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tv   Tech Check  CNBC  November 23, 2021 11:00am-12:01pm EST

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grand, is likely going to come $10,000 or more of just living expenses on the road and you're working 80-hour weeks. >> reporter: the american trucking association says 1 million truckers are needed over the next decade just to keep the supply chain moving at its current level. david, back over to you. >> frank, thank you. that will do it for us right here on "squawk on the street. the nasdaq down about 1.5% we'll let "techcheck" pick it up right now. ♪ good tuesday morning welcome to "techcheck" i'm carl quintanilla with deirdre bosa and jon fortt. today, high growth tech stocks come up short. we'll explain this week's weakness and the interest rate hate for what have been cloud
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and software names and the opportunities on the other side of that trade. then, is zoom's 40 minutes of fame finally up investors stuck in the waiting room as that stock stumbles again. seven firms cut their target today. later on, investors unplug from best buy as shares lose power. is this stock actually your best buy today at these levels? we'll try to get some answers on that this hour, jon. >> yeah, carl. nasdaq down more than a percent for the second day in a row, but let's start with a poster child of the selloff in high multiple, high growth stocks and that is zoom slowing growth story there again this morning, shares now down more than 18% earnings actually fine stock posting beat on top and bottom line but investors are worried about what's ahead post-pandemic. revenue growth, of course, is slowing. stock has been cut in half little bit more than half of the past 12 months, deirdre. looks around 54% but at the same time, it's still about double what it was before the pandemic began
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so we're kind of in that weird stage. double sense of pandemic but half of what it was at the peak of the height, dee i wonder -- >> that's not even going back to the ipo. >> yeah. >> i mean, it has been incredible story you said it, jon, earnings were actually fine. but remember this is a company that had revenue growth north of 300% as early as the first quarter of this year i guess the question, carl, is this really the platform bet that investors thought it was throughout the pandemic? something called you cass, unified communication as a service that 5-9 acquisition not going through, perhaps hurts that argument that it can be more than sort of a pandemic play interesting moment on the conference call, carl, last night when eric said to the analysts, if you see anything cool that we should acquire let us know because they do have cash to still do something >> yep also improved churn among customers that are smaller than 10 employees, jon. a lot of this -- does seem to be coming down to customer size
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distribution, so to speak. >> this reminds me of roku in a way, right because what carl fundamentally was good about this company to begin with, they did this video communication thing better than anybody in terms of call quality, in terms of stream quality, usability, they still have that. i think a question is how much can they continue to expand that and extend it, not just in consumer, in small business, in enterprise they tried with 5-9. that didn't work, but they still got that brand and they still got the stock currency. >> yep our next guest meantime says the stock is, in fact, a high risk play, concerned with that slowing growth cuts target from 304 to 250. tyler, appreciate the time today. good morning >> good morning. happy thanksgiving. >> it does seem to be sort of a confused print we got a pop on the news after the bell last night and clearly the action that we're seeing
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today. what do you think -- try to clarify it for our viewers >> yeah. absolutely i think this was a quarter where it almost felt like the more you knew, the worst you felt to your point, the headline numbers, the reported revenue and initial guidance cleared buy side expectations and where wall street was expecting when you dug into the print, it signaled the company was going to continue to slow down as you get into next year if you look at the number of new customers they added, it was the lowest number of customers they added in over three years, well before the pandemic. so, kind of suggests that the market might be increasingly saturated. you also saw the smv side of the business, which was about a third of overall revenue that actually started to decline sequentially while the churn rates may have been a little better, that revenue starting to decline sequentially, the weakness on the net adds didn't give investors a great feeling
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heading into next year. >> yeah. you point out in your note when it comes to the diversity of its growth drivers, we found the lack of updates here puzzling. is there something regarding disclosure that you're uncomfortable with >> yeah. i mean, i think -- i wouldn't necessarily say uncomfortable, but you know, for a business that is predominantly zoom meetings, which is what we're on right now, you would think that you would want to highlight kind of more incremental updates on new products so, as you mentioned earlier, some of the new products they're working on with call center, zoom phones as been a big topic of discussion, even just million dollar customers with the fortune 500. their analyst day they talked about only 5% of the fortune 500 are million dollar customers and so, there was some disclosures around million dollar customers and zoom phone that we got last quarter that didn't get updated this quarter and typically when companies don't update disclosure, investors are likely to believe
