>> won't be look >> what's that >> thursday's the best day that's tomorrow. >> thursday is the best day. we are going to pass it off to our good friends on "squawk on the street." i think that david faber is still out in l.a. at the milken conference >> he forgot his ties. >> join us tomorrow. "squawk on the street" begins right now. ♪ good wea good wednesday morning little equity pressure premarket as some well-known names guide lower. shopify, uber, intel, twilio oil, below $77 for a moment. our road map begins with tesla, though, under the microscope today as federal prosecutors reportedly examining whether the company committed securities or wire fraud also ahead, we got some growth stocks that are moving in different directions

reddit, for example, recent ipo, surging. shopify, really down sharply the president will join us this hour and on the a.i. front, president biden is going to announce the plans by microsoft. this is microsoft money, not federal money. they're going to build a $3.3 billion datacenter in wisconsin. let's start with tesla, though sources telling reuters the justice department is investigating whether the ev maker committed securities or wire fraud by misleading investors and consumers over its vehicle's self-driving capabilities tesla's autopilot and self-driving systems assist with things like steering and lane changes but are not fully autonomous the report also says the s.e.c. is investigating tesla's representation about driver assistance systems to investors. so, jim, i think they're quoting three sources over at reuters. >> right and i know, david, we can go into this. i don't want to -- well, this is obviously serious news the problem is that i've always found that when you're talking

about what the justice department is and isn't going to do, it's a really high-risk endeavor i'm not disputing the story. i am saying that the justice department examining is very different from the justice department indicting, and i just think i should point that out because it's only fair to do that >> without a doubt and that's the way it's supposed to work. investigate, decide whether there is actually something to charge, and then do so or don't. >> right >> this is early again, reading, this is all reuters reporting, not ours at cnbc they say investigators are exploring whether tesla committed wire fraud they're not saying that they actually did >> no, they're not it's a big difference. >> if you're an investor, maybe you take a pause here briefly in terms of digesting this potential news and what it could mean if, in fact, it were to move forward as an investigation into, as you say, an indictment. but it seems as though it's a ways from that the s.e.c. also said to be investigating the representations as well around the driver assistance systems,

and again, that's civil. the other side is criminal, more serious. >> carl, i've covered a lot of stories involving justice and i know a lot of people in the justice department, and i just know that the thing they do not share is that they're going to indict they could share that they're examining. they have often said to me, listen, we will not confirm that we're examining. it's very rare that you actually know their intent, not diminishing what the story is going to do to the stock the stock was going to look weaker anyway because the chinese story seems a bit of a dodge. phil lebeau with some excellent reporting this morning i just think to sell it on this versus selling on the fundamentals is a mistake. it's a dangerous story dangerous. >> that's why you would expect reuters to take caution in reporting it in the first place. we'll watch it obviously, the other news, regarding tesla, is dispatching a top executive to china, the

hopes for unveiling robo taxis over there in a certain time frame. >> i just feel like this sudden story about the excitement of robo taxi is not unlike the excitement of robo taxi that we saw in san francisco it's not unlike the excitement that we saw when hertz was going to buy 100,000 teslas. david, the excitement of robo taxi is a little bit of sizzle, not a lot of steak at this point, anywhere in the world >> no, well, it doesn't actually exist. >> right >> but the prospect of it is once again here. to connect these two, obviously, the s.e.c. and/or justice looking into comments and statements made years ago that indicated,of course, the possibility of full self-driving was around the corner, and by that, i mean, very close, and that's been a history, as we know, at the company that said, it feels like, this time, it's really coming this time, you know, and the advances that have been made in terms of the way that they are training their current systems at tesla are different

>> from other ev -- >> from the way others do it and may be, in fact, a result of advances that have been made in terms of what's -- in terms of the datacenter, in terms of nvidia, in terms of what they can actually get and how they're using generative a.i. to actually help. so, maybe it really is around the corner this time >> rivian, question on the call, and the call, by the way, i want to be sure people understand the call is not upbeat someone wants to claim it's upbeat, that's fine. the rivian call. i was ready to go to georgia for the big plant. they're normalizing. meaning, their going to be building that plant in normal. they got an illinois deal. but just to complete the thought about self-driving, i was in a very exciting pre-self-drive cruise with the head of cruise >> i remember. >> and within a month, the head of cruise was -- left the firm, and they shut down cruise. and so, i just think, you know,

carl, it's really -- you should buy a stock because the numbers are good, and you should sell a stock because the numbers are bad, okay? i'm just that. i'm not a big thinker. i'm a thinker about the forecast is the forecast, as frank slootman said on "mad money," and you know what? i sat there, and i said to myself, you know what? the forecast is the forecast and it wasn't the justice department i would like it to be big things sometimes i like to sit back and think, you know what what would it be like to live on mars but that's not what it's about it's about the forecast. >> david bowie can tell you what that's like. >> we're going to speak to harley finkelstein the forecast is the forecast i don't want people at home to think, you know what -- >> the forecast here calls for pain >> well, what are you, mr. t >> yes, i can be i love mr. t >> mr. t was pretty great. >> jim points out some of the moves we're getting based on

guidance today shopify is one good example, down 18 on -- is it gross margins down quarter on quarter? >> 50 basis points going back and forth with harley ahead of the interview because i want to know my stuff when i see a stock going down like this if you have any sort of chink in your forecast, this market is blowing you up david wasn't here yesterday for the disney blow-up >> no, but we were on air together >> you have to figure out whether it's chemical warfare, h-bomb, or conventional weapons, and i think it was a combination of all three because they mentioned the parks had a little weakness >> you came in, got the number, maybe even a better number you expected in terms of direct to consumer, but you were reminded that the biggest contributor to earnings is the parks, even though as a revenue percentage, it's a third, but it's over 50% of the bottom line, given the margins at parks, and when hugh johnson said -- i mean, we're not even sure exactly what it

was. >> i wanted to give him a can of pepsi. >> is he saying things really are regrgetting weaker >> the endof the travel as we know it in the united states story, which i think was confirmed by bookings, which is a really good firm those guys have no flies on them as opposed to trip advisor who, by the way, could not find anyone to buy them i go back to the disney, and i say to myself, you have a little chink. >> well, parks are softening by the way, that's another -- >> there's another company whose parks weren't softening. >> our parent company. >> that's right. and i intend to not even say it's the parent company of our network. i'm saying the numbers were just flat-out good. >> they were >> taking that off the table that it's the parent company of this network >> we're all about theme parks here at comcast. >> new mexico. meantime, i think the title of the barclay's report is "why disney's selloff is overdone," jim. the park commentary, the "obvious concern and is likely to fuel its own

narrative" basically on pricing growth >> the parks have been pristine. everyone knew, why would you ever sell disney the parks are humming. the parks weren't humming, and no one really knew that. that was the new story and then, you know, david, obviously, anyone can make light of some dtc number, but the parks were rock solid. so, suddenly, if you hear that the poarks were rock solid, and you realize that travel in the country has actually gotten less strong -- by the way, airfares are down versus the last three months, quarter to quarter >> but it is interesting if there's a wider read there, as you read barclay's on disney in terms of concerns with respect to the parks maybe being overdone in their opinion, there is a wider theme about the slowdown in the consumer we have been talking about now for weeks, sort of somewhat anecdotal. it's not consistent. even on the restaurant business. it's not consistent. you can look at this one and say, that doesn't look good, but then texas roadhouse blows up. >> they had fantastic comps.

