regard. that is my primary focus.

space is certainly interesting. >> before we come to the global expansion and the synergies with space, in all seriousness, there is a big controversy in the restaurant payment space because toast and some of the others have fees that restaurants are getting upset about. you guys are trying to go the other way. talk to us about this competition and we think your advantage could be here. >> first, with shift4, we have been growing fast in the restaurant space for two decades now. we touch about a third of the restaurants in the country. we can win a lot of restaurants. we can do so profitably. we are not trying to price our way out of a problem. i think some of your tech players are looking for opportunities to achieve profitability. they might be looking at things differently. from our perspective, this isn't the time to be punishing restaurants. it is the time to help them out. any restaurant that wants to switch over to shift4, we will

give them $5000. we will also pay them a dollar for every online order instead of trying to penalize customers for doing so. the results have been received favorably. but that is not a bait and switch where it works for customer acquisition but you have to change it to stay profitable? >> there is a difference with the organization like us. we had a 60% year-over-year. we changed the top end of our guidance. we have 55% free cash flow conversion. some others are burning several hundred million a year. we are looking for opportunities to creating and helping customers. >> and obviously, it has been a tough time for the ipos that became public. is this the company you founded in 2016? was that a previous one? >> it is the same company. we have evolved a lot.

earlier, the company was called united bank card. as we evolved, we are a tech and software organization. we have grown revenue every year since the time we were in my parents basement 24 years ago, even to now. >> i don't think i would've understood and had the foresight to sound altar. there's a lot to unpack there. we just spoke with a couple of ceos. one on the restaurant site that is concerned about the student loan payments and all that. what you think in terms of payment volumes? >> for sure. i think it is important to disconnect shift4 with that of same-store sales and consumer sentiment. if we grew payment volume 60% year after year, you can have consumers that may choose to dial back a little bit of their spending. same-store sales could be flat. they could be up 1%. that isn't much compared to

60%. our growth is a factor of wanting sure. we differentiate in a lot of ways. it is how we grew payment volume in restaurants and double digits in 2020, when a lot of our customers were operating at 20%. that said, our hotel and travel business is going strong. ticketing is growing strong. restaurants, there is a little moderation there. it is not euphoria like 2021 when things were opening, but people are going out to eat and drink. it is contributing to our volume growth. >> in the meantime, you made some time to be the commander of inspiration 4, using space x's crew. it launched in september of 2021 and returned to earth two days later. i don't even like flying. i give you credit. i don't want to be one of these space pioneers, but i appreciate the work you are doing for the rest of us. >> i have been a pilot for a long time.

i had a defense aerospace business. it is very exciting. it has done a lot for shift4. we signed important customers related to that mission. that is why we are expending all over the world. we have been growing revenue year after year in the most competitive market in the world. thanks to that mission, we are bringing our services and capabilities all over the world, including today, when we announced an event progress on our expansion initiatives. space can bring good things now and then. >> the synergies with the payment businesses is not what i foresaw. i don't know if you want to comment about how will you know elon musk, but i was excited when he took over twitter. he is a product guy. but this whole x thing, i don't know. what are your thoughts? >> i think you cannot bet against elon. he is one of the greatest entrepreneurs of recent times. he has not just done it once. he has done it in multiple industries. every one of the ones he is

doing it for is for the betterment of all humanity. we are talking about evs and electric cars. he has restored a competitive capability to the united states with space x. i have no doubt that he is going to do it again and again across different industries. x, formally known as twitter is just one step in that direction. >> do you call it ? ow do you even describe activity on the platform anymore? >> we are all still adjusting, but, look. i like x. i think it will stay. >> jared, thank you for joining us today. i appreciate you bringing this up on the quarter. we appreciate it. >> thank you so much. >> jared isaacman is the ceo of shift4. that does it for us on the exchange today. the dow is down 23 points today. for more on the economy, you can get my newsletter using the qr code on your screen or at cnbc.com/newsletters. next, how do you take breakable and put it in a shopping mall? it is multi-million-dollar

venture. we will speak with tyler next. i will join him on the other side of this break. what if you could make analyzing a big bank's data... no big deal? go on... well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across clouds, then analyze all that data with watson. okay, but this needs to meet our... security standards? yup. compliance standards? mm-hmm. so they get the insights they need... yup. in real time... check. ...to make quick decisions? check. aaaand check. that's the solution ibm and a global bank created. what will you create? ibm. let's create. together, we built something truly beautiful in the true iconic notion of what america is all about. ( ♪♪ ) this is our task. this is our mission. we have a clear focus,

and we have the ability to be agile and innovate. it takes years of dedication to get us to this milestone. it is all because of you. never doubt that a small group of thoughtful, committed citizens can change the world. it is the only thing that ever has. ( ♪♪ ) to be a woman leader, it's not so easy. but it's easy if the passion and the love is coming from your heart. the new york stock exchange is the symbol of what america is all about. the potential of capitalism, the potential of the american dream. the only way you can move a society forward is a true expression of freedom. ( ♪♪ ) ( sfx: stock exchange bell ringing )

>> good afternoon. welcome to power lunch. onside kelly evans, i am tyler mathis. stocks once again are a little bit lower. they have vacillated some today. bond yields are up. they are way up. amy dimond of chase told us that it doesn't matter, the downgrade, but markets seem to be saying it does. plus, apple and amazon will report. the key things to watch for from each of these reports. kelly. >> first, let's get a check on where we are at the moment. vacillating. the doubt initially had