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tv   Tech Check  CNBC  December 15, 2021 11:00am-12:01pm EST

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nobody else is here? >> that's usually cybermonday, black friday which are kind of behind us. >> that is true. right. >> i may be checking things out on friday, though, we'll see >> well, if we don't see you, have great holiday courtney, thanks for filling in. that will do it for us on "squawk on the street. "techcheck" starts now. good wednesday morning welcome to "techcheck" i'm carl quintanilla with john fortt and julia boorstin today a chip off the old block the street expected outperformance for semis in 2022 after a 5% dip is now the time to buy then best week ever. that's what uber ceo told our next guest when they speak
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yesterday. his top internet picks plus comply or good-bye. google tells employees they'll eventually be fired if they don't get vaccinated the cnbc reporter behind that scoop is going to join us this hour, john >> we still have the day off and what's going on here we'll start with bullish sentiment for the chip sector. more than 35% rise this year that's 10% better than the s&p's gain chips hit a snag so is now the time to find winners within semis. nvidia, marvell and intuit and analysts predicting 2022 will bring more of the same this morning deutsche named broadcom, qualcomm and semis top picks. steady performers somewhat depend of market dynamics. qualcomm top u.s. semi stock going into next year pointing to the opportunities in 5g. and then evercorps going in a different direction highlighting
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marvell, micron and nvidia chip sector rise by 13% year over year, julia we in particular had qualcomm and marvell on "techcheck" recently highlighting these opportunities, not just in 5g but in the intelligence edge as more networking capability comes into not just the cloud, but devices like cars on the ground. they see opportunities >> yes and we're increasingly going to be seeing more of these devices like cars be connected to the internet of things and we're talking about that more later in the hour but looking broadly at the chip sector it's interesting looking at morgan stanley's report saying the global is semi industry appears to be approaching the plateau, carl. the idea that there is going to be growth next year as people sort of catch up with the back log and then there's true growth in the second half of the year as they restock those inventories, carl. >> yeah, interesting yeah, a lot of the notes about 2022, guys, as it pertains to
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chips is that a lot of these supply dynamics changing in different verticals at different times. autos might be happening at a different time than pc and it's going to be difficult and challenging year to trade semis and qualcomm has gotten on quite a few lists of top picks, john, for 2022 that is one thing that i noticed. >> big analyst days for both of those names recently they talked to us not long after those analyst days actually on the analyst day for qualcomm and then marvell out with the big earning report and almost as if matt murphy kind of thought the street wouldn't believe him if he rolled out the results. have to wait for earnings, carl, to actually up those targets into the next year >> yeah, meantime, got some news on evs today phil lebeau has that for us. good morning, carl >> look at general motors as the company announcing it plans to reveal early next year an electric version of the gmc
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sierra pickup truck. this electric sierra is going to be unveiled next year when it goes into production remains to be determined, as well as it when it ultimately goes on sale. remember the next year is huge for general motors ramping up production of the gmc hummer, the electric sport utility truck and then they have the e silverado, chevy sill verado showing early next year that likely will go into production late next year or early 2023 so, the isis the beginning of general motors really ramping up its cadence of electric vehicles again, gm announcing it will be unveiling an electric version of the gmc sierra pickup truck. that will be happening next year guys, back to you. >> thanks so much, phil. gm shares down about 1.5%. let's turn now to finding value in opportunities in the internet sector. ubs bullish on large caps like alphabet, amazon and meta. the firm also expressing confidence like much of the street in its buy rating for
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uber after sitting down with ceo just yesterday joining us now, the analyst behind those calls, lloyd of ubs. lloyd, so good to see you. quite an exciting interview with him yesterday saying that last week was a very strong one for the company. what was your main take away from that interview with him >> yeah, thanks for taking me, having me on the show. our biggest take away was really two things one, a lot of concern over what the company would look like in terms of bookings growth after the recovery you know, can they grow at a rapid clip they laid out a of reasons to think that growth in 2023 would be faster than 2019. so, they're laying the groundwork for inesthvestors tot more comfortable in the long-term growth the second thing, a lot of concern on potential margin risk from investment and quick delivery and grocery and all these new verticals but they basically came out and said in
