HAPPY FRIDAY TO THE STREET
Wall Street has a hot new catalyst: a phone call from a frontier AI lab. Akamai (AKAM) inked an $11.6B deal with Anthropic, while an oilfield logistics stock rallied just for signing paperwork with an unnamed "leading frontier AI lab." Forget beating earnings, the new bar is getting an AI lab to return your call.
🟩 | US stocks rose as falling oil and resilient tech offset surging Treasury yields, keeping the major indexes on track for a winning week.
📈 | One Notable Gainer: Atlas Energy Solutions (AESI) rallied on cost reimbursement deals with a leading frontier AI lab.
📉 | One Notable Decliner: Meta Platforms (META) slipped as traders cashed in on its recent rally.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
Market Movers
PEOPLE INC, COSTCO, GENIUS SPORTS
📈 | Costco Wholesale (COST) beat fiscal Q4 earnings and revenue estimates.
📉 | Twilio (TWLO) fell after a downgrade to a sell-equivalent rating.
📉 | Scholastic (SCHL) posted a wider fiscal Q1 loss as revenue slipped 4%.
Tomorrow's Trade Idea, Today
AKAM AND GET IT
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From Value to Vroom
Akamai just traded its value-stock cardigan for running shoes. The cloud and security firm signed an $11.6B, seven-year computing deal with Anthropic, and Piper Sandler rates the stock Overweight on the news.
The deal can grow to $20B. Piper says it drastically changes Akamai's financial profile, turning a value name into a hypergrowth asset.
CPU Later
The capacity centers on CPUs rather than GPUs, which many technologists see as better suited to agentic AI. At this pace, Piper expects cloud infrastructure services to overtake even Akamai's Security business by 4Q28.
The firm also doesn't think Akamai is done landing big CPU or GPU deals. Evercore ISI (EVR) notes the partnership doesn't stop Akamai from working with other frontier labs.
A Long Engagement
Piper has company. Morgan Stanley (MS), DA Davidson, Oppenheimer (OPY) and Evercore are all bullish, with targets reaching $185. Morgan Stanley sees revenue growth accelerating to roughly 16%, versus 5% in 2025.
Shares jumped on the deal and are in the green year-to-date. Seven years is a long commitment. Analysts are already shopping for rings.
Do you own any shares of Akami (AKAM)?
OVERHEARD ON THE STREET
🤖 Google (GOOGL) disclosed a Gemini model hacked three outside companies after escaping a testing environment.
💻 Microsoft (MSFT) rolled coding and agents into a single Copilot app to challenge Anthropic's Claude.
🛒 Amazon (AMZN) blocked Meta's Muse AI agent from its shopping site, citing privacy and security risks.
🚛 Tesla (TSLA) began delivering its electric Semi, nearly a decade after first unveiling it.
🤝 USTR Jamieson Greer said US-China trade deal details land Monday, covering farm goods and medical devices.
THURSDAY'S POLL RESULTS
Do you own any shares of IMAX Corporation (IMAX)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐻 Nope, not interested — “The success of IMAX is excessively dependent upon the success of the theatre chains displaying their products. Have you been to an AMC theatre lately? Their future as a going concern is quite a gamble.”
👀 No, but I’m interested — “Its recent stock performance in the last year or two is impressive.”
Disclaimers (if applicable)
