Transcripts For CNBC TechCheck 20220829

We are right around session lows, only six points off of it for the nasdaq and, you know, on friday, carl the markets rallied a brief moment after that hawkish speech and there was this thought that markets had come into more alignment with the fed speech, right after, but theres room to go and the question is, how much more does it have to do . Weve got a big week of earnings, too, that will give us some direction and the jobs report on friday. Maybe some of this is just catching up. Fed officials were trying for a long time, it seemed, to top the markets down and it wasnt working at all remember, mary daly even talked to me about it and you know at that point, right, like when that just talking to the economics reporters, talking to the tech anchors as well, trying to get a message out there but seriously were going to get some more data this week that i think will be interesting for some growth oriented names, crowd strike, we saw how Palo Alto Networks did, heres another big grower in security, and also page duty, Software Names in that devops space they could still be seeing healthy demand even though the overall picture isnt great. You need that good news. Best buy, lulu. Pisani was mentioning the conferences kicking off after labor day. Wait until Conference Season, then youre going to get a lot of the some argue, worrisome color you didnt get after earnings. This is the confessional quarter, you saw that from some, crm, salesforce, saying contracts are being pulled out a little bit that Conference Season were going to be together again at a few of them. It will be critical, thats when we hear from ceos post earnings season when a lot has actually changed or hasnt, how much has changed. I think, though, theres only a limited amount of information, youre even going to get from these conferences because in q4 theres a big question, and were going to hear it, you were mentioning retail, carl, the inventories, we saw from macys theyve got to figure out how much to bring in for holiday, even as segments of the Consumer Market are showing a loss in stamina, how they navigate that in q4 is going to have a lot to say for where we end up. Tricky. Yeah. Well, for more now, lets get to dom chu on this Market Action this morning which has been something, dom so, to your point, john, carl, deirdre, some of the themes that traders are talking about right now have to do with the overall kind of macro or bigger picture, especially for these Technology Oriented indices, like the nasdaq composite. If you look at the 12,000 level were at now, hovering just above the lows of the session, the level a lot of traders are watching is just below there, 11,970 is the reason why is because that represents that 50Day Moving Average or 50day price on a rolling basis on average. Thats something to watch if we can hold that, maybe some shorter term support if we break through there, who knows, but from the record highs we saw in the fall, we are down roughly 26 from the levels. But still up about 14 from the lows that we saw over the last couple of months so were not towards those lows significantly yet, but the fear of a retest is whats driving a lot of the action today. If you take a look at the Industry Groups within technology that are on a relative basis, making some moves here, semiconductors off 1. 5 , the real relative lagger on the trade so far today, meanwhile, cybersecurity down about 1 , Cloud Computing down about 1 , same thing for financial technology, but its the internet names down 1 as well that are catching some attention right now, just given some of those moves we were seeing in Communications Services within that trade, mega cap technology, always a big factor, big weightings there, apple, microsoft, alphabet, amazon and tesla, down roughly 1 to 2 on the trades so far. But for apple, this is an important thing to watch here, down 2 . We saw more of that slide towards session lows as apple started to break below its 200day average price. Lets show you a oneyear chart of apple right now, as we move lower here, keep an eye on that 160 level thereabouts there is the 200Day Moving Average if we kind of hold there it might be a good sign for the bulls. But carl, as you know, for many traders as goes apple, as goes the rest of the market, both for the dow and the nasdaq and the s p 500, all three of them, a big part of that. Man, it has been a general. Thanks dom chu. Lets stay on this market volatility, the russell 1,000 growth etf, down nearly 4 on friday, that broke a twoday win streak, nudged its worst daily performance since june, what does that mean for the growth trade, and joining us today delano of new street, how are you feeling after friday, and is there a sense that if there is going to be some selling it could be it could be long lasting . Carl, thanks for having me and great to see you guys all back together, you know, friday was interesting, obviously we had the comments from fed chair powell and obviously the comments were direct and short in the sense we have more to go with raising rates i think the market wasnt expecting some of that thats why we saw such a drastic drop you look at it, we