7investing Lead Advisors Matthew Cochrane and Anirban Mahanti discuss the future of several cloud computing stocks.
By Anirban Mahanti and Matthew Cochrane
Digital transformation isn’t just a buzzword, it is a reality. And cloud computing is the chief protagonist of this game. Are we still in the early innings of the cloud computing journey? What impacts are the current macroeconomic headwinds having on this sector? 7investing Lead Advisors Matthew Cochrane and Anirban Mahanti consider these and other related questions in this podcast.
The Future of Cloud Computing Stocks
Cochrane and Mahanti look at the recent results from the cloud hyperscalers: Google Cloud Computing (GCP), Microsoft Azure, and Amazon Web Services (AWS). According to Mahanti, GCP’s performance was the bright spot in Alphabet‘s GOOG recently reported results. Microsoft‘s MSFT Azure and Amazon‘s AMZN AWS have experienced some softness in recent quarters. However, their growth at scale is still phenomenal. AWS remains the crown jewel of the Amazon empire in so far as generating gobs of operating income is concerned!
Diving into the Macroeconomic Environment of Cloud Computing
In the podcast, Cochrane dives into management commentary about managing the macroeconomic environment. Both companies focus on their customers’ long-term success, making these platforms sticky and incredibly powerful over the long term. In particular, Microsoft and Amazon have hinted at working with customers to optimize workloads and, thus, costs to help them through this difficult time.
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Towards the end of the podcast, Cochrane and Mahanti identify a dark horse in the race for being the fourth pillar of the hyperscale revolution. Which company is it? And does it deserve your attention? Listen/watch to discover this company’s name and learn what it is doing to tackle the big three of cloud computing.
Readers interested in this topic may want to pair the podcast with Anirban Mahanti’s quarterly cloud computing check in report. The November 2022 edition of this report is available here.