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Good Wednesday morning. Welcome to Tech Check. I'm Carl Kintanilla with John Ford and Dear

Drobosa. Today, Snap, cutting a fifth of its workforce, but the stock is surging. We're going to

tell you what's behind that reversal in a moment.

Later on, two sides of the HP coin. HPQ warns of a significant slowdown, while HPE

forecasts enduring demand are exclusive with the HPECEO is next. Finally, this upgrade on PayPal,

B of A likes activist Elliott in the name and what it means for future

shareholders. Guys, though, got to start with Snap this morning, down big in the pre-market,

but now in the green as they confirmed that very good scoop by the verge yesterday, John.

Yeah, this is a big deal, I think, Carl, because of, I don't know if you want to call it a

head fake, a crossover it they're

cutting 20 percent of the workforce and yet they're saying they're still going to be at a higher

level of employees than they were a year ago which means they grew 25 percent or more in a year

and they were wrong to do it right so this is echoes of

Amazon and what they said about staffing you know Shopify we saw this in

e-commerce now we're seeing it kind of expanding into other areas and I wonder

Dee how long before this moves outside I mean it's it's really the consumers at

the root of all of this of Of course. Digital consumer behavior. E-commerce, marketing connected to e-commerce. I mean, well, bedbath and beyond. I mean, it's in brick and mortive too, right? But what else? What more shoes are going to drop? And in that sense, right, this is not a surprise. This was one of the first shoes to drop when we knew that the economy was going to be slowing. We knew that it would hit digital advertising, which is often, you know, the canary and the coal mine. So it's not as surprising as, say, you know, a deceleration in cloud growth, which would mean another part of the economy was slowing. But look at what the markets are doing. They were down big pre-market. Now Snap is up more than 7.5%.

So the market's basically telling us that they think the worst is over. Can we be confident in that,

right? Didn't we just hear from Fed Chair Powell on Friday, Carl, saying that there's more pain

for households and businesses to come? So yes, Snap is taking its medicine now, but you could argue that it is in a much more vulnerable

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