As the results start to come in for US tech stocks, it is apparent that Cloud Computing is in a tailwind and some Aussie stocks will benefit. Here is an extract from an article in todays AFR:

“According to RBC Capital Markets, the results from the US giants indicate headwinds from inflation but a strong outlook for cloud computing, which will offer a tailwind for businesses pushing into the sector.

Growth in cloud computing remains strong with annual growth rates exceeding 30 per cent for the three largest players, Amazon, Microsoft and Google.

The gains reflect a “shift towards larger, long-term cloud contracts”, and the fact many businesses remain in the early stages of the shift to the cloud, according to RBC.

This will provide a tailwind for companies including NextDC, the locally listed cloud business, and Megaport, which provides data centre connectivity services. Macquarie Telecom will also probably enjoy an uplift from the structural shift to cloud computing.”