US tech giants Amazon, Google and Meta could profit from war in Ukraine, says Davos World Economic Forum speaker |

Martin Sorrell of S4 Capital believes the war in Ukraine could help US companies offering technology services, including cyber defense.

The war in Ukraine could benefit the US tech space, with industry leaders Google, Meta and Amazon being the main beneficiaries. Speaking at a press conference at the World Economic Forum in Davos on Monday, the founder and chairman of media company S4 Capital, Martin Sorrell, said:

“I’m very optimistic about the tech giants…because the war will have an impact on them. The big three – Google, Meta and Amazon – will, I think, benefit from the war.”

Sorrell’s comments come against the backdrop of a recent tumble in tech prices in recent weeks. Although the reason for the decline is pervasive global recession fears, Sorrell explained his thoughts by saying:

“Defense means cyber defense and cyber attack, so technology and technology companies are becoming really important.”

As things stand, the war in Ukraine appears to be both physical and virtual in nature. Indeed, hackers on both sides of the Eastern European border have attacked national infrastructure on the other.

Although Martin Sorrell declined to say exactly how the war in Ukraine is benefiting US tech stocks, Amazon, Google and Meta all claim to have top-notch cybersecurity systems. Additionally, the trio also has a cloud computing infrastructure that governments and entities can leverage for cyber warfare.

Besides the war in Ukraine, US tech stocks face a big challenge from inflationary threats.

The US Federal Reserve recently hiked rates to stem the ongoing threat of inflation. Rising rates have sparked talk of a global recession as prices for goods and services continue to soar.

On the equities side, the three main indexes have also retreated in recent weeks. For example, the tech-heavy Nasdaq Composite fell 3.8% last week, its seventh consecutive weekly decline. This bleak development represents the longest losing streak for the Nasdaq in 21 years. As of May 10, tech stocks had lost more than $1 trillion in value since the Federal Reserve began raising interest rates.

Elsewhere, the Dow Jones Industrial Average (DJIA) recorded its worst daily performance in nearly two years in early May. The flagship index tumbled 1,063 points, or 3.12%, alongside the Nasdaq which also fell 4.99% on the day to close at its lowest level since November 2020. In addition, the S&P 500 didn’t do much better on the same day, retracing 3.56% to 4,146.87. It marked his second worst day of the year.

The cryptocurrency market has also been hit hard by impending inflation and the accompanying rise in interest rates. Since a lackluster start to the year, bitcoin and other cryptos have seen a series of price ups and downs. BTC, which is currently trading at just over $30,000, rebounded earlier this month to hit $38,908 ahead of a key Fed meeting. However, since then, the crypto major has been on a downward trajectory.

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