tv Tech Check CNBC July 27, 2021 11:00am-12:01pm EDT
investors to digest here, keep in mind we are really hovering near those record highs that we hit for the major averages just yesterday. >> i'm still -- we're done with the show we're done with the show i wanted to talk to you about raytheon, so interesting those comments from greg ayes. we'll do it at day. >> sounds good big tech after the bell too. that does it for us. "techcheck" starts now happy tuesday. i'm jon fortt with carl quintanilla and deirdre bosa earnings season rolls on for big tech apple, alphabet and microsoft all reporting after the market closes today we'll have the key metrics to watch. tesla tops a billion in net income for the first time in 22. revenue up ten fold from last
year more than a billion dollars worth of bitcoin still in the balance sheet. that should be profit. and cloudflare calls out amazon. we speak with the ceo matthew prince deirdre? >> we will start with the big week for big tech. we have been preparing for it, alphabet, apple, microsoft, reporting after the bell today together they have a combined market cap of nearly $6.5 trillion carl, perhaps not all that surprising that we are seeing some weakness among these names and the nasdaq at large as we head into these results. the megacap names have been rallying big on expectations, and, remember, last year at this time the economy was closed. so this is a low bar to clear and expectations have just been building and building over the last few weeks and months. >> it is true. you had a nice five-day swing here on some of these names, guys, and, jon, it points to some of the challenges we have seen at least in the industrial sector this morning and that is unless the guidance for the
second half is extremely bullish, investors are going to be wary about forgiving any kind of, say, pass on offering guidance as u.p.s. did citing uncertainties. >> yeah, carl, for tech, i think the two key themes in earnings this afternoon are going to be supply for hardware and demand for software so on the hardware side, supply. we know from the gartner report that corporate pc demand could not be satisfied from supply we heard from intel about the trouble getting matched sets together in order to push the pcs out. that plays into what microsoft is going to be able to do on the windows business going forward also questions about what apple's going to be able to do with max then on the software side, with all the uncertainty around delta, and how hybrid work will play out, are companies continuing to lean in to cloud, to software as a service, things like azure and office 365 demand
not constrained by components. if that continues to be strong, we might hear a more bullish tone from some of these folks. but don't know because there is a lot of uncertainty and the guide as you mentioned is going to be key, carl. >> yeah, let's dig deeper into some of the tech earnings with our next guest who says that the seasonal iphone trade is working for apple and promoting its continued growth as we know apple reports tonight. joining us once again on what we can expect from apple is tony saganaki we spoke last night on tesla which we'll touch on again in a moment explain to our viewers why this iphone trade is working, and whether or not that's a shift from prior cycles. >> yes, thanks for having me, carl so what we have observed is this is the 15th year where apple is introducing an iphone. and somewhat amazingly in 13 out of prior 14 years in the three months before the iphone
introduction, apple has outperformed and on average outperformed by 15 percentage points this that three-month period, which is typically mid-june to mid-september. that does appear to be happening again this year. the stock is outperformed by about 14 or 15% since the beginning of june. now, i don't think it is just this anticipation trade which we have seen before as you all remarked in your opening comments we have seen a migration towards large cap and migration to quality and also somewhat away from value over the last month, and so i think apple has participated in that as well. >> you do point out that the phone trade working does come with some wrinkles and it ties right into the other big story the last several days, that's going to be china, right >> yeah. look i think apple's had an
absolutely extraordinary year this year. so the iphone cycle has been strong and it has been particularly strong on pricing but we had unusually strong mac and ipad sales and so that results in a terrific year this year, and the real question is what happens next year. in all of those businesses when work from home, the need for work from home is not as urgent, and whether iphone asps can sustain themselves next year and then as you mentioned, carl, on top of that, there is a whole question about china, which is about 20% of apple's revenue and whether, you know, political and trade issues ultimately put u.s. companies at a disadvantage with consumers or with the state there. and these are all questions as we largely look into next year, less so about this quarter. >> couple of things on apple
