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tv   Tech Check  CNBC  November 29, 2021 11:00am-12:01pm EST

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to this immediate succession plan but, yeah, it's one of the few names i think within communication services that's higher right now. >> should point out shares of square, which mr. dorsey is still ceo are flat. that will do it for us on "squawk on the street. "techcheck" starts now ♪ ♪ good monday morning. welcome to "techcheck. i'm carl quintanilla with deirdre bosa and jon fortt today, jack steps back shares of twitter surge as jack dorsey steps down from his ceo role we'll talk about what it means for that company and the broader message in tech. then stocks rebounding a bit this morning after that omicron selloff friday the latest on the variant and the buying opportunities still out there this morning finally, it's cloud week here on "techcheck."
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jon is live in vegas as amazon's reinvent conference kicks off ahead of his exclusive with aws ceo later on today dee? >> carl, we will of course start with twitter ceo jack dorsey stepping down as his role as ceo as first reported by our own david faber and passing on the reigns to parog. dorsey will remain on the board until his term expires in 2022 they have come down when david first reported about the switch. now up about 4%. guys, i'm looking at his announcement, his memo to employees he also posted on twitter. part of it he says that founder-like companies are severely limiting and a single point of failure when you look across the landscape of the biggest tech companies, you see that that has bode well, putting in company insiders to replace the founders at microsoft, apple, alphabet, you've seen all of those
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co-founders sort of take a backseat and the people that replace them doing a very good job. of course, jon, amazon just did that this summer it's still early for andy jassy, but the trend so far has been pretty good. >> yeah. and i think it's important to put twitter in a whole different context than those companies market cap of this company is under $60 billion. what, let's see docusign is bigger than this, snap is bigger in market cap. it kind of has the feel of an underachiever a bit, not to cast aspersions at all on jack dorsey it has clearly its challenges being compared to facebook but even compared to a lot of other companies in tech at this point, there's a lot that could be done with twitter, carl i don't know, i think a lot of people have the sense that this is a company that while it's culturally important has played it safe along a lot of trends and a lot of different ways. so there's room for somebody to take this company in a different
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direction. >> yeah. although, agriwal has a tweet right now. and does talk about the strategy being bold and write, our critical challenge is how we work to execute against it and deliver results. that's how we'll make twitter the best it can be for our customers, shareholders and as he says to the staff for each of you. casey, i wonder is this about the rise of the engineer and if so, do you see any kind of strategic pivot over at twitter now? >> well, as i've been talking with my sources today, they tell me that parog has been central in the company's efforts to decentralize he is somebody who believes that twitter has a decentralized future we know they have this blue sky initiative that could turn twitter into something more like a protocol that a lot of other services can plug into i'm told that him and jack
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dorsey were very much on the same page about that if this is a strategic pivot, that's the direction we're likely to see. >> how about you, low? what does it do to the investment thesis? >> clearly the market wanted to see some change. and your points earlier were spot on. look this company, twitter, has been underperforming within the broader context. i think when we look at the switches that were made at other founder-led companies, alphabet/google,microsoft, apple, they were heading in the right direction. one interesting point was the appointment of brett taylor. he found friend feed acquired by facebook which led to his becoming cto before that he was at google as a product manager. he has good product chops. >> dorsy writing on twitter or memo, you have no idea how happy this makes me with bret taylor becoming chairman. when we talk about the
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differences between other founder-led companies, something that twitter does have if not market cap in size to the other ones that we mentioned like alphabet, apple, amazon is the regulatory pressure. we've seen those ceos step down over the last year and a half at alphabet, am von i wonder do you think this has something to do with the jack dorsey simply not enjoying, testifying in front of congress and all the pressure that he faces as ceo of twitter? he didn't step down as ceo of square >> that's right. look, there's no doubt that in a lot of ways being ceo of a platform right now is not a fun job. there are going to be more hearings there's legislation moving through europe right now that's going to put some really onerous requirements on these platforms. i can definitely see jack wanting to step away as we know. there were a lot of elements of twitter that he has not just been engaged with over the past decade or so and so, i i'm sure that he's very much looking forward to not having to speak to congress on zoom again any
