An antitrust lawsuit against google, characterizing its search and advertising business as a monopoly. Shares shrugging it off, up 2 well speak to a top analyst about what it could mean Going Forward for big tk and Tilman Fertitta is seeing bright spots in the country. Hell tell us where and why. Power lunch starts right now let me welcome you to power lunch as well take a look at some of the big names we are watching today. Netflix slightly higher ahead of its earning reports, that stock down about 4 . And no earnings boost to ibm, thats the biggest drag on the dow after reporting its Third Straight quarter of revenue declin declines and financials one of the best performing sectors thanks to regional banks, helping the rest of the group kelly. John, thank you we begin with the two big stories out of washington today. Elan has the story but first Kayla Tausche is tracking new developments on stimulus aid reporter today marks the end of the 48hour window that nancy pelosi set to reach a stimulus deal with the administration, but today she widened that wend o window ever so slightly saying it isnt that this day was a day that we would have a deal, it was a deal that we would have our terms on the table to be able to go to the next step. Poli pelosi said a deal must be reached by the end of this week and to pass by election day and she expects revised terms when she and Steven Mnuchin speak later today. Senator thune said he thought it would be difficult to get the support to pass a bipartisan package. Republicans are set to vote again on a series of smaller bills. Today on a 135 billion reauthorization of the leftover money from the ppp program and tomorrow on a narrower 500 billion stimulus package that was already taken up earlier this year. Heres Senate Majority leader Mitch Mcconnell. Theres no reason the second round of the Paycheck Protection Program should wait another single day so were going to vote on this legislation today. One clear vote on one Clear Program that everyone in this chamber says says they want to pass. And democrats in the senate blocked the passage of that narrow stimulus bill earlier in september. Today is not likely to have a different outcome. Well see what they say when they speak later today and whether they have a different readout than they have in days past. Are they likely to get any bipartisan support for these piecemeal bills or no . No. The vote counts in december basically had republican support but did not have any democrats on board, which with the narrow majority that the republicans have in the senate was needed to advance these. But its seen as sort of a marker of republican priorities and what leader mcconnell believes his party would support and where their views on the necessary stimulus lie of course the president has said if he reaches a bipartisan deal with the speaker that he would get on the phone and talk to republicans to convince them to take the package, but so far we havent seen any sort of defections from the gop saying if there is a deal, that they would definitively support it. Kelly. All right, kayla, thank you very much. John. Now lets get to elan for the details of what the Justice Department is alleging google did to abuse monopoly power. Ylan the d. O. J. Outlined a vicious cycle, google allowing it to maintain its market share which brings in even more ad dollars and make agreements more lucrative and exclusive and shutting out the competition the complaint said absent a court order, google will continue to use its anticompetitive strategy. This case has been a top priority for the Justice Department 11 states are signing on to the case, notably all of them led by republican states attorneys general. Google defended itself saying american antitrust law is designed to promote innovation and help consumers, not tilt the Playing Field in favor of particular competitors or make it harder for people to get the services they want the company says they expect it will be 12 to 18 months before this case even goes to trial but that it is looking forward to defending itself in court. Guys and they do have the lawyers to do it stocks higher on positive comments from the speaker of the house nancy pelosi about a possible virus aid deal. Its not close it matters, whether a deal happened sooner or later tom, i want to start with google because alphabet is one of your major picks. This scathing report out but the stock doesnt seem to be reacting much. Is there anything here that surprised you or that you think matters . Well, you know, again its you hit it on the head this is a really damning charge from the Justice Department. The stock should have gone a lot more so i think that the fact that the stock is held in is telling us that the market doesnt see lon lon longterm damage brought on yet. Its a big company with a bulls eye on its back but the stock is pretty reasonable as well. Returning to possible virusrelated aid, you said thats something to watch in the next 24 hours, but youre also saying that either way, you said to buy stocks post election, 90 is going to be the same no matter who wins. Is that right . Yeah, thats right. I think the market is in a waiting game it doesnt like lack of visibility and the next 20 days are really a period of uncertainty because, one, we dont know if were going to have a clear election outcome and also, who is going to win. But looking beyond that, you hit it on the head i think that the stock is going to build i think risk reward for stocks is really good. Were treading water but the economy has been strengthening and theres a lot of cash on the sidelines. So far covid has not risen parabolically like it has in europe what about this idea that sometimes the stimulus, some names end up benefiting more than others. Walmart comes to mind as a company that seems to get a boost when consumers have more money in their pockets and this is q4. How much should that factor into what investors expect if we will get a stimulus deal sooner rather