Cloud Giants' Meteoric Rise: $1.857 Trillion Added in Just Three Days

Alphabet, Microsoft, Amazon, and Oracle witnessed a massive surge in market value between July 29 and August 3, gaining a combined $1.857 trillion. This unprecedented growth was largely driven by Microsoft's addition of $720 billion to its market cap.

The four cloud computing giants had been underperforming the major indexes year-to-date, but their recent performance has reversed this trend. Amazon is now up 23% year-to-date, Alphabet is up 19.3%, and Oracle is clawing back with a 27.2% decline.

Investor sentiment shifted after Amazon's earnings report provided details on the profitability of its cloud business model. The company's results showed that initial upfront costs are well worth it, given the long useful life of data centers and cost savings from custom AI chips and networking.