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2022, they will be able to deliver in line or even better than long term incremental margins in the delivery side of their business, despite that investment so, i think they really addressed a bunch of investor fears at that webcast event yesterday. >> yeah, certainly, some interesting updates there. i want to get take your take on amazon you have a buy rating and a 4700 price target on that stock quite a premium to where it is trading now. what is going to get that stock to those levels? >> yeah, so, the stock's done very little over the last 18 months it, obviously, saw a huge pickup in the beginning of the pandemic and i think they've been investing a ton of money across the business building out more logistics capacity, investing in one day, investing in content and absorbing covid costs. as we get into next year, we think some of the covid costs start to go away they've taken up pricing on the
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logistic side for fba pricing for the biggest price hike we've seen in years at the fba business we suspect they'll raise prime subscription pricing and then revenue growth will come back as comps ease when you get, you know, amazon coming out of these investment cycles, the stock tends to do well we think '22 will be a great year across the retail business and then aws and the advertising should continue to drive profit growth, as well. >> hey, lloyd, good morning, it's john. if i were going to have a counterargument to the growth opportunities that you see in large caps it would probably be that i think the general public largely knows the stories of those companies. their valuations are already relatively strong. not relative maybe to the rest of the market. but historically and so maybe the opportunities are in stories that are lesser known industries or, you know, subgrooups that are seen as less
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sexy, why is that wrong? >> yeah, so, we've gotten a lot of pushbacks into our launch on, for example, the advertising names and some of the concerns have been we saw such a remarkable ad environment in 2021 growth in the whole global ad industry is up almost 20% this year as growth decelerates, isn't that going to be a problem for these stocks well, last week at our conference we hosted the research groups at the big agency holding companies we had zenith, magma and group m and laid out their forecast for the global ad industry to grow another 12%. it's not 20% that we're seeing this year, but in any other context. it's a remarkable growth outlook. take our numbers for google, for example. we're only looking for 14% growth at google next year in gross ad revenue we're looking for 20% for facebook these are businesses that are
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taking share google outgrew the industry this year by 2x so if those ad industry holding industry are right on the ad market, we think a lot of upside that isn't appreciated by investors in the ad names and that is a great example of where we think there's opportunity even in the mega caps. >> interesting lloyd, one comment that dara made that kind of got some attention was his view on m&a is going to fit into uber but more specifically tech at large what role will it play a diminished role compared to the last couple years? >> look, i think for the mega cap companies, it's really hard for them to do m&a you look at facebook is getting challenged on the acquisition. you know, very small tuck in so, i think the big guys are going to be restricted in what they can do. now, you know, for smaller players, for example, doordash acquiring walt
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there is probably consolidation that there's a view consolidation needs to happen in global food delivery those are markets that are more competitive and not as much anti-trust concern there's potential for consol consolidation. and then, look, capital return was something we haven't really thought about much from uber but they will, you know, we project they'll generate a lot of free cash as the recovery happens in ride share and margins continue to march up. they hinted that, you know, capital return was on their radar more so than m&a that was something new to us >> lloyd, before we let you go, i want to get your thoughts on the online ad space. you mentioned google and google is your top pick in that area. but, you know, i'm hearing about the death of the cookie and we hear about meta and snap having to navigate those appleios changes and figure out how to target consumers in a new way. tell us why you like google and
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snap in light of some of those challenges it seems like one of the main appeals of google has nothing to do with advertising and everything to do with their cloud services >> you're right. probably our most differentiated call on google really relates to the cloud business and our call is that the growth in the top line in cloud is going to come in much stronger this year than the consensus estimates. and the costs are actually going to come down faster than consensus leading to a fast er infliction towards google cloud and that's really predicated if you look back since thomas curian joined google cloud and brought the huge effort to the salesforce you look at 4q 2020 and they saw the biggest growth in their backlog that they've seen historically and we're about entering a year from that and that's when these cloud deals start to generate a lot of
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revenue. the first year is in preparing the migration and the second and third year is when they actually start to spend dollars on the platforms and we think that starts to show up this year. and i think right now google gets almost no value attribution for crowds and its shares. we think they were worth somewhere in the neighborhood of 25% the value of google. if that gets value attribution a big tailwind to alphabet shares the next six months are really hard to know they are trying to build what they're calling advance conversions and get that deployed and get that tested i think that could take some time where we get really excited on snap over the next 18 months is the ar lens ads. we talked to about 20 advertisers in the industry before we launched our coverage. and the feedback on their ar ads was really positive.