one, i can't help but note with the m-1 chip and apple's efforts to roll out its home grown and design chips across the mac line, we just saw adobe coming out with premiere pro support for that, which should spark some business buying and they seem to be on a good cadence there. curious your thoughts on the impact it seems to me carriers in north america really seem to be leaning in to subsidizing 5g phones again, which might have an effect on the ability of apple to get phones out there at higher asps as you mentioned what is your outlook on those two things >> sure, thanks, jon i think on the phone issue you're right, carriers have been aggressively promoting 5g. i -- we continue to believe that 5g units will be okay going forward next year. so very strong year this year, flat next year i think the bigger question in
my mind is really the average selling price, what we have observed in cycles is typically the most affluent and enthusiastic apple buyers go first, and they tend to buy pro models and they tend to buy the largest storage configurations which really helps average price. and so while units may continue to be strong, the real question in my mind is do we continue to have the same level of strength of average selling price, same level of pro mix, same level of people increasing their storage capacity on, you know, thinking about education and adobe's impact going forward, look, i think in my eyes there is a question about the education market in the last three months, chrome books, which are largely sold into education markets have slowed notably and so the bigger question for me is more about what might happen to ipad and mac growth
over the next two or three quarters if, indeed, we're starting to see less buying from educational institutions and potentially from consumers for educational purposes >> toni, good morning. let me try to tie in apple and tesla which we got after the bell last night. i want to ask you about the china risk because a number of people said as beijing widens its crackdown, american companies could be next. apple and tesla two of the more successful ones in china we haven't seen any crackdown on them, even throughout the huawei saga could anything be different now? how are you gauging that >> it is certainly an important question for both these companies. so china is about 20% of apple's revenues, in the last two quarters has been between 25 and 30% of tesla revenue so very, very significant contributor, but also as you noted, probably, arguably, the
two most iconic brands, u.s. brands that are in china, and so if we do have trade tensions escalate, you know, could there be actions that are taken directly or indirectly by the state to dissuade consumers from buying these products or to provide less financial incentive, less financial incentive for tesla cars, greater promotion of chinese built evs, or, you know, similarly on the hand set side and i think it is very difficult to handicap that outcome we had trade tensions when president trump was first inaugurated with china, those largely dissipated we have them again and i think it is difficult to handicap that. that said, if you were to highlight, you know, the most vulnerable u.s. companies to deteriorating trade relations with china, it would likely be apple and tesla because of the
significance of their brands and also because of the significance of the revenue contribution that china has to their businesses. >> toni, one last question that involves both apple and tesla, it was about musk's call last night, which when we spoke last night had not happened yet but he did, not by name, but referred to them saying their walid garden was used to compets we wonder if he sees them as a threat >> i think potentially he does and also, look, from an investor perspective, you know, apple is the largest capitalization stock. i think tesla is number seven or eight. and so increasingly from an investor mindset perspective, where should investor dollars go, tesla is competing with apple for mine space among investors. so, you know, the reference, you know, elon has a often at times
an odd sense of humor, part of it i think was tongue in cheek, but it was, i think you're reading correctly in the sense that there is -- apple is doing self-driving trials in california, obviously a lot of speculation which you guys have well reported that apple may be building a car and so that is a potential threat and apple is, you know, aspirationally the biggest company from a capitalization perspective. >> that could be a fascinating showdown, down the road. toni, thank you for your help all this week. we really do appreciate it thanks >> thank you odd sense of humor, one way of putting it. the ceos of cloudflare and sirius xm are on the other side of this break. "techcheck" is just getting started here
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cloudflare's ceo matthew prince. matthew, welcome back. you also want them to join your bandwidth alliance, right? >> yes, so we're a supplier to amazon we let them use our network for free and unlike microsoft and google, who then discount for their customers the price of bandwidth, amazon stands alone in the industry as not doing that and we think that's not good for customers. we always have been obsessed with our customers and we want them to stand up to being as obsessed as they say they are about customers as well. not just for amazon.com, but for aws as well. >> why isn't this something the market would take care of? it seems like you have microsoft and google are doing the discounting, that perhaps provides them with an opportunity to argue that they're better for customers under certain circumstances than aws is, even though aws is leading, right >> well, i think that what you've seen recently is actually
