coming up, more on meta. latest numbers and the impact of apple's new ad policy on the social media giant relator, dashes social media giant. a new gap about women who are confident in their financial future and those who aren't. the majority are confused about crypto. this is bloomberg. ♪ hi, my name's steve. i lost 138 pounds on golo and i kept it off. so with other diets, you just feel like you're muscling your way through it. the reason why i like golo is plain and simple, it was easy. i didn't have to grit my teeth and do a diet. golo's a lifestyle change and you make the change and it stays off. golo's changed my life in so many ways. i sleep better, i eat better. took my shirt off for the first time in 25 years. it's golo. it's all golo. it's smarter, it's better, it will change your life forever. emily: welcome back to "bloomberg technology." let's get back to met as a result. ed ludlow has been listening to the call. ed: a lot of explanation about why costs and operating expenses will be higher in th

it's sinking meta stock today.the future holds, carl. >> yeah, jon, it's really got to the point there, we talked to joanna stern about that. yesterday and didn't mention palmer lucky, jon, and his own view of it, coming from the role of a former insider. >> yeah, it's not good but you know what, guys, i mean, jon, i feel like it's a great time right now maybe to be contrarian, right? maybe -- and that's to go back to the beginning of the show, that's when some of the best technologies are made. at least what you can say about mark zuckerberg, he's thinking originally and he's putting his mouth where his money is, maybe we'll all be kicking ourselves a decade from now. i'm trying >> it's not just putting his money where his mouth is, it's so much money, there's no mouth big enough, right, to handle all of this? and so it's not about the technology, you know, there are companies investing in vr, palmer lucky believe the man to say this bet in ar, apple's certainly doing that but not embracing the idea of a metaverse

coming up, more on meta.est numbers and the impact of apple's new ad policy on the social media giant relator, dashes social media giant. a new gap about women who are confident in their financial future and those who aren't. the majority are confused about crypto. this is bloomberg. ♪ when people come, they say they've tried lots of diets, nothing's worked or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time. eating all these different things and nothing's ever working. i've done the diets, all the diets. before golo, i was barely eating but the weight wasn't going anywhere. the secret to losing weight and keeping it off is managing insulin and glucose. golo takes a systematic approach to eating that focuses on optimizing insulin levels. we tackle the cause of weight gain, not just the symptom. when you have good metabolic health, weight loss is easy. i always thought it would be so difficult to lose weight, but with golo,

when you guys were talking i pulled up our meta model to your point, if you look at meta, they grew 12 million, if they roll back to 20% as the letter suggests they're going back to where they were in 2021. if advertising is flat, it seems log logical, all these companies grew quickly during the beginning of the pandemic. this is a reset to go back to mid pandemic there was so much growth they all thought, and we did, too, the street we really thought 2021 was sustainable and you realize it's not sustainable. so i think there's room for cutting. so before someone downgraded the stock, we think there's a story here to be heard on the cost side we want to hear what they're thinking in the past, meta has been responsible. they fought through slowing down spending and we'll hear what they say wednesday on their outlook on cost. i would expect an allocation on slowing costs. >> i go back to brad's note, he talked about what they need to do but near the end of the letter he talks about the investment that mark zuckerberg should be putting into artificial intelligence versus meta or maybe par

. >>> and meta mess. set to lose some $70 billion of market value at the open after another down quarter. >>> breaking this morning. credit suisse unveiling a turn around plan as it hopes to get investors back on board. >>> and elon musk looks to make his deal for twitter official showing up at the headquarters yesterday. >>> and kanye west walks into the offices of one major shoe ret retailer. >>> that and more on this thursday, october 27th, 2022 you are watching "worldwide exchange" here on cnbc good morning i'm seema mody in for brian sullivan let's get straight to the u.s. stock futures and what is set up rough day for technology yesterday. snapping a three-day winning streak ending down on the weak results from alphabet and microsoft. this morning, nasdaq down in trade. dow jones industrial average indicated higher by 140 points look at the bond market. yields are higher. 10-year treasury yielding 4.06% at this hour let's look at energy where oil is trading and we're higher for brent crude. $95.72 c

but disappointing than meta probably hoped.- disappointing than meta probably hoped.oncerned about _ probably hoped. but is meta concerned about this? - probably hoped. but is meta concerned about this? is - probably hoped. but is meta concerned about this? is it | concerned about this? is it more about them be more pioneering or innovative and, dare i say, first in this area in terms of new changes to these vr headsets, so therefore they are willing to take a loss to get ahead of the game? perhaps, but it depends on how much of a loss they are actually willing to take because of you look at rumours and media applying about you see that even internally meta has had a lot of disagreements and folks really not on—board with the product itself. i mean, i think what you see is meta really trying to stave development, right? many ways, it feels a little like myspace with what meta is trying to do now. which means, it is ahead of its time. ar, and are these virtual rounds going to be part of our future lies? sure. virtual rounds going to be part of ourfuture lies? sure. is

