. >> joining us to discuss, the rbc capitalist lead mark mahaney. inflection point 19 to 20 that does seem to be behind what has been a strong gain for the stocks this morning. >> i think two things, that statement that revenue growth could reaccelerate as they solve the monetization stories of challenge and facebook watch, they talked about a surge of video usage. secondly the other key point was investment levels will be accelerated into '19 and should alleviate into '20 so somewhere in the back half of '19 you'll have one of those revenue growth reacceleration margin expansion quarters and that's what the market is looking forward to but valuation had come down so much under the worst-case scenario, you have seven bucks in earnings next year. that's a 20 pe multiple. adjust for cash, an 18 pe multiple for this kind of global presence i think the there are no in the stock h -- the floor in the stock has just been found. >>> stand by, we have some breaking news out of washington. >> the fed is meeting to go over proposals for expanding and loosenin

mark mahaney is impressed with google and cloud offerings this is a big tech trend, benefitting rivalss and microsoft azure. scott dewitt highlights other areas for investors. alphabet's china strategy and any details on ramos ramping commercial availability. >> thank you for that, josh. >>> another big faang name expected to report, amazon they could face head winds from rising postal cost and increase in minimum wages stock up 5%. we have a preview. >> and those two things, wage and postal inflation are making investors a little nervous november 1st, the company 5% now, helping make up some of the heavy losses this month, year to date amazon is up nearly 50%. guys >> all right thank you, deandry. as we get ready for those reports, we want to note a company that reported last night, microsoft, up about 5.5% today. this reaction to me is interesting. because microsoft was one of those companies that stock-wise could never catch a break. kind of the position that ibm is in now even the good news, you find some bad news in it. in this case, there were a number of good things about the qu

mark mahaney, thank you. rbc capital markets.porate blunders we'll tell you why kleenex has to rebrand one of its products and elle magazine is apologizing for a tweet. "squawk box" will be right back. i know you want to leave me for schwab, but before you do that, you should meet our newest team member, tecky. i'm tecky. i can do it all. go ahead, ask it a question. tecky, can you offer low costs and award-winning wealth management with a satisfaction guarantee, like schwab? sorry. tecky can't do that. schwabbb! calling schwab. we don't have a satisfaction guarantee, but we do have tecky! i'm tecky. i ca... are you getting low costs and award-winning wealth management? if not, talk to schwab. ♪ ♪ protect sensitive data from millions of kinds of malware, with a cloud that's secure to the core. the ibm cloud. the cloud for smarter business. the ibm cloud. - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, p

. >> here now is rbc's lead internet analyst mark mahaney who was ranked among wall street's best techding to a 2018 research survey. we didn't need that to tell us you're one of the best, mark. >> thank you good to be here. >> nice to have you in person for a change you love netflix in your notes here, very, very, very -- three veries y verys in describing how good the quarter was -- any concerns? >> long term competition concerns you have to be worried about. i think the advantage netflix has is i think they'll kruschev the competition. they'll bury them in content spend. they're spending $13 billion on on te content. at some point there will be a $20 billion cash content spend by netflix nobody can match that and they can do it profitably because every year they're bringing in -- now we're bringing about 24 million new subs a year and that adds up in terms of the amount of revenue. margins are rising and the key thing for the cash flow folks out there is they committed to peak free cash flow burden it will be this year, '18 to '19 and then start coming down that's been the last bast

mark mahaney >>> it is not just tech that is tumbling, retail also a wreck today, led lower by ralph lauren, under armour and l brands >>> plus the political fallout from the brett kavanaugh nomination we'll take you so the site of what could be the single most important election this november all that and more when "power lunch" returns alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. ♪ ♪ ♪ ♪ what if we could turn trash into money? plastic bank is doing just that, by exchanging plastic for digital credits redeemable for everything from food to education... powered by ibm blockchain. when you understand the potential of new technology, you can put smart to work. >>> welcome back to "power." we want to take a check on the markets. the s&p 500 pretty much at session lows we're down by 1.2%, a loss of 35 points 2890 is your level dow industrials being led lower by nike and home depo

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