To leave and try to help you the best i can general paxton from texas. Thank you all for being here. Pretty remarkable day. I never thought id be standing in front of this many cameras in front of the u. S. Supreme court. Thank you for being here i want to thank my fellow ags. We have 50 attorneys generals from across the nation who are involved in this investigation that were leading from texas. I cant tell you much i appreciate their support and interest were witnessing the press concerns just beg conference just beginning with 30 or many state attorneys general are gathering. Lets get some insight from our tech panel and what to expect and the stocks impact. Stephanie miller is cofounder brett, im curious in terms of what youre expecting from this, if anything in terms of a policy implication. Its priced into the stock what is priced into the stock in your view . We look at the activity over the last year of the regulatory overhang and google is up 16 here today stocks barely budge today on all its activitactivity while we respect whats happening from a regulatory perspective, its been the number one asked question from our investors for a year this isnt a new thing this is effectively was expected a lot of this is being baked into the stock if we believe theres concern over potential for revenue and downfall as well as more expenses because of this, but we do think most investors have already put this in their modl. L you see with more value names holding up remember google will grow 15 on trades at a mass iive Discount Plus a 25 buy back. The biggest buyback they have had. Theyre ready for this my question is what exactly, there are a lot of unknowns in terms of the scope of the investigations and the potential result of the investigations whether it be policy being made on the state level or the federal level. When you say lots of people have prices into their model, what are they putting into their model . Thats what i dont understand at this point. I think what most have put in is slower Revenue Growth and higher expense if you look at googles model they have been in a down toward trajectory remember every one is at risk. Amazon, google, facebook no one will live alone on an island all these internet names are under the same duress. We believe a clear play book and rule book is needed. Once that play book is in, its up to them to out perform. We think the big tech platforms will be better positioned. The Small Companies are going to be hurt if theres additional regulation thats the view from all the Tech Companies were up visiting a number of Tech Companies today i think its the shared opinion of all these companies we interact with. Stephanie, let me turn to you and you can comment on the Stock Performance or more on the policy side of things. If whats going on here right now in front of the Supreme Court is anticipated, its already baked into the stock, doesnt that mean effectively that theres going to be a mill stone around the ankle of alphabet for a long time into the future, and why would i buy it if thats the case . Oh, man, its just timing, right. I think everyone is expecting there to be Regulatory Risk and every one expects some degree of maybe fines and make some behavioral remedies. I think the extent of behavioral remedies and the timing of them is where the opportunity or risk really is. I think thats like what most folks are trying to figure out when might google, facebook, amaz amazon, when mightthey not be able to take advantage of the Current Business operations that they are allowed to employ how long will it take for this whole thing to play out could be years, right . Absolutely. The thing thats interesting about all the attorneys general coming together. The thing i think this reminds me of most is when the attorneys general sued the Tobacco Companies in the mid90s that took about four or five years to play out and resulted in the 1998 master Settlement Agreement that changed the landscape of the Tobacco Industry this could be really interesting and maybe one of the more likely to move catalysts that ive seen yet. That comparison is interesting. In that case, obviously, a big tobacco had the Major Public Health fall out. With google has done rise to that level and if not, what makes that analogy useful . Yeah, of course Tobacco Companies arent doing anything to help us. Its about minimizing the harm to our society where google, facebook, many of us consume products and services because we like this and most consumers dont necessarily want a big change here. Its not necessarily the amount of harm or egregiousness relative to the template and how fast you move. Sometimes these attorneys general can move more quickly. Why would you want to invest in google now or alphabet . When they posted their most recent quarter, it was powerful and some thought maybe the stock needs to be rerated we havent done too much by stock price since then what will get alphabet out of this funk and beyond the regulatory concerns. Two reasons why tyler should invest look at microsoft. There was a tenyear overhang. The government was going to break the company up office was done. Microsoft is one of the largest market caps on the planet. They are crushing it theyre doing phenomenal google trains at ten times when youre trading at discount to the growth, investors start to go wait a minute, this is a discount to its growth i think theres historical precedence this passes through and ultimately this is not just against google this is against everything let me push back a little bit. I appreciate you telling me why i should buy the stock i love that. As i recall the microsoft case, the regulatory threats to microsoft were settled many years before the stock took