meta down more than 20% into the close. 24, more than 24%., revenue falling for a second quarter in a row. the forecast was the thing projecting another drop this quarter and investors balking at how much the company is planning to spend and invest in the metaverse. joining us now is matt ball, founder of the etf you're the most expert we know on the metaverse and the question of day is zuckerberg making a mistake going all in in this kind of environment what do you think? >> i think it's interesting when you go back to october of last year, zuckerberg was very clear that 10 billion was the floor in losses setting the expectation for 12, 13, and potentially as much as 15 in the years to come. since that time, we hit a macro economic pullback. we've seen the impact of apple's p privacy changes were more than expected and tiktok became a competitor i think investors are right to say we need to see more control or at least more before the investments continue >> what tabout the idea of the metaverse? you've written a lot of research on this, but

the cpus for meta, already provides the flash storage for meta should we think of this spending in ase way what's bad for meta is good for these chip names >> you know, it's an interesting question i don't think that will turn out to be the case because i think there is a recession happening in tech. it's not everywhere within tech, but this is not an environment where even as companies say they're going full speed ahead i wouldn't believe them because i just don't think the demand is going to be there. so as consumers have continued to move away from goods and towards services and that shows no sign of reversal anytime soon, i just don't think you're going to have a great year for growth in the semis. so i still think the semis are a good bet here. they're down substantially i like them as a group there are some names absolute outright buys right now, but as a group i just think share prices are reflecting a much worse situation. but that doesn't mean all of a sudden you know what, meta is going to keep spending if i were to take it that far, that seems like a step too far joe, you

meta's total revenue slipped 1t%, but the -- meta.ss some of the challenges it faces, meta has been investing heavily in its reels should video service to leah users away from tiktok. but it is not as good as stories and the news feed. this is the second quarter in the year sales have dropped and analysts are increasingly sceptical about the company does make future prospects, even before today's results there were signs of dissatisfaction among shareholders, with one pending an open letter, saying the company had too many employees and needed to cut spending in metaverse technology, that is the virtual reality software and hardware, which mark zuckerberg believes is the future of the company. that division lost a huge chunk of money. the latter is a sign that investors have doubts about the company's recent performance. its share price is down over 60% so far this year. debra aho williamson is an analyst covering social media firms at insider intelligence in seattle, washington. welcome to the programme. what do you make of these res

the stock has already lost 70% of its value by my estimate, i think meta -- the meta verse has alreadythrill ondollars in fair value, in market value. so, put that aside, and i think the stock could go back from 100 to mid-150, 160 just on, one, maybe gaining share back from tiktok, which interestingly enough, we spoke to that yesterday, the engagement on facebook and instagram is up, and even in the u.s. where everybody's saying they're losing share to tiktok engagement is still up users are still up that's one two, monetization on reels there's a $2 billion today in monetization discrepancy between what they sell an ad for on their regular facebook or instagram versus reels i think that needs to compress i think will compress over the next 12 months they talked about text messages. there are other elements, in my book, in my mind, that could get the numbers incrementally better, but the metaverse is still going to be a big overhang on the stock for the next several years. >> is this a company with a stock and a leadership problem you mentioned it off the top, the fact that mark zucke

you know, meta is really interesting.ankly we heard engagement was better we heard that -- a lot of that was better because of their investments in a.i. and content discovery. we heard that short form video monetization is growing quite rapidly. we think it can do on reels 5 plus billion dollars my point is regardless of what these call it better engagement trends and results on the top line, they can control the costs and what we were looking for was basically some sort of better indication of where that control is coming from what we learned overall was that, look, meta is going to continue to invest and if these top line better engagement, better revenue can continue, then we think that will help to drive better margin as costs even go up a little bit. right? so i guess what we learned here was, you know, costs are going up meta is investing. that's not going to end any time soon we were hoping for a little more of a different outcome there, but if these newer ad products and engagement rates can continue, i think that

they are paying to what is paying the bills for meta.used to be called facebook, who owns instagram at all the social media properties. it has been a tough year for advertising budgets. advertisers haven't been spending as much, which is where media companies make their money. emily, that is probably the thing that is going to determine how much patients investors have with mark zuckerberg, the ceo, and his aspirations to spend 1/10 of every dollar that comes in on something that hasn't materialized, is metaverse virtual universe. emily: bloomberg's alex barinka, who covers social media, thank you. coming up, network effects made facebook, over, -- uber, bitcoin, a thing. we focus on an investor betting on network effects next. this is bloomberg. ♪ ♪ >> network effects impacts all of that. if you spend your life's energies building a startup, is going to take 100% of your effort. if you are trying to defend the business area you carved out, you might as bubble working on a business that has network effects, because then you will have a s

