Cnbc news lauren hurst was the first to report this story she joins us now. The attorney are prepared to expand their probe beyond the companys advertising business to its search business, people familiar with the matter tell me texas which is leading the probe announced the investigation earlier this year but so far, the investigation has centered on googles advertising business texas has issued subpoenas for materials relating to that business now other states will lead the charge in investigating Google Search and android units separately people familiar the with the matter tell me they will issue subpoenas on those businesses. The attorney general investigation is running concurrent to a doj led inquiry which google confirmed earlier this year. Lauren, just quickly, what is the implication of separating an investigation into search versus android. Reporter so the key point is they are very serious about the investigation. Its not shocking they would be curious to learn more about either search or android, but what is interesting is they want to use their resources to investigate, to write up subpoenas, to get more materials. If youre google, the reason why youre worried is you realize just how serious the ags are in investigating your business and taking it apart piece for piece. Lauren, thank you Lauren Hirsch with the latest. Read the full report online. What does this mean for alphabet, tim . You think about the Company Performance wise, we hit fresh ice before we got to this news, and this is a company i think actually started to provide a little bit more insight into their business, the disclosure, the core business is very strong look, you would think if they were worried about regulatory stuff, they wouldnt be going all in on health care, too project nighten gayle, le, does seem like theyre shying away. You look how the stock responded when we got the first announcement in june, it took the stock down significantly we have heard this news before, and frankly we know theres a target across silicone valley, and i think until we get further down the road, i dont think this is a moment youre throwing google out the window. Its amazing, right, we learned that all 50 ags are investigating, they have separated the investigation into theory in search and android, and the stock may have gone a little bit lower on news of this right now, its basically unchanged. Its amaze sging. It seems like most importantly, and the stock price doesnt care investors dont care we have heard about the story escalating for a while now everyone sort of writes it off, same way we wrote off brexit, trade, powell, all these Different Things on a granular issue, its google now thats writing it off. And look the stock is a classic brand. It hasnt even begun and this has gotten to prior tops, usually the beginning, not the end of a move. Its a muted reaction, this time, very much like facebook. Theres a lot of different examples we could use right now. When the regulatory comes down, the hammer really hits and then it seems to get a little bit less, like the trump tweets and all the rest of it us and some of the Democratic Candidates running, everybody is worried about health care and the rest of that. There are reactions and then those seem to go away. This seems to be the case for google its had a great run 25 , i think, year to date the stock. Its been the class of faang. Absolutely. It is the classic faang, youre right. You wrote a number of cnbc. Com opinion paces. I have penned a few. About facebook and the troubles facebook faced and why it was going to be an issue for facebook why is this different in your view my view on facebook is that this is a confidence issue and a trust issue with the management team, and something ultimately that would trickle back into usage. Now, lets be clear. We have not seen it hit facebook in terms of their advertisers. We have not seen it in terms of their platform, in fact, their platform seems to be as strong as its ever been. I think with google, again, in terms of the user right now, there has been some concern with data, and this has popped up in the last couple of days. They decided to get into health care, and forged a partnership that people are concerned, what theyre going to do with the data as it relates to health care theres a lot of trust for google theres more trust for google than facebook and that separates the two. The regulators may think otherwise but the core users might feel differently. I would add one other thing to it. You watch the reaction out of facebook i wanted that downward move. As soon as i saw this headline, hey, this is great because this gives you that opportunity to buy. Now it looks like that opportunity has already been wiped away i mean, the opportunities youre looking for is facebook knowing that people say theyre going to leave but theyre not going to leave and that was the reaction when you look through all these regulatory issues that he went through, and we thought the guys were going to leave, they didnt they thought theyre going to continue to grow if youre an advertiser, you have to be there you cant avoid this, and when you look at the play, what happens in the long run. If the worst Case Scenario takes place for google, is it a fine, so do you think that theyre going to be crushed with the fine theyre not going to be crushed with the fine, so i think investors look past it, and say, google is going no place, it will be there. It will still be a huge revenue stream and i have to be there as well antitrust to me, and it basically implies theyre going to break the company up. It implies theres a monopoly, theyre not letting other competition in and i believe that with megacap tech, at least in the case of google and facebook, we talk about this as well i think the sum of the parts, actually, would be a benefit to investors. I think if you had to break it up and actually try to sell the businesses on your own. How would you break