Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
There’s a negative pull from tech stocks this Thursday. Microsoft exceeded targets but the company’s outlook left something to be desired. Meta beat sales and profit forecasts. Investors, however, are unhappy with the tens of billions of dollars the company is planning to spend on AI. In economic news, inflation continued to moderate in October. The PCE Index, which is the Federal Reserve’s preferred measure of inflation, rose 2.1 percent from a year ago.
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In other headlines, $20 decillion…or $20 billion trillion trillion – if that number is hard for you to even imagine – envision 2 with 34 zeros following That’s the enormous fine Russia is hitting Google with for blocking pro-Russian YouTube channels. To put that in context, that number is more than the value of the entire global economy.
The two sides are locked in a fight after Google blocked Russian YouTube channels back in 2022 after the invasion of Ukraine. Russia seized control of bank accounts for Google’s Russian subsidiary, forcing it to file for bankruptcy. Google services are still running in Russia but at a severely limited capacity.
As for the eye-popping fine, a Kremlin spokesperson said the number is “filled with symbolism.” Indeed it is. Google’s parent Alphabet is only worth just over $2 trillion. Google has downplayed the Russian threat. The company recently told investors – as for earnings, “We do not believe these ongoing legal matters will have a material adverse effect.”
While the Russian fine may be considered a bit of a joke, Google’s legal troubles are far from a laughing matter. Google lost a bid in October to get a $2.7 billion EU fine thrown out. And it is still facing at least two more multi-billion EU fines. Meanwhile, It’s facing a anti-trust investigation by the Department of Justice, which threatens to break Google’s dominance of the search market.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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