here is another thing about meta that laura martin pointed out.eels format which is successful but not fully monetized yet. it is their version of tiktok. they need to continue to grow that reels engagement and then really make money it from. they have done it before >> we know -- >> they've gone to the new foremats before. >> we know it's a priority sorry, i didn't mean to cut you off there. je julia boorstin turning to another downgrade, jeffries cutting the rating on lululemon and under armour jeffries says onest biggest beneficial rifz pulled forward demand from the pandemic adding competition is rising and headwinds growing including lower margins and the new steeker category and tough comps. and then with under armour, a different story. they're concerned about management volatility. they don't have a ceo. and lagging fundamentals nike remains a top pick for that jeffries retail team the most controversial one is the lulu we have not seen evidence that that necessarily is the case in recent quarters. >> not yet, no anyone that is skeptical a

let's bring in laura martin, analyst. it was the decade of netflix you won that round and now it is all about met at and facebook. i think a lot of investors in the stock should say sure, fine, it's not a growth stock and a value stock, i'll take it. it's still behaving like a growth stock with the metaverse investments and at some point they need to decide what they are and what they're going to be >> a little bit. in the near-term move to the sidelines because the ceo will increase spending this year at the same time hissa algorithms r moving with the tiktok knock off with the higher monetization so he had told you he's going to orchestrate margin pressure. at the same time we all know short term that apple's degradation of his target ability is hurting the cost for thousand as he's able to charge advertisers. so we know this will be a very difficult year for him while can he actually get the 94 million kids that moved to tiktok, can he get them back because they're the content creators that's the question. >> there was

we have laura martin and need to him stirring the pot. >> i did hear from a number of sources, if the stock price continues to decline, it could be a very attractive takeover target for any number of players, the question is which is big enough and not facing so much regulatory scrutiny. i would be remiss if i did not mention if microsoft has pending activision blizzard deal, that deal gives them exposure to ads in the game space as well because some of those blizzard assets and we know netflix will be investing continually in games. this is till way too early to think about how this ad partnership could shift into business, it's noting microsoft continued investment in games as well. >> it's really getting interesting ahead of the report coming next week extract turning to apple this morning, advertising could be the company's next big growth driver, projecting they could throw a $20 billion business by 2026. joining us this morning, analyst, we have watched carefully how you view this company, especially as we have worked our way to the last couple of years. why now? >> thanks for h

>> that's the million-dollar question we don't cover amazon, thes our colleague laura martin who covers it. from my perspective, what i'm most interested in, if amazon tries to make a home run play here, what's going to incrementbly happen in delivery. again, my starting point is i'm thinking grub hub is approaching them from a position of weakness if they viewed grub hub as an undervalued asset with couriers, some sort of consumer demand, a relationship with restaurants. all of a sudden could you parlay that into an even bigger thought beyond whole foods, but having other ways of advancing your gresry strategy. if this is a piece of it and they just got a sweetheart deal because of the position that grub hub is in, so it's maybe not the order of operations they would have liked it to happen in, but nevertheless, it's an undervalued as set or underutilized asset to have a relationship with. >> bernie, a couple questions about the future of online grocery in a recessionary scenario, you've done some poll work that asks why would you stop ordering online grocery a quarter say too expensiv

. >> this is laura martin who had a great call on netflix. >> we had her on oftentimes. sure she'll talk about this. >> i am going to make a point here. i think that reel is doing better than tik-tok. i think betting against mark zuckerberg has been a sucker bet and will remain a sucker bet. >> okay. it's a fair point. you may very well end up being correct. we know that you will be following it closely. >> how much is that stock? >> would you like me to tell you? 59.1% of the year. >> what a great early pool. >> her response will be cost growth will exceed revenue growth for the next two years. >> i told you that. >> nobody thought that reels would take over tik-tok. mark zuckerberg is letting people go. i didn't see district 13 last time. >> that is a new one. guys, i wanted to go to broad calm. this morning or actually on july 6, but we've heard about the news this morning, tom krause who was effectively the number two there president of broad calm software group, one of the key architects of the most recent deal is leaving. he is out of there. he is going to be resig