google and microsoft increase their share of the cloud computing market, and more and more customers pushing back on amazon so i do hope that the pressure from customers is something that will eventually change amazon's ways, but one of the other things that amazon does, which is not customer friendly and gives them a really substantial lock-in over their customers is that they actually charge you to send data out from their system, and they don't charge you to put data in. that kreecreates an incentive t makes it difficult for customers to switch and there is no rational basis for that. the pricing is on a symmetrical basis, the same price in versus out and amazon uses their pricing in order to lock customers into their service and not be very customer friendly. >> right, that hotel california analogy you referred to in the blog post, matthew this isn't the first time that you have called out amazon a few weeks ago there was a report that amazon was trying to form this so-called rebel
alliance with other tech companies like dropbox and slack to better take on microsoft's suite of enterprise activity apps on twitter you said trust the real rebels, never trust amazon. why not? >> you know, i think that once again amazon in their cloud computing products has designed their system in order to make it something where you put your data in, but then it is incredibly expensive to take it out. what we hear from customers is that they want to be in a multicloud environment, where they can take advantage of the best that amazon has to offer, google has to offer, ibm has to offer, microsoft has to offer, and move their data to wherever is the best. what we -- however we see from amazon is they have designed their pricing and technology products in order to lock customers in and not give them choice so i really like companies like shopify and toby, the leader over there, who i think is one of the real rebels and standing up to amazon and thinking about
how they can build systems that really empower individual small businesses and merchants to be able to sell as much as they can online without having to do it the amazon way >> right, and trust or lack of it has been a theme in a number of their businesses, you identify aws and the productivity suite, but even with their merchants on the e-commerce platform, there is this growing worry if you hand over your data to amazon it could turn around and perhaps use it against you, right? they're going into so many different businesses is that also part of it? is that a concern you think companies need to be aware of when working with amazon or doing business with them >> you know, we're increasingly seeing our customers, again, wanting and to have the best of all of the different clouds. amazon has great products, and customers should be able to choose those products when they're the right thing. but they shouldn't be forced to if they choose any amazon product have to use the entire amazon suite so, again, i think that what we
hear from customers, especially in the e-commerce space, is that there is increasingly distrust of amazon and, again, amazon on a daily basis seems to go into a new line of business while it is e-commerce today, may be banking or healthcare tomorrow. >> sounds like a line we were hearing about microsoft 20 years ago, people are saying less now. give me your perspective as we head deeper into this earnings season on how business customers are spending on tech in the face of the delta variant i can imagine that some might be pulling back because of the uncertainty, but some might be leaning in because technology gives them some optionality. what are you seeing? >> sure, without talking about this quarter, for previous quarters what we saw at the very beginning of the pandemic was that customers were looking for ways to be able to ensure that they keep the lights on. it was an incredibly scary time a year ago for it organizations
around the world the beginning of this year in q1, we saw that it organizations were starting to say, we lived through this, we never want to go through that again and they were transitioning their spend from on premise hardware, which just doesn't work in an increasingly agile and remote workforce world, to services like cloudflare where they can make sure that they support their customers whether they're working from the office or working from home. what we're seeing in our business is, in terms of our own employees, is that there is concern over the delta variant and the -- and how that is spreading around the world so we're watching it closely with our own team, making sure that everyone is safe, and not forcing anyone to get back to the office anytime soon. >> well, that's one of the themes we're going to be watching in the earnings and guides tonight thank you. >> thank you. >> i want to mention cloudflare
is a cnbc disrupter 50 company in our weekly newsletter offers a closer look at disrupter 50 companies like cloudflare before they go public sign up using cnbc.com/disruptersnewsletter. sirius xm shares are higher this morning after reporting better than expected q2 results. speaking of disrupters, julia boorstin joins us this morning with the ceo hey, julia >> good morning to you, carl and that's right, we're joined by jennifer witz, ceo of sirius xm thank you for talking to us this morning. >> thank you for having me, julia. >> so, jennifer, the company beat expectations on the top and bottom line, but what really seems to be driving the stock higher this morning is raising the full year guidance ahead of expectations but there is still so many questions, how sustainable is this subscriber growth you've seen and the advertising growth you've seen when we're in a period of so much uncertainty? >> well, first, we're very pleased with our results this