still have projections, suggested that rates were going to rise just below that 4 through the end of 23. Historically, loosening policy early has never been a good thing. I think this is the right move and i think the market was surprised by that. I think for the folks that are in these growth names weve always talked about the volatility thats going to remain in the short term the reaction on the other side would be to abandon these names. Thats the wrong thing to do, especially in this time where youre seeing valuations rerate, Different Things going on in the market that volatility is going to remain for the near term and thats something that Growth Investors have to inspect. If prices retrench, whats at the top of the Shopping List you know, for us, and for me, we were talking about apple, how apple goes, the market goes, i still like mega cap tech, and part of the reason why, one, you have the insulation, companies are actually earning, companies in some cases are providing dividend yield, and so companies that are cannibalizing another industries, if were looking how tech is playing in cloud and Different Things that obviously apple with their services, you know growing, thats an area that i want to be involved in, and still hold so look at the big names on the chart, those are areas for investors to look at if those reevaluated or retrench go to further levels where they can actually buy the cash theyre holding and have not bid yet these are some areas that, for me, i feel safer to look at, in this sort of environment. Controversial question for you. Do you actually buy dips in growth at this point im looking at, you know, three months, mongodb is up more than 30 in three months, snowflakes up 40, bill. Com is up 30, in three months, and weve had this private equity sort of put in growth for a lot of these names. You know, so if these names dip, as investors get freaked out about rates Going Forward is there value to be had here if youre a longterm investor . Yes, john, i think 100 , there is value to be had here. You know, a lot of names we mentioned, theres more volatility attached to them. The valuations will fluctuate a lot more but it wouldnt be a great time to try too hard to time these areas. For a lot of younger investors and longer term investors, some of them are trying to time the market and hit bottom, obviously a very hard thing to do for a lot of investors, but i do think as you mentioned there is value to be gained here for the longerterm investors looking out further. The valuations for tech and for growth are lower, if youre looking further, understanding what you want to do with your cash, these opportunities for in those names. Delano, your point of view seems to be more in line with the Retail Investors versus the Institutional Investor which has become bearish on the qqq, rose to 14 of the free flow of that index over the past 30 days, what is the socalled smart muncieing that maybe Retail Investors are not . You know, i think some of the smart money is looking at the environment and looking at the commentary, you know obviously say dont fight the fed. Theyre not just trading on the fed commentary but a lot of them are seeing the risk off is the play, the only last option is a couple of days we had a bounce since midjune and that was, you know, a sizable bounce and a fast one, which obviously, you know, could scare some Institutional Investors. It was a little bit too fast in the way were moving since midjune theyre looking at whats to come earnings are falling a little bit if you look how earnings, p ratio for 2022 has risen if you look where earnings are going, rerating the earnings lawyer for 2022, and dropping a bit for 2023 i think some of that has to come into play for evaluations. For Retail Investors they are looking out further, and thats an opportunity for Retail Investors to maybe find stocks that will bottom at some point if youre looking at the next six to eight months. Delano, moving into fall, its a time for some product introductions, were keeping our eye on apple headlines today about the ar, vr headset, is the market in a move to receive new product and get excited about it, or is the fed an overwhelming force . I think, you know, the market is i dont think theyre on a move to receive that just yet. Those are longer shots, the areas of technology that are longer bets for a lot of these companies with so much cash to see the commercialization of it, how the adoption will take a longer time. Its not a market mover or anything to move the needle. Obviously be flashy and good to see for consumers. But as far as moving the market needle, thats notgoing to get it done right now. Yeah, well certainly the fed gets a lot more oxygen, for sure delano, thanks for helping us this morning, good to see you again. Thank you, carl. Quickprogramming note aswe head to break, techcheck will be coming to you live from the code conference next week. Hear more how the ceos of apple, google, amazon, disney and more are handling the volatility, and where you should be putting your money to work. Thats all happening here on techcheck starting monday. More on todays biggest movers, the nasdaq falls breaking the 12,000 