mark mahaney let's check in on the markets down 74 points on the dow. again with the s&p 500 we're positive and thanks to consumer discretionary energy staples, utility and now technology is higher industrials and financials bringing up the rear in the market the nasdaq comp is up a third of a percent. still ahead deputy treasury secretary wally adeyemo and the administration's response to today's hotter inflation read. plus, why the ceo of chevron ou f me inflation could be arndor longer than you may think. we'll be right back. you can sell your policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. >>> s&p goes negative as we continue

joining us is ever core's head of research, mark mahaney.s shares 31% off the high would you buy it before earnings >> no. the probability is that estimates come down because of fx, because of macro conditions. this is an ecosystem here. if there's weakness in consumer discretionary retail spending, if there's pressure on margins, that means the margin people will spend less on advertising and less on google it's secular, but secular cyclical i don't think we have anywhere near the kind of cuts we have with snap where estimates came down 20 to 30% a lot of this is priced in but you never know it's probably more in the 5% range, maybe 10% max but, no, i would not be buying alphabet in front of the print. >> but haven't estimates already come down for names like alphabet, especially in the wake of snap? haven't you lowered estimates today? >> yes, i did. i'm still fearful there's more cuts and i'm below the street. ethics is a real legitimate issue. that 12% appreciation on the dollar, companies like google, amazon, facebook, they have 50% of

your expertise at evercore, we thank you mark mahaney.rying to find the fundamentals in what is in general a nonfundamental story at the moment. coming up, buy now pay later. seeing its valuation slashed in the dramatic reversal with andrea walne. this is bloomberg . ♪ caroline: a bit of a dramatic reversal for one of europe's most high-profile startups. klarna bank. valuations being slashed in its latest funding round, down from june 21. the swedish giant has been burning through hundreds of millions of dollars as a startup. and joining us to discuss how we continue to see talent in this market, andrea of manhattan partners. it is good to have you on and of course klarna one of the numerous members of your portfolio. i am interested and how painful it is for executives and the people that have invested. andrea: thank you for having me, caroline. i will say we invest in growth late stage companies much like klarna. while they are hitting the peak trajectory of their business, we believe that extraordinary companies backed by the best inve

bullish on the buy calling it strategically sensible here to discuss, head of internet research mark mahaney your outlook, why is this sensible for amazon >> well, okay, so amazon has been making a push into healthcare for quite some time they did the co-pack acquisition, they attempted to put together a consortium with names like jpmorgan. they had limited traction to date, but it has been an area of focus for them for some time what they were looking for was a partner with a relatively strong consumer brand, a differentiated approach, and one medical is a decent candidate for that. it is a tiny company they're only generating about a billion in revenue, but they are a premium growth model, 20 to 30% revenue growth they're not profitable it is a company in need of cash or in the need of a strategic suitor and here is amazon. so i don't know how well this is going to work. this is not too dissimilar from the move they made into groceries with buying the whole foods several years ago, so i leave it as i like the strategically sensible setup this is not a shocking move by amazon now whether th

evercore senior managing director, head of internet research and author of nothing but net, author mark mahaneyyou will of negative factors facing these companies. you've got very tough foreign exchange and all of these companies have 50% roughly of revenues outside the u.s. you have increasing signs of recessionary pressures that will impact amazon and apple. you have tough comps. june quarter of 2020 was an abysmal quarter. now you're comping against that which means almost of the companies will be reporting revenue deceleration. so it's just a tough time to be bullish on these names. i think you want to wait, see how much estimates get cut and look to see which are the strongest assets after that. dagen: well, when will that happen in terms of the estimate cuts? which of these stocks now are more fairly priced than others? >> i think the basket is fairly priced. i think you're going to get estimates cut this week. you're close to a point, i tried to be cautious and muted on this sector since the beginning of the year, given the correction we've had. i obviously haven't been cautious and mute

mark mahaney with us. amazon, big with revenue beat, upbeat guidance.rice? >> no, we kept it at $180. what's happened with big tech is it got so oversold earlier this year, now it'll depend on how well they can weather through this recession or whatever macroeconomic challenges we have, but we clearly is have them. you've heard that from these companies. they've all said they're seeing softness particularly on the consumer side is. amazon has executed phenomenally well after some misexecution earlier this year. they've been actually able to set up for accelerating revenue growth in the back half of the year. if you find a story like that that's probably going to work, i'm a buyer here at the open. stuart: okay. are you thinking amazon reaches $180 a share from 134 now by the end of the year? >> yeah, within 12 months. what i want to do is set up here, you know, this stock it corrected, you know, 40%. the multiples just got whacked. the multiple, the price to sales, the price to cash flow multiple had gotten return, gotten debased, if you will, 30-40% be

mark mahaney joins us before the bell. mark? how do you see this whole thing playing out? precedent for something like this , ashley , or there are very few precedents. i think this is going to drag through the courts for sometime. we think we'll probably get some sort of decision at least in the december quarter about a potential breakup fine that musk will have to pay. i just think the whole incident is unfortunate. i think at this point, it's probably best that twitter revert to being an independent, a publicly traded company. i guess is that that's what's going to happen whether or not they can actually force the sale to musk, i think that's going to be a hard shot. ashley: he could even pay the billion dollar breakup fee, and then come back with a much lower offer and still be better off than the original offer, right? >> he could. now one issue there is going to be he got public shareholders, large stakeholders to agree with hiation bid initially. i think he's going to have a very hard time getting large shareholders to agree with another bid given what's happened, w

mark mahaney. >> thank you, dagen. activity at a distance. we'll tell you more in the next hot topic buzz. indoctrinatation. >>> >>> >>> . dagen: time for the "hot topic buzz." hee arizona governor banning civilians from recording videos within 8 feet of police activity without police permission law makes exceptions for people the direct subject of police interactions joe what do you make of this move by the governor in arizona? >> interesting, right, starts he you don't need to be within 8 feet of police officers because you know most o cell phone cameras object knocksously yellow case i have case i have kids this, has lights planters you can zoom in from beyond 8 feet not an issue, plut police officers now, most wear body cams, everything is documented anyway i am mixed on this one, one hand, dagen, you are in public place, if you are a police officer, and people should be able to film whatever they want to get within 8 feet concerning how employers are continually targeted, shot at, attacked with fireworks in san fr