$1.857 Trillion Market Cap Gain for Cloud Computing Giants in Three Sessions

The cloud computing giants Alphabet, Microsoft, Amazon, and Oracle have collectively gained $1.857 trillion in market cap over three sessions from July 29 to August 3.

This gain is staggering, with each company experiencing significant growth: Alphabet's market cap rose by 10.9%, Microsoft's by 24.8%, Amazon's by 25.3%, and Oracle's by 20.4%.

The sector's recent earnings reports alleviated investors' concerns about cloud demand and AI spending, particularly after Amazon's report showed its cloud business model is profitable in the long term despite initial upfront costs.

Microsoft stands out as a well-rounded cash cow with excellent growth, high gross margins of 67%, and a 45% operating margin. It has also provided upbeat guidance for fiscal year 2027, expecting double-digit revenue and operating income growth.