Google, Meta, Amazon profit from war in Ukraine, says Martin Sorrell

Martin Sorrell, founder and chairman of media company S4 Capital, believes the war in Ukraine has the potential to benefit three of America’s largest technology companies.

“I am very optimistic about the tech giants… because the war will have an impact on them,” Sorrell told CNBC on Monday at the World Economic Forum in Davos.

He added: “The big three – Google (or Alphabet), Meta and Amazon – will, I think, benefit from the war.”

Explaining his reasoning, Sorrell said, “Defense means cyber defense and cyber attack, so technology and technology companies are going to be really important.”

Sorrell didn’t say exactly how Alphabet, Meta and Amazon could benefit from this, but all three companies boast that their cybersecurity systems are world-leading.

Google and Amazon also provide cloud computing infrastructure that governments and cyber companies can use in cyber warfare.

Sir Martin Sorrell, Executive Chairman, S4 Capital.

Eoin Noonan Sports File | Getty Images

Google, Amazon and Meta did not immediately respond to CNBC’s request for comment.

The war in Ukraine is being fought both online and offline, with hackers on both sides targeting the enemy’s national infrastructure, businesses, governments and citizens.

In recent weeks, major tech stocks have collapsed amid concerns about continued high inflation, rising interest rates and the risk of a global recession. The Nasdaq stock market fell 3.8% last week for the seventh straight week. It is the longest losing streak for the tech-heavy index in 21 years.

When asked if the world is facing a second dotcom bubble, Sorrell said there has already been a “huge correction”, adding that some people think a 5-10% correction is still possible.

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