>> right >> david, i can tell you that i think dutch bros had better comps than starbucks >> dutch bros. remember those guys from the old neighborhood they were a rough bunch. >> which one >> the dutch bros. >> they're dynamite. >> stay away from them >> dutch bros has the annihilator. >> see what i mean dangerous guys >> dyne brands today >> when they came around the corner, the dutch bros, you just wanted to clear out. >> from queens janet yellen told me that brooklyn was tougher than queens >> we were different generations. can we get back to shopify for a moment we moved past a 20% decline in the stock price premarket when we opened 20 minutes from now, we'll see if it holds, but that's a hundred billion dollar company going to be down 20%, and they were like -- >> can i get my shopify file i'm not dismissing it. i just know that we're going to give a lot of the show to shopify, so i was trying to parse out the show >> i don't know if we're going to give a lot of show to it.

>> bottom line profitability was great, but they mean nothing, why? because as we read this morning in, no doubt, a reuters story, which reuters has got it in for everybody, it says, canadian platform -- i'm reading, which means i'm not dignified -- its slowest quarterly revenue growth in two years against the backdrop of an uncertain economy. core clientele, doing okay, but they expected second quarter revenue to grow in the high teens, and investors were looking for plus 26. they did sell a division harley is going to defend that this is a company that is a beat-and-raise machine and it beat, but it did not raise, so it's no longer the beat-and-raise machine it's just a beat machine >> but it's getting beaten today. >> yes >> yes okay how about uber >> it's a -- >> the ebitda number was fine, and people are -- this morning, raising -- fx is part of this story here, but meta had fx. why wasn't this sort of already incorporated

you're looking at a stock that may be down as much as 7.5%. >> you want to be vicious? lyft's numbers were very good. david risher did a great job >> also guiding q2 gross books below. >> true, but i thought -- >> although, dara had some upbeat things to say about return to office and instacart and travel trends. >> i saw that stock down five, and i was out the moment that it was down five. i was at my desk just proving that all i care about is the forecast in life, and i said, okay, this stock could be up or down five, but they're going to isolate a couple things, and tomorrow, someone's going to upgrade it like they did data dog today, david, to jump all around like you love me to do. >> i do. >> tomorrow, someone will upgrade uber and say, this is the buying opportunity of a lifetime, not unlike builders source i'm just waiting for the upgrade. instead, they gave me floor and decor. >> we are going through a lot of names that have responded

negatively to earnings it is, as it often is, because of the guidance. >> no one wants to talk about the slowdown i like to look at actual things that are -- that aren't subjective but are objective new corps, steel company, best steel company in the world, hot steel, hot rolled steel, made for autos and industrial, they had the first decline. that is often the beginning. you don't have one decline in price. it's the beginning of multiple declines in price. that is a great objective thing to look at >> all right, so, you said it, and we can keep talking about it a slowdown >> we are now in the brown shoot moment i'm now calling it a compost of brown shoots we're going to see a lot of numbers that are going to make it so the fed has to cut >> is jerome going to move a little faster? >> jay yes. absolutely and he knows he watches the show. and he will. okay >> forward earnings keep ticking higher, jim. we're closing in on 244 now for the year you think we're rolling over on earnings growth? >> right now, on the things that really matter, housing,

yesterday, if you were in the builders first source, which provides all the materials for almost every major house, their forecast was not slightly down it was bad their forecast was bad they have inventory issues, i think, that are developing there. we are getting inventory issues at kellogg >> kellogg wait, kellogg or kellanova >> snack did okay. you're not hearing those words >> kellogg is a $2 billion -- >> will you let me talk? we are getting a term called normalization. that's code for, you know what we overearned, and now things are coming down. okay and that's what jay knows. he understands the code. normalization is the code word for, we are slowing down >> slowdown. >> by the way, you know who else used normalization disney >> yes they did you're right >> they used normalization after the next paragraph, they talked about travel. they used the term,

normalization. i said, that's it. >> we're going to start using that here. >> normalize means, see you later. cy later >> we do 15 minutes, we're all over the place and then end somewhere really important >> yes >> i wish i were an intellectual >> we wish you were too. we are going to get some wholesale inventories in about 45 minutes we'll get to microsoft, $3 billion a.i. investment in wisconsin with the president today. and we'll run through reddit, fox, trip, bud, afrmsn, d more when we return. my name is douglas. i'm a writer/director and i'm still working. in the kind of work that i do, you are surrounded by people who are all younger than you. i had to get help somewhere along the line to stay competitive. i discovered prevagen. i started taking it and after a period of time, my memory improved. it was a game-changer for me. prevagen. at stores everywhere without a prescription. to start a business, you need an idea.

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a.i. is definitely in focus this morning the president is set to visit wisconsin today to announce plans by microsoft to invest $3.3 billion in a high-tech datacenter the facility in racine county will be built on the same land where foxconn had once planned to construct a $10 billion factory. as "the journal" points out, jim, former president trump once called that the eighth wonder of the world. >> right >> didn't happen >> right i mean, look, obviously, the

cynic says battleground state. you've got michigan. you've got wisconsin you have north carolina, arizona, nevada, pennsylvania. will we see different things happen in all those states >> you can attach yourself to the spending buy of the hyperscalers on a.i., why not? this one, my guess would be, will be spent, and this will be created because we know about the needs for it we commented every -- numerous times about the enormous capex by microsoft, by alphabet, by amazon, by meta. apple as well, although they don't break out how much is for a.i., and this is part of that number you go to places where, you know, conceivably, there's a good amount of land, and as we point out so often, you want access to cheap electricity, hopefully renewable if possible as well. that's a key part of building these datacenters. >> i'm so glad you mentioned that >> and then, of course, what do they get filled up with as we've discussed so many times? i mean, these will -- this will get filled up with blackwell >> it's blackwell.

now, can i just say, in terms of the quarters that we don't talk about, that i thought was the best last night, wynn was very good but this company that really is the plumbing >> i pulled the call >> she calls them titans and i love that. i'm changing my whole -- i'm calling them titans from now on. >> we'll go into detail when we open on arista networks. i think an important point here as well, just so people aren't confused, this isn't u.s. money here a la the chips act where we have talked about micron and intel building fabs. this is a datacenter this is microsoft's money. obviously, part of what could be as much as $50 billion in spend this year. remember, they were asked on the call, could you get to a hundred billion, and they didn't dismiss that as a possibility. >> remember, jensen huang told me -- i mentioned how much -- how many blackwells can he sell? he said, amazon would buy all of

them everyone's on allocation, and it hasn't even been made yet. what kind of product does that everyone's on allocation >> as i pointed out yesterday, i don't think we're appreciating quite how much it's going to change everything. >> well, i thought -- >> and you've got something at 30 times more powerful and operating in datacenters we may look back at this period before the machines took over as sort of that quiescent period. i don't know if we'll look back on it with great fondness. >> i was going to say it's selling like hot cakes, but dime brands was miserable you're reporting on the notion of the new industrial revolution is true, but the industrial revolution is not going to be televised. it's just going to be done by the titans and one day, we may look back and think, remember the titans who was the coach? >> gene hackman? no >> coach boone geez >> it's a little -- that's another a deep track, jim. >> he was whispering gene h

hackman, thinking "hoosiers. >> that was basketball oh, denzel is that right? >> yes >> yes >> but titans is really -- as she calls them, it's where the spending is happening. so is broadcom, by the way >> nadella on "good morning america" today when we come back cramer's "mad dash," a lot of names we haven't fureinheeno t. tus t red stay with us

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it's a beautiful... ...day to fly. wooooo! take a look at laggards to start the morning. uber is number two there we just mentioned the bookings number, roughly in line, you could argue, but mostly the guidance for q2 bookings ends up being a bit light. we'll keep an eye on that name, which looks to open down about 8% opening bell is coming up in a few moments, and don't forget, you can catch us any time, anywhere, just listen to and follow the "squawk on the street: opening bell" podcast.

