those who can show high margins she is on her way to our house. what? or margins at all and those who i got it. alexa, start roomba. are not valued like a tech company. if you're valued like a retail the lexus es.unexpecte. company, it seems there's still lease the 2020 es 350 for $389 a month for 36 months. an appetite and that recurring experience amazing at your lexus dealer. revenue is more predictable according to some investors. lease the 2020 es 350 for $389 ai cowe can do theyour screening at her house. >> thanks so much. that does it for the exchange. thanks, everybody. hi. i'll join tyler for "power this is the man that's going to check your eyes grandma. lunch. see you there. cognizant ai solutions are helping healthcare companies >> we will see you in a moment welcome, everybody here's what's new at 2:00 on advance diagnostics and prevent blindness in patients with diabetes. "power lunch." stocks make iing a comeback aftr everything looks good. you have beautiful eyes. starting the day lower shaking off the virus fears as ♪ 15,000, 15,000 new krocoronavir cases were confirmed overnight is there anything though that can stop what appears to be b a record rally even though the dow is down now? plus as the virus spreads, the global travel crackdown increases. the founder of price line will be here to tell us how bad things might get and later, tesla shares defieing gravity.

the stock reversing into higher territory even after the company announce d a $2 billion stock offering we'll hear from a tes ha board member "power lunch" starts now thank you. and welcome to "power lunch," everybody. i'm kelly evans. what sell off? stocks are making a huge reversal today even the dow is in the green down less than 50 points ♪ ♪ s&p and nasdaq, slightly higher. both are set record highs. check out the chip stocks. both hit all time highs. don't just plan to retire. nvidia hit its earnings report plan to live. after the bell today an annuity helps cover your more on that later on. >> thank you very much essential monthly expenses, we begin with the latest developments on the coronavirus. so you're free to live the life you want. find out how an annuity the cdc confirming now a 15th can give you lifetime income at protectedincome.org case of this illness in the united states. china changing the way it counts

case is les leading to a big jun cases yore night there are now nearly 60,000 confirmed cases and today, a white house official saying the welcome back, amazon and u.s. doesn't have high confidence in the information microsoft, earlier this hour judge granted amazon a temporary coming out of china about this outbreak but after a drop this morning, injunction at its request. stocks have shaken off the latest fears bob pisani is at the new york frack's lower so far stock exchange with more on the dow is down, but off its lows of the day, but look at action up to the minute. bob. >> definitely a more defensive where it sid 29-516. tilt to the market, but not much the market is still acting like do you have any doubt in your somehow we're going to get past this fairly quickly. semiconductors, utilities. this is the defensive end of the mind, but for coronavirus that would be up? market and of course energy and >> look at the nasdaq, just a few points under 10,000? industrials, which reflect cyclical aspects a bit weaker. but not a lot. not dramatic differences here. >> and records there you see, the dow at 29,5, we have new highs and the usual mix of utilities and reets just a hair away >> that's with it being lower on the center hitting new highs. setting intraday report new great report avilan bay had a great report so these have nice yields and have highs. >> thanks for watching "power been hitting 52-week highs

recently the usual confusion headlines on lunch", everyone. "closing bell" as far as coronavirus. alibaba said a big impact on the right now. we hope to see you tomorrow. welcome to "closing bell." chines it. i'm sara eisen here at the new ralph lauren, two third of their york stock exchange. today i'm at the ralph lauren stores in china are closed post, a dip after the company said that the coronavirus could nestle said they're resuming deal a bigger blow than operations, but at a reduced expected broader market, though, largely rate then drops of 20 to 25% in shaking off those earlier fears. sales. down 15 to 20% nasdaq and s&p with new highs. finally, my stock of the year so far, not one you would expect. let's look at what is virgin galactic keeps going up every day here 200% year to date and guys, driving the action important thing here is space we have a decent the dow bounced exploration hot topic, but not a back from a 200-point lot to buy that's what's driving it up. back to you. >> so the safety trade catching a bid today despite the comeback so is it time to play defense as the uncertainty around the coronavirus continues to loom heavily on investor's minds. here with more are michael and sandy, ofvillery and company wel to both of you

