that's what deirdre bosa is watching today on "techcheck." >> call arm the goldilocks ipo.nt as well as company bankers and mas son could have hoped. the first pop was strong but not too strong. it indicated good demand from investors but did not reeve too much money on the table. that bodes well for others in the pipeline, like instacart, which filed an amended ipo prospectus ahead of next week on the heels of that arm successful listing. it's raised its price targeting a fully diluted valuation up to $10 billion. as we said, a far cry from that $39 billion valuation it saw a few years ago, which means there will be big winners -- big losers in this thing. in arm's ipo there was just one winner or loser to be had, that was softbank and masa son. instacart has nearly 100 investors over ten rounds of equity financing. the ones that got in early, like seq sequoia, angel. they first invested in instacart's series a funding round in 2013 which valued the startup at just $25 million. for sequoia, one of the value's most prestige yoes could represent a return of nearly 400%. on t

deirdre bosa digs into that for today's "tech check." that's a big number, dee. >>> it tells us generative ai still red-hot. open ai might also tell us the disconnect in public and private markets is back, or maybe it never even left. on the public front, look at the mega cap tech this month. nvidia lost 13% of value. apple 10%. the magnificent seven that led markets higher this year are now the weak spots and a big part of the reason is rising treasury yields, which makes future profits worth less. but big tech is already hugely profitable. it is the up-and-comers, the still private, unprofitable tech companies that rising yields should hit harder, not for open ai, though. "the journal" reports it is in talks to raise money up to $90 billion valuation on a billion in revenue expect this had year. i want to put into context how rich that is through a simple multiple, valuation to sale. open ai doesn't disclough finances but is expecting about a billion a year. at that valuation, investors would be paying $90 for each dollar of revenue ge

deirdre bosa has that for us dee? >> reporter: that's right, the suit filed just about 20 minutes ago attributed to amazon's senior vice president of global public policy and the company's general policy -- general counsel, excuse me the statement says, today's suit makes clear the ftc's focus has radically departed from its mission of protecting consumers and competition. it says, the practices the ftc is challenging have helped to spur innovation and have produced greater selection, lower prices, and faster delivery speeds for amazon customers and greater opportunity for the many businesses that sell in amazon stores if the ftc gets in its way, the result would be fewer products to choose from, higher prices, slower deliveries for consumers, and reduced options for small businesses the opposite of what antitrust law is designed to do. the lawsuit filed by the ftc today is wrong on the facts and the law, and we look forward to making that case in court. so a lengthy statement, scott. amazon is making the point that i

dee, it will be interesting to watch, deirdre bosa.xclusive with founder tomorrow at 7:30 a.m. on "squawk. >>> we're also watching for another ipo tomorrow, that will go public at the new york stock exchange as these companies continue to test the waters. and so far so good looking at the first day pop. arm is down today. >> by the way, only ibm and chevron are the only dow components that are green at the moment disney by far the biggest laggard. to the "the half" with dom chu >>> thank you, carl and sara welcome to "the halftime report." front and center this hour, a double test for the market as we await the first trades on that big instacart ipo and countdown to another critical fed rate decision our investment committee is standing by to help navigate you through all of it. joining us for the hour are josh brown, kari firestone, jim lebenthal and sarat sethi. here is where we stand, just about near session lows, the dow down 250-some points the s&p off by about 29 points and the nasdaq

that's the focus of today's tech check with deirdre bosa.e space, "d". >> it certainly is. and shopify is expanding its ecosystem, just a day after the ftc took aim at amazon for running an illegal monopoly. this underscores the idea that amazon is facing more competition than it ever has from upstarts like shopify, but also from established, well-capitalized retail players like walmart. shopify is the latest deal. this is an investment in wholesale platform, fair. neither company disclosed the size or stake or value of the deal, but it will see fair adopt shopify technology for its customers, further entrenching shopify as this alternative to amazon. it follows a string of partnerships between shopify and start-ups that work with sellers. the list includes newly public klaviyo, affirm, stripe, flexport, some of the darlings of silicon valley. they get access to shopify's more than 2 million merchants, shopify gets more services on its platform, gets to expand and also gets equity, which pays off in the case of klaviyo. now, i sat down with