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. all right, let's get to a "mad dash" with the man to my right here you want to talk a little upstart, not just about the

company but the broader implications >> not a big company it's an a.i. lender. affirm is too, and affirm had good numbers david gerard said this he's the chairman of the board and ceo, about why the stock is down and this just gives you the sense of where some people are thinking "unfortunately, consumer risk and interest remain at or near all-time highs, conspiring to constrain the volume of transactions on our plant. i didn't know that, to me, interest rates are not at an all-time high. but consumer risks now, i don't think that it's as risky as he does, but he's in the business, i'm not, and he's saying that it is a moment of peril when it comes to lending and so, that's the kind of world that we're in where if we had brian moynihan on the desk, i think he wouldn't say that, but it doesn't matter. this is what you have to look at >> affirm, i mean, sofi last week, i don't know >> i'm just saying that the

choice of words here about -- that consumer risks are at or near an all-time high -- >> it's concerning >> it took my breath away. i didn't think that's the case >> let's get the opening bell here in the cnbc realtime exchange at the big board, it's floor & decor, celebrating the opening of its first warehouse in brooklyn first warehouse store. and at the nasdaq, it's a.i. software company zapata, celebrating its recent listing via spac jim, you talk about consumer risks. jpmorgan desk today says maybe we're in a "virtuous circle" where consumer demand meetings corporate numbers are solid, layoffs are less likely, which means employment's good and the consumer's solid >> i think that was the view from five, six weeks ago, and things changed a bit i think that the backup in rates had more of an impact than i thought. the home builders would agree

with me. the backup in rates did cause some people to misjudge and hold back on things if you look at ferrari, which had a good quarter, but they talked about how they had this model change, whatever, but they talk about normalizing this is this whole notion of normalizing. people realize, wait a second, we've gone too high. we've been meeting demand, and now we think that the fed's going to raise, maybe not cut. i know this was -- this was a theme that happened in the month -- in the month of april, and that is -- ferrari's had a much worse day yesterday i think that's a narrative that happened before april, and i would have believed in that, but i don't think it's as virtuous now. that's not what you get when you have new corps coming down, when you have steel coming down it's not what you get when you have airline prices coming down. >> and the employment number coming down. >> yeah, and i think that's -- look, if we get to 4%, then i think jay has the cover to be able to cut. that's the virtuous circle

the virtuous circle is that the economy slows down for some, not others, and you have to pick which ones are good, and you have to buy pfizer and merck because pfizer's turning, the seagen acquisition is going to be good, and merck, all the different things that rob davis bought are working so you have to have this barbell you have to have both. >> the other dynamic right now, jim, is what some argue is geopolitical risk coming out of the market where people think neither israel nor iran have the stomach for escalation got wti in correction mode now off of $85, down to $76. >> i'm glad you mentioned wti, because this is the real demand level. now, remember, we have had an appreciable decline in oil being pumped in the permian in the last four weeks, so you're seeing a number that would have gone the other way if we had any tension, maybe high, because we may not even do 13 million a day, and that has to do with piping inefficiency, according

to rusty braziel oil, on its own, in terms of how much is being pumped, would indicate there would be tightness. russia is a black box. we don't know what's going on in russia >> well, we know india and china is where much of that oil, if not almost all of it, is ending up >> and copper hasn't come down at all but copper is also datacenter. i'm just saying that oil is a brown shoot. remember, i'm using this term. >> who gives a good oil prognostication? >> rusty braziel >> really? i feel like we get endless people come on, and they're almost always wrong. >> yeah. that's true. >> okay, thank you for confirming that. >> that's true i mean, you know, i was talking -- >> wasn't it a couple weeks ago we were going to go to $100? >> for 19 years, i write "mad money" with my nephew, cliff mason, and we're kicking around the notion of tenured analysts it doesn't matter. they can say whatever they want. they're tenured. >> examples? >> well, i don't want to single

out anyone >> okay. >> that would be mean. i mention a guy like wilson, what do you think, i'm a h hypocritically mean person i'm not like that. i used to be david remembers when i used to be >> oh, yeah, this is the nicer, kinder, gentler you. >> you bet it is >> laxman is definitely feeling that he's, like, oh, really glad i didn't get the old jim >> he only threw a pen at me, not a phone. >> the forecasts are the forecasts. >> and the forecasts call for pain >> i had him on last night i thought he was great, nikesh the stock is down. absolutely nothing wrong the stock is down big. >> who was on yesterday? who are you talking about? >> i'm just looking at stock that are down big where there's nothing. >> although, you also had steve huffman on interesting corner of reddit >> that's a great story. you have an acceleration of reddit users you have people who are discovering this is a way to be able to -- what he calls not age out. i mean, if you look at snap, which had a good quarter, the

people who look good on snap, they age out eventually, you don't want to continue that. you don't want to stick with them but reddit has a core group of people between 18 to 25, and they just gain in terms of the adherence of reddit. i thought that was a terrific story. if we were in a down beat mode, i would say reddit would be up 6 or 7 >> it's not 14% anymore but it is having a nice morning >> it's a down day no one's listening to me on this brown shoot thing. >> i don't agree people are listening to you. that's not true. they are that's why -- uber's down 9% brown shoots i don't know >> he missed a little. you can't miss by anything in this market. that's why i think that the -- the virtuous circle, i don't mean to pick on that person, it's just not what i'm seeing. i'm seeing a lot of companies see a tickdown where they didn't expect to, and a lot of it had to do with the back-up in rates, and the back-up in rates is

something that may have turned out to be jawboning by jay where he didn't have to raise rates. all he had to do was say, look, i don't know what we're going to do, and send out some of the babbits to talk about -- you know the rotary guys but you know what i mean babbit they kind of came out, and they did their job. they talked up, you know, they had rates go up, because they said things like, well, maybe we -- what are you reading that's so interesting that you're not paying attention to me >> i'm reading the arista network's call >> that was two blocks away. >> no, we didn't actually get to it, if you recall. we didn't even really -- >> in jim's mind, we got to it >> he thought of it, but he didn't say it. the key, jim, is actually saying the words, not that you don't say your fair share. >> rpo not the kind of rpo -- >> let's take a look at arista networks and try to explain why the two of us are taken with it a little bit what i was reading, jim, are comments from -- >> i memorized the call.

