let's bring in mark mahaney here now. mark, good morning to you. i want to talk about uber.a really lousy earnings report from lyft, but you like uber. why? >> it's a tail of two cities. uber is the dominant ridesharing provider in the u.s.. they have 75% share. they are also a global player. you can't be a big technology company if you're just u.s. , and then they have this diversification delivery, so you've got a company that's turned a corner of free cash flow. the stocks up 40% year-to-date. i think it's going higher this is one of my top picks for the year and you've got a very recession-resilient business model. we've all got to commute and go out on friday nights and we're going to be ridesharing and then i think they also reached this corner on free cash flow generating over 4 billion next year and if you look at it that way, this thing has got a material upside so i like uber. lyft is the second-tier name in the space. you want to be awfully careful about buying second-tier names in tech. ashley: very good. i want to get to this issue. alphabet getting a lot of hea

thank you very much, mark mahaney.to talk to you on some of the recent actions ahead of the reports. >>> disney fighting back this afternoon against the latest challenge from activist investors nelson peltz, calling to replace michael froman who has been in the position since 2018 disney slamming peltz this afternoon writing in part, quote, over more than six months of engagement with mr. peltz, in both conversations and written materials, he has demonstrated that he does not understand disney's business and he lacks the perspective and experience to contribute to the objective of delivering shareholder value in a rapidly shifting media ecosystem. trian amassing a $1 billion stake in disney. at issue the succession plans of fox, stock underperformance, mike is this going to go trian and peltz's way? >> it's a long shot in terms of getting on the board, it's a half percent shareholder position, not something you can have direct leverage it's much more about kind of, you know, war of words, bully pulpit i'm not even sure

mark mahaney, good stuff. see you again later.en and overhanging the session today will be that hot inflation number. 5.4% on an annualized basis at the producer level. it's hot and that's not good for stocks. we're off, we're running. the dow has opened with a 350-point loss. that is just over 1%. if we can put it up, yeah, there's the cow 30. of those -- the dow 30. of those that have opened, they're all down. two that have not opened yet, still unchanged. okay. a lot of selling, folks, leave it at that. the s&p 500 opening 1.25% down. nasdaq composite opening 1.6% down. it's all downed today. big tech, yeah, all down. alpha bent, apple, microsoft, meta and amazon are down, down, down. and then we have block, o.k.? now, it's been explained to me that is jack dorsey's company, you know, the twitter fellow. he now does block. and the thing is up 3.7%. so, a, what because block do -- [laughter] and why is it up so much? susan: i think i've explained this many, many times -- stuart: do it again. susan: it's the online payments compa

. >>> mark mahaney is with us upgrading zillow to outperform back in two. go emerson software. breakthrough meds and safe science. go space age welds for super silent cars. go big. or go home. from software that delivers new cures at warp speed, to technology that makes clean energy reliable, emerson innovation helps make the world healthier, safer, smarter and more sustainable. go boldly. emerson. >>> let's take a look at zillow. shares are up some 42% year to date our next guest likes what he sees upgrading the stock to outperform this morning and doubling his price target to $61. evercore isi mark mahaney joins us now this is essentially a macro call what makes you confident the housing market is recovering or will recover this year and a 42% rise, this isn't already baked in >> yeah. thanks, deirdre. so, this is a part thanks. so this is part of macro calls, and our home building analyst thinks part of the fund is that existing home sales and home prices are likely to trough out bottom in this march quarter and then recover so we lead with that what we know historically is

thanks as alwaysfor your insights we'll talk to you soon >> now let's bring in mark mahaney, head of internet research with a buy on a $125 target on alphabet mark, i don't want to get too far down the road here about what this bing move from microsoft will or won't do to google's core business but this is the first credible, full frontal assault on the core search business that i can remember seeing. and there's the potential, it seems to me, that this is google's equivalent of facebook's ios 14 moment a major disruption to that core flow into their core business. am i wrong >> i like the set-up i also find all of this ironic we're about to have the department of justice legal case against google from search monopoly take place right when this news is breaking out. there's a guy named eric schmidt a long time ago, the first ceo of google said that competition is always a click away we're going to find out. i think google was caught flat-footed here i think they've been investing aggressively in ai and machine learning since 2018. maybe even a little before them. but that's when you s

mark mahaney back with us this morning. you're our tech guy.phabet. they all reported late yesterday. let's start with apple. go through it, please. >> let's throw in meta there too, we're not out of the woods. you had revenue growth deceleration across the board for every single one of these companies whether it was advertising revenue, retail revenue, enterprise revenue, azure, aws and google chowld, so deceleration across the board. they're not immune. what they all need to do and the company that's probably doing this best, by the way, is meta, they've got to manage their costs. this became the year of efficiency for meta, and every other company is laying off people, figuring out ways to batten down costs as we go through this. the question for all us investors is have they cut numbers, have they slimmed their work force and their cost structure enough, and then when does the demand start to recover. we think it starts recovering in the middle of this year, but that's the big unknown. stuart: okay. talk to me about meta. your price target