michael, let me start with you and to the specific thought about the safety trade one of the areas that you like is typically associated with safety trade and that would be reets. why do you like them here? >> yeah, i think low interest rates, good economic growth, stable capital and ability to grow and raise rents in a a number of different sub sectors make sense total return yields. so if you're a long-term investor looking to take risk off the table and looking for a good number going out for a while, reets are attractive here in a number of different sub sectors. >> tell me about the ones you favor. >> one of the fakctors, you mentioned the coronavirus but there are many primarily u.s. centric. so you take away the international risk of the coronavirus spreading in a much worse way globally than in the u.s. we would look at apartment reets. good economic conditions

people need to find places to live avalon bay communities essex properties are a couple we own there. warehousing. retail medical office space general office space so you know, i would s say diversify. >> sandy, let me get you to explain your thinking here my notes tell me urging people to comb through their portfolios look for overvalued security stocks, mutual funds and look to take profits and yet at the same time, you point out there's no irrational exuberance that you can see. there's a lot of cash on the sidelines. there isn't a sense of euphoria that often accompanies a big market turn. so on the one hand, you're saying take profits. on the other, you seem to be saying i'm bullish keep money at work >> yeah, we're always going to be you know i'd say 80 to 85% invested for us, we've got about 15 or 20% in cash which is really

record levels for us, but i think it's an opportunity with the market at all time highs for people to go through and look at your fort folio and find those names that you don't have a high conviction in. that maybe you've gotten stretched on valuation and take some profits here. i think that's a prudent thing to do with the market at all time highs >> i know you look at the smaller and mid sized companies, but in this day and age, there's plenty of large caps that you could argue are attractive we were talking about this upgrade in caterpillar last u hour would you be willing to take a look at some parts of the market that have been left behind here. >> we're always looking for di locations in the market. if the clone krohn continues to you know get beyond 1300 deaths an and that starts to spook the market, we're going to look at that as an opportunity to buy. we had great opportunities, even a couple of months ago, to buy a little bit and certainly december of '18 was an opportunity to buy what you wanted for the most part, we're going

to buy younger, growthier small cap companies. we love elder resorts right now. doing some good things with their acquisition of caesar. >> so, michael, where does coronavirus fit in to your investing practice or thesis right now? it obviously is going to have some effect on global gdp it would seem how do you factor it in? >> it's a risk factor as being an uncertain factor. presently, the flu is a lot more dangerous than the coronavirus but the coronavirus is new we're trying to quantify how bad it's going to be and what impact it's going to have globally and until we get some of those data points figured out, it's going to be difficult to predict and because of that, you're subject to overreaction potentially. you know, to be cautious and that makes sense but you know, we've got a lot of good economic activity a lot of good economic

indicators, data points, et cetera this is one that could begin to change that story if it turns out to be much worse than expected, but at the moment, the flu is a worse thing to get this winter than the coronavirus. >> all right, folk, thank you very much. michael and sandy, appreciate your time. >> thanks. >> you bet >> now it could end up being a cruel summer for boeing. southwest is pushing back its target date to start flying the 737 max once again let's get to phil with the latest on this from chicago. >> this would be the second straight summer that southwest would not have the 737 max summertime, that's when the airlines make their money. as you mentioned, southwest pushing back the date it expects to put the max back into service. they are now going from june back to august 11th. that's when they expect it to be back in the schedule so when you look at the three u.s. carriers that fly the max, southwest pushing back to august but you still have american and united expecting to return it to

service in early june. it will be interesting to see if they move back their dates for return to service. typically these guys have been moving in conjunction roughly speaking in terms of when they expect the max to come back. take a look at shares of southwest. remember, they have approximately 9700 737 pilots who will be flying the max that will have to go through simulator training because that's part of the condition for the max being ungrounded take a look at shares of boeing versus airbus. the reason we're showing you this is the divergence in the shares over the last year. it's had record deliveries last year reported earnings this morning in europe and said guys, they're expecting to deliver about 880 aircraft this year that would be a new record but the ceo told cnbc there's no room just to ramp up further production they are constrained now that's the issue with the whole aviation industry.

it's at its max capacity separate from what's going on with the 737 max >> thank you very much coming up, michael bloomberg wants to be president and money apparently is no object. he is paying big bucks now to social media influencers to generate memes will it work with any voters plus, tesla's wild ride continuing the stock taking a dive after the company announces a $2 billion stock offering but now look at it higher again a former tesla board member will join ugh coming up u