quarter. revenue grew 15%, ebitda was up 14% to a record $700 million and our performance across all our metrics really positions us well for growth going forward, and it is reflected in our increased guidance across the board. there is really three areas that, you know, have trended very well, and resulted in not increasing our guidance. the first is the strength in auto sales and we had really strong records in the first and second quarter, which are a reflection of great customer demand, on the automotive side, but also our increased penetration rates across new and used. also we had exceptionally strong turn at 1.5% in the second quarter, which is a reflection of, you know, just the fact that subscribers love our service, and ad revenue is up 82% year over year and 20% up from 2019 we see strong growth across all of these areas of our business,
and we have, you know, just getting started on the sirius xm digital side i expect to see more from that later on this year as well >> well, speaking of the sirius xm digital side, you've been investing in a lot more content for your app including in podcasts, the war for talent is fierce i know that you've been doing high priced talent deals such as for howard stern for a-long time now are you seeing the fact that companies like spotify are also investing in very high priced deals to lure over talent. is that raising the prices for you and making you spend more on content and talent >> we really haven't seen it, the talent on our service. there are a lot of new podcast deals out there as you reference and we really have been disciplined in looking at those to make sure that if we participate, it is the right content for our platform we have a great opportunity to offer talent, really multiplatform deals, and you've seen us do that before, with kevin hart, we announced a deal
with megyn kelly and things like tiktok where we can offer content creators, brands and talent the opportunity to have live radio show on sirius xm, perhaps a play list on pandora or a much broader distributed podcast. so we believe we offer something unique to talent, which will keep us competitive in the space. but also many more ways to monetize the content or maybe bring it on board. >> and, jennifer, your biggest talent is howard stern the company just signed a five-year, $500 million deal with stern in december now you're getting a lot of push bake t pushback that he's taking the summer off are you worried you're going to lose subscribers as a result of that >> no. i think any pushback we have gotten is a sign that our subscribers and his fans love him and would love to have him on the air even more during this break, i know that
he may not be on air, he is working really hard on an exciting fall, and we have a great lineup coming, performances and interviews and i think some more surprises too. so he continues to be really excited to be at sirius xm and we're clearly excited to have him here >> and, jennifer, a final question about the delta variant. this is something that we know that ceos are watching carefully. for you it impacts not only your return to work plans, but what to expect in terms of commuters, how much time people are spending in the car, even impacting the auto market and certainly advertising as well. what are you expecting and how is the rise of delta changing your plans and your outlook? >> i think we're all being cautious and, you know, there is new news every week on this. but the fundamentals have been, you know, with us throughout the course of this year. and people are coming back and they're coming back into the offices, they're getting into
their cars more, they're commuting more and they're spending more. and all of that brings, you know, kind of more opportunities for our business, whether we're growing in the car business or growing xm digital and out of car listening or just advertisers who are continuing to look for great opportunities to reach consumers as they increase their spending. >> well, jennifer, we're going to have to leave it there. stock is up 5.7% thank you for joining us after your better than expected earnings results >> thank you, julia. >> carl? >> great stuff thank you very much, julia arc invest cathie wood trimming her exposure to chinese stocks as they continue to sell off. we'll discuss if any of those names are safe to own. intel now counting qualcomm as an amazon as customers it is all straight ahead stay with us
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hour carl quintanilla with deirdre bosa and jon fortt we're going to talk china and regulatory fears first, a news update with frank holland. >> consumer confidence inching lower this month but still way above forecast and remains at levels not seen before the pandemic the report suggests economic growth is off to a strong start in the third quarter. home prices surging again in may, the average price in big metropolitan areas jumping 16.6% over the last year it is the biggest increase on record going back 35 years. u.p.s. shares sinking about 8% investors looking past the top and the bottom line beats to focus more on slowing shipping volumes here in the u.s. fedex shares falling in subympah as well. 3m trimming losses, down 1%. q2 results ahead of estimates and the company raised its full year guidance, but 3m also warned of higher material and logistics costs. jon, back over to you. >> frank, thank you.