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they're still a little bit tough to deploy, but they're making it better and better. and easier to deploy >> yeah, that is certainly the next frontier. lloyd, thanks so much for talking to us today about your top picks. >> thanks for having me. meantime, a number of tech executives are meeting with the biden administration today to discuss funding for broadband access >> good morning, carl. the administration's goal is to connect every household to high-speed internet by the end of the decade. and it's turning to the etech industry to understand how increasing access can benefit the bottom line for business and boost the economy more broadly the ceos of etsy and ebay and one of airbnb co-founders and the ceo of block will participate in a roundtable this afternoon. but gina raimondo said universal coverage will not only help the big players but small businesses, especially those run by women >> women are still not back in the workforce the way we were
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prepandemic. and one way for women to make some money in a flexible way, you know, and still be able to be there for their families is selling on etsy and being a host on airbnb. but you cannot do that without broadband. >> take catherine she uses airbnb to rent out the guest house on her land in colorado. it's pretty remote and the cell service isn't great. >> we get one bar enough for phone calls and some internet, you know, browsing but certainly not enough bandwidth for zoom so, yeah, there is definitely, it was like holding our breath kind of waiting to see what was going to happen. >> when she first moved in the internet was spotty, as well but now she's connected so she can be on airbnb and also teach
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online yoga classes. so, john, she's pretty much living the dream back over to you >> making that need for broadband real, ylan, thank you. one more stock to mention. c3 ai surging up 3%. a new stock repurchase plan up to $1 million. shares down from the start of the year and he's putting some money where his mouth is "techcheck" just getting started. it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan
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and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. ♪ ♪ ♪ (sha bop sha bop) ♪ ♪ are the stars out tonight? (sha bop sha bop) ♪ ♪ ♪ alexa, play our favorite song again. ok. ♪ i only have eyes for you ♪
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mom, hurry! our show's gonna start soon! i promised i wouldn't miss the show and mommy always keeps her promises. oh, no! seriously? hmm! it's not the same if she's not here.
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oh. -what the. oh my goodness! i don't suppose you can sing, can you? ♪ the snow's comin' down ♪ -mommy? ♪ i'm watching it fall ♪ watch the full story at www.xfinity.com/sing2 let's get a gut check on palo alto networks the cybersecurity firm seeing a boost this morning after being named top 2022 pick by goldman sachs. bullish along with other security stocks such as sentnelone and qkta encouraged by higher revenue growth and easily possesses the strongest array of cloud assets among firewall carl. in the meantime she's on
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vacation, but you can't keep deidre bosa away with the scoop on breaking news hey, d >> hey, carl in the return of the home studio the news i have to bring our audience is block ceo formally scare is joining the board of airbnb i talked to him in the past and what he looks for is someone that challenges him and his company and shameless in asking for advice, which could make her a particularly interesting choice square now block has gone all in on bitcoin and the block chain and personally advocated for it making the argument earlier this year that every major company should have some bitcoin in its war chest. when you look at airbnb reserves they have grown from $8 billion from $2.5 billion in the start of the pandemic. but beyond the potential of sort of crypto reserves, i talked to his thinking on crypto and made the argument that airbnb and
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crypto are not that dissimilar in that airbnb uses the distributed model to make the economics available for more people very inest thered in it and this move by adding the block cfo guys >> i think that's so fascinating, d i mean, you think about her experience at square, obviously, association with dorsey and interesting if you had sort of a contingent of cfos who were becoming almost evangelists for crypto and were sort of getting that word through various companies on which they do serve on the board, like this one. >> yeah. and i keep going back to the fact that one of the most interesting thicking things abo airbnb about one year ago was how much of its searches and growth is organic. to lot of the other otas and online travel agencies relieyon
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google more than 90% of searches happen directly through airbnb and not go google it is the company that is right for the decentralized method of having people book their trips or just in the whole crypto eeteeth o os os and we'll talk to him in the new year on what his thinking is on that. >> such a fascinating comparison as we talk about web three being decentralized. what do you think the next step could be or potentially would be for airbnb as it us pushes more into the crypto world? >> i'm not sure to be hawnest and i'm not sure he has been clear in the past other than saying he interested in it the idea that she's joining the board means that he's starting to potentially think about it in
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a more serious way especially based on his comments and someone he can really lean on. so, we'll see. it could be any number of things i think i asked him at the ipo what he's thinking when you have this ecosystem could airbnb have its own crypto currency probably a bridge too far and all these possibilities as we talk about web3 and crypto day after day, guys. >> fascinating stuff, d. thanks for bringing it to us from your vacation we appreciate it and after the break, how the fed's taper plans will impact tech valuations and stocks listed on u.s. exchanges under pressure as the two countries take steps to reduce financial ties more "techcheck" after this. ech.
