Why Big Tech Could See A Boom From Russia-Ukraine War

By on
Martin Sorrell
Martin Sorrell, Chief Executive Officer of WPP, attends the World Economic Forum (WEF) annual meeting in Davos, Switzerland, Jan. 23, 2018.

Sir Martin Sorrell, a British entrepreneur and founder of advertising and communications giant WPP, said Monday at the Davos World Economic Forum that tech companies will benefit from the war between Russia and Ukraine.

Sorrell specifically mentioned the three biggest U.S. tech companies: Amazon, Meta, and Alphabet.

The renowned businessman said that he is "very bullish on the tech giants."

The comments come as major tech companies are struggling. More recently, many have either slowed down hiring or have cut staff. Meta recently announced a slowdown in hiring. Fellow tech companies Carvana and Robinhood both announced cuts in their workforce.

Still, Amazon and Google both announced pay raises for employees recently, as has Microsoft.

Notably, Sorrell mentioned neither Microsoft nor Apple -- two of the world's largest tech companies. He also did not mention space transportation company SpaceX, which sent its satellite internet operator Starlink to Ukraine at the beginning of the war.

Sorrell acknowledges that "war will have an impact" on these tech companies but it will be a net "benefit."

"Defense means cyber defense and cyber offense, so technology and technological companies become really important," he said.

All three companies boast world-leading cyber security systems, according to CNBC. Both Amazon and Google also provide cloud computing infrastructures that governments and cyber companies use for cyber warfare.

The cyberwar between Russia and Ukraine is just as large and complex as the war on the ground. Online, the war is being fought through cyber offense and defense as well as on social media, where Russia and Ukraine, along with the West, use propaganda to advance their causes.

Meta and Google both run social media platforms, streaming services, and messaging services where most people get their information.

Industries like weapons manufacturers and gas companies also benefit from the war. Gas companies specifically came under fire recently, with a bill introduced in the House intending to crack down on their price gouging.

2022 World Economic Forum (WEF) in Davos
Ukraine's President Volodymyr Zelenskiy is seen on a screen as he delivers a video address to the delegates of the World Economic Forum (WEF) in Davos, Switzerland May 23, 2022.
Photo: Reuters / ARND WIEGMANN

Join the Discussion