Amazon's market capitalization exceeded $3 trillion for the first time, fueled by strong quarterly results and investor confidence in its AI-driven cloud business. This makes it the fifth company to reach this milestone, with its AI investments being rewarded by investors unlike some other tech giants.
Bitcoin miner IREN's shares rose 15.7% after the company increased its year-end AI cloud annualized run-rate revenue target to over $4 billion, securing $2.8 billion in new multi-year contracts with AI developers including Microsoft and Nvidia, and announcing significant capacity expansion plans.
Anthropic's $200B, 5-year deal with Google and similar AI startup-cloud provider agreements project a $2T revenue backlog for Amazon, Google, Microsoft, and Oracle by leveraging AI growth dependencies.
SAP CEO Christian Klein refuted the "SaaSpocalypse" narrative, arguing that AI agents require ERP systems like SAP as their "brain" for context. He highlighted SAP's shift to non-seat-based cloud revenue and new AI tools to support customers layering agents onto existing systems.
AI giants Anthropic and OpenAI are set to dominate future cloud revenues, reportedly accounting for half of a massive $2 trillion backlog. These companies' substantial, multi-year spending commitments, reaching hundreds of billions, are significantly shaping the financial outlook for major cloud providers like Google, Amazon, and Microsoft, highlighting a massive shift in infrastructure demand.
Atlassian shares jumped more than 28% on Friday after the software company reported fiscal third quarter earnings that exceeded Wall Street expectations, with EPS of $1.75 versus $1.32 expected and revenue of $1.79 billion versus $1.69 billion expected. Cloud revenue rose 29% year over year to $1.13 billion, while data center revenue came in at $561 million, both beating analyst estimates. CEO Mike Cannon-Brookes stated the company saw incredible strength and that concerns about AI disruption to the software sector may be overblown. The stock had been among the hardest hit by the 'SaaS-pocalypse' this year, down more than 45% year to date before the rally.
Alibaba's cloud and AI division is projected to see accelerated revenue growth in the March quarter, driven by rising token usage and recent service price increases.