and now, a gut check on intel. investors are not convinced, the chipmaker falling again after it revealed its new road map to take back the chip manufacturing throne by 2025 manufacturer revealing new technologies and unveiling its new 20a node set to debut in 2024 now, what's interesting here, guys, is they also announced that aws is going to be a customer of their packaging technology, qualcomm is interested in that 20a node in the foundry business there has been a bit of confusion here about exactly where intel is in the fight. part of what pat gelsinger and a bunch of other executives tried to argue in their event last night was that this process technology thing of seven nanometer, ten nanometer, every company is measuring those differently. as i talked to technology
analysts, they said intel should have fixed this a long time ago. so it seems like they're further behind than they actually are. and part of what intel is saying here is, yes, on process technology we're going to be behind until 2024. that doesn't mean our products are going to be behind until 2024 because of packaging technologies that they talked about last night, because of their software that they worked on as well, they think they can put out competitive products that will lose margins even before that. we'll see, the street is not prepared to take a flyer on that yet, based on intel's track record in recent years, guys. >> jon, we were talking about this a little earlier before the show how wall street is sort of viewing intel one way, and perhaps technology experts or analysts are viewing it another way. if you're focused on the technology and think that pat
gelsinger can pull this off, the manufacturing, the foundry side of this, you're willing to give intel a little bit more leeway, right? >> well, it -- what was unusual about last night is the degree to which intel laid out a road map that is about four, five years worth in detail. that technology analysts and investors when they pay attention will be able to measure them by. that was an unusual degree of transparency, and these are technologies that intel already has in house they clearly have been able to convince a couple of large customers to work with them on this still questions about that relationship with as that will sob important for higher tech manufacturing of these things. intel says they can get the supply they need to make the chips that they're going to be making but, hey, these gaps have opened up in the past around what companies say they're going to be able to do and what the street believes. qualcomm saying they thought their licensing business would be okay. they're going to be able to win the legal battles. a lot of investors did not think
so and qualcomm pulled it off. we'll see. these are tough fights >> they did. well, they did we'll see if pat gelsinger can pull it off as well. lots to be seen there. look at china stocks, they are down again today the government crackdown sparking an extended sell-off, not just in tech, but for delivery, other industries, we have been covering it closely. here to talk more margins editor rajan roy. i wonder if you think there is any industries that might be safe from this crackdown we don't talk about a lot. but we know semiconductors have been building up capacity innovation there has been a larger priority for beijing. could there be some opportunities here >> thanks for having me here, deirdre. i do think hard tech versus soft tech is an important distinction here in the last week, the last week and month, china has gone after food delivery as you said. tencent announced they would not
be allowed to sign up new users on their wechat platform due to a data privacy situation this is the biggest messaging app in the world these are all consumer facing apps that essentially provide some value in your leisure time, help provide some service in your daily life. there is a really good piece by noah smith, looking at the fact that all of these actions under the guise of antitrust may be reshaping the chinese economy and pushing investment, pushing talent and capital towards hard tech semiconductors, biotechnology, core artificial intelligence and huawei, companies like this have not been hit yet. have not -- they're just as friendly with the government as they have ever been before so i think for american investors, it is really important to, one, make that distinction between hard tech and soft tech. and where you are going to put your money and for american policymakers to realize this is a critical moment where china -- who has already telegraphed the
movements out from 2018, 2020 and five year plans and the 2025 vision, said these are the industries we want to own. it could be happening right now. >> well, huawei hasn't been hit by beijing, but it has been hit by u.s. sanctions. so perhaps beijing trying to protent it a little bit, not adding on, but there is also all those sp those speculations to the chinese government i wonder if you think -- how much you think about contagion as we see the sell-off in chinese names, that's affectin a lot of different emerging market funds as well when do we see western investors, perhaps in europe and the u.s., sell winning positions to make up for what they're losing in the chinese names? >> yeah, i think it is really important to remember when we're thinking about what are the second order effects and potential contagion around investment, there is so much interconnectedness here and china has been kind of the focal