same for meta. if the numbers hold, the stock goes up dramatically that's my read through on what we learned. >> the bar is lower there. thank you, gentlemen, for being with us this morning. >> thank you >> thanks. >>> let's turn now to mobile eye, intel's self-driving tech unit set to go public today. one of the worst years for i.p.o.s of all time with a $17 billion valuation after selling 41 million shares at 21 bucks a piece. also setting a 5% stake in the company, only selling that much, floating that much compared to the usual 10 or 20% for most i.p.o.s. we'll look with the company's ceo later this hour given the stock opens up for trading, that's always the waiting game, carl, even though it's been a while since we've had the opportunity to wait for this thing. it's sort of small float versus bad market and a well regarded company what wins out? >> relative scarcity compared to the past they talk about it not being a capital raise but a situation you're better off being public than not. >> i h

a footprint in some meta back late last year. and so we think a lot of this capital expenditures could certainly be a positive for amd as they look poised to continue to take market share and also roll out their next generation, what's call genua processor here in a couple of weeks. >> if you don't mind, linger a little bit about meta itself and how you would handcap the health of this company are they literally spending too much and staking too much on the m metaverse or is it too early to tell or -- we're back down at stock levels not seen since 2016, profits are being pressured, what do you think >> yeah, i'm going to defer to our analyst for that kind of assessment i think what we are seeing, though, the importance of ai, again, as i mentioned earlier, recommendation engines, being able to, you know, basically craft and look at data very quickly, to optimize your engagement with the end users. i think that's not just a meta discussion, it's broad bates it's google talking about in our conference call, we're in the early innin

meta and netflix cut in half this year alone. so how are the world's largest tech companies preparing for a possible recession on top of all of this? julia boorstin covering the social media angle, steve covac on how apple and microsoft are handling a possible slowdown, dei deirdre bosa on amazon an alphabet and casey newton here to discuss it all. julia, let's start with you. you are going to look at a couple social media giants for us. >> that's right, tyler after snap raised red flags about a dramatically slowing ad market, especially into the end of the year, there are growing concerns about meta's earnings which are coming up wednesday afternoon. that stock is down more than 60% this year. those declines prompting brad kearsener, which held over 2 million shares calling on meta to reduce head count expense by 20%, reduce capex by 5 billion, to limit investment in metaverse reality labs, to no more than 5 billion per year that's about half of what meta is investing right now this comes as bank of america downgrades meta warni

by the way, we'll get to meta. you could fire most of the people anyway and still do better >> exbrother race of twitter's debt obligations if this happens, means that you will have to cut some people. >> yeah, simple math they got a very big interest cost when you put on $13 billion in additional at the time to take the company profit. >> rich guy. >> well, yeah, good new for the predators is there is $31 billion in equity ahead of you >> exactly. by the way, everybody hates semiconductors and under armour mower dre downe >> and we'll get to some of the calls. we'll talk about the b of a downgrade of meta and also who is reporting this week including apple, google, microsoft, ge, coke, exxon. ♪ ♪ ♪ ♪ ♪ ♪ >>> meta is moving lower pre-market 150 target, says it expects budget cuts next year to weigh on sentiment and altimeter said that meta has too many employees and moving too slowly to retain confidence of investors >> yeah, i spoke to brad gersner, sometimes a guest, and he said we're at the end of zero rates and

meta reports in a matter of minutes. our obvious talk of the tage today. company is under more pressure to produce given its stock creamed and current direction called into question by a major shareholder. experts are standing by for those results. everything you need to know.

and today, we've got the action, the story, and the trade on meta, ford, and caterpillar. the facebook parent company down a whopping 60% this year, as a slowdown in digital ad revenue slams the stock. let's bring in julia boorstin for more on the story. we've got delano who joins us with the trade he is the ceo of news street advisers and a cnbc contributor. julia, good to see you first to you i mean, have we seen the bottom of meta's bad news >> well, look, i think analysts are expect ing meta to report about 5.5% declining revenue in the quarter. and coming off of snap's numbers which were disappointing about warnings with what's ahead and the fact that youtube saw lower than expected advertising results, i think there are a lot of concerns about what meta could report and what kind of outlook they could give. then there's this question of cost cutting how much have they cut costs how much is that helping how much more do they plan to do and a growth potential for meta is reelz how much can they do with tiktok and then, brian, there's this question of investment in the