level. Techcheck is just getting started. vo hi. Were visible. A different kind of wireless company. Running on a big impressive wireless network. How are we different . We exist only on your phone. So you get unlimited data for just 30 mo, taxes and fees included. Plus we have a new plan with 5g ultra wideband. Switch today at visible dot com. At xfinity, were constantly innovating. And were working 24 7 to connect you to more of what you love. Were bringing you the nations largest gig speed network. Available to more homes than anyone else. And with xfi complete, get 10x faster upload speeds. Tech upgrades for your changing wifi needs. And advanced security at home and on the go to block millions of threats. Only from us. Xfinity. Gut check on e commerce, baird saying they see a path to double digit ecommerce growth for the year forecasting 10 growth bards likes amazon and ebay saying marketplaces are well positioned in the macro situation. Names like paypal, and alibaba will benefit too well see. Some theyre calling those names value stocks, even like paypal, fallen so far. Big holiday between now and then, well see. Amazon, could health care be a part of your membership. Our next sees the potential for the company to bundle pharmacy business and virtual care. Joining us is lance wilkes, what are amazons ambitions here, remember, haven, the jv between amazon, berkshire, but now amazon seems to be on a shopping spree. What are the major ambitions thanks for having me, i think haven and some of the amazon care internally this year, its really them getting their feet wet and learning more about the business what youre seeing now is an effort to really get a position in the market, probably related to reinventing care delivery, an integrated approach where youre taking convenient locations, digital and virtual care, and probably home care, bundling those together with Online Pharmacy that could allow them to go further in the market. As a stand alone disruption i think that would be substantial as well. Its a long way from here to that stand alone disruption. This is a really tough space, i also noticed your note didnt make mention of alphabet, which has a whole life sinces unit do you think theres opportunity for them to get interested in some m a yeah, you know, in my most recent note i tried to lay out a few different approaches that companies could take to disrupting, a traditional approach, that United Health care is taking, converting to value based care, adding features, cvs, might be taking an alternative focused on taking risk in the space, leveraging the retail locations, getting into digital and home care, amazon as i mentioned, more a consumer centric approach big tech players could focus on what id call Digital Enablement that might be focusing on connectivity in the space, artificial intelligence, maybe ultimately automation of care delivery, and weaving that together with data sources like remote monitoring, i would see that as very supplemental, and foundational to some of the other initiatives in the field as opposed to being in direct conflict with what cvs or amazon might be doing it seems like if amazon wanted to take the telemedicine only route they wouldnt have shut down the unit they just did. Theyre buying into one medical. If their approach is that you need to have both brick and mortar, and, you know, physical doctor presence along with telemedicine, thatst a big infrastructure investment, that investors are going to have to brace for, isnt it . Yeah, i think this is, you know, a big investment that youd be making. I think some of them can be platform oriented. The thought obviously theyre in talks or reported to be looking at homebased assets like signify home health now, they would likely look at acquiring further digital assets, maybe more care automation, or assets that would allow for not just telemedicine, but automated care, to supplement what theyre doing with the clinics, the rollout of the clinics is a big thing, thats something thats hit on oak Street Health and other names as far as the pressure as you build clinic after clinic. You have all the staff but you dont have any patients, day one. It definitely is an earnings drag. I wonder, to the degree theyre trying to turn this into a fly wheel, making Public Health part of the amazon experience, is that something that you think fits better with one geographic region, is it more of an american habit, or is this going to apply in europe and asia, anywhere else . You know, i think the i think the approach that amazon could be taking here, could apply to other markets, and i think this this really gets into reinventing care delivery from what has been physician practices, where you go to a physician office, for years and years, to something that is different and presumably better. And the reason it would ideally be better is because a lot of the dropoff in health care in the u. S. And elsewhere is because patients on the compliant, because it is difficult to get in there, difficult to continue on so thats the real opportunity that an amazon or cvs really has here that is a universal sort of issue. Some of the things in valuebased care and risk taking, that