Alphabet, Microsoft, Amazon, and Oracle Just Gained $1.9 Trillion in 3 Days. Here's Why Microsoft's Run Isn't Over.
Cloud computing giants are back in favor as investor support for artificial intelligence (AI) capital expenditures grows.
Overview
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) reported earnings on July 22. The next day, the stock closed down 7.1% in response to higher capital expenditure (capex) guidance and fears of margin compression and lower free cash flow (FCF). As of the July 23 market close, cloud computing giants Alphabet, Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Oracle (NYSE: ORCL) were all badly underperforming the major indexes year to date, with Alphabet and Amazon up a little over 1%, Microsoft down 21.1%, and Oracle down 38.4%.
A lot has changed since. As of market close on Aug. 3, Amazon is now up 23% year to date, Alphabet is up 19.3%, Microsoft has recovered all of its losses and is up 0.8%, and Oracle is clawing back with a 27.2% year-to-date decline.
Details
Here's why investor sentiment has shifted, and why Microsoft is the best cloud stock to buy in August.
Source
Originally published at www.fool.com.