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tv   Tech Check  CNBC  July 30, 2021 11:00am-12:01pm EDT

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welcome back david, exciting news you are guest hosting jepardy next week. can't wait to watch. >> looking forward to everybody watching it. have a great weekend it is now time for tech check. good friday morning, welcome to tech check. the worst days since 2014. call it a conflict of interest
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shares of pintrest getting hammered after that monthly active user drop later on robinhood bear joins us to say basically, i told you so. stock is on pace for the worst year in 2021 cfo blamed the tough year after year comps investors this morning seem to think that this is more than a typical growth slow down with this, the era of jazzy begins guidance was weak. amazon is typically pretty conservative with guidance at the midpoint, that represents
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13% growth year over year. that would be the slowest rate of growth and that is for jazzy with the upside. >> i don't know what this is yet. i look at this quarter and i see per member spend and prime is up aws is strong and increased customer adoption across several indices. they deliver at the midpoint of the range it doesn't seem like the fundamental narrative here would change for them. everything they are trying to do would work for them much the stock is back down to some june levels from six weeks ago. i guess we'll see where it goes from here.
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>> morgan stanley, they do cut their target to 4, 400 this is generally the time you buy amazon, you don't sell it. you look at what they are trying to do with square footage of warehousing. and thg all about the advertising. >> i suppose the leader in the megacap last year. it had grown up a lot. the expectations weren't the same the digital demand and that is 7% of total revenue. this comes down to online
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stores we are likely to see a deceleration there. >> we saw alphabet's earnings. this year, it has been outperforming it is tough and investors aren't responding well to this. >> we are hoping with the logistics and how aws continues to hold up against the advances of microsoft and google cloud that we saw this week. >> it does put a period on rgs
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morgan stanley's point and stocks have been flattish for more than a year our first guest remains long it has been a while good to have you back. >> you've seen a few investment cycles in amazon you've seen what it looks like on the other side. can you talk about the right mentality to have right now? >> we took a position in 2008. we made one mistake. we sold in 2013 because we didn't like the quarterly report we learned our lesson and bought it back about nine months later.
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we have shaved it since then there are a lot of cross over points roughly coming from 50% of the business coming from the old store business and that is projected to slow growth because that will hopefully not have the covid-19 wave to back it up. we want that season behind us. this motion of personnel is being written about. the fact that bezos left right before this deceleration and that jassy was not on the call
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>> i would have liked to have seen jassy on the call there is a great video of him on youtube which i think is worth watching he comes off as understated, very smart. it is a little premature to draw the conclusion when steve jobs sadly passed away. we were depressed. i think he'll be a big plus. i don't think jeff left. i think jeff came back at the beginning of the health crisis after he had started to step back a little bit. all the one-way positions will be the share holder.
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that's how he gets the money to finance blue origin. >> we had a chance to talk to andrew jassy here and on tech check. i wonder as a long-term investor, how you frame amazon's ambition now to be the world's best and safest employer that implies investment over time do you thinks that a worthy investment and how are you warding off that stock >> i think it is good business in an esg world where people can more easily communicate in a world where social media can help or hurt you, i think it is good business and the right thing. i think when you look at the
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company, they've been investing for 25 years from the time they went public. and and how that company is actually doing and being managed. >> lost in the results was amazon's return from some of the other big tech names like amazon and google it will keep a return and not be man dating in your view, is this the right move >> i wish i knew i don't think that's an amazon question
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i think that's an economic and health and policy question >> other companies are making this decision on their own when it comes to mandating the vaccine. >> i think that will be easier to do when we get approvals. i think there are two vaccines that matter. biontech, which is pfizer and moderna. i think those are the ones that matter businesses will make these decisions but i think we'll move from ban ban aid in amazon's case, it is more complex. it is not just an office thing, it is a warehouse thing, delivery thing, a truck driver thing. you are working with union rules
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which encourage vaccination but protect the privacy of their employees. we have a lot more that i'm encouraged with. the federal court will agree with the university. that is the only direction we can go and be safe >> walmart doubling to get their staff to 1 r $150. interesting to see the corporate evolution on this. thank you so much. >> thank you a real privilege >> in the meantime, shares of pin tret getting slammed at 18.5%. let's go to julia to talk about this rare drop of monthly users. for a long time, pintrest kind
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of avoided video and this creator thing and avoiding being youtube. now they are doing it for a specific sub set of pintresty businesses what is the expectation about the impact on the business >> there are so many different pieces with he have to talk about why the stock is down so much. the monthly active user count that declined by $24 million we see shares down more than 90%. it is unusual to see this big decline it seems over the pandemic, they had grown in the user base but what we are seeing now is what is the future of
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pint treft because this was strength of people using pintrest on their mobil phones the question about content in particular, we are seeing this platform shift from being a place where you save ideas and where you might connect with content creators and connect with content kwee ators and then buy things it is about content and commerce and the same holds through with pintrest here >> getting beyond the core of looking for stuff on the home page think about etsy that captured that powerful gez demographic.