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time soon. >> yeah. lo, as i think you and i were both alluding to earlier, twitter hasn't exactly been blowing the doors off performance wise as a stock or as a revenue and certainly profit grower. to promote somebody who has been the cto, been there for ten years, who is saying we're just going to continue to execute on the strategy, it seems like an interesting move given all the possibilities in which you could do post dorsey. >> 1200% is this the right leadership move given that we've never really seen twitter become that platform to drive the user engagement that we heard people complain about or some of the flaws with the product as well as be able to achieve a higher level of revenue and earnings based on the enormous growth that the product has i think, look, jack dorsey, he as casey said, is much more of a visionary, a startup person as these companies evolve over
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time, you know, it's often requires a different type of leadership i think it will be great to be able to see what can jack do being able to take a step back, square is still a question mark. but it will be interesting to see if he jack can go back to more of his startup roots to think more higher level, being more visionary as opposed to dealing with the day to day. >> that's exactly where we were headed, lo casey, stick around. we want to hit what dorsey might actually do and what that might mean for the other company that runs that is square. our kate rooney is digging into that this orning hey, kate. >> reporter: hey, carl he is certainly still running square calling and texts people the take away here is focus for square he has the time and attention to pay to this company is really now a behemoth square has grown massively now owns title, they have their bitcoin business he's running a bank as part of square they also have the sort of
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payments hardware side of it and then cash app is now making more than half of revenue it's really like he's running five or six or even seven companies not just square and twitter. there's so many smaller companies within square. i also want you guys we should play this sound bite jack recently talks about essentially what he would be doing if he weren't running twitter or square that of course is bitcoin. take a listen here >> whatever i can do, whatever my companies can do to make accessible to everyone is how i'm going to spend the rest of my life. if i were not at twitter or square, i would be working on bitcoin. if it needed more help than square or twitter, i would leave them for bitcoin >> so he says he would be working on bitcoin bitcoin is really a big part of what he's doing at square. i mentioned the tbd business and what he's been doing even implemented that into twitter with something called the lightning network using cross-border payments there. so it's really more of a focus story for square shares aren't moving much on
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this they're pretty much flat but investors are excited about this he's been accused of being absentee ceo more on the twitter side but remember, guys, he planned that trip to africa to do a lot on payments mostly focussed on square and bitcoin he now probably has the opportunity to spend more time on that side of the business and bitcoin in particular. still, his twitter bio #bitcoin. show's probably going to spend a lot of time there. >> exactly, kate let's get to the stock side of this as well and bring in mark on the cnbc newsline in addition to lo, tony and casey newt mark, does this allow jack to embrace -- lo, let me ask you instead. does this allow jack to more unapologetically embrace bitcoin through a square frame work? >> yeah. look, i think this is something that jack has said explicitly that is really important to him is the future of bitcoin look, when we think about the payments platform that square has built, i mean, there's going to be a natural intersection and great opportunity.
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i think this is where jack can actually leverage his visionary and super power which is seeing the future in ways that others just can't and i think that's what makes this really exciting is to see the direction that square can now go and the importance it might have with jack's vision for bitcoin. >> i believe we have mark now. mark, i'm kind of stuck on this point of jack dorsey's memo where he says the founder-like companies are severely limiting. do you think it's possible given the sound bite we just heard as well what he would like to focus his efforts on that he could step down from square as well? i mean, square is up more than 1,500% since its ipo, twitter is up 85% in that time. so this is a company that you could argue seven more ready for him to step away from. >> yeah, it's a great question one i'm obviously a little less familiar with on what may happen with his own timing and choices. to me what's most curious is his decision to step away right away
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effectively leaving the seat and plans to also leave the board. so really stepping off entirely. so, you know, may feel like it was the right time it may feel like the right moment to go pursue his passions whatever that may be obviously i believe square probably fits more closely aligned with where he sees his interests going. but to me it's just the timing of how quickly, you know, he's effectively decided to step away completely from twitter. >> mark, what do you make of twitter's move here to promote a long-time technical insider to the ceo role given that i think it's fair to say as a company it has underperformed in revenue and profit growth and overal social share it's certainly more culturally important than it is market cap relevant >> yeah. it's an interesting decision and certainly fits with what we've seen from other tech companies