our deirdre bosa is watching that in today's "tech check." >>> china the ever-present risk lurking inil it isn't. it's front and center, this time putting the company on track to lose some $200 billion in market value in just two sessions. two issues are emerging here. one, the report china is restricting the use of iphones, tim cook has been on this mission to diversify supply chain to india in particular but the company still relies on 19 per19% of revenue from china. the fear is the ban on the government side could expand to state-owned enterprises, and that could put a real dent in sales because some of china's biggest companies are state owned. a potential resurgence of huawei, seen as the first significant threat to apple's dominance in years. huawei is the giant chinese national telco equipment company at the center of beijing/washington a number of times over the years. the export beer decimated huawei's business by restricting to android, the operating systems its phones use. the winner of that move, far and away, is apple. market share in china went from 56% to nearly 70% in

our deirdre bosa.he past four months and goldman sees more game ahead with energy the only positive sector this month and jeff currie will join us and if brent will reach $100 a barrel by spring. that's next. with comcast business... it is. is it possible to help keep our online platform safe from cyberthreats? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring to address operations issues? we can help with that, too. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening. >>> welcome back to "the exchange." energy prices are holding steady with wti just under $90 a barrel and brent at $93. oil on pace to record its fourth straight month of gains, with russia announcing relaxing the fuel ban, will the pause remain slow? let's ask jeff currie. great to see you. welcome back. >> great. thanks for having me. pleasure to be here. my last time as gs he

that is the focus of today's "techcheck" with deirdre bosa. what do you think, dee?t angles baked into this deal. there's what it says about cisco and legacy tech, what it says about enterprise software valuations, and, of course, implications for the m&a market. cisco at $28 billion, splunk is its biggest acquisition. it signals where the company wants to go. at its core, cisco is still a legacy tech hardware company that's trying to pivot to software and services, bringing splunk into the fold. that will not only help with top line growth but it gives cisco more heft in cyber security and artificial intelligence, two of the buzziest subsectors in tech right now. we've seen other legacy tech use the same playbook, like ibm and red hat. two, the deal could suggest enterprise software has bought them. splunk touched nearly $200 in 2020 and corrected aggressively with the rest of the space at the end of '21, falling to about 75 bucks a share. the $157 cisco was willing to pay, that could get other companies to perk up and think, hey, maybe we could get closer to peak v

deirdre bosa digs into that for today's tech check.ring and i would day s daresay some would say bubbleicious. >> there are huge risks and trade-offs, especially with treasury yields offer an attractive and safer place to get a return. the valuation may tell us that the disconnect in public and private markets is getting wider, not narrowing as some believed it has. big tech has lost 13% of the value, amazon and apple 10% each. but a $90 billion valuation for openai would make it many, many times more expensive than any of them on a valuation-to-sales multiple. now, if openai brings in a billion dollars in revenue this year, investors would be paying $90 for each dollar of revenue generated. that makes openai more expensive by this metric than even nvidia whose valuation of sales clocks in at 19 times. even microsoft which owns 49% of openai is at a mere ten times. so for openai to justify that lofty multiple a lot has to go right. certainly it is putting out some of the most generative a.i. applications, but monetizing it will be a di

deirdre bosa is digging into that. >> khan badly needs a win.wait that ftc antitrust lawsuit against amazon, the agency and her own credibility are at stake lena khan made her name in high school where they argued the existing antitrust framework didn't properly account for the rise she came in determined to hold big tech accountable when we look back at the deals amazon has done during her tenure at the head of the federal trade commission, this is not a small list. it has made the prime ecosystem stronger and more entrenched, exactly what she's been trying to fight there was mgm, an acquisition which she didn't fight then there was irobot and one medical that gave amazon a foothold in health care. that closed without challenge by khan and the agency. in fact, three of amazon's five largest acquisitions, they have been done while khan has been in charge and then all the investments in generative a.i on the right side the of your screen, hugging face, up to $4 billion for minority stake in anthropic. these are more creative ways for amazon to by

