29 April 2024

Cloud, AI, and Big Data: The "winning trio" of high-tech.

The Class CNBC interview with Edoardo Narduzzi, CEO of Mashfrog Group, about the first-quarter data of Microsoft and Alphabet and the prospects of the Magnificent 7.


Awaiting the first-quarter 2024 Amazon earnings data, the world of big tech grapples with those of Microsoft and Alphabet, pondering the future of a pivotal sector crucial both for the stock market and the high-tech and related service industries.

The Magnificent Seven - Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla - on one hand, collectively represent 70% of the global market capitalization, while on the other, they are top players in the global technological evolution that is transforming every business and industry.

Interviewed by Class CNBC to comment on the data from Microsoft, Alphabet, and Tesla, the CEO of Mashfrog Group, Edoardo Narduzzi, analyzed the health status of the Mag 7, particularly focusing on the effects of their investment strategies in Cloud and Artificial Intelligence.

Intervista Narduzzi Milano Finanza

The performance of Big Tech stocks - amidst rallies and shadows - provides an important indicator not only for shareholders and the market but for the entire digital sector. Because the combined setup of Cloud and AI is profoundly transforming not only technological offerings but also B2B and B2C services and business models, with direct implications for all digital operators.

Microsoft and Alphabet have recorded revenue growth in the first quarter of the year, surpassing analysts' expectations, demonstrating "that they are doing very well with the two most important tasks in the current technology world," Narduzzi commented, "continuing to grow cloud revenues and, above all, integrating Generative AI into their B2B business models."

Awaiting Amazon's numbers, both the stock exchange and the market are effectively convinced by what Narduzzi defines as the "current trio of success: Cloud, Generative AI, and the ability to create new services through data collection and processing." However, they are more hesitant towards Meta, as it is naturally exposed to a retail segment rather than business like Alphabet and Microsoft. The judgment on Apple is pending, to see the next moves of Cupertino's house regarding AI service offering strategies based on its customer base. All this while waiting to understand how Chinese and Indian players will respond.