10565 while some things head lower with amazon and google now 40 off their highs, other people are calling for a bottom here. Mike santolli joins us with here nasdaq coming off. It was up as much as 10 whats going on today . Yeah. A near approach to those june lows, very widely watched. Sometimes the first time it tries to get down there it bounces almost by reflection were seeing a little benefit of that still very much remains to be seen i like a threeyear look at the nasdaq 100 so the yunjune lows are right he i like to check out this october 30th of 2020 level which is right about where we are or just below where we are right now it is a little above 11,000. It also coincides with a 200week average, a slowmoving longer term uptrend line, thousand day moving average, which is also right around 11,000 in theory, we have the entire uptrend from even before the covid crash that now perhaps is nearby could be support could be a little bit of a moment of truth. The key when you have a retest of the major indexes is to see whats worked better and whats worked worse since that date here is june 16th. You see some of the subcomponents of the overall tech tape, how they have performed. And in general, you have actually the s p 500 is done about two and a half percent this is from the start on june 16th but software and semis have underperformed since that day. Whereas, apple, we keep talking about how it is essentially apple against the world in how its been holding up better, and thats given more support to the nasdaq 100 and to the over all tech sector indexes as well. Under the surface, you have had an undercut low for the software and semis area, which in theory they should bounce a little bit more less discussed is biotech. It was an underperformer through much of this year. Take a look at the year to date chart of the s p biotech index here you have a may and june looks like a retested low there. You are well below that right now. Biotech moves to its own dynamics not so much about the macro and whats going on in broader growth stock investing it is interesting that took its pain earlier and seems to be fairing just a little better. Great Temperature Check thank you. Now a head wind thats important for tech recovery is the strong dollar. The dollar index now trading at its highest levels in 20 years, going back to 2002 steve joins us with a look at the impact of big tech. Yeah. A lot of these big tech names have a lot of exposure in the countries where the dollar is the strongest and theyre already protecting themselves against this effect. One of the key concerns executives warned about last earning season, lets break it down by name and give you an idea of what each company is expecting. On the apple front, no price increases in the u. S. , but the iphone 14 is more expensive in the u. K. , germany and japan. Apple announcing increased app prices throughout all of europe and south asian and south american countries starting next month. Meanwhile, apple also opening up iphone 14 production in india this week, earlier than usual to keep that supply up. And the over on meta, speaking of price increases, meta raised prices of its Virtual Reality headsets to fight this inflation headwinds, also coming out with a new and more expensive headset next month, warning that revenue will take a 6 hit this quarter from Foreign Exchange headwinds. Meanwhile, over at microsoft, already saw the strong dollar hurt them last quarter, shaving four cents off eps and maybe more pain to come with amy hood saying last earnings fx will be tougher through the end of this calendar year but improve in the first half of next year. The question now will be if microsoft starts increasing prices throughout europe to protect their margins. And with amazon and alphabet, those two names sounding less dire than their peers. Not getting too specific but saying to expect, quote, an even larger head wind from Foreign Exchange in the september quarter. Amazons cfo saying fx will hurt revenue but noting impact on operating income is, quote, not significant. Guys, earning season is coming up and we are expecting to get more color from these executives. It is earnings season thank you very much. Our next guest says to bet on future growth despite their 70 drops year to date cofounder and managing partner, it is great to have you with us. Good morning to you. Great to join you thanks for having me. The key question which i think everyone is just trying to figure out is how do you value these companies with potentially very good Growth Prospects but little to no profits what should they be worth . I think you have to look at the long term. These companies are clearly growers and there is a longterm potential for the businesses shopify is a great example i think there is a lot of Growth Potential there. Ecommerce is only 20 of retail i think it will continue to grow as well. I think there is a lot of future growth in the business and theyre still scratching the surface in terms of the potential. With higher Interest Rates that kind of reduces future cash flows. But i think overtime the business is going to thrive. There is a lot of Growth Opportunity for the business they also have a good underlying profit profile, so the Companies Break even today, but there is a lot of potential for growth and profits over time. It is really a Growth Opportunity. I think the markets overreacted in terms of discounting growth i think when you are looking at tech stocks, you have to think about future potential more than anything. But did they overreact during the pandemic in those prospects for growth i know you pointed to shopify, but take a coin base revenue declined 64 in the Second Quarter it lost 1 billion, what are you buying here . How are you valuing it coinbase is an interesting story. Theyre very exposed to trading changes in terms of crypto and obviously with the Crypto Market cap really dropping overall, their revenue has taken a hit clearly. And i