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A cloud computing stock is soaring more than 22%. Here’s what’s driving the rally

CNBC·Sawdah Bhaimiya·25 days ago
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The Akamai Technologies logo and lettering can be seen on the headquarters building at the company's German headquarters in Garching near Munich (Bavaria). Matthias Balk | Picture Alliance | Getty Images Akamai's stock jumped in early trading Friday after it announced a $1.8 billion deal with an AI company and posted first-quarter earnings that were in line with estimates. The stock was last up 22.3% in premarket trading, and shares are up 37% over the past 12 months. A "leading frontier model provider" has committed to $1.8 billion over seven years for cloud infrastructure services, Akamai's CEO Tom Leighton said in the press release Thursday. He did not name the provider. The American cybersecurity and cloud computing firm reported Thursday that first-quarter revenue rose 6% to over $1 billion. The company's cloud infrastructure services revenue jumped 40% to $95 million, and security revenue was up 11% to $590 million.…

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