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that that's -- they're not updating it for a reason >> right makes you wonder good morning, it's deirdre here. also i notice they talked about zoom rooms, the cfo said that it had become even more important, but you're right, there was sort of lack of absolute numbers there. and i wonder if you think this has anything to do with the growing microsoft teams threat when you look at zoom, slack and other pandemic darling, do you think this threat is only growing bigger for them? >> yeah. i think it's a competitive market right? web conferencing, video conferencing isn't new you had cisco webex around for a while. zoom is clearly the best of breed in that market what you're seeing is the economy reopened zoom went from being mission critical during the pandemic because we couldn't see each other in the person to perhaps a little bit less mission critical now that we're in at least a hybrid work force. clearly microsoft has done really well, up selling their office suite with the e3, e5
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bundling and we think teams continues to get better over time so, you know, i think the competition in this market is picking up for sure. >> tyler, different industry sort of. but i remember when qualcomm didn't get nxp and people thought, oh well, how are they going to get into cars this is a major problem. the stock is down. zoom didn't get 5-9, but they still have this focus on enterprise, i imagine they have a build out more salesforce, more process along that but they have a product that's been not only business tested but consumer tested at this point. so at what point have investors underestimated zoom again? >> yeah. i think certainly as you point out the stock is down more than 50% from its highs and you know, still up from pre-pandemic levels. so we could potentially be getting closer there i mean, my target is 250 post this most recent quarter i think the thing that, you
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know, you need for a stock to turn around is when you start to kind of get some better news flow -- and the challenge is the next quarter, they'll have to provide an initial outlook on next year's revenue growth and our concern is that that could actually be below 15%. if i look at where the estimates post this quarter have come out, it's about 17% so i think there still could be some more downside to come on the numbers side it feels like the new product stuff is still a little bit too early to move the needle but would love to see more disclosure there to better appreciate the multiproduct story that zoom has. >> below 200 for the first time since memorial day of last year, tyler. we'll watch it in what's obviously a pretty tough tape as well thank you, tyler of citi. >> the only tech name coming back to earth this morning, investors fleeing high multiple high growth momentum stocks across the tech board.
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mike santoli has more on that rotation, mike >> yeah, dee it's been going on for a while but has absolutely accelerated into this week and become more urgent around 10:30 this morning you saw another flush lower in some areas such as payments as well as cloud. those are all up here on a year to date basis. and this is where it's happening, payments and cloud. fintech let's just say not just payments and cloud this is the equal weighted technology sector. that gives you a sense of the average technology sense against the nasdaq 100, they've held up relatively better. you've also had this sense that, you know, there's this natural rotation going on. the big growth stocks kept the market supported for a couple of weeks. higher yields are a cue to me that the incremental dollars on a given day goes towards value and banks. the real factor driving the activity today is crowding it's broken momentum stocks, heavily owned, on leverage by hedge funds and others and also where the valuations are way out in the future and there's been a little bit of a faltering in
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maybe the near term growth picture for a lot of these groups out there and a lot of capital fled into these areas and are now being rationalized, guys. >> mike, how different does this look from february >> not terribly different to be honest with you. it seems like an exaggerated, aggravated shakeout of crowded positioning. what we don't know, and you know, february into march, you know, we had the bill long stuff. we didn't know that was going on in segments of the market. does seem like there's portfolio flush activity and it's erratic. normally with yields up you might see small caps doing well. they're getting sold off today tax law selling impulse exacerbating the declines as we get towards year-end i don't think it's one single thing that's a key to the action here and also you don't kind of know what it's going to dry up because it might do without any notice. >> meanwhile, mike, nasdaq on pace for the first 1% plus decline back-to-back since march. we haven't done this in a while.