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now, there's obviously a big difference with the relative stock performance i believe fwirt's stock is only up mid single digits probably double digits where they ipoed at relative underperformance versus the sector promoting an engineer that's technical makes a lot of sense we have seen it elsewhere. what else do they do because clearly there's still an advertising business that matters a great deal for a company like twitter and other companies with google now having kind of phillip join their earnings, call facebook has cheryl and snapchat is relying on jeremy what's the next move from twitter? who will be there to drive the day to day business operations and how do they jive with new leadership team. >> day to day business operations and financial targets that twitter outlined earlier this year really for the first time -- casey, i'll direct this question to you -- that it has in its history wants to double
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annual revenue and aim to have 315 daily monetized active users by the end of 2023 the new ceo he's a cto, right? he comes from a sort of technical background will he deliver on these financial metrics as well? >> they launched their twitter blue product, $3 a month for a set of new features. they have really big plans around that going forward. but like you said, parog is known as more of a technical guy. for me the question is to the extent that twitter is going to decentralize, what is that business model going to be how much upside is there that is pretty far frontier in a lot of ways. and so, for me that's kind of the big question mark as he tries to figure out the future of twitter's business. >> yep we'll hear a lot more in the coming days as they present to the conference and we got no change in guidance today
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so there's that. lo, casey, mark, appreciate it very much. thank you. >> thank you >> thanks. and meantime, we are kicking off cloud week here on "techcheck." live from aws reinvent here in las vegas. i'm going to be talking to adam zelensky, the new ceo of aws, taking over for andy jassy, ceo of amazon overall. this is an important ent of course because aws kind of created the modern cloud movement and the ecosystem around aws includes so many companies, many of which will be speaking with this week and carl, as i look at cloud week this year, i think we see -- we saw on friday just in the market action how fears around the omicron variant had people leaning back into enterprise software, right into digital tools that make people more productive if so many stocks in this market
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are going to grow into their valuations, we're going to hear those narratives during cloud week about how the whole ecosystem is going to move and my goal, at least, is to give investors a great framing and picture and figure out which of these companies has a viable strategy that could justify some of these levels where they are and maybe even higher. and which perhaps are vulnerable should we get more days like friday. >> although, dee, that's going to be fascinating, jon, but dee, the optimists would argue it's not about various variant cycles or the this or that day to day changes in covid, it's more about the boom in cap-x, the way corporates want to be better at adapting to whatever comes around, hybrid, remote, back in the office and that's where the strength and enterprise is going to come from. >> that fourth industrial revolution as cathy wood likes to call it, looking forward to all of those interviews, jon. birds and nerds supply chain issues plus more on what is going on at the top of twitter a big hour of "techcheck" is
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just getting started stay with us
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welcome back it has been a record-shattering
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holiday season for the ports but the latest ecommerce data has been largely disappointing with sales slowing we are live at the port of new york and new jersey has that story for us >> well, even though sales are slowing, we know the pandemic has fueled an ecommerce boom and many ports like the largest port on the east coast right behind me stands to benefit. volume has increased double digits here so much so that the port of new york/new jersey said they will be increasing their long shore work force in 2022. there's about 12 ships anchored here right now with an average wait time about 1.6 days however, problems still threaten the system and by problems i mean we have older infrastructure, there's a shortage of truck drivers, a shortage of certain materials. of course, a newer one, this is an up to seven-week quarantine for sea farers return back to china, a triple effect across the globe and of course increase
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in demand and still seeing some weakness at the twin ports in california that's in long beach and l.a they're working around the clock. we didn't hear, though, from biden not too long ago on the infrastructure bill that they're planning to provide $17 billion in port infrastructure and sea ways, water ways, but some experts say that may do little to solve the current problems. listen in. >> the infrastructure bill is not going to help what's going on right now the infrastructure bill is going to be able to provide, you know, some capacity that's needed five, seven years down the road. but certainly isn't going to help the challenges that the supply chain is experiencing today. >> reporter: we do know that these backlogs persist across the country. but, many shipping container companies that do stand to benefit as suppliers scramble to find these giant containers right behind me. certain companies like the stock price is up 140% year to date.
