Google is being hit with an unfathomable fine from Russia

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why Google is facing an absurd fine.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange, here's what we're watching

00:03on the street today.

00:05There's a negative pull from tech stocks this Thursday.

00:08Microsoft exceeded targets, but the company's outlook left something to be desired.

00:13Meta beat sales and profit forecasts.

00:15Investors, however, are unhappy with the tens of billions of dollars the company is planning

00:20to spend on AI.

00:22In economic news, the inflation numbers continue to moderate in October.

00:26The PCE index, which is the Federal Reserve's preferred measure of inflation, rose 2.1 percent

00:32from a year ago.

00:34In other headlines, $20 decillion or $20 billion trillion, if that number is hard for you to

00:42even imagine, envisioned two with 34 zeros following.

00:46That's the enormous fine Russia is hitting Google with for blocking pro-Russian YouTube

00:51channels.

00:52To put that in context, that number is more than the value of the entire global economy.

00:59The two sides are locked in a fight after Google blocked Russian YouTube channels back

01:03in 2022 after the invasion of Ukraine.

01:07Russia seized control of bank accounts for Google's Russian subsidiary, forcing it to

01:11file for bankruptcy.

01:13Google services are still running in Russia, but at a severely limited capacity.

01:18As for the eye-popping fine, a Kremlin spokesperson said the number "...is filled with symbolism."

01:24Indeed, it is.

01:26Google's parent alphabet is only worth just over $2 trillion.

01:30Google has downplayed the Russian threat, the company recently told investors.

01:35As for earnings, "...we do not believe these ongoing legal matters will have a material

01:40adverse effect."

01:42While the Russian fine may be considered a bit of a joke, Google's legal troubles are

01:46far from a laughing matter.

01:48Google lost a bid in October to get a $2.7 billion EU fine thrown out, and it is still

01:53facing at least two more multi-billion EU fines.

01:57Meanwhile, it is facing an antitrust investigation by the Department of Justice, which threatens

02:03to break Google's dominance of the search market.

02:07That will do it for your daily briefing.

02:08From the New York Stock Exchange, I'm Conway Gittins with the Street.