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let's take a look at where the markets stand now. the dow industrials have come back from session lows now down just 48, 49 points. nasdaq a is in positive territory, moving up by abo about .1% and the s&p 500 basically flat breaking news on the microsoft jedi government contract who better to untangle the jedi than elan. >> a federal judge has granted amazon's request to stop any work on this project while it is being protested by amazon. now remember, amazon had said that the process by which the department of defense had granted this contract to microsoft was flawed they've alleged political interference in the process as well and asked a judge to put a temporary stay while they go

through this litigation with the government a judge has now approved that question amazon and the dod had agreed to limit any initial work on jedi through the this week and now that stay will continue as this case is -- and it has been a fiery one with amazon requesting depositions now from president trump as well as the current defense secretary, mark esper and the previous defense secretary, but guy, we are still awaiting whether or not the judge will allow that request for testimony to go forward. right now, we know work out jedi will come to a stop for now. back to you. >> quantify once again for those who have feeble memories how big a contract this is and why the stakes are so high >> sure. it is a 10 billi$10 billion cont that amazon has been fighting for and that frankly, the big tech companies has been have been b fighting over for a number of years now. amazon thought that it was the

front-runner for this contract, but certainly, with president trump's beef with jeff bezos, at one point saying he wanted to screw amazon according to reports. now amazon is claiming this process was flawed from the start and they want a judge to take a look at it. >> do we know where we are in terms of the president having to sit down and be deposed? is that even, is there precedent for that >> amazon is telling us this is an unprecedented request and those documents in which amazon made that request to the court were just recently unsealed. we are expecting a decision to come in that request some time within the next few weeks. but certainly, the judge making a ruling in favor of amazon, i'm sure folks will be reading the tea leaves in the decision to see what happens ultimately with whether or not the president and some top lieutenants will have to testify >> thanks so much.

elan with those headlines. tesla shares are rebounding from an early morning sell off. the stock is up about 5% despite announcing a $2 billion stock offering meant to take advantage of the soaring stock price. back in may when the company announced a second offering, the stock plumeted 27% down to its lowest levels of the year and legendary charlie munger isn't buying the hype. >> i would never buy it and never sell it short. tesla's sales went up because elon has convinceded people he can cure cancer. >> also founder manager of the west lake group. charlie munger suggesting this is kind of the cult of elon type of stock what do you think is going on and are you surprised it's held up this well in light of the

tertiary at this point >> i'm not surprised munger is a brilliant investor, but he has an old world perspective. i taught on the faculty for a number of years. car companies and others get valued on the rate f growth, profitability and power of their brand and it's hard to deny that tesla's not a leader in all those spaces they're growing faster than any other car company in the world ch they have just posted their second profitable quarter and it looks like that will continue and they have a powerful brand those are the old world metrics and they're doing well in all three. >> i was just going to say, no matter what the case is for tesla's you know, stock price at a point in time, surely you've seen enough stock charts that look like that to know it's a risky bet to be at the top end of that parabola >> $808. that is a pretty darn high price by any standard. but i think the real issue here is will car companies be valued

like car companies in the future and many people are making the bet that car companies are turning into technology companies. cars may become your primary dingital device in the future ad that's what a lot of people are betting on but look, tesla's moving faster internationally than anyone. they're now developing a full fleet of vehicles. putting the model yrk, the crossover vehicle on the market this summer. tesla, semitrucks later in the year and they're at the poll position for a lot of the new trends in the auto industry. ride hailing, autonomous vehicles tesla's moving quick and i think it's put fear of god into a lot of companies >> why is it moving so quick on this capital raise and two, you know musk and i gather as recently as couple of weeks ago, he said tesla didn't need to raise capital. why so quick and why the turn around >> when your sharing are trading

at $808, there's tho better time to raise capital so he's either lucky, brilliant or both. but here's the real issue. there are three transformational changes going on in the auto industry at once it's one of most turbulent times anybody has seen and what's going on is virtually every auto company in the world is going all electric. we're moving to ride hailing, which means you're selling fewer units. you must develop subsidiary services to sell other things in addition to the phone and the other is we're moving to autonomous vehicles. all three of these cost a lot of money. tesla is just fortunate that with share price that high, it's a no brainer to raise the capital now to invest in future plants like the facility in germany and new technologies the simple fact is to stay on top in the auto industry today you need to be moving quickly. that requires money. tesla's going to have it other auto companies won't