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night transport up almost 40% and mattison down today but up 45%. so those are just some examples. i'll end with a positive note that we are starting to see some of the holdups slowly starting to ease, but there are concerns, especially with that seven-week quarantine in china, that these backlogs will continue well into 2022 jon, back over to you. >> yeah, christina, thank you. now let's get more on the supply chain and bring in an expert in the field with us now, flex port ceo ryan peterson, applying some technology to this issue and this problem for a long time now. ryan, i remember we were talking over the summer and you were talking about how painful it is for you to disappoint customers based on what's happening with shipping right now that doesn't seem to be easing how long does it look like this problem is going to persist and what can technology do to solve it >> yeah, hey, thanks for having me back on
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making predictions about the future when there's so many complicated variables is just harder than ever right now and global logistics in particular i don't have a really strong opinion. i don't see a lot of mechanisms that are clear or clearing this backlog at the port of los angeles and long beach in particular yeah, we brought down the number but there's still 56 container ships waiting out there. there should be 0. and what's happening right now is that they're actually introducing fines so if you don't pick up your container from the port on time, you get hit with these charges that after 30 days go to $46,000 per container for container typically has $100,000 worth of goods in it. 50% inflation for everything because that's where everything comes from is on these ocean containers so it just seems like it's going to get worse before it gets better i'm not convinced these fines will help anything there's a big role for technology to play i'm glad you asked me that
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right now one of the problems is at the gate of these port terminals. a trucker wants to go pick up a container, they have to bring a specific container number. and then that container has to be dug up from the bottom of the pile and brought to the front to give to that truck driver. if we adapt technology this is easy the technology exists. flex port built this technology, allow you -- the truck driver to come and give the truck driver a container and the mobile app will tell the truck driver where to take it and if the recipient is not ready, we need a yard off site so we can clear out this terminal and clear the backlog >> yeah. so this sounds like a port version, a huge version of what we've seen in the ecommerce-driven warehouse that amazon and so many others have made popular you don't run that in an assembly line linear way perhaps was done in the past this is cloud week, how much room is there for the adoption of enterprise software, tracking technologies that are enabled by
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the cloud to speed the process of making these ports more efficient? >> i think that the technology is the relatively easy part. it's about adopting it is trickier because you got to redo the contract relationship. so somebody has contracted that trucker to move their container and they would have to change that relationship to say, hey, whoever brings me the container is fine. by the way, customers would be fine with that right now they just want their containers. so that's -- i think that it's doable, but it's -- there's not a single person in charge here so you've got to convince lots of different parties to change the way they're working. that's always pretty hard. i really like the ecommerce analogy. these are very closely related industries one fact right now is we don't have enough warehouse space in the united states to keep up with all this demand so, the estimate there's 40 million square feet of warehouse space short -- we have a shortage of 40 million square feet of warehouse space in the united states. just offshore off the coast of
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l.a. there's about 60 million square feet worth of merchandise. so you've got aproblem where are we going to put all this stuff >> ryan, good morning. it's deirdre good to see you. we heard from the big retail chains over the last few weeks amid their earnings and they have fared relatively better given the supply chain disruptions. flexport had a lot of the newer, younger, direct to consumer names ascustomers. how are they and some of the other smaller retailers faring or navigating the bottlenecks? >> it's harder for small businesses in general because they don't have the clout. big companies, walmart, costco they went out and chartered their own ships to get capacity. walmart got -- i saw recently just got a huge yard in southern california to store containers small companies don't have these options. that's one thing i'm proud of at flexport we help the smaller, faster growing companies to make sure they get space, taken care of, et cetera. it is a harder problem for small business than it is big companies that have clout with
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the owners of the ships and others in the chain. >> big problems trying to move big things ryan peterson from flexport, thank you. >> thanks for having me. meanwhile, jack dorsey's real love i suppose you could call it is higher this morning bitcoin rebounding with the rest of the market. plus, why the vix is key to this market. "techcheck" is back in just a moment
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welcome back to "techcheck" i'm carl quintanilla with jon fortt and deirdre bosa stocks are broadly higher today after the ugly day that we saw on friday. nasdaq is up 1.4%. tech and consumer discretionary by far the top performing sectors. tech up nearly 2%. twitter a top performer as well as jack dorsey steps down as ceo effective immediately. we'll talk more about that in a moment in the meantime, though, a news update with rahel solomon. hi, rahel.
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>> carl, good morning. moderna leading the s&p 500 rebound today up 5% on the major covid vaccine makers say they're working on new versions that specifically target the omicron variant although moderna's ceo says it could take months to begin shipping updated vaccine oil prices climb back from the friday losses with some traders viewing the steep selloff as overdone west texas intermediate jumping as much as 7% this morning but now up closer to 4%. pending home sales surging in october key index rose 7.5% last months, blowing past estimates and reversing decline in septs rising rent and mortgage rates helping motivate buyer. speaking of buyers, shoppers headed back to stores for black friday deals although fewer hit the malls than expected. instore traffic was down 28% from 2019 levels for the fist time online black friday sales fell this year more starting purchases earlier in the season deirdre, back to you. >> thank you very much for that.