point of the softbank tiger global growth investing strategy and that model where you find a unicorn anywhere in the world, and then you shovel in a bunch of cash. and then it has been a winning model for the last four years. this is the first real hiccup in that model and i do wonder, there is already talk that, you know, now these investors will shift more towards india and they will potentially be the beneficiary of their unicorns, but this -- this is a eminder that these markets are still emerging in the sense even if the economy in an aggregate level is hitting, you know, a huge amount that are becoming equivalent to the u.s., the rule of law, how foreign investors are treated, these are still very emerging in that sense that emerging markets investors always have to worry about for the last 20 or 30 years and i do think also that that growth model could change now this is the first real dent in the way of softbank vision take huge bets on big tech growth this is a reminder that's not
always going to win, even though it has been winning for the last five years. >> all right ranjan, as we're talking, there is a flash head that china-based hello is withdrawing a plan for u.s. public offering i guess that -- at this point that shouldn't come as a surprise. >> yep, i mean, the chinese companies listing, the situation in early july, it was the tell, wall street journal reported after the initial ipo that behind the scenes the chinese government was pressuring them to not list in the united states and they did it anyway they directly went against the chinese government and most of these companies that have been listing here have been through variable interest entities, which are shell companies in the cayman islands that, like, have a link to the original chinese company, but it is effectively financial engineering and it depends on the chinese government allowing the arrangements to take place, even though they were never explicitly blessed by the
government so it is a risky endeavor and more companies listing here, i think is a big uncertainty >> yeah. ranjan, you can argue that ant group, several months ago, was the tell, right? they didn't get to the ipo before they got smacked down by regulators as always, thank you for your insights >> thank you walmart making some big news today, announcing it is going to offer free college tuition and books to its 1.5 million employees in the u.s they do that in partnership with an ed tech company called guild education, led by ceo rachael carlson. guild is a disrupter this year head to our twitter page for more from those interviews we'll be right back. ♪ ♪ ♪
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big issue for big tech the supply chain constraints we're seeing globally. let's go to mountain pass, california, where our brian sullivan is camped out, focusing on a shortage of rare earth elements and what we're doing about it hey, brian >> hey, carl yeah, you know, i want to make a point that is bigger than the mine behind us here. it goes to exactly what you guys have been nailing every day on
"techcheck." and that is technologies and supply chain issues, okay. semiconductors you've been all over that. elon musk on the tesla conference call this morning warning about supply chains. now, these are not semiconductors the minerals grown here, they go into something that maybe are the next semiconductors, if you will and that is magnets. if you remember the movie the graduate, dustin hoffman, the dad comes over, benjamin, i got one word for you, plastics i think if that movie was remade today, they might say the word is magnets because anything you want, all the stuff you guys talk about, airpods, iphones, ipads, teslas, renewable nergy, wind turbines even dentures and mri machines and military applications, require very specific magnets. call them nio magnets or ndpr. you'll be hearing more about this mp materials is the only
producer of the elements that go into those magnets jim matinsky, he bought this mine for 36 million bucks, couple of years ago, out of bankruptcy from molly corp turned it around he believes that the minerals here and magnets are the next industrial revolution. >> it is really just helping pave the path for the fourth industrial revolution. as we decarbonize and electrify, so if it is an electric vehicle, wind turbine, drone, robot, it is likely that rare earth magnets are going to be needed >> now, carl, what they dig out of this whole behind me, it just look at this hole, it has gotten deeper, it is still shipped to china for processing you just talked about china's regulatory crackdown on technology china controls 85% of the market for rare earth minerals. this stuff and others. and pretty much all the processing next year, mp should have their processor here opening, which
basically means they can make the raw materials to make the magnets eventually, but imagine if china cracked down on rare earth exports. imagine if they said, you know what, we're going to keep it all in all the stuff we talk about in the electrification of the future of america, all those electric cars we want to drive, you won't be able to make them and carmakers may say, you know what, we want to give you an electric car, but we can't because we have a shortage of magnets, we can't make the motor. that's why mines like this, the only operating rare earth mine in america, still, are so critical >> and important story, brian. such a different dynamic when you talk about the chips industry, america has been on top and china lagging, the rare earth would change that on its head thank you for bringing it to us. i know the team likes to make fun of me for movies i have not seen i have seen "the graduate" and i am familiar with the plastics