might be more u. S. Centric. The amazon approach could be international approach. Finally, lance, im wondering, where do you stand on telemedicine as an acquisition target or otherwise, where does that leave the teladocs of the world, has it become too commoditized it isnt that attractive. I think the capabilities within some of those, and the ability to transition that from telemedicine to Digital First care, where your doctor is actually on there, and that is a practice, is an opportunity for a teladoc that certainly would be an opportunity for somebody like an amazon i certainly expect that you will see more acquisition activity from amazon, and other players in the space in the digital and telehealth space but it wont be for traditional telemedicine, it will be for something that is either an ongoing practice relationship, or digital. Right, well big tech has the cash to do so. Lance, thanks for being with us today, lance wilkes. No pain, no gain, who he says the market is set up for a bull run as the nasdaq loses all of its gains for august thats coming up after the break. Dont go away. Zerocommission trades for online u. S. Stocks and etfs. And a commitment to get you the best price on every trade, which saved investors over 1. 5 billion last year. Thats decision tech. Only from fidelity. At fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. A plan with taxsmart investing strategies designed to help you keep more of what you earn. This is the planning effect. Im Carl Quintanilla with jon fortt and deirdre bosa on the east coast, checking in on things half past the hour, more on software in a moment. But the dow swirling around, a mostly negative range, session low down about 300, currently down 187 investors are trying to find a bottom for tech having a hard time as the nasdaq continues to fall after jackson hole on friday mack santoli has been watching, we were told look out for withering liquidity next few weeks. Thats part of the story, carl, both last week and this week and the general sense out there that if the fed chair does not want investors to get too comfortable about the outlook, then theyre going to listen eventually, i do think theres a legitimate debate thats happening last few days about how much was new, in what powell told the markets, the bond market looked at it and said we more or less have that priced right. Yes, the dollar is strong today but its not necessarily talking about it being a real jolt, its more just an expectation that were going to have to get to a certain point in rates, and leave them there now, i think the good part of it may be a little bit of a fallback is the idea that it wont take much to get this market back in that mode of being excessively pessimistic, and maybe even getting oversold in a hurry we got down there pretty deep in june im not sure we need to get to the same levels to generate those that same kind of contrarian negativity. Now, can tech ultimately at some point assert itself as a more defensive group . And kind of fall back on the idea that you have more earnings predictability and all the rest . But id be looking at Something Like alphabet which is you know, hasnt been this inexpensive relative to the s p 500 in six or eight years, but the numbers are coming down. Id love it if 49 out of 50 analysts didnt have ratings but i think thats the kind of stock that ultimately you might be able to say is going to show that it has an earnings resiliency, and therefore it be a recipient of a flow of rotational funds into it its not happening yet though. Aside from apple its really being seen as the big stuff in the index that good too expensive. Its what i was going to ask you about, mike. Nasdaq has come down a lot apple wasnt long ago we were talking about it being close to alltime highs, it has been a place for investors to hide out. Today its one of the top laggers on the nasdaq 100. Dom was saying to watch out for the 160 level. And as apple goes into the markets largely. Yes, certainly in terms of the index influence that is what happens. But apple also tends to go on these streaks about performance it then has to give back some of it was really acting like nothing so much as the consumer staple stock for the first several months of this year and into the recent highs. Thats why it has it its own character, to me being illustrative of whats happening more broadly in technology. Mike, whats getting sold, say on friday and when investors are selling, has the character of it changed . I mean, we saw the big washout in growth tech, in particular. Over the past few months, but it feels like some of those stocks have come back and shown some strength in some other stuff might be selling off. Yeah, the hypergrowth stuff that really peaked, that isnt, to me, the tip of the spear in terms of new selling on friday it was cyclical stocks, first of all it was overwhelmingly negative, so you have 14 to 1 negative to positive breath. So pretty much everything was getting sold in terms of what was most pronounced it was the stuff tied to the economy i think basically if the fed chair is suggesting that a recession is the tool and not just, perhaps, the unfortunate result of what theyre