May 24, 2022: -According to Martin Sorrell, founder, and chairman of media firm S4 Capital, the war in Ukraine has the potential to benefit three of America’s big tech firms.
“I’m very bullish on the tech giants as the war will impact them,” Sorrell told CNBC on Monday at the World Economic Forum.
Sorrell explained, “Defense means cyber defense and cyber offense, so technology and technology companies become important.”
Sorrell stopped short of saying how Alphabet, Meta, and Amazon could gain from this, but all three companies say their cyber security systems are world-leading.
Google and Amazon provide cloud computing infrastructure that governments and cyber companies can harness in cyber warfare.
The war in Ukraine is being fought online and offline, with hackers on each side regarding the enemy’s national infrastructure, businesses, governments, and citizens.
From the previous few weeks, major tech stocks have plummeted between concerns of persistently high inflation, increasing interest rates, and the risk of a global recession. The Nasdaq stock market declined 3.8% in the previous week, falling for a seventh straight week. It’s the lengthiest losing streak for the tech-heavy index in 21 years.
Asked if the world is facing a second dot com bubble, Sorrell said there’d been a “huge correction,” added that some people think there could be a 5-10% further correction.