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welcome back fed meeting this afternoon and as we've seen some significant fluctuations in tech valuations. bob pisani has the story on how they are connected >> they are, indeed. since powell indicated that higher inflation at its quote, transitory that was on november 30th. fed had some trouble advancing take a look. particularly software stocks have had trouble they're down roughly 10% since november 30th. semis are down 5% and cathie wood's fund is down 14%. big software like zscale pager duty, adobe down 11% to 13% since powell turned hawkish. why is this happening? tech stocks they get hit because higher rates and bonds compete withic stocks why take risks with high valuations if you can get the same performance with bonds with
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less risk. investors instead fled into cash or apple which is up 8% since november 30th and something of a safe haven for tech investors. the fed's aggressive about face is calling into questions sky high valuations on tech names. sterling audio was on this show yesterday reducing his ratings on adobe and a dozen other software stocks. he said cash flow growth rates are what matters for tech valuations he wrote yesterday, quote, this has been consistent since 2000 and it brings into focus whether growth rates can sustain or moderate at a tolerable level to keep valuations propped up that's the issue, propping up valuations this may be the first of many reevaluations. other tech analysts and strategists are also nervous right now. justin post whose bank of america internet analyst noted today that after a strong 2020 his stock universe was down 13%
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in 202 is. he said, quote, our b of a strategy team has a somewhat bearish view on the s&p returns in 2022 given high valuations and potential impact of higher interest rates and we expect a choppy 2022. his hope for a stronger 2022, valuations have begun to adjust and, carl, we're seeing that now. we'll see if that continues into the new year >> bob, great set up here. let's dig into the ratings of the stock ecosystem our next guest says to stick with the fastest movers. how do you square that as an investor right now joining us this morning former cisco ceo john chambers. john, every time we talk about valuation compression, i think of what you said last year you said 40% to 50% of the fortune 500 won't exist in a decade probably 60% of the start ups won't exist in a decade and a
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number of them won't exist in two to three years it's going to be a brutal change is that, is this the kind of thing that reflects what you were trying to get across back then >> it does and i think the key word now for investors and for business leaders is the ability to be very agile but what you're going to see and this really speaks to the valuation of the companies that have large evaluations will be replaced the number of unicorns doubled in the u.s over 500 unicorns in total but over 60 new year to date you'd have a feeder system coming through so in total as long as you're betting on a portfolio, you'll do well with the new companyi coming into the market agility is new key watch word and around inflation which you all have been talking about. >> when you say agility, what does that mean does that mean high levels of cash or some sort of cash, what metric do you look to as sort of the golden lens?