doing toward inflation, then thats whats going to hurt. Yeah, it reminds me of the minutes that we got, not last month, maybe the month prior, mike, where they talked about the possibility of gas prices reversing to the upside, and this morning at 96 and change, that would be the highest for tech since july 29th. Right, exactly, theyre going to take nothing for granted that theyre going to get more help on the commodity side. I do think you can also, though, look at that as a potential postive, which is to say that powell would sound exactly the same as he did on friday, if he really believed that inflation was going to trend in their direction lower, he just couldnt anticipate that, and couldnt get the markets comfortable with that idea before you actually see the evidence so i dont think that he didnt have any special information friday hes hoping to get lucky on inflation, just like the rest of us, but hes just not going to promise that. Mike santoli, thank you and now lets get to a news update, Contessa Brewer has that for us contessa. Hi, everybody, the Justice Department has found what it calls a limited set of materials that potentially contain Attorney Client privileged information, among the items it found at maralago. In a court filing this morning the doj says its following a procedure it set up to resolve any disputes with Donald Trumps lawyers over what is privileged and what isnt, trumps side wants the judge to appoint someone outside the government to make those determinations Georgia Governor Brian Kemp will have to testify before a grand jury looking into efforts by trump and his allies to reverse president bidens 2020 election win in his state. But that wont happen until after election day this morning a judge accepted kemps argument that appearing now would have political implications and beto orourke is off the campaign trail in texas. His challenge to republican governor greg abbotts on hold after the democrat was hospitalized over the weekend for a bacterial infection, orourke says hell be back on the road as soon as he can guys, back to you. Next guest argues earlier this month software was the buy of the year going into aurg. Given fridays selloff the serkt has dropped even further, the etf down 2. 5 . Leaving some wondering have we reached a bottom yet evercores rich ross, walk us through charts, great to have you. Lets start with software, if youre looking at the igv, what is it telling you right now . Yeah, thank you so much for having me, carl, well, its telling me what much of tech and markets more broadly are telling us, that after a very promising rally in lows weve fallen back into that pattern, certainly exacerbated by the jackson hole comments but what we see now is an etf, if you will, and a sector etf thats struggling to hold onto support here, around that 50 Day Moving Average but our contention is, carl, that software will find its footing and that breakout you saw in july, that surge was really sort of a preview into the future of what we will expect this fall, and i dont view the recent weakness post jackson hole and going into the event as sort of a prelude to a bigger retest of the lows. Do you think, is that view getting ratified by the socks or the cues or ark, or crypto, or anything else . You could keep going, carl and just keep naming stocks and sectors. We see a lot of technical symmetry out there unfortunately for the bulls, again, its that classic setup where we know weve had that bear market decline 30 to 70 , depending on where we look but then again, june, july, you get that big surge, that textbook reversal off of longterm support from deeply oversold conditions, our view is that this is a retest of that surge, and that we have made the turn, the bottoms are in, but as always the bottom is a function of time, price, and in this case volatility, carl. Rich, were about to get a lot of information, arent we, because the Holiday Season doesnt start with black friday anymore, it starts sometime in october, and there are all kinds of questions, yes, about inventory, also about consumer demand, about how much, you know, of this is going to come from ecommerce, data, including adobes, and others about what they expect for this season. Wont that have a big impact on how software fares yeah, no question about it. What were starting to see in the charts is that price tends to discount the fundamentals that are to come i think across the board, i dont want to say every stock, but in many cases the stocks that matter, youre starting to see the constructive signs in the technicals that would suggest that the fundamentals coming down the road will arc in the right direction. I think you can see that by virtue of breaks in well defined down trends, very constructive bases in stocks like intuit. A Huge Consumer stock, amazon, the hugest consumer stock in amazon, it had done something it only did one other time, going back to the depths of the financial crisis, but yet its not the financial crisis, which tells you you want to be a buyer of amazon. The etf, one of the ones up today, theyre surging, maybe this thought that perhaps it had bottomed out what are the charts telling you. I like where youre