>> i get why they're doing it. i get your answer on why now and why the haste, not necessarily haste, that's my on, but why do think he changed his mind? do you have any insight there? >> well, project what elon is going to think or say from a traditional financial standpoint, if your shares are trading at $808, you've got a market cap heading toward or beyond 150 billion that is just a great time to raise capital and if you look at what's happening at ford and the other auto companies, their stock price is going the other way at precisely the time they do need to raise capital to build the new electric assembly lines to bring lithium ion battery storage in house everybody else frankly wants to be doing the things tesla is doing. the simple fact is tesla east

just moving faster and has the full position in these new technology areas it looks to me like their share price will continue to do well for some time to come. >> thanks for your time today. >> you bet >> well coronavirus fears do weigh on the market these days, especially on the travel stocks. booking holdings down 6% over the last month so is this a temporary disrumgs or a bigger, deeper problem. up next, we'll talk to the person who founded the company when it was called price line and chip stocks are soaring. the etf tracking that group up 10% so far in the month of february and we're not even, well, we are halfway through. basically halfway. key component results after the bell can nvidia diveler or should you get out right now? "power lunch" will be right back

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welcome to "power lunch. nvidia taking a bit of a breather after hitting a fresh two year high in today's session. this ahead of its earnings after the bell how do you trade it here let's bring in the trading nation team.

a lot saying this is a company that needs to show a return to revenue growth is that what you'll be looking for? >> yes, but also for some guidance on whether or not coronavirus will have any effect on their supply chain. if you look at the return to revenue growth story, that has been seen. we're seeing evidence of that. we've seen a resurgence of their gaming business and we've seen them defend well against the amd launch they have plans to launch a new chip that will be 50% higher performance. lower power consumption, big for the gaming industry. huge moves into their data center business with as much as 75%. you know uptick in performance those are all very positive. the problem is is they're very highly priced now. they're trading at almost twice their normal pe. if you look historically that's the challenge >> yeah, absolutely and when you lock at the stock, it gained about 77% last year. do you think all of good news is already priced >> no, i don't

i think the uptrend is well. i like the longer term chart here that follows nvidia's growth here you can find a nice parallel channel here and you can see that we are sort of midrange we're not yet at upper resistance with believe it or not comes in from a technical point of view at 500 that's going to be the source of resistance longer term that's not going to happen in tonight's earnings report. down to a smaller type of frame here, we're within a stone's throw of around 297. it's done well against amd's launch here. i think this is a hold i am long the stock personally and like -- >> thank you and thanks for watching trading nation. head to our website and follow us on twitter for more action. kelly. >> thank you ahead on "power lunch," as coronavirus fears heighten, the travel industry is taking the biggest hit. we'll speak to the founder of price line about its growing impact plus, roku after the bell.

the stock climbed more than 300% last year. and mike bloomberg spending millions on memes to help gain traction on his race for the white house. we'll explain more when "power lunch" returns

when it comes to your business internet, which is more important? ♪ ♪ okay, i wish i didn't have to choose. like the more i think about it, the more i want to jump to each room. what if i said you can have it all? ♪ ♪ comcast business gives you connectivity that goes beyond. that's what we want! that's speed, reliability, and security, all from one provider. touchdown! get started with internet and voice for an amazing price. call today. comcast business. beyond fast.

welcome back here's your cnbc news update mexico's mightily volcano erupted today. an ash column rose about 5,000 feet into the air. the 17,802 foot fall volcano is the second highest mountain in mexico and the fifth highest in

north america. the price of face mas b bs has spiked to nearly ten types the normal cost in independent neiese area. triggered of course by fears of the deadly coronavirus a consumer group is urging authorities to step in and regulate the prices. one seller sells a box of 50 masks for 20 bucks compared to the approximately $2 he charged before the outbreak. and scientists have found a new fossil of a huge turtle that lived millions of years ago in northern south america it grew to 13 feet long. weighed over a ton, but it's not the largest in history the biggest is the salt water turtle that grew to about 50 feet long. and get ready to say, aww. look at that little guy or girl. check this out it's a cute four month old polar bear cub who enter on its first trip outdoors at a zoo in vie a vienna, austria today. no name yet.