deirdre bosa joins us now along with the aforementioned dan miles who says apple is his single largest short. >> his name mentioned a few times in the last segment. dan, we have you now on the line, thanks for being with us. you outlined a number of reasons why you're short including the latest reports from china, and quote, no a.i. play. in your view, what is the biggest risk to apple at the moment? >> well, it's the one thing that hasn't come up in the last segment, which is what's the risk you're taking on owning it? and one way to measure that is what's your pe ratio? and what's the growth you're getting? so if you look at it from that standpoint, you're paying 28 times pe for apple. revenues grew 2% last year. they grew 1% this year. and you can buy the s&p at 21 times. so the multiple, if you look at it, it's actually expanded about 7% from two years ago, while the revenues are dead flat. and the eps is down. now, by the way, if you think that's an aberration, if you go back to before covid, apple's revenues were down in fiscal '19. covid just supercharged that revenue growth. by

deirdre bosa is here who has been following all things ipos for us. there is optimism. how should we view what's going on right now in the ipo market? >> a good question. i have one eye on cleveo. it could open between $35 and $37. another pop. this would be the third we've seen. arm and instacart, down 5% today after a huge pop yesterday. arm has been falling every day since its ipo. so, yeah, there's appetite. we're figuring out demand. these floats are small. we have to see how sustainable it is. if they're already falling, what will happen when we get to the lockup expiration. they will be able to sell even sooner. i don't think it's clear yet. the window has cracked open. is it going to stay open? i think klaviyo will be a better indication of that because this is an enterprise software company, more enterprise software companies waiting in the wings as ipo candidates than consumer facing gig economy apps, even chip makers. this will be really important and it's different, a company that still has big top line growth of more than 50%. profitability isn't quite ther

current int kagsz suggest the stock could open as high as 39 we're keeping an eye on that deirdre bosad in 2012 saw its valuation shoot up to nearly $40 billion doourlgts pandemic and going public around $10 billion. it's a rare gig economy posting with profits due to its advertising business growth has been flat i talked a to fidji simo why now was the time to go public and how she could reaccelerate growth have a listen. >> we felt that it was really important to give our employees liquidity. as you know the ipo is not about raising money for us it's really about making sure that our employees have liquidity on a stock they work hard for we weren't looking for perfect market window. we were all looking for, you know, supporting investors and the fact that we have had such, you know, good business results and five quarters in a row of profitability, including, you know, close to half a billion dollar in ebitda over the last four quarters, gave us the confidence that we needed to go public and get the support from investors that we hoped for. >> right and you guys are going public, a v

deirdre bosa joins us on set as well. the stock is way off its lows. >> it fits into the conversation you have been having nicely. generative ai, the next phase of computing. the latest earnings call capex will increase. it's interesting, glen, what you said a few minutes ago, google will hold an event, bring jensen huang on stage but they're trying to develop their own chips, which is really what this report is about. it's working with broadcom and has worked with broadcom for years to develop these tpus when generative ai didn't have the promise we see it now has. when google is paying billions and billions of dollars to have these chips, it makes sense that they want to bring it in house which is what the information is reporting, they're looking for ways within a few years to bring more of that design in house which is a trend that we've seen among the tech giants that are well capitalized that can afford it. a shiny example in a very different way with its m series which eliminated their reliance on intel. that is wh

our deirdre bosa has a look at 2023 ipo valuations and just how much is different for today's "techcheck you said it, the ipo market is back, but so far it looks a lot different than it did a few years ago. one this wave will include some down rounds, meaning companies will raise capital beneath their prior valuations. instacart is going public at a fraction of its peak valuation, which bernstein calls reasonable and even conservative if it can return to better growth. there's also clavio, an enterprise software play and it looks to price its listing just under its last financing round in 2022. it would be another down round. there was arm's successful ipo. that was considered an up round. but it's trickier since softbank has been the sole shareholder since they took it private in 2017. and it's falling today as they consider that hefty premium to other semi companies. this difference this time around, there's more scarcity. the floats are relatively tiny. on average companies have sold 16% to 29% of their shares in ipos over the last decade. arm with 10% and instacart and klaviyo, 8%. i