going with that one. China is a market that beats to its own drum and in this case it had led us lower, like much of the longer duration, more speculative assets, picking on january and february of last year, as mike santoli alluded to, but challenging the 32 level on the pgj, the golden tray gone internet etf led by stocks like ali baba, trying to challenge that, better days are ahead for china internet, and china more broadly which should have positive read through for Risk Appetite for broadly. Going back to the early part of august, finally, when you were looking at charts, and signs were pointing to the mid4600s, has that been washed out by powells framework now . Carl, it certainly hasnt been supported by that framework, but i dont think its been invalidated either i think, look, bottoms are designed to throw us off the scent. The market doesnt say come on out to the tour bus. Were about to rally what it does is what it did on friday, says rich after what it did on friday, my point here, carl, the setup is still intact. Pick a stock like a hub spot on the longer duration side, look at that surge above that well defined downturn, but back to a 50 Day Moving Average, i see technical symmetry across technology and markets more broadly where we are set up, if you can, to buy this retest. I know it takes some moxie to buy it down 4 is still down 4 i like what i see here to answer your question more succinctly. That is fascinating its amazing how sometimes that conflicts with sentiment. An moxee, i love that word. The laggards on the s p this tecte. G, bristol myers, taketwo inraiv techcheck is back in two at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. A plan with taxsmart investing strategies designed to help you keep more of what you earn. This is the planning effect. New projects means new project managers. You need to hire. I need indeed. Indeed you do. When you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. Visit indeed. Com hire and get started today. You just saw there netflix, the only socalled big tech name in the green today, market cap of more than 100 billion today may have something to do with reports up this morning on the companys new ad supported tier. Lets get to Julia Boorstin on that. Netflix is considering pricing its jum coming ad supported tier between 7 and 9 a month. Its according to a new report out from bloomberg the companys reportedly on track to launch this service, which would be about half the cost of netflixs most popular adfree plan in the final quarter of the year in a handful of markets with a full rollout next year. Now, netflix wont comment on the report, but tellsus, quote we are still in the early days of deciding how to launch a lower priced adsupported tier, and no decisions have been made, this is all speculation at this point. Gugenheim partner michael morris, this is above what they estimating netflix would get 3. 72 in monthly ad revenue per domestic member in 2023, which could grow to about 10 in 2026 that would give a boost to the bottom line above the current most popular tier, whose retail price is 15. 49 per month. The question, though, is how many new subscribers netflix could draw at this lower cost price with those ads sold by microsoft, and how many current s subscribers could downgrade. They will be comparing netflixs new offering to hbo maxs adsupported version, costing 10 a month, plus disney plus, its version is launching at 8 a month in december. Peacock has a free version, plus a 5 option with limited ads, paramount plus and discovery plus, their options are 5 a month. The ad experience for consumers, netflix is reportedly looking at about four minutes of ads per hour, in line with disney plus, discovery plus and peacock, they promise to show not more than five minutes per hour. Guys, its interesting to watch and i just have to flag, today is the 25th anniversary of the founding of netflix. Oh, wow, okay quarter century, its impressive how much does this really matter, though, julia, because for a long time netflix was pointing to international as being the real growth engine, and even if you grow a bit domestically by offering a Cheaper Service thats adsupported, is there really growth there when youre already selling the International Version for less, and ads dont yield you as much in a lot of those markets . Well, i wouldnt underestimate how important this Domestic Service is, jon, remember netflix is facing more competition domestically and in the more crowded markets, such as europe, canada, some of these other more crowded markets, theyre facing more competition than ever. Its not just about growing the number of subscribers, its about holding onto subscribers when people are trying to cut back on the number of services they pay for as deirdre just mentioned, if people want to spend less, you want to make sure they dont ditch netflix and go over to disney plus you want to make sure they have another lower cost option. A lot of this, i think, is really about maintaining those subscribers, and perhaps generating more revenue from subscribers who are actually paying less. Thats interesting. You know, weve got the emmys coming up, julia, and we always say, the