off. It took a long time, like ten years or so before that stock really got a candle under it the risk is this is in a Holding Pattern for a while. Again, when i go into meetings globally with our clients and they say, look, its the number one question on their mind, this has been on the minds of every one. This is baked in im taking it more from a stock. The stock has done relatively well here today. Its definitely lag some of the other big peers but we believe they are putting a foot forward sth to show they care about investors and havent done that aggressively the buy back is the biggest buyback they have versus cumulative years route has come in from morgan stanley. I think shes done a relatively good job i dont think investors give her an a yet shes doing a good job of making sure the company is on the right footing and protecting from the buyback as well as from a regulatory perspective theyve been living with regulatory overhangs for years i think, again, i respect whats happening. This is all good for all of us as consumers what the governments doing im not going to disagree with that ultimately we think a lot is priced in. Last question, stephanie. How big of an issue is this, if at all, for the 2020 elections i love that question. I think democrats cant help but talk about Consumer Privacy and all these issues they love it we saw when they were grilling Mark Zuckerberg they dont have an understanding of how complicated this would be. I think we hear a lot of talk and i think its a Great Campaign platform issue but i dont see it turning into meaningful policy. Okay. Thank you. Thank you thanks. Louisiana attorney general will be on the closing bell 4 00 p. M. Today to talk about the crackdown on big tech. Coming up, apple with a big Product Announcement tomorrow. Well tell you what you need to watch for and chipotle shares have doubled this year power lunch will be right back you should be mad that this is your daily commute. You should be mad at people who forget theyre in public. And you should be mad at simple things that are unnecessarily complicated. But youre not mad, because youre trading with e trade, which isnt complicated. Their app makes trading quick and simple so you can strike when the time is right. Dont get mad, get e trade and start trading today. For farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Shares of boeing are lower today after the doors blew off one of the planes during testing. Phil lip jo phillip joins us. Reporter this is a story people will look at and say how did this happen. This is part of the testing for the 777x part of the development or certification is a load test its not just on the cargo door blew out but its for the entire airplane they put the plane through an extreme stress situation the faa runs this. The test is required for certification. The cargo door blew out. Boeing said during final load testing static test airplane that was not in the air. The team encountered an issue that required suspension of the test the testing conditions were well beyond any load expected in commercial service the event is under review and the team is working to understand the root cause. Boeing tells me they are not changing the schedule for the 777x its still scheduled to have first flight early next year, first delivery by the end of next year. Obviously theres going to have to be another final load test conducted to see if that cargo door, any of the issues that came up during this test have been resoevered. We also wanted to you about this video thats going viral claiming sth ining show a drivra the wheel of a tesla. Reporter its interesting. First of all, theres more questions than answers about this video this was shot on a highway in massachusetts. We assume this was perhaps within the last week, last couple of days it was posted on social media today. Tesla is not offering a statement on this video thats been put out there what struck me looking at this video, every 30 to 40 seconds, somewhere in that time range, the tesla auto pilot system, if youre not engaged is supposed to shake theres an udsabaudible alert. Its supposed to engage the drivere driver driver if this person slept through that, thats amazing was this really somebody asleep at the wheel did they realize they were being vid videotaped and put them up to doing this when was this feature introduced we dont know the date could be this video was shot before that. Reporter i want to say it was a couple of years ago that they first put that in remember, there was the high profile incident down in florida where a tesla model s driver had the vehicle on autopilot. There was the accident with a truck turning in front of them the ntsb looked at this and said the driver, auto pilot was on but the driver was not engaged a number of safety features were put in one of that being if youre not engaged, if you do not hold that Steering Wheel ever so often then the vehicle will let you know the wheel will vibrate you will hear an audible alert they are let you know now are supposed to be engaged if you dont, the car will slow down on its own and safely pull over thats how its designed to work all right thank you very much appreciate it. Lets talk a bit about chipotle the shares are jumping hitting a record high following an upgrade and a whooping price hike. Its been rocketing this year and doubling in value as you see right there. Joining us now is the web bush analyst that made the call he has a 980 price target thats a 15 up side from where shares are trading right now whats going to take it there, nick we took a step back and said why are we seeing the momentum were seeing we saw about a 100 bits or so. Its really just a phenomenon or reasons that could stain