OGIG's 10.7% August rides a cloud-AI earnings wave

ETF Trends reports, citing ETF Database, that the ALPS O’Shares Global Internet Giants ETF (OGIG) gained 10.7% in August, and the advance did not come from breadth. Cloud software and AI names that make up roughly half the portfolio posted a string of earnings beats, and the fund’s 53% technology weighting returned 18.7% on the month, VettaFi data show. The technology sleeve alone accounted for 9.27 percentage points of the gain; the rest of the book contributed 1.43 points.

Palantir Technologies was the fund’s largest single contributor, rising 51.5% and adding 1.82 points after second-quarter revenue grew 93% year over year to $1.94 billion, with U.S. commercial revenue up 149% to $764 million, according to CNBC. Atlassian turned in OGIG’s best individual return, jumping 92.2% and contributing 1.19 points. The stock surged as much as 30% in premarket trading in early August, Barron’s reported, after fiscal fourth-quarter revenue hit $1.77 billion, up 28%, while cloud revenue growth accelerated to 31%.

Outside the technology sector, Veeva Systems rose 40.2% as the fund’s only healthcare holding, adding 0.42 points on fiscal second-quarter revenue of $928 million, up 18%, and net income that climbed 37% to $273.4 million, the company said in its earnings release. Four other cloud holdings — Shopify, ServiceNow, Oracle, and Microsoft — combined for more than two points, their August gains running 25.8%, 33.1%, 14.8%, and 9.4%.

The index’s laggards were concentrated too: media and communications stocks slipped 1.20% as a group, led lower by Chinese internet names, with Kuaishou dropping 23.1%, Meituan falling 14.7%, and Tencent Music losing 12.5%. Airbnb rose 20.9% and DoorDash gained 18.1%, but the declines offset those gains; OGIGXT, the fund’s underlying index, gained just under 10% in August.

OGIG is less a diversified global internet basket than a weighted position in the cloud/AI earnings calendar: when a handful of enterprise software companies accelerate, the index compounds it, and when the Chinese media names stumble, the same concentration shows up on the other side. The 10.7% monthly gain is the bullish case for that setup, and the next quarter’s reports will supply the stress test.