awards, do they really make a difference . You could argue that now, when churn is more of a challenge, and revenue per user is a challenge, that some of these free marketing things like awards shows are going to count more. Yeah, the emmys matter, and i would say all of these awards shows matter for these streamers and for the Media Companies because it helps them draw and retain top talent. Its not about the free advertising, they want to show content creators, if you work with us, were not just going to get you an audience, were going to get you critical acclaim, and content creators love to win those big awards having a lot of that attention would be a win for netflix, not just in terms of getting their shows in front of the people who are watching the awards shows, but reminding content creators they want to come work for them. There are more options there now than ever. If youre a content creator, you have plenty of choices where youre going to go. The vmas were last night, were you watching, speaking of awards. Did you stay up late . I want to point out they were in new jersey, newark, this is a big way, vmas in jersey, carl in jersey, deirdre. And a big night for taylor swift in jersey. Check out piuoo,nddu rare market jump, find out more after the break. Gut check, shares of pinduoduo, recovering Consumer Confidence through the latter part of q2, delivering on those numbers on the heels of the worst quarter of growth on record for chinese tech. Revenue growth for the first time ever, carl, were going to get bidu tonight, and talk about that on the exchange they got me working while im out here in new jersey. Might as well, right, its worth it make it count. Meantime, the nasdaq is off its lows but still down more than 1 . More Market Action after the break. Ngoway. vo hi. Were visible. A different kind of wireless company. Running on a big impressive wireless network. How are we different . We exist only on your phone. So you get unlimited data for just 30 mo, taxes and fees included. Plus we have a new plan with 5g ultra wideband. Switch today at visible dot com. At fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. With the right balance of risk and reward. So you can enjoy more of. This. This is the planning effect. We talked about amazons health care ambitions, what about its energy plans, the companys striking a green hid Hydrogen Deal with plug power, taking a step closer to a 20 40 net zero carbon commitment, plug shares jumped on the news, and joining us to today discuss the deal, andrew marsh welcome. What does this i mean, you guys have been public for a long time people might think this is a newfangled power focus, but you guys are older than the millennium what does this do for your model, if youre able to do these kinds of deals with larger customers . Well, first, weve been doing deals with amazon for much longer than this deal, kevin, robert, weve been doing deals since 2017 with amazon they already have 15,000 of our fuel cells and today, and this is really the reason, one of the reasons they did the deal. Plug is building the First Green Hydrogen Network Across the United States with the ability to generate over 500 tons of Green Hydrogen per day, which is like 200,000 tons every over a year period. Thats why amazon did the deal with plug. Because we have been the leaders. I mean, weve grown, just to give you because we had been the leaders. Revenues grown four, five times over the last three, four years. Theres a big expectation that your revenue is going to really ramp in the second half of this year how is that shake up, especially given the economic turbulence . How is that affecting things Like Hydrogen supply and your ability to deliver. First, let me be clear, robert you know, we are electrolow deserter business, which is well supported by the Inflation Reduction Act, as well as our deal in europe which provides an al ten alternative to oil couple that with Continual Growth in our traditional businesses, so you know, the idea of the demand side is there for plug products. Obviously we work every day to ensure ourselves that we have the components to meatet our customers needs, but i think during covid we proved we were one of the few companies that met our revenue numbers that we projected earlier in the year. Hey, andrew, its deirdre theres also validation in a partner like amazon, but some investors may be wondering at what cost. You said this isnt your first deal you had one in 2017, but because of the accompanying warrants, it actually ended up costing you, and you guys are expected to burn about a billion dollars of cash this year so what are you giving up . How are you viewing prob profitability . Let me take a step back, the partnership with amazon and the warrants before, our stock is up 25 times since that time frame so if it does as well this time, ill be quite happy. From a profitability point of view, we can really clear that the Inflation Reduction Act actually moved up our profitability six months into early 2024, and we feel that with business customers like amazon, were on target for 3 billion in 2025 at healthy gross margins. All right, andrew, its been jon fortt, and deirdre bosa