Martin Sorrell, founder and CEO of media company S4 Capital, believes that the war in Ukraine could benefit three of the largest US technology companies.
“I’m very optimistic about the tech giants…because the war will have an impact on them,” Sorrell told CNBC at the World Economic Forum in Davos on Monday.
Explaining his reasons, Sorrell said, “Defense means cyber defense and cyber crime, so technology and technology companies become really important.”
Sorrell didn’t say exactly how Alphabet, Meta, and Amazon could benefit from this, but the three companies boast that their cybersecurity systems are world-leading.
Google and Amazon also provide cloud computing infrastructure that governments and cyber companies can harness in cyber warfare.
Sir Martin Sorrell, CEO, S4 Capital.
Owen Noonan | Math file | Getty Images
Google, Amazon and Meta did not immediately respond to CNBC’s request for comment.
The war is taking place in Ukraine both online and off, with hackers on every side targeting the enemy’s national infrastructure, businesses, governments and citizens.
Over the past few weeks, major technology stocks have fallen on fears of persistently high inflation, higher interest rates, and the risk of a global recession. The Nasdaq The stock market fell 3.8% last week, falling for the seventh consecutive week. It’s the tech-heavy index’s longest losing streak in 21 years.
Asked if the world is facing a second dot-com bubble, Sorrell said there was already a “massive correction,” adding that some people think there could be an additional 5-10% correction.
“Beer aficionado. Gamer. Alcohol fanatic. Evil food trailblazer. Avid bacon maven.”