it's not a meta headset.expected, i say, because even my mom, who is not that old, has trouble working her smartphone and pc still. so a little surprising to look at sort of an older demographic that is becoming comfortable with these devices do you think had that this can really pick up on a large scale, they will be comfortable with the operating system when a lot of folks are still trying to get used to the current ones >> i think so. i mean, obviously, it has to be done in the right way with people who understand the needs of seniors and with a headset that makes them comfortable. but we have over close to 300 participating. it isn't a forced activity this is something people are looking for to do more of. they use it on average three times a week the hebrew home is having to double the number of headsets that it makes available given the demand and it seems to be quite successful now, this is largely i call it more of an ar experience in that it's an experience of theworld virtually. with the comfort lev

dragging down shares in the space, meta, pinterest all lower. and "the washington post" reporting that musk could be planning to slash the workforce by close to 70% but the government reportedly taking a look at musk's investors we'll see what that means for the deal which is expected to close in a week. >> you never know. let's start with snap what it signals about the broader market snap's revenue grew just 6% year over year. net losses surged by 400%, probably because of the cuts they're making in response management saying they are finding our advertising partners across many industries are decreasing marketing budgets that is happening as demand falls and inflation remains high earlier this week, ibm and at&t said they're seeing strong demand, netflix echoed that message but the ad supported model -- next week we'll get an understanding of advertisers from the consumer when we hear from the enterprise side, microsoft, and the luxury consumer side, apple and meta and alphabet and carl, amazon stretches across a lot of those. you look at the

meta shares are down about 60% over the past year. issuing a cautious note saying, "we don't expect the press pro will be a material driver of near-term profitability from meta's lab segment, the ceo mark zuckerb zuckerberg described it as a tool." also "highlighting uses across gaming, education and others, broadening the utility of vr to attract more users to platform and increase engagement. and also agreeing with brad writing "at a time meta's revenue growth is slowing, metaverse investments to chase a goal that may or may not pay off many years from now is not what we recommend investors allocate capital to in fiscal '22." looking at reviews for this headset, seen positive ones but have seen a number of negative reviews of the headset out today. we'll see what zuckerberg says when meta reports earnings that's tomorrow afternoon, jon >> all right julia, thank you. >>> now, with this latest product launch, our next guest bullish on meta. buying up more stock ahead of earnings this afternoon. joining us now, mark asset's management

he says he wants meta to reduce head count expense by 20%. to 25 billion and limit investment in the metaverse and reality labs division to no more than $5 billion a year. that's cutting that expense by half what he's really asking here, mike, is for zuckerberg to focus on the core of the business that's making money right now, and that is advertising and not to spend too much money on these long-term plans. it will be really interesting to see if zuckerberg takes any advice because of course zuckerberg does not have to. with the stock down about 60%, we'll see if he goes in that direction when meta reports earnings wednesday >> for sure it will be fascinating to see how much of this, you know, gets traction with management, especially because if you really kind of look through the details, gerstner is saying stop pretending you're a fast growth company anymore. it's more about harvesting your cash flows and riding the digital advertising market. >> getting back to basics. we ahead a lot of this from snap, the first of the social platforms to

meta has also been all-in on virtual reality, the so-called meta-verse. this could be an indication that future bet is a flop. let's look at some of the ugly numbers today. meta stock fell 24.5%. now under $98 per share, that is its lowest level in nearly 4 years. meta 's market value sink to $268 billion. that is down from more than $1 trillion in september, last year. overall, stocks were mixed today, the dow gaining , and the nasdaq dropping, and the s&p 500 also falling . the markets did get some encouraging news, though, as the government reported the u.s. economy returned to growth last quarter, expanding, 2.6%, reed. >> that is definitely one to watch. broken the other big story today, about twitter, tomorrow is the deadline for elon musk to close his $44 billion deal to buy the san francisco-based company. he wants to take it private. he posted a message to advertisers saying he's making the move because he believes it's important to the future of civilization, those are his words, to have a common digital town square. he added it is not for it to

now let's get more on meta's third quarter.on news the social media giant sees more weakness scott, how do you think the scott is looking trading at a forward p/e of just about 12 >> thanks a lot, melissa i don't think people are overly concerned about valuation. i think they see a company with two straight corners of revenue declines, op-ex and capex have continued to increase and now the company is talking about a hiring freeze and a facilities realignment. these are things that are not giving people positive signs as we look to close the year and start 2023 >> i guess embedded in my question, scott, is there a p/e at which this thing is so cheap can you even overlook the things you outlined or is no p/e appropriate for a company in this position at this point? >> right, so we focus on the fundamentals and right now it's pretty clear meta has a lot of challenge. what's interesting is they've known about some of these issues for a while at this point and experts we talked to suggest that the company could have gotten ahead of