having to talk to you, an dpru plug power, thank you. Thank you, have a great day. Meantime, bitcoin falling alongside markets well off the lows this morning but hitting levels weve not really seen since july overnight briefly down to 195 well talk a bit about that and get some more on apple as well wh chhe mebaente cckcos ck les bubbles bubbles there are bubbles everywhere as an expedia member you earn points on top of your airline miles. So you can go see even more of all the worlds bubbles. Markets have been red for most of the morning currently somewhere in between the highs and lows of the session, we were down 300 plus on the dow, but thats a decline of about a third of a percent. Coming off of the rout on friday the bears had been making the case that youre going to wrap up august. Youre going to move into some dangerous seasonals in september, liquidity might be an issue, qt might be an issue. Certainly the bears are going to continue to latch onto some of those narratives that the sledding will get tougher. Well have a new earnings season coming up this was supposed to be that confessional quarter well see what still is left to drop, that other shoe that is. One more thing before we go. Apple filing trademarks related to its upcoming vr headset, including reality 1, reality pro, reality processor apple is aiming to release the headset sometime next year competition is steep in this space. Mark zuckerberg revealing last week that the company is planning to release their next gen headset in october first up on the horizon for apple is the latest product event next wednesday that will be big jon, are you upset you havent heard about the metaverse here and apple everybodys talking about it. Well, i mean, i know kevins excited about it i dont know, im not as excited as kevin or robert, pbut i will say we dont know if apples actually coming out with the vr headset at all, let alone next year though the signs are pointing in that direction it could be the latest apple television, right . The thing that was supposed to happen but they didnt quite pull the trigger on. Carl, its going to be an interesting announcement next week, though people tend to say, oh, you know, iphone who cares. Its incremental theyve been saying that for eight or nine years. Its still like the most popular high margin, high dollar Consumer Product like in the world. Yeah, i think its wedbush today. It says the launch of the 14 is going to be pivotal given the weakening economy, and of course next week as well, cook, powell jobs on stage talking about we can assume jobs legacy at code yep, hes got a busy week hes going to be in code and l. A. And then hes going to fly back up to cupertino, jon, to release that new iphone and whatever else we might get. Hes very good at time management, though i think he can do it one last thing, elon musk taking aim at the twitter whistleblower, musks lawyers issue a subpoena for a court filing today not in a bad way i think hes looking to get simpatico. He could use his accusations of false statements and security shortcomings at twitter as part of his attempt to break off his 44 billion bid for the social media giant. The story lines dont completely add up what mudge is alleging and what elon musk has been trying to say, but you know, he has ways of trying to connect dots. I mean, any dots that can be connected will be connected, right . We know that whether the judge is going to buy into that is a totally different story. As we head into the fall, guys, this is going to be another story line, a very juicy one for us to follow and markets to follow yeah, its stunning, jon, to think about the range of issues he has to consider he just gave this talk in norway at this Energy Conference w basically talking about oil and Gas Exploration how it has to be maintained otherwise civilization in his words could crumble, and yet narrowing down to these extremely narrow legal machinations as hes in this box. Youve got to give him credit for handling the big and the small. Also good at time management. And hes managing to repopulate the earth at the same time, which he also sees as a threat to our continuing viability as a planet. So if its not the energy stuff, its not enough people hes working, carling, on all of it once. As we wrap up the show, its been nice to be together at the same desk for a brief moment ism thursday, jobs friday is going to be key as we get the cpi next week. Well get end of month calendar issues, and then of course pretty good sampling of earnings throughout the week, broadcom, hp, lulu, crowd strike, best buy, ok ta as we continue to watch the market and what yields do in the wick of jackson hole lets get over to the judge and the half. Welcome everybody, to the halftime report, im scott walker, front and center, the post powell playbook are we going back now to the june lows . Isnt that the question everybodys wondering. Joining me for the hour, jim lebenthal, and with me here on set stephanie link and joe terranova, 12 00 noon in the east, were red across the board, dow down a little more than 100 a lot of focus on nasdaq approaching a 1 decline thats 104, 311. The yield on the tenyear note joe, do talk about thi