think over the near term, they will still below, say, where they were last year. But you have to think about the longterm potential. About 13 of americans today own crypto i think thats going to grow definitely over time the penetration is going to grow coinbase is obviously one of the biggest exchanges. They have multiple businesses within their portfolio and theyre pretty aggressive in terms of how they think about future potential again, i think it is more of a longterm macro debt there when you think about crypto, what you found over the past decade is there has been three major drops, and typically those drops are 70 to 80 of the market cap of the total market, so theyre very dramatic drops but over time, the growth is far above that over the longterm. And, so, i think thats where were seeing now is, again, a near term drop they have been heavily impacted. Over the longterm, i think more and more people own crypto not to mention Practical Applications of crypto and that will also capitalize their growth im a longterm believer in their potential. More practical use cases for the average person, and i wonder what do you think thats going to look like because a year ago you were talking about buying pizza with it. Yeah. I wonder, is that trajectory, that use case trajectory still intact yeah. There is a couple areas in terms of applications. We have one Company Called scion dig digital. You have a lot of people who own crypto today that want to do certain things with it, for example, get a loan, buy a car, buy a house. It inenables them to use it in Practical Application like that, to get a loan. I think there will be a lot more applications than there are today for crypto i think you are just starting to see areas of growth. I think the Industry Needs to really focus on that i think there has been a lot of hype and potential and not really a lot of concrete Business Models, but i think thats changing. I think there are a lot of founders out there that are working on real projects i think you see a lot of decentralized finance, probably the biggest area but there are a lot of interesting projects there you see in technology these waves where there is the hype cycle. A lot of early adoption. And then a crash and then the resurgenceis typically where you see Real Companies come out of. I feel like thats going to happen over the next couple of years. I want to go back to publically traded stocks, Growth Stocks in particular. Yeah. On the filters that you are using to decide whats worth buying here because i still kind of get flashbacks to the early 2000s where the same arguments could be made about, well, these things have come way down. But then it took years in a lot of cases, even for Good Companies to come back from the levels that they felt. Microsoft one example. Innovation along the way how do you decide whats a more likely grower, what are the metrics that you are using to determine health and the ability in a reasonable time frame to grow and not for the stock to have to react. Yeah. Thats a great question, john. I think there is a couple different elements what you have seen over the past six months is dramatic drops 70 , 80 of market cap so it will take a while for these companies to get back to those levels we think a lot about what is the next couple of years going to look like and is the company a good buy based on fundamentals we think about whether a company is profitable or on a path to profitability. And then we think about longterm potential adoption so i always go back to whats the current market size and what is the companys penetration and then how big did that market get over time and what could be their penetration could be when you think about amazon, ecommerce penetration was very low, maybe less than 5 of retail and amazon was a dominant player there but, again, the market was small compared to today where it is 20 of retail and their growth is cattized by overall market expansion, right, as well as their growth in terms of ownership in that market i think you can apply the same frame work to that thinking about, again, how big is the market going to be, what is the growth rate of that market, when does it get to mass market as well so today there are certain markets where only the new entrants, so to speak, are using it, but over time it becomes a mass market opportunity. And then the last piece again is quality of Business Model. At scale, is the Business Model sound . So what are the Gross Margins of the business what are the underlying profit margins, things like that. In those analysis, you could tease out the winners. We certainly hear that amazon analogy a lot. We have to remember, though, there were a lot more ciscos than amazons, companies that never regained that peak good to have you. Still ahead this morning, the outlook from the week. Cyber security names across the board continue to fall dont go anywhere. Tech check is just getting started. Another busy day . Of course youre a cio in 2022. But youre ready. Because youve got the next generation in global secure networking from comcast business. With fully integrated Security Solutions all in one place. So youre covered. Onpremise and in the cloud. You can run things the way you want your team, ours or a mix of both. With the nations largest ip converged network. From the most innovative company. Bring on today with comcast business. Powering possibilities. So far it is about restraint. Lots of people are read already in a deep recession. I see blackrock deal with coinbase, you know people are coming to buy. I think the market is caught up with the fed. But now the incoming data will lyft downgraded to neutral today over skepticism to deliver topline growth in line with competitors. Cites rising insurance costs beyond q3 as a risk factor stocks trading around 13 a share. A long way frits ipo at 78 requester. They do move their target from 16 to 50, so quite a revision. Yes, indeed we will turn to Cyber Security hacks