>> -- from the ceo, who i think is going to be on "mad money" tomorrow >> i'm trying to make that work. i think i got it a lot on my mind >> talking about, today, they deliver into the datacenter. they connect everything in there, help connect things in the datacenter >> right ethernet >> there was a question on the call -- fina band is nvidia. >> but people like ethernet. >> and the question on the call was, is there going to be a pause while everybody waits for blackwell? the answer was, we're not seeing a pause. i don't think anybody's going to wait for blackwell in '24 because they're still bringing up their gpu clusters, and how a cluster is divided across multiple tenants, choice of hosts, memory, storage, architecture, optimizations on the gpu for collective communication, and on from there, all of which is to say, again, quoting the ceo, a good scaleout network has to be built, no matter whether you're connecting to today's gpus or future blackwells. >> the rap, just so we know, on

the coming quarter, the may 22nd quarter for the big dog, for nvidia, is that what will happen is that they will have a transition, not unlike, say -- >> so, you'll pause right know >> there is no pause and jensen has said over and over there is no pause because everybody will take whatever they have. they'll take whatever they can because it's so much superior to everything else. >> they're building datacenters anyway, and you got other ones that were built that need to be filled up now. you can't wait >> you got it. you are so on since you came back from california >> i'm on. >> he's on >> i'm all over this a.i. thing. and i'm here to tell you, be very careful >> don't go -- he insists. >> be very -- >> always throwing in something. >> i can't help it somebody's got to. by the way, if you voice your fears, perhaps they will not be realized >> there you go. like what jay powell did with the long rates >> right >> jensen is going to be on this afternoon with bill mcdermott and jon fortt at a servicenow

event, and that will be very interesting. >> always. that's must-see tv >> are you of the mind that a lot is riding on the earnings on the 22nd >> yes >> unfortunately, yes. i don't want that to be, because if we get to blackwell, you're going to see a tremendous number of, you know, orders, but i think we're at that moment where if colette crest, who runs the call, not jensen, the fantastic cfo, if she's not a person who cares -- she cares about the truth. she does not care about the spin and there have been moments where she just, look, there's a glitch here, and right now, we're not accepting of that kind of a glitch. we're just never accepting of anything other than beat and raise. >> there are some, i think, there's a piece out today that argues meta, tesla, apple, we lost a few of the giants in terms -- in the way of strength in the mag seven stock rally hasn't been inter interrupted much >> now we found out, by the way, that apple had a great march in

china. isn't that ridiculous? think of all the money that was lost by people who were sending -- those services that we're talking about how february was bad. by the way, february was better than january, so the services, to me, are discredited but you're absolutely right. you didn't need the mag seven to go, because it's a little bit broader than that. at the same time, look, it's bifurcated i could tell you, look, if you come up with a beer, soda, snacks, glp-1, not as bad, we thought -- >> merck >> pfizer. lilly. that's what you want to be in. i mean, those are -- those are working, and those have not been working. >> absolutely working. merck shares, by the way, quietly up 20% this year >> and that's because rob davis has reconfigured he's much more than keytruda he's a dynamite ceo. >> that's after a good year last year >> rob davis does not come off -- he's not liam neeson. he's like a regular person when he comes on. he does not have a particular set of skills, okay? he's just a good ceo

>> by the way, jim, we haven't mentioned some growth in bud >> good quarter. >> yes stocks reacting, got an you gr -- upgrade of sam >> the travel trust owns constellation, which has been a real winner. unfortunately, cinco de mayo was cold and rainy, not part of the thesis i was looking for but you can't have everything. >> you don't own a bar anymore anyway >> but my wife has a mezcal company. phosphoro. putting out a cheaper version to mix with drinks. >> i don't understand what you're saying. >> when you have a $100 price point, that's a sipping mezcal >> you're coming with a lower price entrant. >> so you can make a margaritas. >> so it can be mixed. i understand now thank you. same brand same name? >> yes it's going to be part of our ensemble >> i see >> now, here's something interesting just apropos of this premiumization is something that had been a great theme for every

single industry. that peaked. rh is premiumization we will hear premiumization in beer and alcohol look at diageo >> delta livenation >> that's another theme that i have decided to make as a theme. premiumization's over. >> normalization >> normalization, brown shoots >> gets rid of premiumization. >> optimization. let's call them the zations. optimization, normalization, and premiumization are all done >> no, normalization is here >> no, i'm saying that signifying -- sound and fury, sig signifying something look at the diageo numbers >> i love it when we're in an editorial meeting for "mad money. >> they told me "mad money" is me looking at the mirror >> indeed, people use that thing a lot. >> how about nextdoor had a good quarter? kind kind >> why are we hitting the brakes

so early today >> i don't know. >> more room on the back end as we go to break, some moderate losses down 25 watch the bond market. we'll get a little fed speak today, jefferson at 11, collins and cook later on and the ten-year note auction. we'll be right back.

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pgim investments. shaping tomorrow today. ♪ take a look at shopify as we said earlier, severe decline here at the open we're going to talk to harley finkelstein later in the morning as they guide lower on some -- after the break, on some q2 gross margins, down quarter on quarter. in the meantime, trying to get back to the flat line. w dn ree. don't go anywhere.

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without denigrating the reportage, that this quarter that we're currently in is not anything that i would regard as being a dramatic deceleration from the quarter that was just stupendous, but somehow people are saying it does mean that the big beat and raise days are over for harley and for shopify. tha but people are saying it does mean the big beat and raise days are over for harley and shopify. true or false? >> that's false. the amount of growth drivers we have in the business are larger than we ever had the quarter we just reported on it's important you're seeing the strongest version of shopify in our 20 year history. we have four quarters of top line growth. q1 alone 12 billion in revenue gm was up 20% year on year and shopify now powers 10% of all u.s. ecommerce

so the things that also matter, profitability. we saw $1 billion in the quarter, up 33%. and generated free cash flow of $234 million from the quarter. so when you look at this, you're seeing a company with operating discipline and a ton of growth drivers. i think we all believe that and know that and that's one of the reasons we love shopify. now i'm going to read from a "reuters" story saying the company said on wednesday it expected second quarter revenue to grow at a high teens percentage, disappointing investors who saw 26% growth in the past few quarters. have you disappointed those looking for something like 26% >> let's talk about guidance guidance for q2 points to free cash flow similar to q1, and that in the revenue growth mid

to low 20s this business can deliver growth and margins. it's counter cyclical but we're seeing opportunities in the market the marketing side of things, what's really important and what most people miss is that we think about marketing the same way we think ant products build grate solutions, the best tools to driver decisions through data so when we see these opportunities where we can drive-in credible pay back period we're going to take those because by 2025 those are i going to pay off for us. >> why not increase the outlook from where it was? why not say instead of revenue growth at high teens percentage say listen it'll be 20%, not a problem. >> we think about what we can do right now, and some of the things we do because we are so long-term focused as a company, this is i think almost our nine year anniversary since the ipo since i came on your show in 2015, we have always overdelivered that's important to us.