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>> no, we haven't. it does somewhat reflect that meaner version we had a really narrow rally going into this week in those huge tech stocks that did keep the s&p basically flat for two weeks. so it's coming back to the pack. you do have banks and values doing relatively bet every also underowned areas, you know, consumer staples up two days in a row. nobody likes them. nobody cared much about them but they're up because it's going from stuff that's crowded to stuff that's been neglected. >> as you mentioned, could be another losing day for the nasdaq and tech is the worse performer in the s&p this morning. the nasdaq down 3% in the last 24 hours let's talk opportunity, though, during this tech pullback. our next guest has alphabet, apple and the stock formerly known as facebook in the top five holdings. joining us now david rolffe. good to have you this morning. let's tackle the megacap names they're down today but seen as the value tech this year when the higher growth names are
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selling off. >> yeah. we didn't participate a whole lot in that real go-go tech. our largest holdings the valuations are stretched even the recent quarterly earnings for the most part outside of facebook were outstanding. the offset on facebook is they're hoovering up every share they possibly can with multibillion dollar buy backs. we're really comfortable with our top positions right now. >> david, payments names also make up a significant part of your portfolio i see paypal and visa. do you think that their sort of valuations have been down enough or do you think that they continue to see fundamental disruption in the space from incumbent fintechs, the crypto space, what's going on in europe with peer to peer payments >> yeah. there's some hair on these stocks and the prices reflect that. we've own visa for years and not long ago was a pretty large holding. we actually were trimmers over
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the last year or so. but we're back in buying again and we're slowly rebuilding our position same could be said for paypal. paypal was more unique than visa in that the valuation got ahead of itself. it's been hit so hard that if this continues we'll probably need to start building up that position again but, we like the long-term sector we recognize some of the disruption that's going on in the payment space. we think these companies are going to be able to handle it. we'll let the valuations come to us if we want to build more from here >> david, we're talking about a lot, about what's not working this morning the high growth, zoom, some of the payments but you know, s&p and nasdaq are still really, really close to all-time highs and that can't be all, you know, kind of megascale tech what is working the way you look at the markets and your holdings and why? >> well, again, when i look at
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some of the better stocks that have performed outside of the tech and our portfolio and just on a real short-term basis just looking at the screen today on what's green and what's red is getting hit hard in tech, we have -- we only own 20 stocks but a little diversification goes a long way. we own bookings. we own united healthcare we own progressive a lot of those have terrific long-term fundamental stories. the valuations aren't demanding and the stocks are reacting in kind in the large-cap growth area, which is very crowded, they're underowned so as your previous guest mentioned, some of this stuff that's underowned is picking up a bid these days >> what is a valuation that's not demanding at that point? >> in terms of in the tech sector or non-tech >> tech sector how you're measuring p.e. or thrust that hout? >> a name that's less demanding
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is taiwan semiconductor. unbelievably terrific business we learned something very interesting in their recent quarterly filing taiwan semis bookings grew over 40% that was twice their headline revenue growth. they took in -- they've never had anything like this before. they took in 4 billion in prepayments from the likes of nvidia, amd, apple these companies are begging them, please take our money. please give us your cutting-edge technology please put us at the front of the line this stock is probably going to earn 5 bucks next year it's 12, 13 times ebitda and they've scaled their margins continue to expand or their profitability and here is a business mid teen grower, cash flow return on investment exceeding now 40%. you know, 24 times isn't a
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screaming buy. but in this environment, it's time to start building positions and that's what we've been doing with tsm. >> david, i guess this is what you call a non-absurd value tech stock in your note but you said for the high momentum ones that it's going to get uglier before it gets better what did you mean by that? how ugly does it get is that next year with the expected interest rate hikes >> i think it's going -- could get ugly really quick here hey, listen, i think what the bond market is saying right now and the way these very high valued tech stocks are saying, in terms of the fed, it's last call at the bar. and i think people are selling before the fed takes the punch bowl away. maybe early next year. but that's certainly in the cards. the bond market is screaming that and the stocks are reacting in kind. we've written in the past the fed right now is like the hotel california qe is really easy to get into but it will be tough to get out of and we think the fed is trapped