deirdre bosa joins us with a big week for appmazon on the ftc front. >> this one in particular followsining its leadership in the ai race with a promising start. it's known as the open ai rival. it was co-founded by veterans of that company, and it's also seen as one of the hottest startups in the generative ai space. this follows microsoft's massive partnership with open ai. anthropic also took a stake. here amazon gets a minority stake for up to $4 billion. we don't know how much of a stake, but this is unlike the exclusive microsoft open ai deal. anthropic is essentially embracing several cloud companies. alphabet, now amazon. already had a partnership with amazon. it will run models on both infrastructure systems and it's also seen investment from salesforce. unclear whether this deal will give amazon the ai halo effect from wall street that wall street has bestowed on microsoft and google which have been seen as the megacap leaders in the ai race so far. amazon shares there up less than half a percent on this news this morning. its strategy has been less consumer-focused. so no ch

deirdre bosa with the setup. >> good morning, carl. inmor. >>> investors may now be looking to another area for re-acceleration and that might be soft we're. a couple of earnings last night underscoring a theme we have seen emerge over the last month or so. the latter is up nearly 6%. among results in consu consumption-based models bodes well for peers like datadog, snowflake and confluent. you add expectations the rate tightening cycle is over and the rotation of growth and software could have legs that continue. the bar for semis seems to have gotten higher. a more muted effect on the stock and look at broadcom today wasn't enough for wall street. that could suggest a shift also in the ai hype cycle at-large, the upside for chips may now be largely priced in and investors could be looking for leaders in new ai products and apps through the software names. this is when chips were getting all of the attention. investors piled into semifirst and then infrastructure and services. guys, maybe our audience wants to look at software and ser

let's bring in deirdre bosa. obviously, a long-time masa watcher, dee, and you said he needs a winner. >> he certainly does. there's been a question hanging around masa for the last ten years, is he a really great investor or just lucky? it goes back to the dotcom boom and bust of 2001 and the bet he made on a little known chinese e-commerce company, alibaba that turned into more than $200 billion, seen as one of the greatest investments of all time. that has sort of created this legend and stature around masa son that enabled him to come back into the venture capital markets with a vengeance with vision fund 1 and vision fund 2, but he hasn't been as lucky since then, since about 2006. he's had some high-profile losses like wework. he needs this. i was listening to your discussion. is this going to be sort of -- is arm going to be the play that proves that he knows what he's doing in artificial intelligence? there are many cases to show that he hasn't been able to execute on this vision. certainly he's been talk

deirdre bosa breaks that down in "techcheck." >> as microsoft gets one step closer to completing thatted to step back and take a look at what this means for the regulatory landscape and m&a activity going forward. you can track sentiment, skepticism and optimism by looking at activision blizzard stock price. in 2022 microsoft announced its intent to buy the company for $37. falling short of that mark. for the next year it would bump along around those levels never breaking $90 a share. that underpinned the skepticism the deal would get through regulators. it wasn't until july of this year as microsoft won a key ruling in the ftc's attempt to stop the deal that it broke that level. today with the uk regulators signaling approval, it is finally within $1 or so of that $95 deal price. with that final approval, microsoft activision, this is the bigger picture, it will become an example of how a company can successfully ride out the stricter regulatory scrutiny of the biden administration. it's also another blow to the antitrust bulldogs he put in charge a few years ago. the most prominent

deirdre bosa quick programming note, lina khan will join squawk box tomorrow morning and address thisre live at 8:30 a.m. eastern time the chair of the federal trade commission >> that's a no-miss interview. >>> as we head to break, it's almost time for delivering alpha. join us in new york city this thursday, convening business leaders to provide insights to help you minimize risk and maximize returns tickets are still available. visit cnbcevents.com/deliveringalpha "power lunch" is back after this somebody would ask her something and she would just walk right past them. she didn't know they were talking to her. i just could not hear. i was hesitant to get the hearing aids because of my short hair. but nobody even sees them. our nearly invisible hearing aids are just one reason we've been the brand leader for over 75 years. when i finally could hear for the first time, i could hear everything. try miracle-ear hearing aids with no commitment during our limited time sounds of autumn event. call 1-800-miracle now. >>> we talked a lot about rising oil prices with crude up 13% just in the