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stocks are rebounding today after a brutal black friday. so, what does the snapback tell us about informser appetite for tech mike santoli has some of the answers. mike >> dee, definitely that appetite is still there but selective we have somewhat mechanical bounce in the overall indexes led by the familiar huge cap names in growth. but look at the setup, really coming into friday and coming out of it. in in terms of the relative strength of the offensive versus defensive parts of the market. so you have -- this is regional banks. very strong group through the year, very hard hit on friday. not much of a bounce today however the semiconductor index very close to the regional banks in terms of showing that cyclical bell weather leadership they are bouncing today pretty well obviously nvidia a big part of that. software and health care less strong and not as much leadership groups. software also stronger today so it seems like the growthier parts of the market are doing a little more of the lifting today. small caps gave way but there
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arguably is little more give to be had if, in fact, we'll get more nervous globally about what happens with this variant. there's probably some air underneath the cyclical leadership parts of the market to give back some and have the defenses pick up but so far we're not really seeing that. i would say on a net basis, it's an upbeat message from the market so far, even granting that we don't really know how this is going to play economically, guys. >> that is part of the puzzle, mike thanks mike santoli our next guest does like tech and crypto, of course to close out the year co-founder and managing partner tom lee. great to touch base with you good morning. >> good morning, carl. >> you've talked a lot about and everything rally going into year end but also in periods of uncertainty i'm thinking back to august, you said clearly don't be a hero. where is your mindset right now? >> well, i think friday was a massacre you know, for markets because it was a short window not a lot of
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liquidity and you could see by the panic in the vix fourth largest ever according to charles bililo that that was investor panic and generally in an environment like this early in the expansion, i think you have to buy the dip. so i think markets are very viable here. i don't know if today is the bottom, but i think the low is some time this week and i think the year-end everything rally is actually still in play >> really? so you don't even see this postponing what would have ordinarily been or what would be year-end meltup? >> carl, it's a -- yeah, it's a great question as you know, markets have a lot of things to worry about as you know, covid continues to be unpredictable but we also know that every variant has had an expiration date we just have to look at florida where cases have virtually disappeared there, but they were in the heart of the delta surge over the summer.
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and with this wall of worry and skepticism and specially over the weekend people think there would be a lot of follow through today, i think people did take a lot of risk off the table. as you know, people are off sides at a time when we had a seasonal strength. i think that's the rally is still in tact. >> tom, what do you make of what's happened to some of the, i guess, riskier stocks, growth names like chegg, stitchfix, zoom, we talk about moderate dips in some tech names that maybe you want to buy, but then some of these names have had dramatic, dramatic -- can't just call them dips they're plunges. do you think about the value of their innovation differently do you think of what's a bargain differently in this kind of situation? >> jon, that's a great question. i think one of the magic of tech stocks is, you know, one is that historically they're all great compounders, right, because of
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company really finds and really shows a lot of strength and dominance in a market and they capture a lot of value because there isn't a lot of cap-x behind it, but that compounding of earnings sometimes gets overexpressed as a multiple expansion. i think a lot of the state home stocks that you're citing are derating even though they're structurally good businesses if i looked at where tech has a chance for the multiples to actually expand faster than earnings, i think it's going to be the faang complex am southern and apple and facebook and google, netflix, they compounded earnings in 2021 but actually saw a multiple compression. so i think those are the names in 2022 that could really power tech. >> hey, tom, since you're a bitcoin bull, i have to ask you if dorsy is getting ready to focus on what he calls his true passion, bitcoin, what does that mean for the crypto complex? this is a guy who has created two hugely important companies and two very important spaces
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fintech and social media will he do the same for bitcoin? will that give it a leg over is it bullish for crypto >> yes, it's bullish for crypto. you know, one thing to keep in mind is that crypto is the intersection of financial services and technology. i mean, that's literally 60% of the economy. really financial services is the other half of gdp. so it's a huge market and there isn't enough capital actually allocated towards crypto innovation, so it takes people like jack dorsey to really marshall focus and i don't think the space is overinvested yet. i think it's still earliest days not only for things like projects like bitcoin or etherium, i think this is the earliest days. >> final lirks tom, one of the names that you helped coin is the granny shot, meaning the stock pick that is a no brainer