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here and so those high duration stocks, high growth, huge multiples, i don't know how far that safety net is under these valuations but it's probably further than most investors can probably think about right now or handle the pain >> right well, david, thanks for your insights as always we'll talk to you again soon david rolfe, wedgewood cio. >> thank you very much. we'll continue to monitor the selloff today in tech. including the pain and payments and the breakdown of bitcoin as "techcheck" is back after this quick break
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time for a gut check and today it is best buy shares are down big. now more than 15%, slowing consumer demand in its electronics division plus the supply chain bottlenecks the kmeef catalyst there analysts are concerned that sales will weaken as economies reopen and spending shifts to travel and entertainment we did hear from the cfo this morning -- cloe this morning, rather, today's move cutting its year to date gains in half jon, it's an ugly chart. but, still up 16% year to date so, ugly day, below the average broader market gains for the year >> i guess for now, any way,
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they could say not as ugly as zoom, at least. >> yeah. >> payment stocks meanwhile feeling pain as well, nursing a h hangover even before the eggnog. our kate rooney explains kate. >> hey, jon. payment names are some of the worst performers in recent weeks. the high multiple fintech stocks are getting caught up in the broader tech selloff and bearish narrative emerging around the credit card names. so visa was the worst performer in the dow yesterday that selloff really started last week when amazon said it would stop accepting kree is a credit cards in the uk due to fees and visa's cfo saying he expects to reach an agreement with consumers he says with amazon and says consumers won't be impacted, but investors have not been able to shake off some other worries. that includes regulation, as visa deals with a doj investigation and competition in buy now pay later and crypto there's new threats as well as the cross-border recovery looks uncertainty, there's more lockdowns in europe and could
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see american express and mastercard trading lower in sympathy fis and pfizer merchant acquires down double digits for the year and the growth stocks trade like tech stocks. selling off for some of the same reasons. fear of rising rates and the rotation from momentum into some of the value names that mike santoli talked about earlier then you have square and paypal. those were some of the biggest pandemic era winners they are now negative for the year and forecasted lower growth heading into next year sofi down double digits. robinhood and affirm getting caught up in the tech selloff and the high expectations have been priced into these stocks especially as they bill themselves as the next and the only superapp. guys this payments group has also seen concentration in heavy concentration from a lot of hedge funds lately back to you. >> you know, kate, as we covered microsoft and visa over the
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years, really seen as the safe value play, the rails as they like to call themselves. they could never be disrupted. we're seeing such an interesting moment now i know that both of them have been sort of focussed on innovation for a long time but they haven't been able to keep up or move fast enough as some of these incumbents that you mentioned like affirm and the buy now pay later movement just so integral to that entire business model and actually could disrupt those rails. >> yeah, it could be an innovator dilemma fees and interchange is really the way that visa makes money. they have to spend on rnd to either partner with fintechs, try to get into crypto but the whole idea of bitcoin and crypto currencies is to cut out middlemans like a visa and like the bank they're sort of walking the line of trying to partner, trying to be relevant in the crypto space and also being the entity that people want to disrupt so i think they're having a hard time some see it as buying opportunity. they have not been able to shake off the recent bearish narrative
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around their name, their anti-trust issues and concerns around that. mastercard and amx also getting slammed on some of the same concerns. >> yeah. all at a time when we thought that the opening across border travel would be good news for some of those legacy names kate, pretty fascinating thank you, kate rooney. one article making the rounds on twitter and inbox takes a look at what the ft calls the tesla financial complex. author behind it will join us next to explain. "techcheck" is back in a moment. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity.