than later . The stimulus deal will provide an important bridge to the economy. There are a lot of americans suffering. We are just exiting one of the worst depressions in five lifetimes, maybe the worst ever in the u. S and the groups that will benefit from that stimulus are going to be economically sensitive. So i think you really want to be cyclically tested. I think the fact that si when i see your list of what you call the best of the best stocks, i see apple, facebook, tesla, cisco theres a lot of big tech here the valuations in big tech have gotten awfully stretched what gives you confidence that those are still great picks . I mean, these are Great Companies with Business Models that have proven to be really durable. Their Competitive Position is really strong. The reason i think theyre still worth owning is equity risk premium on these companies is still too high these companies survived the worst economic shock globally that weve ever seen and theyre prospering i think youre going to see them as unkillable. Many Companies Borrow many cheaper than governments at the end of the day the equity is a lot less risky than we previously thought i guess well see if that can go on and on tom lee, thank you thanks. Lets check this on shares with our josh lipton now, shares of cloudflare. Its up 50 in the past month alone. Mr. Lipton has more for us josh kelly, thats right since march, cloudflares market share has more than tripled to nearly 18 billion this is a company with a long history. It was actually founded back in 2010 today it has more than 1,500 employees and 96,000 paying customers. Cloudflare provides Software Tools that help companies protect their web sites and make them run more quickly and reliably but its not just companies. Cloudflare is playing an Important Role it this election, too. More than half of u. S. States are using its software to defend their election infrastructure, like voter data information. And the trump and biden campaigns are relying on cloudflare to help defend their web sites against malicious attacks. Pipers jim fish doesnt think this is a big money maker for cloudfare but believes it could be a strong Marketing Tool for the company. He said its a buy, one of the best in class names to own, he argues others are more cautious gray powell says valuation at these levels looks too demanding back to you all. All right, josh, thank you, sir. Real quickly, to cloudflare become a takeover target here or has the runup made the equity too expensive . So i did, as i mentioned, kelly, i spoke to pipers jim fish jim is bullish on this stock he believes in the management team, believes in the product and he does believe its an acquisition target y he thinks if cisco bought cloudflare it would help them capitalize on big, powerful enduring trends, like Cloud Security and well see if ciscos Chuck Robbins agrees, guys josh, thank you josh lipton for us today the department of justice filing a lawsuit over search and advertising. Plus the restaurant recovery taking a slight step backwards last week. But Tilman Fertitta is seeing a slight comeback. Hell explain why. More power lunch after this. Expectand action. 16 people died did he catch our bad guy . Were know as the charmed ones. You got one day to show me what you got. I want to fight. You need us harry. What a goal bockey ball, hockey ball, you name it ball. Im gonna be ready. Just say show me peacock into your xfinity voice remote or download the app today. Welcome back the department of justices anty trust suit against google for its u. S. Search dominance where it dominates nearly 90 of the market in the u. S. Is filing today. Despite the lawsuit the Apparent Company alphabet and other big tech giants are positive but is this just the beginning of a bigger technical crackdown . If so, what does it mean for the stocks grant, welcome the conventional wisdom is that this isnt going to make much difference, that any remedy that comes will be years from now, will make affect google at the margin any reason to turn that conventional wisdom on its ahhed here in. No, i think thats the right thinking we go back to a couple things one is the microsoft case. It was a decade long the stock went up 900 so investors, it mos more of a side show. Its important, were taking this serious but we dont believe its going to have an impact on the stock. Today the stock is up 2. 5 i think thats a reflection of that and, number two, its per or legal advisers, its a narrower and more traditional case as described. So its not a very broad case. And so we think ultimately the legal help that were getting to effectively analyze this suggests that a breakup would likely not be possible underneath the current scenario. Nafair enough. Im glad you raised the microsoft example. If you go back and look at what happened then, to are years microsoft shares went nowhere and people say, well, because the government was involved, they couldnt really get on the mobile phone bandwagon, they were left behind it took them another decade to catch up and become the behemoth they are today is it possible all of this too many times enough of a distraction that google is not able to make the kind of acquisitions or innovations that would keep it on top i dont think so. Google has been a highly Innovative Company its been one that theyve focused more on technology and people come to you rather than pushing them out i dont think this is a distraction for the engineering teams there. Again, i go back to ultimately they want to do whats right for the consumer they do not want to hurt us. They want to be in the right spot and ultimately i agree with google, its our choice to search on them the reality is even if they were removed from every device, we would go and download the apps and still search there because it is the best result, it is the best engagement. And you continued i continued to look at even their Search Technology used in things like youtube tv, i watch cnbc every day on youtube t