it is owned by meta. we are watching meta down in the pre-market so far. it remains to know if that is part of the market narrative >>> hong kong and chinese stocks fell the hang seng saw the biggest drop since november of 2008. it was worse for the biggest technology stocks and hang seng index and hong kong rebounded slightly in overnight trade after the second largest drop one day on record. all of this -- okay. breaking news. outgoing prime minister liz truss is making a statement before seeking an audience with the king he wil we will monitor her comments liz truss making comments outside 10 downing street right now. let's keep an eye on what is happening here we're going to come back to this later on we will monitor the truss comments. >>> let's get to brendan ahern who is the chief investment officer at crane shares. we -- i wonder, brendan, as we turn back to hong kong and the selloff there -- you manage a lot of investments in the asian region in china and hong kong. what was your reaction yesterday? do you feel things got overdone or is there more

meta, pinterest selling off.for snap what seems to be driving this latest round of negativity >> what's so interesting here is the revenue miss for this quarter was very slight. the big miss was for the fourth quarter and the outlook for how the fourth quarter is going to end up the first three weeks the quarter was relatively strong. snap said they saw 9% revenue growth but they anticipate the overall quarter will be flat with a year ago period that's because they think the back half of the quarter is going to see some very negative trends in terms of this overall contraction in the ad space. what's happening here in the social space as a whole is that you see all these players competing for a smaller pie. they're all looking to get a bigger piece of the smaller pie. the question going into meta earnings is wloo they are better positioned to navigate some of those apple operating system changes that made it harder to target ads and measure the impact of that targeting mike, i'm going to be curious to see whether

phenomenon in the last several year where is the outperformance in these large tech companies, so meta, amazon, apple, microsoft, google has caused them to dominate the market. this week up until today but monday through thursday of this week you saw a very sharp divergence between the two indices where the market cap-weighted s&p was held down by mini caps and the regular s&p trading well that's reversing today to an extent, but it's still the case that they're having a period of outperformance now >> what do you think is the big driver does it continue >> yeah. i mean, i think, you know, this week has been -- the last several weeks have been a roller coaster. for me the most important events in the market, on wednesday, you had bank of canada come out with a dovish less than expected. yesterday the ecb suggested they'll be slowing the pace of tightening for weeks you've had this narrative seep into the market whereby it looked like the central banks that were most aggressive earlier in the year with hiking are now coming to the end stages of that process so everyone assumes that the

alix: it also leads me to meta-.s the quarter meta-laid out was in line with what everyone expected and yet the stock cannot catch a break. >> the stock down more than 20%. trading at its lowest level since 2016 grade year-to-date 600 billion plus loss of market cap. it was the doubling down on the investment to transition to the metaverse and this year will be between 85 and $883 billion. growing deepening losses as a result of that. it was interesting because a number of big-name investors called on him to be more financially disciplined raining inspecting, cutting costs and there was messaging about that lid we will look at hiring freezes, we will have flathead count in some teams. but the street wants it now and zuckerberg said no. eddie time were the ad market is slowing down, two consecutive quarters of slowing revenue growth not good. alix: really appreciate it. it will be back to preview the big tech earnings. for more were joined by david kirkpatrick. it's been a while, meta-stock is down 67% in the past yea

meta slides on revenue worries. they urge restraint on intervening in the fx market even as a fed tightening a few was dollar strength. >> a whole lot of things can happen if the exchange rate moves too fast and too far. i think so far they have been managing well. rishaad: we've got the softness for the dollar being played out with sterling and the yen on the cross hairs. where looking forward to gdp dataout of the u.s. it's about tech as well, samsung on the way out. one the other end -- on the other end meta and meta platforms they have been down 19%. david: yeah. let's see. when you look at futures, they turn about two hours back, back into the green. when you get a sizable move like this, not all the time, you will get a follow-through on the cash market opens up. we will get to that later. equity markets in the region are up a third straight day. chinese markets are leading this rush higher with the hang seng index up about 2.8%. on asia tech index, i will get to that, we are seeing sizable gains in the tech s

in addition to the meta verse.l have to figure out how to successfully march the world with the real world to realize the meta verse's full potential. >> okay. let's get a check on the markets. >> that's it from tokyo. thank you very much for watching. ■ñ■ñ■ñ■ññó■c■■■■■■■■■■ ♪ >> this is al jazeera and these are the top stories now. russian president vladimir putin is finalizing his lands to annex four ukrainian regions. the upper house of parliament has approved legislation which now heads to him for his final signature. ukraine's president says troops are making rapid and powerful progress against russian forces in the south and east. vladimir zelenskyy says dozens of villages have been liberated in the past week. south korea and the u.s. have carried out bombing