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resetting here near the bottom of the hour welcome to "techcheck. errors coming out of tech the last two days. the nasdaq set a high after the open and it's down 3.5%. jon? >> well, one stock that's doing pretty well and is mostly
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weathered the high growth selloff is tesla still near all-time highs. market cap above a trillion dollars and new data is helping the bull case. our phil lebeau explains phil >> that data comes from the state of california, jon, the new car dealers association in california puts out a quarterly report and it looks at every brand in every segment who is doing well, who is not doing as well and tesla is really doing well in california right now. year to date, it has grown sales faster than any other automaker. number one with growth of 64%. there you see portia, hyundai and kia the next three in terms of how much sales have grown this year. the model y is the real driver of the growth in california. it is now the fifth best selling model in california. that's overall that's not just among electric vehicles it's also the number one luxury compact suv in california. the success of the model y, not just in california, but also in china and in other markets, it's
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the reason why estimates for annual sales from tesla continue to move higher the fact set estimate now is 893,000 vehicles to be delivered this year. we'll get those q4 delivery numbers and the full-year total some time in the first couple of days of january. take a look at tesla versus toyota, general motors and ford. and, yes, they've all had a nice move this year and you might look at ford and say, well, look, they're outperforming everybody. but keep in mind where they were coming off o the other automakers relative to tesla again, california is the market to watch not just for ev sales but it's the number one auto market in this country, guys and through the third quarter, tesla has done really well there >> you know, phil, granted i'm in san francisco so i'm sure the tesla's per square feet is higher here than elsewhere in the state. >> sure. >> it's one of those things you wonder, you see so m looking out for them or a higher number on the streets. real interesting but talk about the supply side of this as well because
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anecdotally i hear about long wasting lists for people waiting to receive their teslas here would that number be higher otherwise potentially? >> yes it would be higher not just in california but around the country having said that, deirdre, it would be higher for all automakers i've talked with people who have a number of different models that have been ordered, whether it's from tesla or from chevy or ford in any automaker almost everybody right now is dealing with people who have put in reservations or have put down a deposit and now they're waiting. so, yes, the supply chain is definitely limiting the growth of potential sales not just in california, but around the country >> that's fascinating, phil. thanks phil lebeau. want to stick with tesla our next guest says the company's dominance goes beyond its own stock price. it's fundamentally changed financial markets overall, something he calls the tesla financial complex. tesla's influence over the ebb
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and flow of the stock market is far greater than even its size would imply. it may even be historically unrivalled in its wider impact robin wigglesworth of the financial times joining us this morning. robin, great piece got a lot of attention this morning. you talk about its share of the options market, share of hedge fund trading, retail fascination. what of those metrics do you think is the most interesting? >> i think it's hard to look past the options side. i mean, tesla is obviously a huge company, very successful company, and share price has gone through the roof, but what is really unprecedented about it is just the scale and the activity and the options tesla options. we're talking 240 billion dollars worth of nominal options, trading a day that is device as much as amazon and almost twice as much of the rest of the s&p 500 complex combined so, it's just staggering, right?