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>> i think pintrest has been slowly building these tools to be easier to buy things. they have these shopible pins. not a lot of talk about marchd a but how the ability can drive that advising and how much the shopping really has to be the idea of the youtube following these creators and do they need to have the home decor stars selling product. is it about content and/or is it more brands. you have the home decor stars partnering with the brands and the big cluster of retail advertising in this new way. this is an area that pintrest
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has been investing in and they can push further without having to make an acquisition >> i wonder if this is the tiktokification of so much creating short but highly impactful videos that drive people to act or do something or create commerce. i wonder if pin rest is seeing the same thing and how do we take this trend and put our own spin on it >> with you, i would say this is a chicken and egg situation. is pintrest success because of fr trends already happening or following all of this. i think it is a little both. video was already hot and short
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video on tiktok is hotter than ever no question that video advertising is simply more valuable that stock down almost 19% robinhood did open a little lower again this morning it started out green in the overall debut. tech check is just getting started.
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>> a new report the retail community may have already peaked that has been the case the retail trading will return to the 2020 levels new data from the similar web all down significantly as they put it in the past three months.
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that year-to-year growth typically translate to the exhibit, downloads and trading activity and payment for order flow. >> time spent on the app is also lower. robinhood across the board is still out pacing the rest of the activity where investors still don't see the improvement. double than what schwab seeks. more comparable to a social media app than a brokerage firm. analysts don't expect it to go back to the trading levels it does add pressure on robinhood to become what it is calling the single money app
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retirement accounts and more banking products >> yesterday's debut proved an opportunity for kathy wood our next guest remains bearish she emailed us that she wasn't buying it before it hit the market wheel house ceo ann berry joins us now here is my question. i'm not sure it is sticky or has lock in. >> apple creates loyalty through lock in facebook through the social grab. why is anybody going to necessarily stick with robinhood after, say, a 12-year bull market is done >> i thinks that right there isn't a reason for users to stick with robinhood from the
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good app, they are backed by those investors that will move to the platform quickly. >> what does robinhood have to do to convince you there is a large user base with free access and options and some of those things reserved for the wall street elite in the past convinced for now. if we go back in time a little bit, robinhood raised capital in
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the $12 billionairia i don't think there is anything they can do to justify the $20 billion. even to justify where they are right now. in terms of the option and if others can do it that is not the innovator in the public domain. other businesses they've seen whether public, they can watch and learn from robinhood if robinhood launches new product. they really rest with the second movers comment >> let me take the other side then bringing in the different
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demographic. now they have the amount to go out and use those. on the base that is attractive of 50% investing on this way known for being quite fickle and possibly ready to switch in a compelling fashion. increasing to those parts in the proposition. people like providing educational content in a deeper way as well. >> thinking about cash and how some 30 mill your honor users and doing some things to attract
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the millennial audience. >> i think other competitors have a much bigger balance one i look at is paypal. i own some personally. that is a blue chip financial with cash ready to deploy. it is offering and paypal can do it sitting in the public domain i thinks that one to watch as it looks to move into new ways. >> we had a new discussion of whether or not the legacy trading platforms are too stogy to steal or make those platforms cool again with a younger clientele. do they have no hope or could
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they make improvements to steel those? >> i don't think all hope is dead i think these legacy or more mature growth need to think extremely hard about partnering with next generation to those brands of the engagement whether schwab and e trade and financial and getting the younger talent for great user experience. >> we had early robinhood investors. a bear case today. thank you. have a good weekend. >> i love fintech, by the way.