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>> snap does have more exposure to brand advertising than meta does evercore's mark mahaney said it's 50-50, where about a quarter of meta's advertising was the brand advertising. if we look ahead to pinterest on month, it has an statemented 75% of its ad revenue from brand advertising, so i think it's important to look at the mix here the other thing to watch is mesa has all of these businesses, all this user engagement where it can turn on the advertising spigot, sort of flip the script there. the two key areas where i'm walking is reels, the tiktok competitor, and also messenger, which using a.i. to interact with consumer, and is a great direct-response tool >> also, the expense sides of the equation has been important. the stock has rallied after meta announced the layoffs and announced more discipline there on costs. >> yes, i think the key thing is meta announces layoffs months before some of the other tech giants announce. i think mark zuckerberg may be pointing that out now on the call i think it will be interesting to talk about their expenses, whether they'll have more expen

have to do >> well, it's so interesting snap has about 50/50 brand direct response, according to mark mahaney, who gave us estimates. he also says pinterest is the one most exposed to brand advertising with about 75% of ads coming from brand advertising. pinterest has a new ceo, who's very focused on driving transactions, driving commerce and guests, direct response ads on the platform. so, we'll be hearing a lot from him on monday about what -- when the company reports after the bell, but what the company is planning to really continue that transition into direct response. there's such potential in pinterest, carl, because people go there looking for products, many times looking for products to buy so -- but they do have a lot of room to go in terms of moving away from this reliance on brand advertising. >> obviously, busy week for pin with the layoffs this week >>> up next, we'll dive further into apple's quarter a miss for both revenue and profit is demand deteriorating or can they overcome a tough macro? either way the stock awfully close to levels we last saw around labor day we'll talk

first look at mark mahaney's advice on airbnb. remember that was our stock into the close.t is exploding. beat on earnings, beat on revenue. we'll talk about airbnb transitioning into a real company. how do you find them? phil blancato will take us to fundamental school next. ♪. liberty mutual customizes your car insurance so you only pay for what you need. with the money we saved, we tried electric unicycles. i think i've got it! doggy-paddle! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ covid is still out there, and so are you. and you could be out there with fading protection but an updated vaccine restores your protection so you can keep doing you. oooohhh, it is cold outside time to protect your vehichle from winters wrath of course the hot sun can be tough on vehicles too you need weathertech all year round! come on, protect your investment laser measured floorliners and cargoliner will shield the carpeting from sand and snow for your interior, there's seat protector and sunshade plus, mudflaps and bumpstep for the exterior order american made p

mark mahaney estimates that meta's revenue is 75% from direct response, compared to snap, that has 50% from direct response and 50% from brand. guys >> julia, by category within google, alphabet, does this potentially point to difficulty for youtube? >> so the thing is that this might point to difficulty for youtube, but you also have to remember that google has search, which is the most valuable type of direct response advertising, because people are searching for things and they sort of inherently have interest in clicking through and buying them that's a category that will be protecting google. youtube has been working on having more direct response there, but among the different ways that google is exposed to advertising, youtube would have more brand advertising there, because it is a great place for a tv-type advertisements, but there is the potential to increase the direct response ad component there as well. >> as for meta, julia, some notes this morning, talking about the buy side, at least hoping to see a little bit of a trim to the capex range and what that might mean for op

real estate site zillow bringing home the bacon at this hour, gaining 5% after ever core or isi's mark mahaneyhiking zillow's price target to clash 61 from 34. -- $61. implying that shares could rally 40% from their current level. that would be, by the way, on top of the 34% gain year to date. nice move for zillow are. fidelity national information services sinking 13.8% and landing at the very bottom of the s&p 500 right now following its decision to spin off its merchant payments business, world pay, within the next 12 the months. the company's board said the spin-off could unlock shareholder value. company also posted weak 2023 guidance. payment processer paypal, we can looked at that one, it's down 1.25% on the session. of course, friday the big news was that the ceo is stepping down. paypal has had somewhat of a rough couple years here. manchester united, look at stock. yes,es it is a publicly-traded football club. really kind of spiked at the open here, has come back down a bit, still up about a quarter of a percent. manchester united following reports that the host of the 0 the 22 fifa

let's talk more about the road ahead with tech with mark maha new mahaney and alex kantrowitz. pple and amazon and alphabet change your view for the long term or the rest of the quarter? >> we thought we would begin the year with the assets de-risked with the multiples and estimates and cost actions a nice way of saying job cuts. fundamentals across the board weaken revenue growth rates accelerated or turned negative that was finally estimated in and priced in after a year of aggressive prices estimate cuts and year of multiples. the sector became more invein investable because the estimates have been cut enough and the multiples had been brought down enough the year to date gains we have seen will probably be sustainable. >> any ratings changes for you, isn't that correct are they the same before earnings >> i tend to see price targets on these i don't cover apple. my big group is meta not because of growth, but valuation is cheapest. 14 times earnings. they have taken aggressive steps in reducing employees. there is also the factor that they are likely to grow with ad revenue