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there have been days where more tesla options have traded than everything else combined and that's unprecedented >> why do you think this is? is it say something about sentiment overall? is it about this giant turn that we're making in one of the biggest industries in the world? is it about his cult of personality as the richest man in the world >> all of the above basically. right? i think tesla is unique in how it's captured the goo is of innovation and technological change is so rapid, right? we can see that electric vehicles are going to be far broader part of the future people extrapolating to thinking that elon musk will solve all sorts of problems and revolutionize all sorts of industries that hype, that's been building for years and years, combines with incredible retail trading environment we have seen in the 18 months and resurgence of options trading, you have the
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perfect storm. you have a great meme stock, basically, the mother of all meme stocks combined with a once a century options trading environment and what you get is, you know, a mega cap, like tesla, adding $400 billion of market cap almost 500 billion in a year that's just staggering >> but robin, here is the problem, elon musk himself has been critical of the rise in tesla's stock price. he reiterated that as recently as the code conference just back in september also, you've got options that are making the entire market a lot more volatile and we've seen the impact of that in trading of zoom and other stocks today. and then you've got musk himself who in the past has been unpredictable. how much of a market risk is tesla and elon musk right now? >> hard to say i think it's fair and this is through my central thesis with this tesla financial complex, is
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that what happens in tesla doesn't stay in tesla. it is just so big now and has such a huge options market and associated structure products that reference tesla, lots of hedge funds long or short, all fund managers get whip saw what weight they have in tesla. it's not something we can ignore anymore. whether it's a market risk, what people would call a systemic risk, that's what i'm not so sure about i do think that although, you know, tesla dropping 10, 20% isn't all disaster, we saw that after musks starting selling down his shares and after a result of some of these tweets, that didn't ripple that much further but that took tesla back to where it was in october, right? tesla could basically drop 50% in value and still be one of the most richly valued companies in the world. and that's just staggering and i think the ripple effects from that probably unappreciated, right >> right. >> clearly some people are going
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to lose money. that always happens. but there's all these other interlinkages around some fund managers will look like geniuses as a result and others will look like duds. >> yeah. when you talk about those -- >> never had this. >> robin, you talk about the ripple effects and talk about what some might call a broader bubble and anything related to ev stocks, tesla has been able to successfully raise money on the back of its rising share prices but then rivian and luca went public at such inflated valuations and have to continue to manufacture and build out factories. what is the risk there will they be able to pull off essentially what tesla has when they're starting at a much different point? >> yeah. i think that's the important nuance is that tesla is a very successful company nobody is doubting that. musk has done a phenomenal job way better than many of the bears really predicted argue where that money has come from and tax credits and all that, but he's done what a lot of people didn't think was
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successful but on the back of that, he's clearly helped inflate through no fault of his own a what can only be described as a bubble-like situation almost anything electric vehicle related. and the risk for a tesla is that it continues to be a good successful company, but it drops to a more normal valuation a realistic valuation. like what we saw oracle and some of the other dot coms did in '99 and 2000s. rivian, whether they will implement. either they grow into this hype and hope or potentially they go to 0 right? i'm not an ev expert, so i wouldn't be able to hazard a guess on that, but i think there's a lot of froth in this sector that we need to keep an eye on >> right well, your point about musk is a good one in that he has repeatedly said that he believes or he says at least that the price of the shares are too high one last question i guess, what would it take for you to be less
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hesitant to call it a systemic risk, at least in the options market >> well, i think for me i just have a very high bar for something systemic systemic does not mean that we have a market peak, right? back in the day markets used to drop 10, 20% as a matter of course that wasn't necessarily some sort of massive disaster systemic for me is something that has ripple effects beyond just stocks go down. i'm not there yet. but clearly through so much money that's been chasing some of these stories, at some point it might be that such a big drop wipes out so much imagined belt that it actually has a ripple effect in other parts of the financial system i don't think we're there. but, you know, i don't think anybody can argue that markets feel a little bit frothy and probably border mania-like in some sectors and ev is an
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obvious area of concern. >> yeah. yeah always hard to separate that from structural technological change we've been through that before robin, great piece we appreciate your time. thanks robin wigglesworth >> thanks for having me. hi, jon. here is what's happening at this hour oil prices are on the rise this morning. but still well below recent highs after president biden announced that the u.s. will release 50 million barrels of crude from strategic reserves to ease rising gas and heating cost other big oil consuming nations are reserving reserves, including china, japan and the uk best buy delivering strong quarterly results but the retailer's stock is down 15%, the worst one-day drop in nearly eight years. although best buy hit an all-time high yesterday. the company expects a strong holiday season, it is also predicting a slow down in sales growth burlington stores jumping on strong operating margins
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company however is not giving sales or earnings guidance for the rest of the year. turkish lira setting record lows against the dollar for an 11th trading session in a row. turkish president erdogan is defending cuts even as inflation soars. lira is down 15% just today and about 25% since the beginning of last week. you're now up to date. carl, back to you. >> rahel, thank you very much. ark still under water. cathy woods continues to push lower negative in eight of the last ten sessions and set for another pullback we'll talk about that with the nasdaq still down 1% stay with us how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is.
