I'm Deerreboza, and you're listening to CNBC's Tech Check.

Our show is live weekdays at 11 a.m. Welcome to Tech Check. I'm Carl Kintanilla with Deirdreboza and John Fort.

Today, big M&A and gaming to start the year. As you know, our first guest says the cloud is next.

Reasons that sector may be ripe for consolidation. AMD gets this rare downgrade today.

Wall Street thinks the run may be over. We'll talk about the Piper Call. And then later,

Netflix is tonight why investors are looking outside the U.S. for some clues on results, D.

Meanwhile, Carl, the NASDAQ is roaring back up 2%. And we're going to put this historic drop to start the year in perspective.

Remember, it finished in correction territory last night, down more than 10% from its record high.

8% just this month.

That said, today the NASDAQ is having its best day of the year.

John, we are constantly monitoring the movements, but it's good to zoom out and put this in

perspective. Always like to zoom out and put it in perspective. And that's where we're going to

start this morning, putting that word correction into some context. And nobody does context when it

comes to markets better than Mike Santoli, who's with us,

to break down so often software, how much investors should be worrying? Morning, Mike.

Yeah, John. I mean, software was kind of first in in terms of this downturn, starting in the earlier part of last year,

and we'll see if it ends up being first out. Take a look at how the software sector performed over the last year compared to other

components of tech. That would be semiconductors and the communication services group. Of course,

that is dominated by meta, by Google, and I mean, and by Netflix as well. So you see, obviously,

software, it kind of, you know, it's eating the world. It almost ate the market in 2020 and 2021. That's your indigestion right there. Now, you see it curling right up. It's outperforming today. That's what you would expect being most stretched to the downside. The big question is, are we there yet in terms of some kind of kind of rationalization of the valuations of software stocks relative to the overall market,

because that was the story.

They went up every day, not because things were changing fundamentally because people were willing

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