meta just melting down today losing a quarter of its value.pany has now last $800 billion in market cap in just over a year that is more than the value of tesla. that drop in part because mark zuckerberg is sticking to his guns he changed the name of the company to meta as he pivoted to the nonexistent metaverse. and despite the spend on metaverse even though the return on that spend hasn't been paying off so far listen to what our own jim cramer had to say about facebook this morning. >> i made a mistake here i was wrong. i trusted this management team that was ill-advised hubert here is extraordinary and apologize. >> first of all, kudos to jim for just coming clean on that. just saying, that he thinks he got it wrong and i think it takes a lot to sort of admit that on national television to everybody out there. we played this clip mainly because this really sort of encapsulates what a lot of investors are feeling right now and that is a crisis of confidence you could trust the management team and trust the vision of mark zuckerberg? and if

big tech, apple, amazon, google, meta, jam packed so among as we look at all of these things, what do you think, scott, i'll begin with you is the one name that you're watching most closely to game how the rest of the markets take it? >> well, tomorrow you have microsoft and google. if you recall about a week ago, microsoft made new lows in the year and google made new low in the year. google has advertising slowing down and saw with snap and business being diversified and microsoft, you mentioned about the strong dollar with a head wind and how the market deals with microsoft and google tomorrow after the close, that will be very important considering we just had a decent sized move from 3500 level in s&p cash. db of interaural think the reaction to microsoft and google will tell us whether it'll grow 50 in s&p cash sooner or later and once we get through that, meta has beamed up so people want to figure out if it's priced in and have app and will amazon and a lot to look at this week but i think between now and tomorrow, the chinese position could be wrong and technically like you c

so as meda, i thought -- so is meta.thought there was show more discipline than they have let on. emily: you have been covering technology for two decades. do you think we are seeing a real inflection point here? is there further to fall? how long does it take before this turns around? mark: two thoughts. we have a negative inflection here. tech is bigger than it was during the last cycle of 2008 and 2009 with the great financial crisis. those were the same thing. it is much bigger. it is more cyclical than it was back then. our firm, we are the overall advertising, it will decline into the single digits. the digital advertising will be flat up 5%. another inflection point i am interested in will have to come back to, that is ai. what middle and alphabet is doing -- what meta and alphabet are doing, they are spending on artificial intelligence and machine learning. bill ready has been very thoughtful on this topic. i am fascinated with what will come out of this. the market is looking at the ai investment and the capital

what are they going to listen for from meta? let's ask experts evelyn mitchell, emarketer analyst and ed lee, "new york times" media reporter and cnbc contributor. great to see you both today. first of all, evelyn, how worried should investors around meta be about what we've seen from other companies reporting their ad sales >> yes so things are a little tough in the digital ad market right now. it's reckoning with a host of chal loengs including evolving consumer behaviors, difficult macro economic conditions and ongoing effects of apple's privacy changes on targeting and measurement capabilities now these effects can varying degrees of severity depending on the area of the digital ad economy where a major player is operating so meta, for example, has had a harder time contending with those changes that apple made to its privacy policy than other platforms. like google, for instance, because of its reliance on search advertising, which has been insulated from those changes, google has fared better than meta has. so we're certai

i do see a moment where meta mentioned virtual reality headsets replacing our desktops.y're vetting really, really hard on vr and apple, depending on what they bring to market, betting heavily on ar glasses. it's an interesting competition we're starting to see there. >> cathy, before we let you go, how much did the virus pandemic hasten the next evolution. i say this because we talk about virtual desktops, virtual workplaces we've seen these not in metaverse but in actual life with things like zoom, facetime, microsoft teams, slack, and everything else. is that now the precedent for the idea that metaverse can work because we've seen the virus pandemic and the response? >> i think it's a combination of accelerating the technology, but it's also the fact you have again z in the work force. some live in these virtual environments not in vr, but in the gaming experience so the experiences are very real the pandemic exaccelerated everything. >> cathy hackl, chief officer at journey. >>> coming up, fairlead's katie stockton the markets where she's looking at buying opportuni

wonderful, on a day where people are talking about meta -- we'll get to the reasons they are talking about it, and you sold it a couple weeks ago, you say. why? >> the time had come you know, we have a big loss in meta, like many, many investors have that are starting to face year end, and that was not the reason clearly the move into the met metmeta sphere, and so you know that this is going to put pressure on the stock, just from the fact that shareholders like me are saying at the year end, i have to sell some of my losers, and it's holding at 2.5% when people look for a reason to end it going forward in a slowing economy, and i looked at it and said where can i deploy this capital elsewhere, and there are other options where there's great opportunity, and i told it and we took a huge hit on it. sometimes you get it wrong, and i got it wrong on facebook/meta, and i am willing to look at the stock again when you can prove to me what the business model looks like, and i believe in billions of users. >> you are not the only, as you suggest, unhappy shareholder i think we can characte