look at the drivers, enterprise, when we went public, the enterprise business did not exist now it's getting massive traction with overstock-and bark box coming on. that grew from offline retail grew 32% on the quarter. we saw 52% location growth in the quarter with merchants with more than 20 physical locations. b2b is an opportunity that didn't exist two years ago and international no longer just the leading company in north america we're seeing growth in places like europe growth internationally was 38% a third consecutive growth above 35%. we can do three things, grow top line, bottom line and can make investments for the future we want to make those investments for the future, which is why we gave the guide we did. >> harley, it's david. i appreciate your enthusiasm and

long-term view i do wonder are you saying those selling the stock right now are mong to do so? a 20% decline in your market value in one moment is not an insignificant decline. >> one of your colleagues told me don't look at the day-to-day stock trade build the best most durable companies. the companies able to build the longest term durable growth do those three vectors growth on the tiktok top line, bottom line and invest for the future. we're doing all three of those things it's important to focus in the long term. i'm going into my 15th year at shopify. this is the best team, best products and largest opportunities that shopify has had. >> jim used a word called normalization of late. we've been talking ability it and i'm putting words in his mouth. but i'm curious to get your view, are things slowing down in terms of what you are seeing in

your universe? >> let's talk about the macro. first of all, the consumer remains resilient. you're seeing that, gmv on shopify is a great proxy for that part of the job we have is to arm our merchants the millions of merchants with the solutions to succeed and compete in any environment and we're giving this emthe tools they need and they're outperforming the broader economy. that's the case for over a decade now we're well known as the economy that has the great direct to consumer brands that consumers love and feel affinity to. that's incredible. we've always had those but more recently we're seeing brands that are less discretionary. figs, for example, scrubs are in hospitals all over the country whether you look at the direct to consumer brands that were beloved or the more discretionary type of brands shopify is the recipient of

these. on the enterprise side that's an area of business we think is right for the taking our product is better, pricing is better on that a massive opportunity to get more brands on shopify on the macro side, consumers are buying from brands they love. >> it's great to have you on the show and absolutely as i've followed your career you're someone who ps a an under promiser, overdelivered, it's great you're on the show harley finklestein, the president of shopify. >> thank you. what's on mad? >> we have the federal real who has a good number, mr. nice guy. he's kind of going with one of those -- >> good cop, bad cop. >> jekyll/hyde thing and i'm saying i'm the same guys. >> i had no doubt you're the same guy i always, dare i say, loved, appreciated. >> david, what is 50 basis points margin?

what's that mean to you? you cut me by 50 basis points? if you pick me do i not bleed? >> no, i don't see it affecting your long-term value. >> thank you. >> your discounted cash flow given how much time you have left. >> do you think shakespeare when he said i'll have my bond he was thinking about the ten year? >> we'll see how it goes see you tonight, "mad money". utilities and staples the other sectors in the green back in a moment tirements possi, and startups start up. because it's smart, dependable, and steady. all words you want from your bank. for nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled... which is pretty un-boring if you think about it.

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good wednesday morning welcome to another hour of "squawk on the street" i'm sara eisen with carl quintanilla and david faber live as always from post nine of the new york stock exchange the session weaker, s&p 500 down .2%. nasdaq lagging down .3%.

you have two sectors positive in the s&p, utilities and communication services thanks to strength in the media names. the dow is little changed up 12 points treasuries, how they're trading. been lower yield story after yields ran up in the last few weeks. a little bit firmer today with a ten year note yield 4.488% two year yield 4.8 the highs are 5% on the two year 30 minutes into the trading session, here are three big movers shares of tesla hitting breaks on reports the u.s. prosecutors are investigating whether the company committed insurance or wire fraud by misleading investigators and consumers about the ev self-driving capabilities be more on that story straight ahead shopify getting slammed on pace for their worst day ever saying they expect sales growth

to slow in the quarter shopify's ceo saying the consumer remains strong. and reddit, is up. we have trade numbers out a moment ago let's get to rick santelli >> these are, of course, first quarter numbers so you want to pay attention may have affect on gdp which came in light. so march final on wholesale inventories the mid month read was down .4%, and remains down .4%. that's the biggest month over month change going back to -- well, going back to june of last year, not that long but certainly isn't going to be a contributor to any revisions on first quarter gdp. and looking at sales versus inventories. this is a fresh number down 1.3% down 1.3 that is the weakest number only since january when it was down

1.8% we also get a negative revision in the rear view mirror for february we see that interest rates, as sara pointed out, are down a bit. short maturities near on change. longer matures are down, excuse me, they're up a bit but down from where they were a couple of weeks ago. here's the significant issue, 42 billion of those ten years are up for auction at 1:00 eastern and we will be covering the auctions because they've been rather rambunctious as of late back to you. >> put it on the top of my day ahead what to look for today in terms of what we 'w're watchg especially the ten years have been important that's happening at 1:00 pc.m we have good earnings after the bell the consumer numbers continue to

come in. as far as what is happening with the data, the cpi we get next week, that's the biggie on the 15th but there are some pieces of the puzzle coming together earlier in the week we got the so called slews data, giving us an idea what the banks are doing, it's a survey conductedpy the fed. i pulled out a few numbers that i thought were interested, 15.6% of banks tightened loan standards on commercial and industrial loans from large and mid size businesses. that number is coming up and 19.7% tightening loan standards on small firms so higher loan standards and weaker demand for happcredit is happening. it's not extreme but something we're watching the other piece, on jobs is

there cooling of the hot job market after we got the weaker jobs report for the month of april? i thought pantheon put out a nice chart showing it is broader than the nonfarms payroll report hiring trends, the blue line, are larger than expected and what the surveys say from the manufacturing and services surveys about hiring, weaker so you put that together, you can see that there is a picture starting to emerge of a weaker jobs report. not recession, not some stress or anything, but as we, you know, are looking for und indications of what's going on, it's p it's important to see the full picture. that's why i highlighted it today. >> got the full picture. >> there's weakness. and also getting earnings. earnings, especially in the consumer names are a little more negative than what we've heard

bank of america consumer note, they did a chart this is so good. of the low income consumer mentions of where we are tracking so far this quarter we're only about 50% of the way through consumer earnings because they usually come late in the season but continuing on the trend you can see the mentions are way up. they're the highest since 2022. >> we spent the last hour talking about the signs of a slow down. >> yep. >> and certainly raising the question of it, sara again, it's not consistent but you can look at any number of results from certain companies and say that's a sign. jim brought up nucore as well just being an -- oftentimes something that can predict the slow down. he's been talking about brown chutes. >> i would put nit the brown chutes category. the low income consumer. the other thing you're hearing about, higher menu prices weighing on the consumers. return of promotions

student loan payments. credit card debt these are all factoring in and we're picking up on the commentary on some of the calls. it goes completely against what we heard from minneapolis fed president knneil kashkari who's wondering if the fed is restrictive enough so the evidence i would say is pointing to the opposite, not a voter this year, but that's going to be a debate at the fed how restrictive they are because it would point them to when they should start cutting rates as we know they want to start cutting rates and the commentary from companies. i talked about the negative. royal caribbean is recruiting thousands to m&a meet surging demand according to a report dutch brothers had a good -- >> dutch bros. they're the bros. >> they're the bros. >> yeah. >> even taking into

consideration what remains an uncertain and evolving consumer backdrop, the strong start to 2024 givens us the confidence to raise our guidance at the time of the year. and i went to see if it was lower price than starbucks it's comparable, it's 6 bucks for a medium iced coffee. >> for an annihilator. >> is that your choice >> i don't frequent dutch brothers. let's get to the stock story of the day tesla down on shares on news that the u.s. prosecutors are looking to see if the company committed securities or wire fraud. let's get to phil lebeau with what we know at this hour. >> we have reached out to both the doj, the s.e.c., as well as tesla. we're seeking comment regarding this report and here's what it