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>> here near the bottom of the hour the dow and s&p and nasdaq all in the red fairly steady state. more on that in a moment let's get to frank with an update >> here is what's happening this hour walmart is bringing back mask mandate for store workers in counties with high covid rates customers will be encouraged but not required to wear a mask. in new york, shots and masks will be required to see a
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broadway play or musical consumer sentiment edging up from the latest sentiment from university of michigan but still down driven by rising inflation concerns and worries about recovery consumer spending remains strong part of that increase is due to higher prices. key inflation measure was up 4%. anybody who has brought a car sently knows that. >> it has been a big week for tech earnings. some of them have done well on paper. not so much their stock prices something to poke holes in in many results some softness
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is this a leadership break down or are these a little bit of that soft footing right there. >> we've seen leadership going back and forth it does not have apple but trades very much in line with the traditional faang. from that transportation look at this happen. huge performance split and then it went the other way we are basically chopping back and forth. unclear if we are back and forth
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one thing i'll point out about the earnings reaction about microsoft, facebook and amazon it had given back between three months and one day of gains. it it really hadn't done anything for months we are not necessarily seeing the wholesale rethink and getting into the earnings report we've been talking about the seasonal weakness in august and september. no new highs since june. how important would it be if we got back to that if the index came down that's the big question. you can reconcile these things
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in two ways. you can see that support it is not a prerequisite seeing things perk up this week. they've been reported for a while it is the biggest critique it is almost a scripted choreography that question from doing it the hard way from the magical rotations that what we have to watch. >> the u.s. is stepping in after a wild week of tech crack downs. new guidelines calling for disclosure of chinese firms. they often use complicated shell
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companies to skirk subscriptions the oous move comes amid the rising crack down from some of the companies most popular brand. from ride hailing companies that they must conduct internal reviews. officials prom ice the revision of companies listing overseas. the industry had dropped 15 to 20% over the last month. even as reporting. the chinese regulator had begun
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chip maker armed from last month. speaking with financial institutions to ease some of those investment fares where it may be hard to courtney foreign investment down on this platform to boost some of these off the whole field where they may not be able to achieve what they want. >> this is the long move here as china perceives it how much clarity did you think
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we we have here or are we looking for specific details to stay outside of the government. >> i think at this point when you see the sec for for action, we don't know where this will end. some getting more and more cautious large state-backed chinese chip makers have not fallen and increasing their value where this is the chip maker it is difficult where the government evolves investment in other places where soft bank starts to hurt and makes up for the win in these.
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>> for the sec, bytedance founder seeing these deserve the reset as they'll move forward. as you move on from owe ryon and more capping the 300 million. tech cap back in two ♪ ♪ ♪
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>> we are back using adobe to offer microsoft to retailers i got to chance to talk one-on-one and here is what he told me about the partnership. >> we were thrilled when they announced they would work with adobe to enable people to do
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this last mile commerce. since 2018, i believe the number of people who buy online but maybe go into a physical store has probably doubled or close to tripled. that from the leverages from their reach and desire to enable more customers to do that. >> 20 years ago, i met him when i was a reporter he started had is right through adobe. he moved to a cloud and subscription model before anyone else >> i've never answered a phone call since i joined adobe. >> i remember one thing john said to me, he said if you don't like your job, you have one
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person to blame. that stuck with me if i can't recreate my job in the company and do things that excitement and have impact, what message am i spending to the other employees. >> never taken a call from a head hunter. find the whole things on the linkedin page and in our show twitter feed >> some what surprising given his reputation certainly worth the full watch this company just announced a billion launch go puff launch and an investor with a warning for the stock market stay with us
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when we come back. disney, why scarlet johansen is suing disney over the release of her movie. over $1.5 billion last year. that's decision tech. only from fidelity.
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delivery startup gopuff valued at $15 billion competing with the likes of uber and owning the microfulfillment centers across the u.s here with us the cofounder the gig economy model has been characterized by using billions in venture capital to centralize the consumer, grab market share. you've raised $2.5 billion in the last 10 months is your model any different?