so cute. you can go on the shernburn social media account, the zoo, if you want to name the polar bear >> okay. thank you, sue you got it >> tyler's already on the website. >> connect >> let's take a look at today's comeback in the market the dow down about 60 points now. was down about 200 at the lows and the rest of the major averages are higher. that means the s&p and nasdaq hit record intraday highs today. 33.81. look at the nasdaq at almost 9800 hard to believe. check out shares of amazon and microsoft. down about half a percent now. in the last few moment, we got the news the judge has granted amazon a temperatuorary injunctn we'll have more on that story as it continue. >> turning back to the coronavirus crisis the travel industry could lose nearly $6 billion in air fair and domestic spending this year

because of the virus according to the economic consulting firm tourism economics. this as united joins american and delta in cab selling flights from the u.s. to china until late april here now is jay walker, the founder of priceline and ceo of aptijet. more on that in moment, jay, but welcome back and number two, let's turn back to the question of travel. it would seem to me so far, there are about oh less than two dozen cases here in the united states, but if as many project including dr. scott gotlieb, we have a blossoming of cases in the united states. will the fear exceed the reality of the illness and cause people to cancel travel bookings? >> i think we can count on humans to be good at fear and not so good at reality so you know what, the reality is the flu is a dangerous epidemic every year but there's not a lot of fear for it the cancellation of the mobile

congress in barcelona, there's no coronavirus in barcelona. they're just worried that maybe it's going to show up there, so travel is voluntary and anytime people do something voluntary, they don't do it when they're afraid so i think not only do you have the impact of a lack of chinese going outside because the chinese tourists and travelers are a big part of the global travel market, you've got a lot of people afraid to go places and as this virus expands and it's normal outbreak course, you're going to have a lot more fear i think than reality in most areas of the world. >> and you have a traveling public, i speak for myself here, i don't know if i speak for you, at this time of year, getting on an airplane that is crowded with a lot of people, there are a lot of i don't know we call them pathogens, viruses circulating there. i don't love it to begin with. >> viruses are so small, they're unimaginable you could fit 100 million coronavirus on the e head of a pin. >> wow >> these are 120 deno, ma', ma'-

ultimately, the government and others are working hard the say hey look, if this happen, we have 500 or 2,000 cases let's deal with it reasonably and smart but if you go to seoul, south carolina which has 28 cases, the restaurants are all empty. fear is powerful you're not going to send your kids to school if there's a one and 200 -- carrier and kill an elderly person so it's a big challenge for the government and secretary and the sant saassistant secretary for preparedness and response, nose guys get it. we need to be transparent with american people. tell the truth at all times. be the opposite of what's happened so far and we need to trust people to understand hey, we're going to do some things differently. we're going to adapt this is not, this is not ebola we can deal with this.

>> you have a ton of other companies, priceline just being one of dozens that you founded you have dozens of patents as well and one is for something you brought ths today. you've done work on pandemics and you think there's innovation here that can help when it comes to quelling the spread of these outbreaks. >> the u.s. government is looking outside the box here for new solutions and i and a team have been working for the last several years on just such a thing. it's one thing to say wow, i can create a drug, but another to put it in a vile >> against something like coronavirus. >> so ultimately, you're going to need something like this. this is how your eye drops come. this is made in just seconds and filled aseptemberically. we have invented a way to fill a vaccine and have the needle all in one high speed super low cost at population scale. and we've been talking to the u.s. government and others globally about how this could make a giant difference in vaccinating people safely all around the world because

vaccinations or shots reused needles kill over a million people a year. >> that's a legitimate and separate issue and in this case for coronavirus, is it could take six month to a year to come up with a vaccine. >> if we have effective therapies, maybe we can go much faster to get those. >> this device, is it pending in front of the federal government? got to get approval, right >> in an emergency, the federal government can move fast this government really understands that an epidemic is about speed and volume about moving quickly and having enough people in enough places these people have done an excellent job, wow, this wasn't scheduled for a couple of years. what can we do to accelerate it. >> really fast track >> so you said something while we were on break and i hope you don't mind that i use it here. that is the idea that you've been working on pandemic preparedness and you think as a business, it could be bigger

