Alphabet, Amazon, Meta and Microsoft all beat earnings expectations, as they reported on Wednesday, but Alphabet stood out, with its shares jumping 7% in extended trading on strong cloud growth.
Four of the biggest tech companies in the world, Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Microsoft Corporation, all reported strong quarterly results on Wednesday, driven by rapid growth in artificial intelligence and cloud computing.
Growth in AI and digital services is becoming a key driver of the world economy, amid growing concerns that broader growth could slow, partly due to rising energy costs linked to the Iran war.
The digital economy — including advertising, cloud computing and online retail — now accounts for about 15% of global GDP, or roughly $16 trillion (€14.7 trillion), according to the World Bank.
The four companies’ first-quarter earnings all beat expectations, giving investors a clearer picture of AI spending and cloud growth across the industry.
Alphabet’s profit rose 81% as Google’s AI investments lifted revenue and pushed its market value towards $4.5tr(€4.14tr). Amazon saw strong demand for its cloud services, while Meta beat forecasts but raised spending plans, unsettling investors. Microsoft also reported better-than-expected results.
Together, the figures highlight both the benefits and rising costs of the tech industry’s race to lead in AI.