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>> i look to the metric of the ceo. she or he. do they move quickly and adjust quickly. secondly out of my 20 start up we all raised cash over the last nine months and positioned for a two-year run third i think the economy will do okay. but i think they're going to be winners and losers as you've seen typically when interest rates tighten which i think inevitably they will i think the leaders will be in the internet category. you all talked about it earlier. i like the traditional players of google and amazon and facebook but i think there will be a new generation of leaders, as well. grow beyond it and then i like some of the semi conductor players because of the emphasis about the importance it had on our economy. companies like nvidia and very well focussed for the future >> so, as you look to the future, you know, tell us what you think the trends are going to be beyond the mega cap stocks i eto in your notes that you think emerging tech will go main
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stream what qualifies as emerging tech and sort of rising inflation p play into some of those companies. >> when i think about the emerging technology and the areas that i would bet big time on is artificial intelligence. last year we said the session with you all would be the year of the unicorn and where start ups become unicorns and grow beyond it was by far and away the best unicorn growth on a global basis with the majority of countries around the world, u.s., france, germany, the uk more than doubling their unicorns. that means job creation, future ipos, et cetera. the one loser was china. only 15% growth in unicorn i think perhaps their economic policy and for us watching from a distance and having watched their 14th five-year plan, i think they may have some trouble in gdp growth looking five to ten years out because if you don't feed the unicorns, you
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don't feed the future growth in terms of the overall approach. but ilike artificial intelligence there is going to be the next cisco and facebook and google out of that. and i like the cloud moving to the edge i think people who really get that right and cybersecurity are the areas i'm personally investing very heavily in. >> john, good morning. i'm not saying history is repeating itself, but i remember the late '90s was another time when big tech was looking at some pretty big valuations and expectations of continued strength into the future and then there was a valuation reset that i know you remember very well, painfully well. and granted, not just valuation reset but other things going on. how are we going to know if that's happening again with all of this rosy feeling about how strong big tech is and how deserving, therefore, it is with the valuation strength it has. >> well, first is i think carl pointed out at the beginning that there is a concern here
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that there are going to be a certain number of losers the fortune 500 how many of them disaap disappear. i think it will be a blended version in terms of the approach but different in many ways and painful for me i went to the most valuable company in the world and people saying, john, can you do your job. we came back strong, but a painful two years. that was a different time a number of companies built on customers and 25% of my customers at cisco disappeared literally in one quarter so, it is different in terms of the fundamentals this time most of my companies that i'm involved with have very good balance business across enterprise and consumers and tech has now gone main stream. in the 2000s it was largely service providers and enterprise now, tech is everywhere. it's digital countries, digital business, et cetera. here to stay every company is a digital company. that fundamental has changed
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but will there be breakage in this yes, i think there will be in terms of what you said earlier. >> well, i hope we get a chance before year end, john, to go back on some of your calls earlier in the year, including your call on china, which might have been one of the most that we hearden on this program at least. always good to see you >> it's a pleasure, thank you, all. happy holidays thank you, carl. thank you, john. thank you, julia you all have a great day >> thank you, you, too john chambers. >> bye-bye roku shares plummeting today. that stock down over 10% this comes as there was an analyst note that lowered its december 2022 price target to $315 that was down from $435. saying that better reflects peer multiples but another factor at play here. roku was hit with a patent infringement ruling from the international trade commission that could potentially ban some of its products being imported
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we reached out to roku about this they told us they do not anticipate any disruption in their ability to import their products we see that stock is down nearly 11%. >> yeah, there's a couple names that are getting hurt. roblox and roku haveing a tough day. google threatening to fire employees who don't get. we'll have that story in a moment when "techcheck" is back in two
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google telling employees that they will lose pay and will eventually be fired if they don't follow vaccination rules jennifer had that scoop for cnbc.com and joins us now. jennifer, so interesting here. my first question is what kind of reaction are you hearing out of employees at google >> yeah, well, so far what i'm hearing from employees is, you know, a combination of people who are in the camp where they want to feel safe and when they do come back to the office, they want to know that everyone around them is vaccinated. and for google that means that most people will be coming into the office in the new year, at least three days a week.