up alphabet who gets the new ventures. The argument on antitrust is probably related to what extent they are dominating the data, and dominating the advertising plane. In terms of what i think is at risk is the confidence level around data. Lets turn to another tech name apple here, the stock hitting a new all time high for a 6th day in a row, its on pace for its best year in a decade. Some are starting to turn sour on the name. We have learned that warren buffet trimmed its stake in apple last quarter and trump master says it is time to sell this stock why dont you go over to the plasma and break it down for us. Think about google. Google is the same price it was 18 months ago, which means thats the opportunity has yet to really break out. Apple broke out and to some extent you have exploitation of potential and its quite steep and uncorrected. A few charts, only three, lets look at it, this is the 150 moving day average over the past two years, and what we know is you could say, well, so what, it gets above or below, but lets pull this back and look out over a bit longer time frame. This is the same chart and its looking at where the stock is, above or below the 150 moving average. Lets pull it back further and look at a twopanel chart. What the top is doing is looking at the same circumstances, the current stock in the 150day moving average and the bottom panel is calculating automatically, instead of having to wonder, just how far above the line is it and what you see here, and this is quite something, every single time that apple has traded 24 above its 150 day moving average, it has peaked and rolled over. Thats happened literally simultaneously every time for the past seven years at this point, as opposed to to something that has the potential to break out, google has already broken out, and what comes to mind is trimming, doing something, before, as they say, someone does it for you. Interesting before someone does it for you i mean, come on back. I was just out of curiosity, looking at ratings on wall street, not that we put a lot of stock into that, but 65 are either at a buy or strong buy. Or a hold right, i did the same thing you have like 27 at buys, 14 at hold, and 7 at excels. Its the highest since a year ago before the 20 decline. Right you always get this peak where everyone rushes in to carters, i think his point with using the chart. If you think about it, you have apple tv plus. You have i cloud storage, music, thats becoming a much bigger part of the story than it was a year ago, two years ago, and definitely three years ago people that own the stock stay the course now more than ever before i just think that the point that carter is making is a totally valid one, however you want to lock ok at it youve outperformed the s p, the entire market since june im going to say it over and over again, because that is extraordinary, and that is a reason to say, hey, you know, you could be a relative value player here, im long apple. I sold some up side calls, call me away, ill be okay with that. I think we get into the argument, are you an investor or trader in apple and im an investor he owns apple from 2. 30. Not quite but from the 1990s. Ive owned this stock for what feels like forever, but there are times where its a great opportunity. I loved what i heard, and i know its options action thats speaking for you, but its a great opportunity to sell calls against it right. The only issue is applied volatilities have come down significantly. The prices you used to be able to get a couple of weeks ago are no longer there. You watched the vics get to 12 to 14, applied volatilities has dropped. Youre not getting what you were getting. Still makes sense to ne. Kind of like disney, the big run up in disney, the big spike we got yesterday, i thought that was great in my final trade, sell the up side calls in disney against the stock. I want to hold it. I have been selling options against apple for what seems to be months and months and months, they work out. The problem, the negative, i guess is, you have to be able to take a little bit of a osz loss it if i were you, sell those calls against it, buy them back if it gets through the stripe. Im through well see where we end up by the end of the year. Can i ask a question, mel. Is it a sure its related to apple theyre talking about volatility, and i would think when you have a stock thats rocketed this high, if im willing to actually sell a little bit more upside from here, it would be worth more because the stocks got so much momentum going into that the implied volatility, generally go out as stock goes up people get more and more confident in what theyre seeing when theres not confidence. Over what time frame. Its all about that. One thing youre talking about, if you want to be bullish on this the Analyst Community is not bullish. We know that a whole recommendation on wall street is a sell, right of all stocks covered. In fact, it 10, 12,000 stocks, 5 of stocks get a sell rating over time because no one wants to put a sell on it, management wont speak to you. Thats not supposed to matter last time i checked with the chinese wall wall street is compromised in that sense only 5 of all stocks are sells. A hold is a wink wink sell and what we know is basically half the analysts are saying wink, wink, sell, and half are saying buy the collective 12 months price target is 254. If you want to be bullish that factors in analysts that all due respect have no clue clearly no respect. I like the all due respect. In every career and path in life, theres 10 of the people that do it really well there are 300 . Where are we. Hopefully were in the top 10. Coming up, break out the chips, nvidia materials are on the move, well break down the big headlines from quarters. Tensions rising in hong kong that could have big rippled around the worldment we well tell you whats at stake for the obglal economy much more live fast money right after this make fitness routine with pure protein. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. The best combination for every fitness routine. Shares of chip makers after reporting earnings after the bell lets get to seema mody. Reporter fluctuating between gains and losses, revenue guidance for the Fourth Quarter came in weaker than expected but the street remains fix sated on the strength that its seeing in its Gaming Business. Sales and gaming up from the 1. 3 billion it brought in the Second QuarterCeo Jensen Huang says our Gaming Business from hyper scale customers powered q3 results key questions analysts will want to know is when is nvidia unveiling a product it hints at, and whats the outlook on crypto industry, they do specialize in chips used in the crypto sector. Applied fe Applied Materials, thanks to growth in founding, laundry and chip business. China, despite signs of a slow down continues to make up 30 of net sales. The stock is higher in extended trade and now trading at its highest level in 13 years. Both chip stocks have been on fire this year, up over 50 , recovering from what was a pretty tough 2018, and even chip equipment makers, and amd are up big after reporting better than expected earnings, plus further channel checks suggest that demand is starting to improve for semiconductors and the big question is here whether demand can keep up with wall street expectations back to you. Seema mody at headquarters. Pete, where do you go here, which would you rather. I would stick with Applied Materials because i think thats the space to be in right now and obviously the numbers, that gave us a pretty good look but the gains, that really does sound kind of interesting in terms of nvidia. The one spot they are good is gaming thats a small portion of what nvidia is. Because of that, it tells me i would rather be in the maker and the ones in the chips. I think gaming is the aspect that everyone concentrates on, then you have data centers, and then with 5g, whats the automobile going to look like. Whats the connected home going to be looking like i think when you look at it as a gaming stock, you leave a lot there, so i think you leave a lot on the table so i would rather, it was would you rather. I dont know. The extension of would you rather. She did, yeah exactly, and by the way, a bunch of new games coming on the market, and these guys are always great with coming out with new chips going forward, and with the gaming cycle. Youre going to see a lot of that stuff moving forward, a lot more in the cloud, a lot more to think about going forward. Depending on how you measure gaming, itincludes chips in pcs, 53 of their business, when they tell you that gaming is a little bit softer than expected, even though it had been expected seasonally to be somewhat soft, i think thats a concern considering where the stock has come from. Think about the stock, is it up 130 off the lows we hit back then, and the 130 level, which is something its bounced off a few times, it got there back in may, so i think the extraordinary run into these numbers, i think this outperforming the rest of a chip space thats been on a tear, you shouldnt be surprised by this, and i think their business is actually much more rationalized at these levels than we have had in past years when we could have had this kind of run. Semis overall, the subject all year, their relative performance to the tech sector peaked in q4 17. Really . Correct thats two years ago, and they have yet to make a relative high things like apple are acting so well, but the interesting thing is that the beta trade, as good as its been, adjusted for risk or beta, not only is it not outperformed tech, but even worse than that. Somebody at home is saying, and i thought i was up 74 and thats different. But you got things like mu, intel, which are a big part of the aggregate. As a theme, a bet, as good as its been, it has not been an alpha generator, given other choices in terms of tech overall. When we have the conversation about semiconductors being cyclical. Adjusted returns too, is often carters point. Right so that doesnt apply to that conversation you could still believe and it could still hold true that semiconductors being a cyclical sectors are indicators of the economy. To what ones investment experience has been and what the opportunity cost has been. Yeah. Your favorite semi in the space is very conservative intel. And i believe in the company, still, the ceo, im not 100 all in on, but i think over time im sure hes going to be the right guy. We have much more ahead here on fast money heres whats coming up next. The protests in hong kong continue to escalate we take a look at the ripple effects in the market. And how it could impact your investments. 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With value like this, there are zero reasons to invest anywhere else. Fidelity. Welcome back to fast money this was the scene in hong kong as protesters flooded the streets of the Central Business district the mass of demonstrations reaching new heights over the last few days as protesters clash with police, the increasing instability giving rise to worries about the impact on the chinese economy and what that could mean for the Global Markets. Derrick stiller joins us now, great to have you with us. Thanks for having me. You make the point that the actual impact on the chinese economy from hong kong, it wouldnt be that great, but its the other ways in which hong kong brings money into china that could be harmed. Thats right. If you took a list of the major of challenges of the chinese economy, they dont allow rural people to own land so how do those people get richer. The state sector is huge, and they dont allow competition, so they suppress innovation those dont involve hong kong, except at the end. At the end, the chinese run up a huge amount of debt. They acknowledge this, open the Financial Services market, creating opportunities but a l