Amazon, Microsoft, Alphabet, and Meta Shares Rise Despite US Market Decline

Shares of major US technology companies Amazon, Microsoft, Alphabet, and Meta rose significantly, defying the drop in the general US stock market index following hawkish remarks from the Federal Reserve Chairman.

These companies drew support from strong momentum in the cloud computing and artificial intelligence sectors, continuing to report revenue growth exceeding analysts' expectations, reinforcing investors' conviction that these companies are capable of generating growing profits regardless of the direction of interest rates.

Analysts note that Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are recording growth rates ranging between 25% and 35%, while Meta achieves record revenues from its AI-enhanced ads on Instagram and Facebook platforms.

Institutional investors view these four companies as representing a "tech safe haven" amidst economic volatility, given their ability to monetize artificial intelligence investments into actual revenue faster than competitors.

What do these terms mean?

Cloud Computing: Tech services provided by companies over the internet, such as data storage and processing, instead of owning physical servers. They generate recurring revenue and grow rapidly.

AI Monetization: Converting artificial intelligence investments into actual revenue, whether through selling AI services to companies or integrating it into products that attract new users.

Institutional Investors: Investment funds, insurance companies, and pension funds that manage billions of dollars on behalf of their clients. Their decisions move markets due to the sheer size of their capital.