says, that the doj and the s.e.c. are both investigating the claims that tesla ceo elon musk or others within the company made regarding full self-driving technology as well as auto pilot technology did they misrespecpresent the capabilities at this point it's an investigation, according to "reuters." we should make this clear. we have said this for months we have said this probably since start of auto pilot. this system is not 100% autonomous nor is full self-driving 100% autonomous so why would the s.e.c. or doj look into this it's not hard to find commentary from elon musk where he has said it or suggested that it is completely autonomous. though if you go and listen to him on conference calls if you read the fine print with tesla, they have always said you have to stay aware, you have to stay engaged as a driver. so that's essentially what this

investigation comes down to. it comes at a time when elon musk and tesla are potentially looking to test the robo taxi. remember they're going to be unveiling that on august 8th they're potentially looking to test that technology in china. there's a report out of china that china is interested in allowing them some area where they can test it in the shanghai area near the shanghai giga factory. with all of that in mind, keep in mind sales in china were down 18%. putting pressure on shares of tesla, down almost 3% today. >> phil our viewers are well aware of the many times promise has been made when it comes to full self-driving at least not fulfilled in the time line promise. i think august we have promises as well from mr. musk in terms of an unveil >> yes but we don't know what that means, david does that mean they show a car and maybe it doesn't have a

steering wheel and you don't need to have a driver there, saying this is what we're capable of building and plan to build? that's conjecture nobody knows what they're going to be showing. >> what are you hearing in terms of the newest whatever we're at 12.3 -- >> yes. >> -- or -- because there is a theme that i've heard from supporters of the company that hey, they're using generative a.i. in a different way. >> yep. >> to really improve, significantly improve the underlying technology. >> 100%. heard frit a number of people. adam jonas put a note out yesterday saying he had a chance to test it saying it's a step up in terms of capability the problem is this, if you are going to promise a robo taxi at some point in the future are you going to do it in a geo fenced area and if it's a robo taxi people are saying i'll get that software and send my car off to

people to have a drive it's the last drive. that's the issue it's not going on most streets, definitely not on highway. the technology is mostly there it's the edge cases that as much as you can sit there and say we are using a.i., we are using all of the thousands, billions of miles of video that we're collecting from teslas in order to say this is what the system should do, the question becomes, on those edge cases, david, when do you have 100% confidence that you can let it go in the wild, speak? we saw what happened with k cruise, it was in a geo fenced area and regulators in san francisco said shut it down until we feel more comfortable. >> keep us posted z a you learn anything about that. >> you bet. as we head to break. tiktok suing the u.s. government saying a potential ban violates the first amendment.

what comes next and the future for tiktok. a lot of earnings movers out this morning, uber, reddit, any number of other names we'll break them down. and the ceo of red fin is going to join us as "squawk on the street" continues. don't go anywhere.

the best outcome would be if they agree to do a stdeal now ad you have a year to rebuild the technology, which would be a major effort but could be done my concern is they spend six

months litigating and then decide to do a deal and there's only six months left it's just impossible to build the technology in that time frame. >> that was the former treasury secretary stephen mnuchin yesterday speaking about tiktok. the social media company has sued the u.s. government to block that ban of the app. and our next guest believes there's a genuine threat saying china could manipulate the algorithm to influence public opinion. joining is peter mcdowell. i want to get to what you see is the threat from tiktok i don't know if you have thoughts in terms of whether their case is going to be potentially successful given they had previously at least had some success when they were facing another ban over four years ago. >> yeah.

i don't think anyone should be surprised that tiktok is suing they've been saying for weeks they were going to sue and as you said, there's history here back when trump tried to ban tiktok under a different law in 2020, they successfully sued to get that attempt at a ban enjoined by the courts i think we're looking at a different situation today. we have a new law that congress just passed creating a new basis for the mandatory divestment or ban. not surprised they're going to sue. but i hear from friends in the administration and around town a lot of optimism on the part of the u.s. government they'll pre prevail. but anyone who's seen a lawsuit know it takes time and there's a chance that tiktok will prevail here. >> they did craft the legislation with the idea it would be litigated in mind so perhaps they have it more foolproof. in the views of the app itself,

why do you believe china could manipulate the algorithm to influence public opinion >> i see two risks congress when they were passing the law built a strong theory of the case around the two risks we face from tiktok the first being a risk to u.s. data security. tiktok like other apps collects data about its 170 million american users while tiktok has been promising that data would be safe and secure in its servers in texas we've seen a lot of press reporting over the last year and congress was digging into this, that actually the chinese parent company byte dance has access to the data and then i think there's equally a significant risk that tiktok's parent, byte dance, which has designed a lot of the algorithm here in china could use that

algorithm to manipulate what americans see here and influence our political process and what's going on here in america while we often look at this piece of legislation as a ban or something you, you look at the history of american media we actually for a long time had restrictions on foreign ownership of american media. maybe shouldn't talk about it here on cnbc but in 1985, rupert murdoch had to become an american citizen to buy fox news you think about tiktok as part of the media ecosystem in the u.s. today this idea you should have some limits on foreign ownership is actually quite an old idea in american history. >> i wonder with the war in gaza how this has changed the conversation because there's a lot of evidence that the site magnifies anti-israel sentiment and that's a big deal for the folks in congress. and i think plays into the idea that there are some serious national security issues despite

what china says, right >> i think -- absolutely i think you saw that concern really being driven home by a number of the congressmen as they were building the case for this legislation you could see independent analyst showing pro-hamas propaganda going on on tiktok and you can see a lot of congressmen talking about the concern. i think tiktok's concern to stop the ban, they got hundreds of thousands of kids to call congress, putting a banner on the app, that clearly backfired because it actually brought home to congress how much influence tiktok has and how manipulation of the algorithm really could influence american political views. >> we started the esegment with

stephen mnuchin who's trying to buy this if it is for sale by byte dance and there are others as well, again if it's for sale and mnuchin's key point was if they take six months litigating it won't give us enough time to copy the source code so the ban probably will happen what happens here if you think that occurs? i don't know if you have kids who use the app, but many of us do they're not going to be too happy, are they? >> my 11-year-old disagrees with me on tiktok loves tiktok i think a lot of us who are parents hear that from the kids. i'm not surprised tiktok -- tiktok kind of has to sue, even if they want to have a sale here, they obviously don't want to have a fire sale distressed prices so they have to take this step from their perspective, even if they want to have a sale just as kind of leverage for a sale. i'm more optimistic than former

secretary mnuchin is that actually there is a path forward here to a sale i'm quite confident if push comes to shove, tiktok is facing the ban. the investors in tiktok will want to see a ban. those guys include a number of americans as well as other private chinese guys they want to realize value here. i bet the investors will want to see a sale but the question is what will the chinese government let them do here and will the chinese government allow the sale or choose to politicize this? >> exactly thank you for taking time to share your insights. thank you, peter. >> thank you. as we head to break. tough sentiment in the housing market in the cnbc generation lab poll according to a survey or 1000, 18 to 34 years, 68% say housing is available but not affordable.

we're joined by the ceo of red fin. don't go away. >> trend tracker is sponsored by cme group.