earlier in the week, microsoft, google, and meta were all taken down big time so the obvious question now is is it time to buy? we'll be going at that throughout the show today. then there is apple, which also reported thursday, it did not disappoint, that stock is up in premarket trading. 144 on apple. now take a look at big energy, there is sump a thing and it's doing very well. exxon reported stock at a 11 billion in one quarter and that stock is way up. the left is apoplectic about this and they're demanding a winful profit tax. the latest stock market action, the dow might be up about 40 minutes, nasdaq down about 80. that is amazon's impact. little change for interest rates and 10 year trading around the 4% level, 403 and two year at 436 or thereabouts, we got it there? it's 437. thursday, we showed you how to get a 9.62% yield on inflation adjusted treasury security. the website couldn't handle the rush of orders. politics, republicans coming on strong in the midterms all across the country. republican candidates are closing the gap. in georgia, herschel walker now leads on a h

meta's cash bleed.alley know how to stop its spending >>> amazon earnings on deck. the e-commerce giant seeing a big slowdown in its retail business will economic headwinds hurt results? - [narrator] if your business kept on employees through the pandemic, getrefunds.com can qualify you for a payroll tax refund of up to $26,000 per employee, even if you got ppp. and all it takes is eight minutes to find out. then we'll work with you to fill out your forms and submit the application. that easy. getrefunds.com has helped businesses like yours claim over $1 billion in payroll tax refunds. but it's only available for a limited time. go to getrefunds.com powered by innovation refunds. our internet isn't ideal. my dad made the brillant move to get us t-mobile home internet. -which... we have to share our signal with the entire neighborhood. yeah, now we do some weird things to get our speeds. well... i'm up. -c'mon kids. this sucks. well if you just switch maybe you don't have to be vampires. whoa... -okay, y

if you look at meta or google, they have never experienced the down turn.y were still small companies. with respect to google, you still have an opportunity to squeeze margin shift budgets from one model to another side call apple's bluff then you have meta on the other side who is not able to do that. they are shifting consumption time into reels which is lower with the direct advertising. at the same time, as we all are aware, mark zuckerberg is not skating back on the ambitions on the metaverse. he is the biggest problem that kicks in think of ios think of nokia with the guys putting in the infrastructure or think about the surge which is build on the existing world wide weapon zuckerberg has to build the infrastructure and build user behaviors around that. it is tricky and costs more money on aggregate >> sarah, i guess the interesting part of this discussion is whether or not many of these fundamental points about why there is weakness out there, meta will have to spend money in the coming weeks and years, versus the valuation. alphabet has lost a thir

you've got more bad news for meta.yeah, and mark seems bull irk on meta and lobar heading into the earnings and meta is firing for the first time in history and they're cutting back on cost including the shuttle bus usage and drivers are losing their jobs, -f 3 staffers here and -- 63 staffers here and meta spending $63 billion on goggles for the meta verse and oculus and more than 3 billion that visit the property and platforms each and every month. that's a lot of people. that's close to half of the world's population that goes on instagram, what's app, or facebook. stu: hasn't got much to show for goggles and meta verse. verse. susan: that's why it's down 60% this year. >> snap by the way it down 92%. when we talk about greater traffic, more eyasessers, argue that's a bad -- users, that's a bad thing and they're losing money per user. if you can't monetize and becomes more popular and hip and people like it. it doesn't matter if they don't pay you. you have to get paid and you have to buy stocks at reasonable valuat

but what's the implication full met his big bet on the meta verse. that's where it wants the future to be. that's right. to innovate or not to innovate, that might be the question for meta is it may have to reconsider spending billions of dollars on the met averse which isn't on the market yet. and that may be part of the problem, right? consumers don't really know with this digital immersive environment is meta has created some b r games, but they've been shown to be buggy on popular by som, especially in comparison to the 2900000000 users of facebook. now this is what some analysts, some investors are saying they're saying get back to the basics book. instagram is great. facebook is great. you need to challenge tick tock. but we have seen some reports from employees or within the company saying this is actually just a part of the zeal of market soccer bird and may not change course. well, who knows if it goes well the maybe we'll be doing this interview in the met averse in a few years time that way to see teddy austro in new york. thank you very m

i like meta.thunk we talking a year ago about a great value stock called meta. i will talk about the metaverse. another issue i don't recall a major problem is execution. amazon missed consensus the last three or four quarters. you don't like it as a buy? >> i like it, charles. i want to be flat out about amazon. amazon was probably the most macro exposed company in tech? why? because they're fully exposed to fuel costs shipping costs, raw materials costs labor costs all of that whacked them at the beginning of the year. that was the biggest shock, cost shock that amazon has probably ever faced in its history. they overhired, overplanned coming out of covid crisis there were a lot of things. they misexecuted. i thought to their credit they were up front about it. now we're here six months later. after they froze their hirings, in their distribution centers, froze the level, they didn't bring anybody new. charles: right. >> as they started cutting back on expansion of distribution centers i think y