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essentially, very easy in your view on a relative basis where do cyclicals fit in that do you think as we progress from wave to wave there is some long-term degradation in consumer behavior or mobility? >> carl, that's a great question because it's an unknown, right we never had essentially a chronic plague like covid and it's almost impossible to model. but one of the things i know investors tend to do, they tend to value visibility. so when covid is surging, they're really focussed on secular growth ideas like faang, but at the same time, these cyclical companies whether consumer discretionary, hotels, gaming, or industrial companies like caterpillar, they are stin gently managing costs. they've rieally right sized thei businesses the operating shined in third quarter earnings and still the
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earliest days. you look four quarters into this expansion, still talking about 10 percentage points of earnings beat so i think cyclicals will surprise next year because of their operating leverage and now that they're multiples are low, some of these energy stocks are three times free cash flow, it's a combination of big equity gains. >> great point that obviously gets buried by a ton of other news look forward to checking in soon >> thanks for having me. hsbc says it is time to be bullish on apple says those supply chain constraints keep hearing about won't have much of an impact on the stocks shares are closing in on yet another all-time high. you see it there up almost 2%. more "techcheck" after this.
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♪ time for a gut check on recent ipos. start with allbirds. stock is in the red despite getting slew of bullish. 80% have a buy rating on the stock. the stock down more than 30% since its debut earlier this month. and we're seeing similar story at nerd wallet
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have a look. another recent ipo, positive initiations but it's also in the red this morning, down more than 5% barclay's calls it a, quote, high quality content business at a discount stock is also down since its listing earlier this month in fact a full half of this year's ipos are u no trading below listing price. jon? >> yeah, well, dee, shares of twitter turned negative moments ago. but they popped back into the green trading right around the flat line. giving up that 11% pop that they saw earlier either way nextdoor ceo is coming up next, former chief financial officer of square, sarah fryer we'll ask her about jack dorsey's departure from twitter. that's after the break stay with us going to tell you about exciting medicare advantage plans that can provide broad coverage, and still may save you money on monthly premiums and prescription drugs. with original medicare, you're
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insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. social networking app for neighbors next door ticker knid recently went public via spac. earnings show business growing 66% on the top line. joining us now next door ceo sarah friar also the ceo at square we did get the news that jack dorsey is stepping down as ceo of twitter and when you step down as cfo at square, you said in an interview that any founder that builds a company that depends on one person has failed. and you sort of saw jack dorsey echo those comments in his memo this morning he said that founder-led companies are severely limiting,
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single point of failure. what do you think it would take for jack dorsey to give up the reigns at square >> well, that's a speculation i don't think i could get into but i do think jack is incredible person. i learned a lot working with him. first of all how to scale companies. both a founder and ceo can really have a big impact, square and next door were the same size when i joined about 200 people and now of course we're in rapid scaling mode second, jack is laser-focussed on design and what's great for customers. something i've learned a lot as i moved to next door and how we build features and functionality for the whole neighborhood then finally, hiring great people which is the whole point that you shouldn't just be a single point of failure, you want to have a whole team that came together. certainly what we built at square and absolutely what i built at next door of course we're hiring anyone wants to come join our mission, feel free to reach out. >> there you go, sarah very key especially in the talent wars that we see in the bay area
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now across america sarah, let's talk about next door, recently had earnings. you guys have increased the share price from that spac listing. what are you seeing recently, especially given over the last few days with the new variant omicron, you seeing engagement increase, next door get a bump up when we see these variants circulate? >> i mean, for sure it's unfortunate. it's a little bit same old same old but nextdoor is all about local and place for trusted information. so, when emergencies happen, we often see people turning to the platform that really helped us in 2020, but our growth has continued, right our wow growth in q3 was 20% year over year and that was on a really heavy number back in q3 of 2020. so people come for that trusted information. through the weekend we have been working withfolks like the nhs you pave.gov in particular a lot of news over the weekend second, i always say it's not public agencies that save you in
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a crisis it's your neighbors. it's the power of proximity. sometimes it's small maybe it's going to the pharmacy for you. sometimes it's just checking in. right? we know that loneliness is a big issue right now particularly as we go into yet another holiday season with the pandemic in the backdrop then finally we're building products like our vaccine health map sponsored by moderna and albertson's companies and alive and well and a great place to know where to get to first vaccine, second shot or a booster shot >> sasarah, good morning, it's jon. i wonder if you reframe the value prop ration and addressable market for nextdoor given what we have seen happen in tech, the changes in ios to ad targeting you have interesting data sets not tracking people but you know where people live. right now most of your revenue is from advertising. but it seems like there's some
