Microsoft, Google and Amazon added 🗽1 trillion dollars in market cap year-to-date, while the top 67 SaaS companies collectively lost >$140 Bn in value.
This stark contrast highlights that hyperscalers are the ones who is truly benefiting from the AI transformation. It also adds yet another reason to take cloud marketplaces seriously.
⚖️ My analysis YTD (June 3rd):
🔺 Hyperscalers Added $1Tr to its Market Cap
Market cap: $2.14T
Growth (Year-To-Date/YTD): 24.45%
Market cap increase (YTD): $420.4B
Amazon
Market cap: $1.84T
Growth: 18.10%
Market cap increase: $282.0B
Microsoft
Market cap: $3.05T
Growth: 10.84%
Market cap increase: $298.3B
The total market cap increase for Google, Amazon, and Microsoft since January 1, 2024, is a staggering $1 trillion (1000.7Bn).
🔻 Top SaaS Companies Lost >$140 Bn in Value
The best way to compare hyperscaler performance with top SaaS companies is using BVP Nasdaq Emerging Cloud Index (EMCLOUD).
It's calculated and maintained by Nasdaq and sponsored by Bessemer Venture Partners. It includes the weighted average of 67 top SaaS companies with >500M in market cap.
Among them are such iconic names in software as:
Adobe, Atlassian, Box, Cloudflare, Confluent, CrowdStrike, DigitalOcean, HubSpot, MongoDB, PayPal, Salesforce, ServiceNow, Shopify, Snowflake, Workday, Zoom, and Zscaler.
EMCLOUD
Total market cap: $1.4 trillion
Growth (YTD): -10.10%
Market cap decrease (YTD): ~$140B
📊 Still More Hyperscalers Grow: Oracle & NVIDIA
To further test the assumption that clouds are the main beneficiaries, let’s take a quick look at Oracle and NVIDIA.
Oracle, added $40 Bn to its market cap YTD.
Nvidia derived 87% of its $26 Bn revenue last quarter from “Data Center” segment. Cloud hyperscalers account for over 50% of their Data Center revenue (more on this in one of my newsletters - link in comments).
Nvidia's jump in market cap YTD is even larger outlier - as if it nearly added another Amazon to its value:
NVIDIA
Market cap: $2.80T
Growth (YTD): 136.21%
Market cap increase (YTD): $1.6T
💡 What Does It Mean for Software Businesses?
The data shows that the AI transformation significantly benefits hyperscalers. Their strategic positioning on the infrastructure layer, their partner ecosystems and their cloud marketplaces allows them to capture immense value from the AI platform shift.
As traditional SaaS companies need to keep pace, it opens questions about the need for strategic alignment with the giants driving the AI r/evolution.
As a result, nearly all companies from the EMCLOUD, including largest ecosystems, like Salesforce, ServiceNow, Shopify, Snowflake, Workday have committed to grow their sales via cloud marketplaces of Microsoft, Amazon, and Google.
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