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news alert on the crypto regulatory front elon mu wi has that for us. federal regulators say they wrapped up a initial policy review of the crypto industry and they're laying out a road map for additional work next year now this comes from the federal reserve, the ftic and the occ and they say that the agency plan to provide greater clarity on whether certain activities related to crypto assets conducted by banking organizations are legally permissible. they also say they plan to set expectations for safety and soundness, consumer protection as well as compliance. some of the specific activities that they'll be looking at include custodial services, loans collateralized by crypto
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assets as well as stable coin. so again, these federal regulators laying out the type of work they want to do next year they say, these are the areas where additional public clarity is warranted and we'll know some of the activities they'll be scrutinizing in 2022 guys >> elon, thank you meanwhile, positive sessions coming two by two to the arkk, etf, it had at least two positive ze sessions dom chu explains not a lot of rainbows. >> i do appreciate, jon, your biblical illusions to the ark and the two by twos. yes, the negative sentiment has certainly come front and center for the arkk-etfs and specifically look at some of the major etfs within that ecosystem, the universe, the arkk innovation is the active etf they have. trading today down nearly 3% the gentlemen gnomic revolution
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fund arkg down 1.5% and 3% declines for the next generation internet arkw. look at the flag ship ark has performed relative to other parts of the market, look at those moves in there the ark innovation etf, all right, you can see there versus s&p 500 and whatnot and versus nasdaq overall, a sharp underperformer and has been that way over the course of certain points of this year as well. if you take a look at what's driving a lot of that action so far today, you look at some of those moves that we've seen in tesla. you had a great conversation about just how important tesla is to the market with robin wigglesworth, tesla 11% waiting in this particular etf, arkk 45% gains here but as you can see here little volatility the middle of year so far. teladoc and coin base late doin decent work to the downside. over the last month or so not terribly good but take a look at
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some of the other stocks in there as well. if you take a look at say beyond that, unity software, roku and zoom video, the declines that we've seen kind of over the course of the last week or so have really put front and center how the downside volatility in these six names could be a big driver for that. now, guys, the reason why it's important for those six stocks is because those six stocks tesla i mentioned the 11% waiting in that fund, those six stocks i just mentioned make up roughly 40% of the ark tech innovation etf as go those particular names you could say so goes the overall fund back over to you. >> thank you for that, dom we mentioned this one, it was announced there is a way to short the ark fund that is the short ark etf lunch by capital ticker srak launched on november 9th up some 13%. it is having a nice little november, betting against innovation or at least cathy woods, form of innovation. the ceo of that fund will join us tomorrow right here on
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"techcheck," carl. >> meanwhile, dee, one quarter does not make a quarter at least according to ever core they upgrade bumble this morning after that earnings pullback swiping right on the stock saying this is an attractive entry point. shares this morning 33.50 was the record low remember it priced at 43 back in february and hit a high of 84 stay with us my retirement plan with voya keeps me moving forward... even after paying for this. love you, sweetheart they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. come on, grandpa! later. got grandpa things to do. aw, grandpas are the best! well planned. well invested. well protected. voya. be confident to and through retirement. it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices.
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bnext guest estimation $15 billion. ceo of shipt is next o uln supply chain holiday ahead. stay with us
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quick gut check on some recent ipos. roblox is off 15% off its highs
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and down another 2.5 today robinhood dropping in the session. those shares popping 23% in their debut and now plunging 10%, even rivian and affirm cannot escape the carnage. these have been darlings and these menas down double digits today. "tech check" is back in just two minutes.