even than priceline. that says lot. >> well you have to understand, pandemics have been around since the dawn of mankind and it only takes a pandemic like this in china where the actual number of cases is is enormous to wake us up and go what do you mean, we could have 50 million cases in china. so ultimately, the size of the business is b about the size of a customer base. every human is a customer for a fast acting device that helps them save themselves and their family >> using -- jay walk er, thank you very much. good to have you back. >> thanks for having me. >> up next, the new social media xam with younger voters. what he's up to when "wepor what he's up to when "wepor lunch" comes when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology

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high protein low sugar tastes great! high protein low sugar so good! high protein low sugar mmmm, birthday cake! and try pure protein delicious protein shakes welcome back michael bloomberg is banking on memes. the presidential hopeful is paying viral instagram influencers hundreds of thousands of dollars to promote his presidential campaign. the posts are satirical and g f

goofy. nbc news reporting the candidate has spent nearly a million dollars a day on facebook for the last couple of weeks for more on his social media blitz, taylor joining us now welcome. do we know how much b michael bloomberg is spending on his instagram posts? >> they haven't reported exactly how much per post, but i would say it's more than a million dollar campaigns some of the most influential memers on the internet >> there's three examples i've seen of accounts where they've sponsored content and these accounts have 2 million followers. one of the interesting points of your story is that the creators of these instagram accounts, widely followed, created a 2020 campaign kind of club that is what these candidates are using. i mean that's a pretty sophisticated tactic by them, isn't it >> yeah, these are very sophisticated businessmen. essentially all these memers operate as independent media companies and they have

distribution much bigger than a lot of traditional companies some have over tens of millions of followers each. they did create a company called meme 2020 and contracted with the bloomberg campaign >> i learn ed a new r word toda, memers let me ask you though this is it clear that these memes and the content is paid for by mike bloomberg? i'm mike bloomberg and i support this message is it clear these are ads for him? >> yeah, so all of these ads on instagram are noted as sponsored content. a issue is that a lot of these memers post satirical and humorous content a lot of the followers thought it's funny, just a spoof they take the form of fake text messages so a lot of people weren't really sure if it was real or not even though the disclosure

is there it is printed on the meme somewhere. >> it's in the caption >> not sure i can see it there because i'm too old to look at memes clearly. >> i'm curious as well, taylor, if the audience of these influencers is going to push back if because when you raised the question earl yes, why aren't more candidates doing this it seems obvious in retrospect if they start flooding the zone on insta dwram, is it going to alienate instagram users >> if you look at trump organically, so much of his messaging is spread through these meme accounts. they're a large way that also there's been disinformation distributed. so it's been powerful. there's been a lot of organic support from the meme community from bernie sanders. so i think now you're going to see those two communities potentially clash here bloombe bloomberg's taking a more paid strategy >> my question is about the followers of these big accounts.

are they going to be like, look, it's one thing to see a genuine ad on instagram. another for the person i'm following to get this much money. i saw some of the comments saying how do you feel about selling your soul? >> well you know, this has been the ongoing debate of instagram stars and influencers posting sponsored content. i think what they're banking on is that they have enough of a moderate follow iing that it mih be a minimal to bloomberg's messaging! could you make me an influencer and houf will it cost? >> well, probably a lot more than you're willing to spend >> i'll tap into bloomberg >> thank you so much for joining us today >> thank you >> up next, i will be influencing. four stocks, two choices, one man. steve grasso the great will tell us whether to buy or sell alibaba, cisco, shake shack or