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subscription possibilities along areas of civic engagement. how are you framing nextdoor's value propositions differently in >> it's a huge tama. everyone is a neighbor and that's true globally and in fact, in q3 our international weekly active users were about 18% of total. that increased from 15% in the year ago quarter that's even with all the growth that we saw. so international remains a really big opportunity for us. you also leaned into that point about we are a proprietary platform you are logged so we're not putting cookies around the web to figure out who you are. right down to the fact that we know your address. that makes it a very attractive platform from an advertiser perspective and of course we want advertisers putting great content up there because that's great for neighbors when they need something we are a high utility platform people tend to come up high in tent finally where you started to allude to i think there are
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other revenue streams absolutely available to us. maybe it's working with small, mid-size businesses to give them a better way to get to their best customers, those that live around them. that said, i would not be doing a good service to my cfo who goo my cfo who reminds me how large and fast growing the digital ad market is so we have a lot to do there and a lot of opportunity still on that front. >> you raise an interesting point. the correlation between engagement and consumer mobility we have a sense that social media is what you do when you are stuck at home but so much of your business is about what's happening in the neighborhood when you go out your front door. is that correlation positive or negative >> there are three things there that are important for neighbors. number one, getting trusted information. that often happens in the moment even when you're at home and getting help goes from online behind a pane of glass into the
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real world and recwe've seen grt and we are about creating connections that take you beyond maybe what you may do to augment the feeling of a neighborhood that's behind that pane of glass online but we want you to bring those connections into the real world because we believe great communities are all about the resilience of people coming together human to human. >> since you mentioned this, what do you make of what facebook is doing distancing themselves from the social networking site and people want to be in person but does that go digital and where does that leave nextdoor >> i think you always have to be mindful of technology shifts if you think about shift to the internet originally web 2 h.0 this may be ultimate mobile being able to push people into online another ceo i spend time with is
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at bnb and this may be the revolution where people can move around and work from home or from anywhere. we think that's a positive because they need to know their community. we don't want to lose human to human contact because we know that's incredibly important for your mental health and physical health so we'll push back against too much online because we do want to see those relationships being formed in the real world >> it's a fascinating idea you bring up talking about the future and how people will be more mobile maybe nextdoor for air bnb communities. thank you for beingwith us carl >> meantime, looking for under the radar christmas stocking stuffers calling 2021 the year of the
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digital gift the streaming players are key names to benefit we're back in a couple minutes
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we're back in just a moment.
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closing things out here, the tech sector up more than 2%.
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nasdaq up 1.5% one name sitting out the rally is robinhood shares down more than 7% lockup expirations are in focus. as we pointed out before, this was an $85 name in august and reminds us that half of the billion dollar plus ipos this year are below the listing price. >> yeah. we'll see where it goes from here i want to look ahead a little bit to tomorrow. later today i'm going to sit down with the ceo of aws really kicking off cloud week in a way and it will be an interesting position right now they have a lot of vertical integration. they own ships and infrastructure and platform and so forth i'm interested what happens and compete in services. they have some of that but new
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leadership provides an opportunity for perhaps a new narrative and a new framing for growth markets, carl, so i'm really eager to see what he's got to say and bring that to you and our viewers tomorrow >> that's going to be a perfect week for it given the enterprise software names posting earnings and macro data let's get to the half. >> carl thanks very much breaking news. that's a live shot right there of the roosevelt room in the white house where any minute now president biden is going to speak about the new covid strain which is raising alarm around the world. we'll take you there live. also want to show you the markets. they are bouncing back today following friday's big sell-off. let me show you where we stand this hour. decent days for stocks after friday we're off the best levels. nasdaq the biggest winner thus far on the day up nearly 1.75% s&p 500 better than 1% as well

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