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one of the big winners of the same-day delivery wars is s shipt. delivering 300,000 in 2020 barclays warning the service could be worth $15 billion, more than 28 times what it paid for in 2017. its digital sales rose 30% joining us now with what we can expect from the holiday season, shipt ceo kelly caruso good to have you what strikes me about the 15 billion number, who knows if that's exactly right or not, that's the market cap of lyft. tell me what's happening not just in the logistics ahead of the holiday season, but how you're able to keep a very in-demand workforce engaged and working for you. >> first off, thank you for
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having me. it's great to be here. as many of your viewers know we're a same-day delivery, delivering essentials from beauty, apparel, everything you need especially for this holiday season we cover 80% of the u.s. and we're able to do that because of our extensive personal shoppers are shipt shoppers who truly are our secret sauce and 130 retailers. as i think about the next 45 days in front of us, we're able to help both retailers and consumers alike deliver a great holiday season and graeat result by being laser focused on two things first, for the consumer we are focused on delivering a high-quality personalized shopping delivery for all their needs. for the retailer it's about being a last-mile delivery option well into the holiday season, operating up and through the closing of stores on
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christmas eve. when i think about what's it going to take this holiday season for a retailer to be successful, it's both of those elements quality, shopping and delivering and last-might delivery. >> explain the data part of the value proposition that you offer to your customers because omni channel connecting in-store experience with delivery and digital experience having a single-view of the customer is so important these days. >> it is it is. i would start with auto stocks and it's been a pinpoint for retailers and consumers alike. this entire year we've been working with retailers to ensure that we're able to capture their just in time inventory feed so that we understand in stock positions. when we have a shopper that is sitting in front of a shelf and it's an empty shelf they're able to give us bad data that we relay back to the retailer so they are capturing as much data points as possible to make sure
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that they can flow their inventory where they need it, when they need it. from a consumer standpoint, when a consumer places an order, if we've got indicators that that item will be low stock we'll nudge them for a substitution up front, but here's where the real magic happens. because our shoppers are such highly sought-after shoppers they know how to navigate a star they're great communicators. if they come up and the item is out of stock still, they're able to figure out a high-quality substitution for the customer and they save the sale the vast majority of the time and you know that being able to save the sale amounts for a great experience for customers >> when you talk about the high-quality shoppers, what are you seeing as you head into the holiday season and you are looking to hire more seasonally. >> we certainly recognize that many industries have been hit by labor shortages.
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we've been fortunate over the last 20 months we've been able to triple our network from 100,000 shoppers to 300,000 shoppers and what we are finding is post-pandemic americans have a different expectation on how they want to work. it is the flexibility of being able to choose when you're going to work, where you're going to shop how many hours do you want to work that flexibility, combined with meaningful, earning potential and meaningful work, the connections that they make with the customers they're shopping for, with other shoppers and with the retail employees. all of that combined has enabled us to have a strong shopper base that we have seasonal hiring for and it's been for us more about getting them excited >> well, delivery and receiving those items are something we're all thinking about, and right about now. kelly caruso, ceo of shipt, thank you. >> thank you >> pretty interesting as we get
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close to the thanksgiving day holiday. tomorrow will be busy as we try to get a lot out of the way. today, gap, dell, autodesk, hpq and nordstrom and tomorrow pce and dhams. busy day let's get to the judge and the half. >> we are inside the techtrade as one group surges and another sinks. what does all of that mean for your money in the final stretch of the year. we debate that with the investment committee and joining me for the hour is stephanie link, josh brown, pete najarian and co-founder of market the nasdaq hasn't had back-to-back 1+% decline since march. that's how long it's been and that's what we're working on right now because the nasdaq is under serious pressure again, down 178 a loss of 1.1% the dow is still green the s&p is negative and since jay powell was


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