let's bring in deirdre bosa for today's tech check.et cap in the neighborhood of what he paid when he took full control last month? >> that's why i don't think we can call it a win just yet. maybe it's a successful ipo because it's up more than 10%. a healthy pop you could call it. a lot more than this and softbank and masa left money on the table. as you mentioned, kelly, it is below the $64 billion that softbank paid to get a piece of it from the saudis not long ago. so still have to see, but you are right, masa does need a win. he has hung his entire legacy on him being central in this shift to artificial intelligence. he's been talking about it for many, many years, not just when it became hot and busy this year. there's been missteps along the way. he talked about nvidia and asked if he was able to sell arm to nvidia a few years ago that would have been a huge win, bigger than what we're seeing today. undisputable. but he did buy nvidia in 2017 and sold it about a year later, made $3 billion. it leaves us sort of with the question

deirdre bosa reporting. >>> meanwhile, the tax man cometh for all this year's t.ime for investors to diversify into tax exempt munis and check out planet fitness, after the surprise ouster of its longtime ceo. the company says he will remain on the board. planet shares down almost 15%. we're back after this. every day, businesses everywhere are asking: is it possible? with comcast business... it is. is it possible to use predictive monitoring to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic across all of our locations? yeah! absolutely. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening. ♪♪ we're not writers, but we help you shape your financial story. ♪♪ we're not an airline, but our network connects global businesses across nearly 160 markets. ♪♪ we're not a startup, but our innovation labs use new technologies to help keep your information secure. ♪♪ we're not

our deirdre bosa joins us with airbnb ceo brian chesky with today's tech check segment >> brian, thankss good to see you. >> good to see you >> a lot of the announcements that you announced this morning focused on more transparency, better affordability i want to show our audience this chart, it shows that prices are rising faster at hotels versus airbnbs. this is great for people renting on airbnb, but less so for the hosts, right the people renting out their homes. how are you making sure that they, the hosts continue to benefit from being on the platform they're not losing money here. >> it's probably good to say, over the last year, hotel prices globally are up 10%, while airbnb prices are down 1%. this is data as of july. we want to make sure it's a win/win for hosts. what we've actually found is if hosts charge a better value, they often make more money, because they don't run at 80 to 90% occupancy rates like hotels. one of the best things they can do is provide for value, so they can book more nights, because their occupancy is much lower. we're able to see within reason, this c

deirdre bosa here with the latest >> the ftc is accusing amazon of an illegal monopoly and it is essentially taking aim at the prime flywheel for leveraging that market dominance. amazon has hit back saying the suit makes clear the ftc's focus has departed from its mission of protecting consumers and competition. lina khan came in a few years go, determined to hold big tech accountable, but so far the record has not been great. we went back to take a look, three of amazon's five biggest acquisitions have been done while in charge and mgm, one medical and eirobot there is all the investments in generative a.i taken together, all these deals over the last few years, they have made that prime ecosystem stronger and only more entrenched exactly what the ftc is trying to dismantle so this is really a make or break moment for lina khan and amazon depending on the outcome. it will take months, years for this to play out it is interesting to see amazon down 4% today because usually investors don't react to regulation, but maybe this tells us that the outcome could not -- at least maybe it could be a

deirdre bosa. >>> still to come, a key energy agency says it is the beginning of the end for fossil fus.elwho it is next. every day, businesses everywhere are asking: is it possible? with comcast business... it is. is it possible to use predictive monitoring to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic across all of our locations? yeah! absolutely. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire >>> energy is in focus today on the street ahead of the international energy agency declaring the demand for oil, coal, and natural gas will peak this decade, calling it, quote, the beginning of the end of fossil fuels as the world marks a turn to more renewable energy

our deirdre bosa.sh shares are jumping because it is from underperform to hold citing underappreciated tailwinds. joining me is john calantoni. in some ways instacart wants to emulate doordash. >> yeah. thanks for having me. yeah, so our analysis shows two things and the advertising business is just getting started and the underlying performance of economics is getting better and will continue to get better, and you know, i think one of the things that did give us more confidence around reviewing economics and it was the insta cart disclosures from the ipo where they showed that the pure play grocery business can be profitable, can have a large advertising business, and that gave us more confidence to assume better profitability for doordash's own grocery business and it is a major swing factor in driving our increased ebitda assumptions. >> that's really interesting and it strikes me as not a close sign that for instacart it has underperformed at a time the company is trying to go public and it can st