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and so there's a portion of folks who are, you know, excited and happy about that and then there's a small portion of folks who are, you know, think this is an overreach and we reported a couple weeks ago how several hundred employees signed a manifesto, essentially, opposing the vaccine mandate. and upset about the walk back from what executives initially said would happen, which was that you would be able to work from home if you didn't want to get vaccinated so, there's really a combination here but i'm seeing a lot of folks who are saying that they're happy about this and that they, you know, it makes them feel a bit safer. >> jennifer, a number of companies were reporting that more than 90% of their wor workforces overall self-reported that they were vaccinated. i don't know if you know google's percentage. if you have a sense of how the covid dynamic is changing
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silicon valley culture there was this concerted effort for free food and dry cleaning to keep people close together in office spaces even without walls and without cubicles, which is now, i guess, completely not cool but how is that changing the way that people think perhaps about working together, being together >> yeah, i think it comes down to something that you've talked about on the show is people want flexibility. they still want to be able to get those free perks i know a lot of googlers who have talked to me about the only reason they're excited about going back into the office is to have the free food that they haven't had over the last year and a half so, i think that will still play an important part and people will like the convenience of that but, ultimately, i think most people are looking for flexibility and that option to come in and also the option to kind of travel and, you know, live a nomad life if they want
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or, you know, move if they want without getting their pay docked so, i think it's a lot, shifting a lot more to kind of flexibility and away from those perks but certainly a large contingent of people who are very much excited to get free meals, again >> finally, jen, you know, google's been a leader in whatever protocol they've set forth. they've been one of the earliest to do so and a lot of people react to that by saying, well, there are few companies that are better at synthesizing big data who understand virology better and is that view shared in the valley that they somehow have better eyes on this than most >> i think so. yeah google has always been, as you said, this big data company. perhaps more so than any other tech company and they really tried to, you know, at least they say they tried to ground many of their decisions based on data at the same time, you have
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employees like this vaccine mandate, for example, folks who i heard from who say that google isn't taking into account other forms of data like antibody testing and what not so, i think you're probably going to hear more about, you know, employees who kind of are undecided about which types of data the company kind of chooses to use and how they apply some of these policies. but i certainly think everyone looks to google because they do set the standard for culture and they have the annual surveys and regular surveys about what the employees want and they do try to take a lot of that data and form their policies with it. >> fascinating jen, great piece thanks so much still to come this morning, a look at tesla stock and elon musk's position as person of the year plus cnbc asked leaders across tech at our council
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summit to weigh in on how the metaverse is going to play out here's an example of some answers. >> i actually think web 2.0 was very similar the potential it took about five years to realize the potential >> we don't think a ton about it other than to know it is secure. >> it can be a combination of real and overblown and it's wait and see. >> a hype cycle to all of these things i mean, a lot of metaverse is just an extension of vr and ar it's not a new concept
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it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.
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uglytrading across ecommerce stocks warby parker direct listing at 54 back in late september. down more than 20% stitch fix another direct to consumer name beaten up good down 70% on the year and 80% off the 52-week high individual stocks have not been the beneficiaries. two etfs that track those stocks they have lost a quarter of their value this year. and the large players like walmart, amazon and shopify have lagged the s&p this year today's retail sales number, john, may not do much to reverse that >> fascinating, carl if you wish you could buy stitch fix at the ipo price, now you almost can. speaking of underperformers
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names coming under pressure. all closed sharply lower yesterday. that's not stopping the ipos $11 billion listing this morning and the ceo is with us next. don't go away. ♪♪ it inspires us to go further. ♪♪ it has our back. and goes out of its way to help. ♪♪ when you start with care, you get a different kind of bank. truist. born to care.
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it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. another multi-billion dollar cloud connected valuation this morning. samsara focused on connected
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operations pricing its shares at $23. valuing the firm at $11.5 billion. joining us live now from the new york stock exchange samsara bia good to see you. not long we were talking about fort knox about the company and the logistics and supply chain and just being efficient has become ever more important, even since then tell us about how your growth has reflected that including your annualized recurring revenue figures. >> thanks, john, for having me on it's great to see you again. we were talking about what samsara does and if you think about supply chains we are able to supply realtime visibility to trucks on the road and assets in the field and that's incredibly important when people are trying to understand what's going on with the supply chains being disrupted and something that
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used to always take six weeks might take six months and that's a real issue we provide complete systems that give our customers that visibility and you can see that reflected in the revenue numbers. we're coming up on nearly $500 million in annually recurring revenue and growing to 70% jeer over year and it's customers digitizing and looking at the visibility and getting it from the platform talking about the hardware component of this and necessary to give you insights that customers need and to what degree that's a bottleneck degree >> so, john, one of the interesting things is there are sensors everywhere if you think about a modern truck, for example, they're somewhere between 115, 200 sensors on the truck itself providing information about fuel and pressure and all these other sources. what we're able to do is connect that sensor data up to the cloud and our gateway is basically take that data, bring it into the cloud and that's what unlocks the value. so what we're seeing now is that customers are very interested in
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understanding everything that's going on at scale and interested in analyzing that data and figuring out how to unlock business insight that's where we focus as a company. the sensors out there and we made it possible to get data into the cloud, analyze it and provide our customers those insights >> sanjit, i'm curious where you see your next leg of growth coming up. you're targeting those that not wrapped up in digital transformation, such as the transportation industry which you are focused on now and the shipping industry that has huge potential to embrace an internet of things. what are going to be the next range of industries that you can work with? >> we are fortunate to work with a very broad base of customers if you think about the world of physical operations it's close to 40% of the global gdp and it's partly supply chain and also construction companies and energy utilities and local governments and municipalities so we work across that spectrum and work to build on products that go and give them those
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insights in terms of the next leg for us, it's to go and penetrate this market the total addressable market we serve is $55 billion and it's digitizing very quickly and these industries are adopting technology to pace like never before and growing 20% year over year to scale $100 billion year over year. in term was where we go next it's going deeper for our customers and doing more for them. >> looking forward to this milestone as you start to trade. i see those indications up above $24 a share. sanjit, thank you for being with us. >> thank you, john nice to be here. >> speaking of shortages during this period, here's another company addressing them. human-centered a.i. company forethought helped provide businesses with customer service solutions powered by a.i., and i spoke with ceo and co-founder dion nicholas this morning in a fort knox interview.