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mortgage rates pulling back slightly last week still significantly higher than the start of the year. red fin reporting a revenue beat for the quarter but highlighting deteriorating market conditions. the ceo joins us now glen, good to see you. >> good to see you again how have you been? >> doing all right trying to figure out what's going on in the housing market you say market conditions got worse but red fin got better what's happening out there >> redfin got better because we're taking share the problem is the size of the market is probably getting smaller so housing has hit rock bottom 4 million people are going to move this year that's the lowest number we've seen in many, many years because interest rates have been so

persistently high. i think some home buyers put off their plans in 2023 and are less likely to do so in 2024 because they're going crazy living with their ex-wife, they have another baby, no space in the house. but still the overall economic conditions for buying a house are rough. >> ex-husband that is. so glen, it's hard to see it because we've seen prices stay elevated and keep rising and seen home builders do well because of this crazy low inventory. so where do you think it all shakes out at some point is there going to be pressure on the prices >> we're starting to see that for the first time in texas and florida. states that are really easy to build houses in and we expect that to continue in other red states where there's been more new construction but we have a bottleneck in places like california and new york where there aren't enough homes for sale so the most encouraging sign at the beginning of the year was we saw more inventory hitting the

market that's started to slow as interest rates have risen because people aren't going to leave their old place when it also entails leaving their old mortgage. >> when i hear this and know it can be the case. i remember a period, late '90s, rates were similar levels and the housing market was stronger. what happened? why the inability to adjust to the higher rates in a way that would promote more than what is a recent low in terms of actual home sales >> well, the issue is that the correction hasn't been a correction prices are up 5% and that's because interest rates rose so fast this time and there hasn't been a recession. so the soft landing has been good for america overall, good for the economy but bad for the housing market because it's kept rates high that's why there isn't more inventory reaching the market and that's why homes haven't become more affordable normally in a market like 2008

you see prices come down 30, 50% and buyers are back in the game. but this time, it hasn't and home buyers are shut out millennials have been waiting a long time to buy a house and can't get a break. >> the fed chair went off on the new rents they're down over eight months do you think that's going to start to show up in shelter oer? >> some but one reason inflation is so persistent is because housing is such a large component of inflation, not just purchased homes but also rents so we see some softness there, but probably not enough to really bring rates down. obviously the rest of the economy is starting to soften, the jobs report wasn't that strong if you look at the earnings reportings coming out now, haven't been that strzok.

probably why mortgage rates have been coming down the last couple of weeks even though the main signal comes on may 15th. >> i highlighted comments from neil kashkari, he said the strength of the housing market and some of the stalled progress on inflation means monetary policy might not be as tight as the fed thinks it is sounds like you totally disagree >> i don't totally disagree. i'm not trying to count my chickens before they hatch we had our hearts broken before where we thought we were going to get lower rates later in the year redfin isn't betting on that p we have to make our own way. maybe i'm being cautious because 2023 was a disappointment, started off gang busters but then rates went up and went up again in the summer. >> you sound more down beat than usual. your stock is up, you had a good quarter. cheer up. >> i'll try to step up.

>> thank you very much quick programming note before going public, redfin was a cnbc disr dis disruptor 50 company another tight range, 5184 on the s&p. let's get a news update with ti dominic chu. >> a georgia appeals court will look at a decision to allow fani willis stay on donald trump's election interference case trump and other defendants tried to get her removed saying the relationship with the special prosecutor gave her a conflict of interest. israeli prime minister, benjamin netanyahu reportedly met with cia director bill burns today as israel and hamas hash out a potential cease-fire deal however they see no signsov a

break through in those egyptian mediated talks. in washington d.c., police arrested 33 people as they cleared a pro-palestinian encampment at george washington university earlier this morning. it came hours before the mayor and police chief were set to testify in a hearing on capitol hill gop leaders said they canceled that meeting after the encampment was removed back to you. still to come, trip viadser on track for the worst day ever. what's fuelling this sharp drop in shares down almost 30%. stay with us es, it isn't. car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

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check out shares of tesla today, one of the worst performers taking the hit following a report that u.s. prosecutors are investigating whether the company committed securities or wire frauds by misleading investors and consumers about ev self-driving

capabilities 170 on tesla is only going to set you back a couple of weeks we talked about the nuances of the reporting here, david, the difference between a charge and a consideration of a charge. >> yeah. now we're aware the doj is investigating but an investigation does not mean they're going to choose to indict you have to go through what potential evidence is and whether you can bring a case that's not an easy bar to get over particularly in criminal where it's got to be beyond a reasonable doubt, remember, of course, as we all know the s.e.c. also said to be looking at whether they made misrepresentations, that's civil. all of this potentially impacting the stock in the near term here. but this will stretch out over a long period of time and we may never hear anything about it again. >> we talked to phil lebeau earlier in the hour, there was always fine print here about full self-driving that you needed folks but this issue has been going on for years. i remember with people pointing

their fingers at tesla about whether they're exaggerating exag exaggerating misleading, i guess all the words matter here when it comes to the legal issue. >> yeah. overpromising or not let's stay in the same general area here. talk about tesla's robo taxis because they may be headed to china. eunice yoon is in beijing and has the story for us >> reporter: the state backed newspaper the china daily cited sources suggesting that chinese officials spoke to elon musk during his recent trip here and said that china welcomes tesla to do robo taxi tests in the country and hopes it will set a good example tesla wouldn't comment on that report but if it did come to fruition, of course that move could potentially help tesla to be able to experiment with this robo taxi technology in an environment that is more con

suive from a regulatory standpoint versionus the united states what's interesting at the same time the same news outlet flagged that for the moment tesla does not actually have the approvals for a broader rollout of its full self-driving or fsd driver assistance program. so with the messaging here from beijing is that on the one hand it sees that the benefits of having tesla here and being able to really latch onto that technology for its own greater technology goals but at the same time, it's being much more cautious about this international company at a time when it is very supportive of chinese companies and their competing driver assistance programs. >> the other story here, is that china is ahead on this, don't a

number of companies have permission from beijing to test the anonymous driving and the robo taxi, but companies like buy due, don't they already do this >> yes i was talking to baidu and last week they're having an event in wuhan where they're testing robo taxis, they have thee -- 300 of them in a robo taxi fleet they said you can go and check it out people can go in and call the taxi and use the technology. it's because china is really, really trying to push the leadership in autonomous as well as a.i. and other advanced technologies that it's trying to get, you know, really push the envelope when it comes to these technologies. >> eunice, here in the states the last couple of weeks there's been a lot of reporting about how the chinese consumer views

american brands, "the washington post" did a piece about apple and weather people were turning their back on the fruit, do consumers there consider tesla american or not because so much of the production is shanghai based. >> it is a foreign brand you can't say that it's not a chinese brand but it is loved here talking about the push from nationalism, there is some of that, but i think that what we're seeing, the greater trend and the reason why people are looking at a more local brand is just because they tend to be cheaper on the whole and people are much more budget conscious than they were in the past. finally back to full self-driving i think it bears repeating and i want your opinion. when the chinese government gets behind something it can happen pretty quickly, can't it >> yeah. it can i think that's why it was interesting to see what was

discussed in this state media report, because that's a way that the chinese government signals what it intends to do. so on the one hand they're saying that chinese officials would welcome the robo taxi technology but on the other hand they're saying you don't have full approval. the other part that was interesting was the wording when they believed that tesla would be good to set an example and tesla in the past with evs set a very good example because it came into the market when people didn't really like evs and suddenly people thought tesla is amazing. we love these cars so they gravitated towards evs, that was one of the reasons why you saw a huge takeup in evs here. i think when the government said they want to set an example you can imagine a scenario they're hoping tesla comes in with the robo taxi technology and sets an example for others and the

chinese companies start to compete more and then eventually the chinese companies come over and then potentially dominate. that's kind of what the -- we've seen the beijing authorities hope will -- they'll be able to achieve with this. >>. >> and as morgan stanley said it's interesting if there is that between the government and a man, an owner with a clearance here in the states what's that mean for overall retis.laon thank you. after the break big earnings movers, including uber and reddit what investigators need to know about those -- what investors need to know about those results when we come back.