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and open question is a wave of regulatory scrutiny about to come down the pike that is the focus of today's thread last week i spoke with tether's ceo and general council, the so-called stable coin which has $63 billion worth of tokens in circulation, it is the world's third most popular cryptocurrency, it has faced scrutiny over the lack of transparency over what is in its holdings now they're being investigated by the justice department over bank fraud allegations related to those holdings. the specter of regulation has prompted others to take perhaps preemptive action on sunday ftx and binance moved to curb the amount of leverage it offers to crypto traders to 20 times down from more than 100 times that's in an effort to rein in the most speculative trading and today could see the first steps towards federal regulation, the senate banking committee is meeting right now, you're looking at live images,
on crypto, as senator elizabeth warren calls on treasury secretary yellen to use the financial stability oversight council founded under dodd frank to address the risks of crypto to the broader financial system. the ceo of binance just earlier this morning said he is willing to hand over to a new ceo if ear this morning said he is willing to hand overto another ceo if there is someone a strong regulatory background. so perhaps, carl, send resumes his way. while regulation worries some it could ray the groundwork for digital currency less volatile with more utility. and carl you are seeing different companies in the cryptospace distinguish themselves by regulation or at least transparency >> definitely it's become an edge for some feeling they can play it that way, dee. what a week of coverage from you in particular. we are getting earnings from alphabet, microsoft and apple after the bell, as we once again get closer to session lows
poll 42 revenue kbroegt for azure for the fiscal 4th quarter, down slightly from the 50% gain in q3 chip shortages have caused already global pc shipment growth to fall to 4.6% this past quarter, likely affecting windows growth windows 11 enterprise contracts likely won't pick up until closer to the release date this fall but might offer modest gains unlike peers july 1st mark the start of the fiscal year so predictors listening for fiscal 2022 >> alphabet earnings on deck ton. at year ago google reported the first revenue decline but now primed to benefit from the rebound in online ads, the accelerated surge in digital activity led companies to pour marketing dollars across google platforms like search youtube and maps we have seend that trend play out for the likes of snap and twitter results.
i will also be looking at google cloud. last quarter i asked cfo routing pora if monetizing cloud is something they focus on. it's deeply unprofitable still she said no strange in strategy. she sees this as a long-term bet and plans to continue to quote, invest meaningfully in a sizable opportunity. and carl, get a note that alphabet by far the best performing maga cap tech stock this year >> between those we've covered the bases. if you missed part of the show, follow and subscribe to the podcast high pressure listen any anywhere wherever you download podcasts and "techcheck" back in a moment
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it's okay, you can stare. when you're a two-time gold medalist, it comes with the territory. one more thing before we go today. s.e.c. chair gary gennsler joined twitter his followers dominated by sulphur claimed crypto bulls and amc apes main stays like pop and the wingle v yachlt are there. other executives twitter cfo net seeingle the ceo of line vik. but only to get through 1,000 of
the 50,000 odd followers that gensler has. most importantly gesler already follows us at cnbc tech check and doesn't follow a lot of people it's interesting to see how he plays in the space. >> of course our focus continues on the tech news boy, these earnings tonight, got to mention it again, before we get to noon. it's rare you have a day like this and particularly apple, i think there are questioning go about the glood flooding in china. will that affect the production ramp or for iphones. questions about the pliks in there. then you have the cloud. and microsoft's attempts to chase down amazon, dee, it's a time when people rely on technology and dealing with the uncertainty of what's happening in the economy and health. >> yeah, i think google cloud, one analyst called it a pony in a two-horse race between amazon and microsoft. so we'll see if it makes some more strides there
again, carl, deeply unprofitable business but key parts of alphabet's future, of course >> also keeping our eyes on the vicks today. the fed meeting obviously coming up and some discussion about what the cdc may say this afternoon about mask guidelines. let's get to the half. all right, carl thank you so much i'm scott wapner. welcome to the "halftime report" good to see you. the moment of truth for big tech maybe the markets as we count down to earnings reports from apple, microsoft aband alphabet. debate each company. stephanie link, joeter joov. tiffany mcgee. jon najarian all eyes on the -- joe, terranova as we go alphabet hitting a new high today ahead of the print it's exciting after the bell today. >> it's exciting if you're a holder of alphabet and i look at the three stocks that i own that will b