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he says they'll use capital to grow rnd and he also told me the labor crunch is increased demand in efficiency and a.i. and customer service. >> and over the last year we are seeing a lot of places where bpos or business process outsourcing businesses were going offline and you had lockdowns in manila, the philippines and places like that or across the united states where a lot of folks with customer service would typically be working and agents were literally being sent home, right? so not only do we offer tools like our assist product that help those agents get back to productivity, but as you mentioned we also offer tools for the businesses to help triage, to help route the tickets and inquiries to the right agents at the right time and the right channel and understand what is urgent and what is actually spam. >> you can see the full stream conversation on techcheck's twitter at cnbctechcheck or our
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linkedin page. >> john, if you're a fan of our show don't forget to follow and subscribe to our podcast "tech check" is back in a moment butter... cup... baby... up would be the operative word there pal. oh, yeah, yeah. sorry, have a good day! if you ride, you get it. - come on in! oh wow, we're really backed up. geico motorcycle. fifteen minutes could save you fifteen percent or more.
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>> it's not always easy to get the market moving just hours
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before a fed decision and statement, but while we have erased some of our losses here, dow's now down 40 points dr. fauci says at this point, guys, data shows there is no need for an omicron-specific vaccine, that the current vaccine and booster regimen is effective in protecting people against the new variant. weal see how much comfort the market takes in that statement from a few moments ago one more thing today and that's the financial times having the innovative idea of naming elon musk its person of the year if that sounds familiar time magazine did that on monday in the interview with the ft, musk mixed it up a bit with jeff bezos saying his jokes are an a term to make bezos spend more time at blue origin and less time in the hot tub. he seems more comfortable with the u.s. competition from ford to rivian and called out china, i think people are somewhat oblivious to just how much progress china is making it's know credible, compared to the mports of the '80s and 'th
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0s and i think we'll see something similar to the companies. musk is under fire for his leadership at spacex multiple former employees have accused of company of fostering a culture where sexual harassment was rampant including in an interview on cnbc. spacex did not respond to our repeated requests for comment. what a few days it's been for musk, for tesla and these accolades that he's been getting. >> yeah. accolades and when a ceo like musk is getting so much attention we're starting to hear also about some of the backlash. he said in that "time" magazine interview that the spacex starship facility was like a technology monastery and there's some, but hardly any women there and there are senior women at spacex one of the most powerful women in the space industry for sure, john, you have to wonder if these concerns and criticisms are going to continue to grow. >> former employee describes men who hug women without consent, stare at women while they work
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and interpret every social encounter as an opportunity to date or hit on women in the office, carl, that doesn't sound like a monastery to me >> i'll be watching along with all of the competitive dynamics in the industry. a fed decision is a couple of hour away now. it's time for the judge. carl, thanks so much welcome to "the halftime report." i'm scott wapner front and center we're bracing for the fed and what decision will mean for stocks and your money in the month ahead could very well be a turning point and we'll debate it with the investment committee. joining me for the hour jenny harrington, degas wright, steve weiss and joe teranova. it is a wait and see 2:00 p.m. for the decision and a news conference after that it is down about 12, its come off the lows after the comments from dr. fauci about the vaccine for omicron not needed at the current time, he says. s&p is down 14 nasdaqs

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