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shares of rivian are dropping after a big e than expected loss for the quarter. the ev maker sticking with the guidance it's the production plans taking it lower, 57,000 vehicles this year a number below what analysts

expected as it works to retool the illinois plant shares are down 90% since the company went public in 2021. it's off the lows of the morning, but also some of the analyst commentary, there was concern about the prices of the cars, like in the 40,000 tough to compete from rivals like tesla and gm now we're seeing lower prices on the ev alternatives. >> other earnings we're keeping an eye on. watching lyft and uber and julia boorstin is tracking reddit dee, what do you make of uber's quarter? >> investors were just getting used to a profitable uber so that net loss came as a surprise and a disappointment keep in mind that uber has investments in other companies that can swing its results from quarter to quarter those investments total more than $5.5 billion on uber's

balance sheet. many of them gig companies that have not achieved the level of profitability that uber has. another item that weighed on the bottom line, legal settlements the gig economy is playing whack a mole last year it was a settlement with taxi drivers in australia but right now uber faces a lawsuit from london black cap drivers. and lawsuits resurfacing in california and massachusetts and food delivery beat expectation. ride sharing was soft due to cooling demand in latin america. lyft which only serves north america was comparatively better last night but much smaller. as for what the two say about the consumer, lyft's ceo said he's not seeing any softness and premium rides grew faster than

the average, saying on squawk this morning that the uber rider remains strong both ceos on their earning calls and squawk this morning was asked about the tesla robo taxi threat both brushed it off saying it's a long way off and they're positioned as key partners in the space, certainly in the case of uber it has a relationship with the current leader, way mow. >> i have a feeling they're going to continue to get asked about it now to reddit, that stock soaring. julia boorstin with more on what's driving the big jump in revenues >> that's right. reddit shares are up about 5% this morning on better than expected revenue, revenue guidance, user growth and average revenue per user all of this the ceo of reddit says reflects a stronger add market as well as the improvement of reddit's platform

for users and their tools for advertisers. take a listen. >> our advertising customers are finding more and more success on reddit really at the end of the day since reddit represents everybody's interests and passions, that means every company's customers are probably on reddit somewhere. so simply by making the product easier to use, making the ad tools better and better we're able to kind of realize that connection >> burnstein calling this quarter a solid start to their life as a public company saying, quote, reddit appears to be reaping the benefits of a strong digital ad market buoyed by some free ipo marketing now can they keep the good times rolling. the growth is part of a broader rebound we've seen across the digital ad players their revenue was up 39%

but the growth rate is ahead of meta's ad revenue growth up 27% followed by 24% at amazon, snap's revenue grew 16%. and alphabet saw 13% growth. now with today's move, reddit shares are up about 50% from ite double-digit digital advertising growth, the sector seems back to growth mode. seems healthy again. and it's always a good tell on the broader economy. what are you hearing what's changed >> well, yeah, i think what's so interesting here, sarah, is we really did see across the board digital tiadvertising growth, b i don't think it's necessarily totally reflecting just what's going on with the economy. typically, in every past cycle, what i've seen is ad revenue goes up or goes down, depending on what's going on with the economy. but something different is happening right now, and that's the fact that every one of these platforms is rolling out new tools, particularly ai-driven tools, that make it easier to

target ads, measure the effective ads, and effectively get more bang for each ad dollar i think what's happening here is for the digital players, they're able to grow at a pace that is even greater than any economic strength it's, i think, a different story for the linear, more traditional ad players >> julia, good color i appreciate that very much, julia boorstin, and deirdre. still toom se ce,omft x players set to get paid and maybe with some interest what ftx investors need to know after this short break investment opportunities are everywhere you turn. do you charge forward?

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some happy news for the crypto community today ftx customers are in line to recover all the money they lost in the collapse of the crypto exchange, and with interest. under a new plan filed by the company's bankruptcy lawyers, nearly all of ftx's creditors and regular investors would receive cash payments equal to 118% of the assets they had stored on the exchange that would come from the assets the lawyers have pooled since ftx imploded in 2022 bitcoin's up 250% since the exchange filed for chapter 11 bankruptcy that year and important to note, it will still take months for those payouts to start, maybe putting some final chapters to bed on this story >> we pointed out a couple of times, i think they had 41.1

million vsolana coins as well, and at the time of the bankruptcy, they were worth virtually nothing, and then they shot up. so do the math, 41.1 million times that number. there alone was an incredible help to the recovery >> it's so unusual, right, david, for creditors to get all their money back in bankruptcy, i think we should say. it's happened, but it's pretty unusual. and i think it speaks to just the crazy volatility and prices of these assets. >> the underlying assets themselves but, yeah, as carl said, of course, good news for all of those. all right, let's move on here and check out shares of tripa t tripadvisor. that would be the worst day ever if that continues. >> a flurry of things. an update on buyout rumors, a light outlook, and cautious comments from the company's ceo is sending shares down nearly 30%. their special committee has determined at this time, there is no transaction with a third party that is in the best

interests of the company and its stockholders a couple months ago. tripadvisor notified shareholders of its intent to hold talks with third parties, but alas, no deal. trip did report a decent beat on earnings for the first quarter, 12 cents adjusted versus the estimate of 2. however, its outlook was revised lower due in part to search engine optimization challenges that it's experiencing with google and in regards to the consumer and inflation, tripadvisor's ceo matt goldberg said, we see the same mixed signals and potentially normalized growth environment for travelers, but still see intent to travel high, and the data does suggest that so sort of this mixed signal that a lot of hotel and hospitality operators have been talking about this earnings season the tension now, david, turns to airbnb, which is set to report tonight. back to you. >> thank you, seema. we see that stock down obviously, people have moved into trip. i should add, when they were

questioned about whether the company should consider buying back its liberty interest here, because that's the big owner, or collapsing the share structure, they continue to just say, the special committee continues its work as for our work here, it never stops, as well of course, our live market coverage is a key part of that and it continues right after this [crowd chanting] they ignored your potential, dissed your achievements, and mocked your ambition. but it's not the critic who counts, and you know that. from the beginning, you couldn't be stopped. ♪♪ breaking resistance with every swing and block. ♪♪ your game plan never changed. ♪♪

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good wednesday morning welcome to "money movers." i'm carl quintanilla with sara eisen. today, sherry paul, one of "forbes's" top wealth advisers on the parts of the markets she think will outperform. >> plus, david beckham and jamie salter on the one bright spot they see for a slowing consumer. >> skpand sap, the future of ai spent, and a look at the global tech environment the market trying to inch its way into the green, about 11 points from 5,200, which would set you up for about a three or