• Cloud is King: Microsoft, Google and Amazon impressive earnings can be attributed to a shift in the industry that’s annihilating the traditional hardware firms such as HP, Oracle and IBM.
  • For example, in its recent sales report, Amazon Web Services division grew 78 percent from a year ago with sales of $2.09 billion. That helped the company report a profit when analysts had predicted a loss (see chart below).
  • Microsoft, Google and Amazon impressive earnings can be attributed to a shift in the industryA similar story can be said for both Google’s and Microsoft’s revenues, which also beat analyst estimates this past week.
  • This continued trend over the past 3-5 years is highlighting the widening gulf between companies that deliver computing via server-laden warehouses and a generation of latecomers to the cloud boom.
  • Together, the three companies (Amazon, Google and Microsoft) added  $86 billion in market cap following their earnings reports on Thursday 22nd October 2015.

Source: Bloomberg