vfv. We can search shows in an easier way than traditional t vchv. I think this is ultimately more noise. Facebook, amazon, the rest of internet is underneath the same duress we dont think google will be alone. Let me ask you about section 230. What would happen if in the future social media platforms and to some extent google, if it curates content, if they lost section 230 protections. Do you, a, think thats likely and, b, if so it would seem in a huge way to undermine their current Business Models . When we talk to advertisers, they come come beiing back and s long as we get the return on the advertising dollar, theyre going to stay there. Theyre the ones paying the bill so we keep asking advertisers, what are they seeing, are they making shifts in budget . You keep going through the top platforms and theres more money being placed on these platforms not less, were shifting to digital from print, so i dont see that as an issue i go back to what the advertisers say and theyre not stopping their spend and the pocket is continuing to head towards digital. Follow the money, as they say. I think 1850 is your price target now on alphabet thanks for your time tonight real praesht it. John. We have a margin flash on shares of galactic dominic chu has that off of their best levels of the day, they had been higher by 6 or so earlier this is following comments from named short seller jim chenos and this occurred at the conference in new york city that he would not go long on any of the publicly traded space stocks he clarified those perceived bullish comments were a joke about space being infinite kelly, john, getting a little clarification on those comments and a cautionary tale of trading based upon single conference headlines, especially in the age of zoom. Those space shares in focus thats the reason why they ran up and why theyre coming off now. Ill accepted things back to y you. Short seller jokes. Never know which way to take those. Still ahead, netflix is treading water today but its been up 60 on the year so far well look at what you should expect plus, impossible foods just hours ago unveiled an alternative milk to add to its alternative meat well talk to the ceo of the company a little later this hour upbeat music we did it crowd cheering [narrator] wherever you start, snhu is where you can finish. crowd clapping crowd cheering here we go. [narrator] and its it. [group] yay [narrator] you did it, high five Southern New Hampshire university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. Keeping your oysters growing while keeping your business growing has you swamped. you need to hire i need indeed indeed you do. The moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base so you can start hiring right away. Claim your seventyfivedollar credit when you post your first job at indeed. Com promo welcome back to power lunch. Im seema mody investors looking to see about spends that will translate into subscriber growth. Lets bring in the trade nation team mark tepper, ill start with you. Youve been a big believer in netflix. Is there something the ceo could say today that would make you less inclined to own this stock . For me its going to be all about the churn. Right now its 51 degrees and completely gloomy today in cleveland. Winters coming, covid is flairing back up and streaming isnt going to lose momentum for the foreseeable future whenever netflix had a bad time in the past, it was because of churn. So the guidance on net paid ads was very conservative, had it at just over 2. 5 million. I think its going to come in above 3 million. Movie theaters are dying who knows if theyll even be a thing in five years. I think youre going to see more and more of these movies go straight to streaming. And i happened to watch the new adam sandler movie yesterday with my kids i got to tell you, it was no billy madison, no happy gilmore but it kept us busy netflixs Pricing Power is getting stronger the percentage of respondents who said they would pay more for a subscription has gone from 48 at the end of last year up to 53 today and thats very strong and good for the stock you say netflix is at a critical juncture. Can you expand on that on a technical basis the stock is moving up toward this 550 level three out of the last four months twice it got slightly above it but only very slightly so. It wasnt enough to confirm a breakout if it can finally break above that 550 level in a meaningful way, it will be very bullish i think its going to come down to how much of a lockdown we get on a new wave of the coronavirus and how much stay at home impact that has, but if it fails and rolls back over and breaks below the 510 level, thats a trend line going back to march, it probably means it going to go down and te tst the summer lowsa 1400s. Still look for a lot out of this stock before the year is out matt and mark, thank you for joining us today for more trading nation follow us on our web site now coming up, our regular tuesday sit down with Tilman Fertitta well check in on how his restaurants and casinos are doing and of course his basketball team. Here is what he told us about the teams general manager darrells job is safe im sure hes going to pick the right head coach all right well, now hes gone. So what happened why did he resign and who is tilman going to hire as general manager and head coach power lunch will be right back announcer and now the latest from trading initial. Cnbc. Com and a word from our sponsor. Look to buy pullbacks from supports such as trending lows d vi aras. Anmongvege when i was in high school, this was the theater i came to quite often. The support weve had over the last few months has been amazing. Its not just a work environment. Everyone here is family. If you are ready to open your heart and your home, check us out. We thought for sure that we were done. And this town said not today. Expectand action. And this town said not today. 16 people died did he catch our bad guy . Were know as the charmed on