on uber putting focus on the sector in recent weeks and part of a recent trend out with a report showing a 50 surge in threat campaigns year over year. Lets bring in crowdstrike cofounder and ceo for a closer look george, great to have you. I want to talk a little bit about crowdstrikes business first, though. You got this Security Platform that allows customers to manage kind of Point Solutions for security, even do a try before you buy sort of motion that lets you upsell how do you see customers be behaving differently in an economic slowdown if at all. Great to be here. One of the things we see and we hear time and time again from cios and other executives is the need for consolidation people want to spend more with vendors that can consolidate where you can take out two, three, four different products and with our modular format, we have over 22 modules today, and we can replace other modules or products out there and consolidate that spend thats one of the key things we see in a challenging macro backdrop. You also recently did an acquisition. You have been inquisitive. Does that mean it is a more attractive environment in which to do that because you have a way to turn some of those technologies into modules that customers will upgrade into . Is that a Growth Strategy for you . Absolutely. When you look at the current environment and even the private markets environment, the valuations are going to, you know, be down or flat. And its going to be a while, i think, before a lot of these private companies can get out in the public market. So we see that as opportunity. We got a Great Company that we acquired which is focused on finding external vulnerabilities in companies and it makes sense to then create it, you know, recreate it in our platform as a module and offer that to our customers and, you know, very, very warm reception from our customers after we announced that acquisition. George, good to see you have you seen any slowdown or greater scrutiny from any of your customers in the recent weeks or months. Cyber security is seen as much less vulnerable to a softening and spend and macro backdrop, but is that playing out at crowdstrike . I referenced this at our last earnings call. The deals tended to be a bit bigger we were focused on consolidating that spend when you have bigger deals, you will have more approvals and it will go higher up in the chain and we call that out but in terms of security and the need, we had a great interview at our falcon conference with the cio of salesforce, who is a customer, and it was just focused on the fact that security is just a board room topic. It is something thats incredibly important and it is hard for organizations to scrimp on it. Greater scrutiny because of the size of the deals are growing larger, not necessarily because of the economic softening; is that right when you think about the economic backdrop, there will always be additional scrutiny across the board but we have seen as the deals get bigger, you will just have more signoff. Thats just part of the nature but when you have a great product and you have 150 roi in the first year, we think were selling value. We know were selling value. And thats a big part of our efficient sales machine we have and how we have been able to grow so quickly. George, you note in a report that overwatch tracked a 50 increase in interactive intrusion activity year over year now, its not like last year was slow so what is driving this . What is your sense of that we talked about, you know, intruders taking more of a platform approach, being more economically interested in kind of harvesting data and using it for economic gain. Is there actually Economic Growth in the intrusion department, even as there is an economic slowdown in the broader economy . Well, absolutely. As times get tough, you know, the bad guys tend to come out even more. When you think about Something Like ransomware as a service, you can actually buy a subscription, just like a Software Subscription to a ran someware provider who will help you try to install that malware, activate it and then each individual ecrime group can monetize that back to the operator thats how this industry has grown. So there is just so much money involved it doesnt take a lot of skill when you can actually buy these services and with enough time and patience and, you know, enough fishing emails and the like, youre going to have some level of success in Many Companies that are underprotected, which is why we have seen it grow so quickly as a service. Yeah. Troubling development for sure george, thank you. Thank you so much. Tech names, public and private, continuing to wrangle with layoffs and cut backs instacart reported letting go of staff. The head of a potential ipo where the company has to convince investors it can maintain the growth and maintain a profit amid the weakness there is a lot about the financials we dont know that has only been reported reportedly had a profitable quarter. We are trying to read the tea leaves here. If you look at this relative to other Tech Companies like robinhood or coinbase, this sounds like a slowdown, which they eluded to earlier on in the year again, until we see that s1, guys, it is hard to know what position instacart is in. Yeah. Profitable quarter, cap or noncap, right its a big question. And if they, in fact, do an ipo, are they going to get enough cash, enough capital to continue to fuel the business or is this going to be mostly to cash out existing employees . It seems like having the cut before it, they could use the cash. Yep still raising capital, and it will be interesting to see whether the ipo market wants to reward growth as has historically been the case or whether profitability is part of the equation nasdaq more than 30 off the high but are there names to buy here . We will discuss after the break nus. E ere back in just thre mite the day you get your clearchoice dental implants makes every day. A lets dig in d