>> he has gone all in 100% on the meta-verse so much that facebook changed their name to meta.ver seen the movie ready player one. if you want to understand the meta-verse you have to watch that movie. this is not for me. i enjoy sitting next to you right now. i've been meeting more clients face-to-face. it feels good. if you are trying to court a prospect of client and court them into becoming a client there is something to be said about shaking their hands, something to be said about that and it seems what zuckerberg is doing is allowing people to have their cake and eat it too, a hybrid between working from home and seeing people face-to-face. stuart: many many critics, this is down to 127. show me intel. they are planning to cut thousands of jobs this fall, could be up to 20% because pc sales are slowing down, stock is at 25 a share. big picture in the markets this morning, some green, thousand 170, nasdaq up 19, small game for the s&p but the view cohost anna navarro doesn't like republicans criticizing vice president harris, role tape. >> republicans are laser focused on

meta is the tech sort of debacle du jour.the dow. some dow components are helping today, and the yield is not on the ten-year is not -- not presenting any problems as it could, as it has in the past, and actually earlier, looked like it might actually get the 3 handle that did not happen, but hope springs eternal. could. >> especially for anybody trying to buy a house >> gdp number could make a difference >> in the meantime, let's get to the hour started with one of today's top earnings movers. that would be merck. the drug giant posting third quarter revenue and profit beating street's expectations. its sales of the targeted cancer drug up 20% in the quarter as they found new ways to use that new types of tumors to go after. the company's ceo robert davis joined us earlier on "squawk box. >> top line growth at 14%. 18% if you adjust for foreign currency, and importantly, those results allowed us to invest 22 cents in the form of business development to augment our pipeline to continue to bring in great science that's going t

caroline: let's dig in on meta. anticipating decent advertising commitment, decent marketing expense going through their platform? are you worried about what the apple algorithm has done to them again? brad: we just put out a report where we talked to almost 25 small and medium-size business ad agencies in the last few weeks and what we heard was in terms of overall spending, things got better through the quarter between things like lower fuel prices and consumer package goods becoming more available from an inventory perspective and lower shipping and freight costs. that may have freed up a little budget on the advertiser front. we heard things directionally got a little better. on the algorithm front and on the positive side for meta, we heard what we call green chutes around the targeting algorithm. we were careful to say though that we think it is very early. we don't see this impacting revenue, certainly not in q3 and probably is minimal in q4. but it was encouraging when we think about meta trying to restore s

lucha: que lo meta. albertano: no, ¿cómo que lo meta, que lo meta, jefa?esa es nuestra" betzabé: ah. maría: ahora, tú contéstame como si fueras albertano, "estuvo bien rico". betzabé: estuvo bien rico. maría: qué bueno que te gustó, lo hice con todo mi amor especialmente para ti. betzabé: ¿me puedo llevar un tupper? maría: no, betza, no pienses como tú, piensa como albertano. betzabé: no, pues estuvo chido. maría: ah, dale, así sí diría albertano. nunca pensé que estaríamos así tú y yo en una noche como esta, contéstame. betzabé: ¿qué? maría: lo que diría albertano. betzabé: oh, pues yo creo que así ya se propasaría. maría: a ver, propásate. betzabé: ya no hay que jugar a esto, nos va a castigar dios. maría: sí, verdad, mejor apúrate. lucha: es que no me acordaba, pero ya es hora de... todos: no, no, no. lucha: bueno, ya, ya, ya, está bien. carmelo: si eso fue fuera de lugar, caramba. todos: [hablan a la vez] lucha: fue gol y punto. chino: gol. todos: chivas, chivas. lucha: silencio, ya, esto se acabó, buenas noches, se van ya de mi casa, otro día nos vemo

meta, meta is not moving based on anything having to do with social media it's based on how much zuckerberg is spending on the metaverse. tiktok, you can't invest in that it's pretty much snap and is there -- pinterest, maybe? some of the biggest players are not really investable options right now, right >> yeah. well, look, and i think there's also this question, and we're going to talk about pinterest more later in the show, but is it more of a social shopping platform rather than a social network? some of snap's most valuable features are communications features, not necessarily social networking we need to take a step back and re-examine sort of what are these social platforms maybe they're not so much about the social network as they are about communications and groups and other things like that we're seeing a redefinition of what these tools are for, and it's going to be really interesting to see how elon musk manages this global town square, which is what twitter has been called by various ceos over the years and how he makes sure the town square is a safe place to be, both for the p