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how do you feel about growth versus profits >> thanks for having me. it is an exciting day for gopuff when we started this company eight years ago. it was important for us to build a business that is ver profitable and has really strong margins. when you look at our business, due to the vertical integration we make our margins off the advertising sales and not off drivers and service fees fundamentally the business model is different also we were cash opinion flo positive the first three years before raising a single dollar of capital as you a think about our position in the market we never needed capital, although we are excited about announcing world class investor fls in the new round as go pop built a leadership position we're excited to continuing to accelerate our leaders
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>> seems like advertising that's a dee differentiator especially when it comes to margins i would imagine. you recently said, yakir in a podcast you were profitable in all top markets. how many markets is that out of the total? >> yeah, the way to look at it is we look rowe look at comp markets. all comp markets over 18 months and older are profitable that's a benefit of being in business for eight years and the business in the beginning, you know, never raising money, is because the existing markets today are generating cash flow putting theis in a strong position for the future. we have seen incredible growth throughout our margins and as well as the customer demand. so it's really -- strong -- better >> you recently did a partnership with uber. i wonder why did you choose uber over say insta cart tp did you
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talk to them >> go-pup today has over 500 microfulfillment centers and millions of happy customers globally when you think about the leadership position we have in the category we built a great relationship with many people but we are excited about the partnership with uber. uber being the leader in the logistics space said we see your leadership position and competitive advantage, all the infrastructure you built out, the amount of liquor listen z and the eight-year head start you have we realized they would abgreat partner for us we are excited about the uber partnership that we have and we're -- >> yakir we'll leave there i think we're having issues with the transmission but congratulations on the ground looking forward to see what you guys do. thanks for joining us. >> so much >> well if you missed part of the show don't forget to follow and subscribe to the podcast, listen any time, anywhere,
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wherever you download the podcast. and "techcheck" on tv will be back in just a moment. look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪
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scarlet johansson suing disney in a move that could have wide ranging repercussions for streamer her agent just putting out a statement saying disney's direct attack and her character and elseo all else they implied is beneath the company many of us have worked with successfully for decades. julia boorstin has more on the lawsuit that all of hollywood and wall street is watching. the one line, the company included her salary in the statement. in an attempt to weaponize her success as if that were something she should be ashamed of remarkable the rhetoric going back and forth >> going back and forth between ca a and disney really accusation that disney is not handling this well one that a lot of people in the industry are talking about right now. i think, kaylieo carl, is he center of the debate is whether the interests of the studios and movie stars are not aligned now that the media giants are focused on growing streaming
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subscriber bases at issue is now sfoids nachgt meeting flexibility around distributing movies and talent secures fair compensation. sources tell me that before in lawsuit disney was starting to talk to talent about how it would give additional compensation for summer movies, including cruela and black widow. once the films neared the end of the theatrical runs. disney did not fully buy out the back end bonuses the way warner media did. warner paid talent about $$200 million in total to account for simultaneous release. that's because disneyland is including the $30 movie rentals in the bonus calculations with box office revenue remember hbo max's movies were free if you are a subscribe. scarlet johansson's lawsuit alleges she is not being fully compensated for the value she brings to the disneyland plus subscription not just the individual movie sales for black
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widow. but disney indicates that johansson's demands don't take into account the way covid depressioned revenue across box office and digital payment that the films are far from reaching pre-pandemic levels even if you account for revenue from streaming purchases the key number in focus is the 68% drop between the opening weekend and the second weekend office the film generated 60 million from the $30 home purchases the opening weekend. sources tell me we should expect going forward studios to increasingly compensate talent entirely up front. that's what netflix does because there is no box office rather than compensating base on performance that would give studio the flexibility to put on increasingly important streaming services >> back to you. >> the elephant the in the room is robert downey jr. ironman, who i think also earned
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$20 million up-front for the last avenger movie but had the back end and really from ironman through avenge he is gets credit as an actor for building the franchise and getting the enormous back end payments no women in the series did that. it seems like unforced error for disney and scarlet johansson to be battling each other over the movie supposed to be about female empowerment amazing they couldn't figure it out >> look, it's captain marvel there is captain marvel. don't forget about captain marvel, a black widow. i think robert downey jr. was lucky in terms of timing, his arc is part of the aconvention he is end pd before the pandemic and the total transformation of how the movie distribution industry works but captain marvel is probably the film that the black widow is being compared against right now. another female led superhero
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movie. the other movie to compare to is the wonder woman movie 1984 from warner brothers, the movie simultaneously released on hbo max without paying anything additional and also in theaters but at a much tougher time for the box office >> all right just a remarkable turn for -- to a situation coming one way or another, j.b. thanks that does it for us. the judge. welcome to the "halftime report." i'm scott wapner front and center this hour one of the world's closely followed investors says it's probably time to sell stocks. the new call from guggenheim chief investment officer who joins us momentarily in a cnbc exclusive. our investment committee with me to debate on whether we are at peak everything. with me for the hour today shannon saccocia jason. rob. good to see everybody. look at the markets. stocks been lower on the final trading day of july. that's where we are


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