Alphabet, Microsoft, Amazon, and Oracle surged as AI-driven capex spending eased investor concerns over margins and cash flow.
Alphabet, Microsoft, Amazon, and Oracle collectively gained $1.857 trillion in market capitalization between July 29 and August 3, reversing earlier underperformance. Microsoft led the rally, adding $720 billion—more than Amazon—amid renewed confidence in cloud growth and AI investments.
Year-to-date, Amazon rose 23%, Alphabet 19.3%, and Microsoft erased losses to post a 0.8% gain, while Oracle narrowed its decline to 27.2%. Earlier concerns over margin compression and free cash flow had weighed on shares, particularly after Alphabet’s July 22 earnings report.
The shift follows a broader reassessment of capital expenditure as a driver of long-term growth, rather than a near-term drag. Cloud demand and AI adoption remain key catalysts for the sector’s recovery.