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time for a special edition of power movers. joining us now is cnbc fast money trader, steve grasso

we're going to run through a few stocks and you're going to tell us whether to buy or sell. let's begin with alibaba the e commerce giant beat top and bottom line estimates but is lower after saying it's being hurt by coronavirus. what do you think? >> so, tie lerk let's start off. this is going to be a buy for me and if i told you that alibaba with trade warhead lines, with coronavirus headlines is in eye shot of an all time high, you would say i was crazy, wasn't you? >> yes, i would. >> it is you have to use 214, that's your exit if the stock really breaks down i'm a buyer. i think there's blue skies in here >> on to cisco reporting a beat but warning b about a revenue drop what do i do with cisco? >> this is one i'm going to say sell on. if you listen to the ceo, didn't sound extremely positive believes that 5g, he's going to benefit on the back end, not the

front. you're going to see the semiconductors they'll benefit from the front end. not cisco. sell here. >> shake shack, the restaurant name set to report later this month having a solid start to the year do i want to hold the mayo, add ketchup? >> i'm long this based on a technical filling of a gap, so let me -- yeah, ear showing that chart there. go back a couple months, off the table based on the grub hub news you have about 10 to 15% up side here i'm in the name, staying long the name, you might even have 20% if you go out furthers. and r on ku set to --, out there, soaring more than 300% last year what do you think of roku? you go back in the chart, you had a high of about 176 or so, a

low of about 100, what's interesting is that the 50 day is right between those two prices, so right around 135, that's the crucial bull/bear barometer for this name. who better to benefit. you have apple coming on, all -- they're going to benefit they're going to profit share, they're going to retch share roku is a buy. >> great to see you as always, steve. >> good to see you. let's get morning on the earnings here with what to expect is jason ellstein jason, there's one thing that's been on my mind ever since they had a dispute with fog before the super bowl, which is can we count on roku to be a pure play, sort of an agnostic streaming provider or not? >> yes, and i think what's interesting is where we're having this conversation two years ago, the idea that roku could sit at the table with

a fox and negotiate something, i think would have been a surprise to people. so the company has involved itself into a streaming plats form now the question is the evolution of the business model, and how do they pay for helping programmers get distribution. >> as we understand it, the way they're placing ads is a big piece of this, but i want to stay on this for one more moment if they are going to be bogged down in negotiations with carriers going forward, how do you expect to shake out in terms of pricing roku may have a seat at the table, but do they have a lot of power? >> we'll see i mean, there's different negotiations and economics for different services we believe they are saying you are a pure free service where they're just advertising, they are saying we will only provide you distribution if you give us

a certain percent of the ads, or if you let us sell and share the revenue. however if you're a hybrid like a cbs all-access where there's a subscription and then ads, then it gets more complicated so, okay, as long as we get a cut of the subscription revenue, that suffices and we don't need the ads. given the point about the number of services coming, peacock, i think i saw some research that the arches u.s. household won't subscribe to more than four services at a time, so there will be a constant war, if something new comes, what do i drop does that publisher want to go to roku to say what can we do to offset that flywheel is just getting started now. >> and to your point, roku wants to be a tollbooth kind of operator that wants a cut of everything running through so you have $155 price target a the

stock. what do you need to see in the earnings here and on the call today? >> sure, a few metric people to focus on one is the number of users last quarter they -- 36%, we're at 33, you know, i think kind of the buy side is looking a bit higher than that, but we feed pretty good about that then really it comes down to -- there's going to be noise around streaming hours, because they made a feature, so they won't count hours you may not actually be sitting there there will be noise on that, then it's platform revenue, which is the a mall goo mayes of the different ways they get paid last quarter they had platform grosses profits. he thiel probably come in in the 50s, and then be what are the implied for next year?

i think as long as you have a business that people feel like can grow gross profit over 40% in 2020, with potentially up side in the back half, the stock can move higher. ultimately if what you say, jason, comes true and people will pay for four services, will they end up paying as much or more as they used to pay for what was called a traditional bundle on a cable system or directv? >> depending on what you had, yeah, i mean, my cable bill is still, you know almost $200, because we still have too many boxes, and then living in new york city, but, you know, on paper what's the number? it like $85? and then do you reallocate the 80 i think we have seen the skinny bundles that started at $35 were quite popular. when they got to 50, you started

seeing pushback on price, but even if you only subscribe to a certain amount, there seems to be a business around having entirely free services that are ad supported, right? you can argue, like, in a way, that is what youtube provided consumers to get totally free video, but this is with professional content it's early and consumers are still trying to find out, i don't really want to pay for it, i don't use it, but what is next >> thank goodness i work for comcast and get the friends and family thanks so much, jason. "check please" is next and don't forget you can always, and i mean always, listen to us live i mean always, listen to us live and on the go on ♪

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