this momentum for the next two, three years. We took a step back. We looked at the digital opportunity. We think that chipotle can exit 2021 at a digital mix. Thats before a couple other layers number two the groupon initiatives. Explain to me why digital is such a potent profit driver not just for chipotle but for other companies whether its starbucks or what have you im asking because im wondering whether the digital user is just an existing customer who has discovered the digital app and likes it and might be more inclined to patronize chipotle more often than she or he might do it or is it a wholly new customer that it attracts. Tell me why its a potent driver its both the way its rolled out is loyalty. The bottom line is for every seven to eight Digital Transactions approximately 11 to 12 within the store. Theres a difference in how its checked there. You get a free read up for every 11, 12 times you go to the store or six or seven times you order something online to be delivered or go there to pick it up. With the loyalty, they get your information as opposed to the Third Party Marketplace keeping your information with that information much like the way starbucks as done it, they can tailor their offer to you. Once they know what you do, what your habits are, what you like, what you dont like, they can push those buttons in such a way where you go there more often and order from there more often. Nick, im struck by the fact youre neutral on the stock while it doubled and now youre going to the highest price target on the street is there a bit of catch up here . We were under performed then we went to neutral. We literally misunderstood the dynamics of the second line. We thought the marginal dollar wasnt going to be good as they were we went to neutral once we understood that. Now we have taken a step back and saying even though things are good, the valuation incorporates those expectations. Believe the stock will continue to go higher id love it if we can put up a five year chart of chipotle. I cant think of another stock who has a better comeback story. Here is a stock up 100 this year selling in the high 800s why dont they split the stock 10 for 1 you see any possibility they would do that . Its something that in the past it was more envogue whats more in trend now is to keep the big dollar numbers on the stock prices i wouldnt expect there to be a split any time soon. Nick, thank you very much we appreciate it thank you hundreds of people sickened by a lung disease linked to vaping well have the details can Stranger Things brick people back to netflix we have that sto arynd a closer look at netflix stock on power lunch. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From finding out whats selling best. To managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Welcome back to power lunch netflix shares higher today off an analyst note. They saw significant reacceleration in mobile app downloads this quarter thanks in part to Stranger Things. Is this potentially a turning point for netflix stock . The stock had kind of a struggle lately whether its because of disneys entry into this area or a reversal in some momentum trade. How do you see it now . On a very short term basis its not a surprise that its bouncing back a bit. Its coming off a very over sold condition. It was getting very close to its trend line going back to 2016. The fact that its bounced on a short term basis is not a big surprise the dhart realchart doesnt loot all. Its been stuck in a wide range for seven months the bottom end of that range was the movining average. When it bounced back it got right back up to that line and rolled back toeover to lower lo. Follows that up with a lower high and a lower low thats not real god od at all. Its not a stock id be buying boris, obvious l lly netflixd have a fall in its growth. The story hasnt changed all that much in terms of its business maybe not to account for a drop in the stock from 420 down to 2. 90 how do you see it now . You see a marketing dogma and the first mover advantage always owns the consumer. Nike gave them a run for their money. I think disney will do the exact same thing with netflix. Disneys content, marketing and product and ability to just out produce netflix will be very, very strong. Unless they blow their roll out, youll see some slippage away from netflix to disney and since netflix is so leveraged to c subscriber growth, i think it will weigh on the stocks to me any bumpin the stock right now is an opportunity to short. I would never short. Its a very volatile i think its an opportunity here to get short rather than long. All right a lot of work. People will have more than streaming app but maybe netflix is kind of losing its exclusi exclusivity premium. Head to our website for more trading nation back over to you thank you very much. Ahead, we are less than 24 hours away from apples big product event. We will lay out Everything Everything you need to know. The cdc has issued major Health Warning on e cigarettes after another vaping death what this means for Companies Like juul. New details emerging around the long saudi ipo all this when power lunch returns. Woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Welcome back here is your cnbc news update. At white house President Trump honoring Police Officers and civilian who is responded to Mass Shootings in dayton and el paso last month. He called all of them heroes when evil showed its hideous face, americans of all walks of life rose up and defied fear they stared down death to protect the innocent and stand tall, they did, just for righteous and for good 14 people were killed and 19 injured when a bus overturned. Its not clear how many people were on