its revenue cut in terms of its forecast because of 4x and we have, of course, morgan stanley's katy huberty's saying apple's service revenue may slow because of the app slowdown if tech is the real source of the pain, tim, can we actually relatively emerge unscathed? >> well, i think the tech companies are certainly more inflation proof than a lot of the industrial companies, and certainly a lot of the international companies which tech certainly can fit in that basket microsoft i think is 57% international revenues but i guess part of this is a market dynamic, too. we talked all the time about the leadership of tech i still don't think we possibly remarked where the stocks need to go. i said i want to see 125 on apple which really equates to an s&p that i think is around 3,800. i think it has underperformed. the fact that you also this week in addition to this week for big cap tech, we heard amazon making major changes in c-suite we heard about facebook making major changes in c-suite we have seen a lot of companies not sitting stel for reasons already in process or from a sense this is the

how about katie huberty shading numbers down apple that's important >> what were the reasons >> oh, my gad, app store app store numbers are bad. >> really? >> yeah, the only place it's good is america. see, china impacts app store but that apple note is what's driving this market down today >> apple, as you can see, may open down more than 2% i'm looking here at your morning call list, and obviously seeing the reasons in terms of app store monetization decline year over year. first time in two years. >> this is going to drive the market down. now, there's a worldwide developer conference next week, but this is going to be -- i'm glad she did it today and not the worldwide. because frankly, this can -- apple is the weak link in faang right now. >> you believe that? >> yes because this was a big note. and they sell into china just like micron does. david, do you hear that the lockdown is not really over? that's another story that's been going around >> listen, the best i can do is listen to what eunice yoon is reporting because she's there on the ground no, my understanding is it lockdow

estimate those aren't numbers directly from apple >> but she's katie huberty >> yes, she is uh-huh and she's an uber bull on this stock, you're absolutely right. augmented reality and some of the devices like these apple glasses, at least in air quote, that's what people have been calling it, could be a game changer for them it depends how much of that they show us, scott it's more likely to be just as kovac said the likelihood is that it's going to be tweaks to the operating system with some hardware upgrades for the ipad and things like that so not terribly exciting and not surprising that the stock is flat going into that but they could surprise either way, i would suspect that a little more talk on the augmented reality side and those glasses could be exactly that kind of catalyst. >> all right shannon, the other one we need to talk about is amazon, up a couple bucks, close to a couple of percent, 20 for 1 split goes into effect today. since 1980 according to bank of america shares of companies that do splits are typically a 25% a year -- up 25% a year lat

. >> interesting, brynn, china remains a key variable here, even katie huberty calls it one of the drivers in the may weakness in the app store, suggests there's a reacceleration beyond the june quarter. that's why she's able to reiterate that overweight rating with $195 price target which is 33% to the up side >> sure. so what we'll see as china opens, she was clear the change from april and may was largely due to china i think the markets had a pivot here it's coming now to not what multiple or what earnings apple will have but what multiple does the market want to pay for apple earnings going forward i agree with everyone else on the panel, i think you had a pivot. just because apple is doing buy backs, they have slow earnings growth, that's my question and where i would caution. if the market is changing what they want to pay for multiples, you can still see flat to down side in apple. and that's why selling calls against it is a great idea, especially if volatility picks up, you can get more premium on that call premium. >> this is overshadowing what would have been a conversation abo

katy huberty from morgan stanley, the most important apple analyst, penned a report saying apple could miss the quarter because of weakness in services thes funny yesterday i told the investing club apple is the stock in the charitable trust i'm most worried about. good call. not the call i want to make. in tech land there's justifiable weakness, real justifiable weakness and the downgrades can send chills down your side, like the call to sell micron this morning, confirming what we said about a lack of business in china along with a blush by elon musk where he talks about a super bad economy and big lay-offs at tesla. sub optimal. will next week be a continuation i'm afraid it might be first in the interest of shameless self-promotion we are going back to san francisco. i like to do it once a quarter to tech land not just tech chps but i like it out there because we have to take the temperature of silicon valley and because that's where soap interesting companies are i think s&p is going to start off rocky because even though apple has the terrific world wild developer's conference, t

we have to give some of that back, especially because the news from katie huberty about apple maybe missing it's not going to be -- there's not going to be a lot of job loss >> labor force participation did tick up. maybe that's the best sign >> that's good >> if you bring more people back >> look, i know ten people who have covid right now i think covid is scaring people. we always minimize it. we should not minimize it. people, i mean, people, i'm getting the covid twice thing. i really see that covid continues to overwhelm, particularly with work from home and that creates more housing and housing is not going to be in recession retail may be, but then you read a guy like garrett friedman and you could say, garrett is really negative ain't from our age he was even more negative than last time. there's not as much wealth effect i don't know let's just give this guy a break. it's going to take a year. he's slowing things down it's not going up anywhere shouldn't that we what we're talking about? >> jason furman said the average hourly earnings growth is about last year. 6.5% last year to 4

by the way apple reaffirmed this morning by morgan stanley who is one of the top apple analysts katie hubertyt overweight reducing price target to 185 but if amazon is going into bid for nfl sports rights, apple has $200 billion on the balance sheet wouldn't you be concerned if you're cbs? stuart: yeah, i would, but also if i was in the golf business and watching saudi arabia invad ing golf with a few billion dollars. >> yeah. cash is king, in this environment. stuart: netflix. they are doing a real life squid game? yeah, so we have other streaming headlines here so they are, yes, we know how popular squid game one was, drawing of course some of the most eyeballs ever for any netflix series but netflix says, they are planning a squid game two series, and they are going to up this with some more engagement with a real life squid game and the top prize is $4.5 million. no deaths involved by the way, we don't want any homicides there to make that clear. also netflix is up for sale probably the biggest streaming headline this morning the ite is what it's called $7 billion reported price tag, they