Anthropic Signs $1.8B Computing Deal with Akamai
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy AKAM?
Anthropic has inked a $1.8B computing agreement with Akamai Technologies in an effort to meet increasing demand for its AI software, Bloomberg's Rachel Metz reports, citing people familiar with the matter. Akamai had said this week that it reached a seven-year cloud computing deal with a "leading frontier model provider," but did not name the company in the deal, the author notes.
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Analyst Views on AKAM
Wall Street analysts forecast AKAM stock price to fall
11 Analyst Rating
6 Buy
5 Hold
0 Sell
Moderate Buy
Current: 116.690
Low
89.00
Averages
103.73
High
115.00
Current: 116.690
Low
89.00
Averages
103.73
High
115.00
About AKAM
Akamai Technologies, Inc. is a cybersecurity and cloud computing company. The Company develops and provides solutions for global enterprises to build, secure and accelerate their applications and digital experiences. Akamai Connected Cloud, the Company's platform, is comprised of an edge and cloud architecture and underlying network for cloud computing, security and content delivery services. Its cloud computing services include compute, storage, networking, database and container management services that are required to build, deploy and secure applications and workloads. Its security solutions are designed to keep infrastructure, websites, applications, application programming interfaces and users safe from a multitude of cyberattacks and online threats while improving performance. Its content delivery solutions consist of Web and mobile performance focused solutions and media delivery solutions. It also specializes in serverless WebAssembly function-as-a-service (FaaS) technology.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Financial Recovery: Rackspace reported a 2% increase in first-quarter revenue to $678 million, achieving a net income of about $8 million, marking a return to profitability; while private cloud revenue declined to $235 million, public cloud revenue grew to $443 million, showcasing potential for business restructuring.
- Future Outlook: Although the agreement with AMD is still a framework rather than a confirmed revenue contract, it provides Rackspace with a more targeted AI offering, particularly for regulated industries like healthcare and finance, which is expected to drive sustained revenue growth in the future.
See More
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- Volume Spike: The company's trading volume reached 150.9 million shares, approximately 389% above the three-month average of 30.6 million shares, reflecting heightened investor interest and positive market sentiment regarding the new collaboration.
- Financial Recovery: First-quarter revenue increased by 2% to $678 million, with a net income of about $8 million, marking a return to profitability; despite a decline in private cloud revenue to $235 million, public cloud revenue grew to $443 million, indicating a shift in business dynamics.
- Strategic Partnership Outlook: The collaboration with AMD provides Rackspace with a more targeted AI offering, and although it remains a framework agreement, the demand for infrastructure that meets security and compliance requirements in regulated sectors like healthcare and finance is expected to drive future revenue growth.
See More
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- Tech Stock Recovery: Late Friday afternoon, tech stocks showed an overall increase, reflecting a gradual restoration of market confidence in the tech sector, likely driven by optimistic investor expectations for future growth.
- Improved Market Sentiment: The rise in tech stocks has led to improved investor sentiment, indicating a strengthened confidence in economic recovery, which may attract more capital into the tech sector.
- Investor Focus Shift: The uptick in tech stocks has drawn investor attention, particularly in the current economic climate where the tech sector is viewed as a primary growth driver, potentially influencing future investment decisions.
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