TLDR
- Akamai soars 27% after landing a $1.8 billion, seven-year AI cloud deal
- Cloudflare drops 16% after announcing layoffs of at least 20% of staff, blaming AI tool adoption
- Trade Desk falls 15% on weak Q1 earnings and poor revenue guidance
- CoreWeave slips 5.2% after missing earnings targets and issuing a weak Q2 outlook
- Block jumps 7.6% after beating Q1 earnings and raising its guidance
Akamai Technologies had a strong premarket session on Friday after announcing a major cloud deal. An unnamed leading AI lab agreed to pay $1.8 billion over seven years for Akamai’s cloud infrastructure services. The stock surged 27%, making it the top performer in the S&P 500 ahead of the opening bell.
Cloudflare had the opposite experience. The cybersecurity company said it would cut at least 20% of its workforce, pointing to greater use of AI tools internally. The stock fell 16% in premarket trading, even though Cloudflare had reported a first-quarter earnings beat.
Trade Desk was also under pressure. The advertising technology company posted weaker-than-expected first-quarter results and issued soft revenue guidance. Shares fell 15%, making it the worst performer in the S&P 500 before the market opened. The stock had already lost 38% for the year through Thursday’s close.
CoreWeave dropped 5.2% after missing analysts’ adjusted earnings estimates for the first quarter. The cloud computing company also gave a second-quarter outlook that came in below expectations.
Block was one of the brighter spots in premarket trading. The digital payments company beat first-quarter earnings estimates and raised its full-year guidance. Shares jumped 7.6%, giving investors some reassurance after the company carried out mass layoffs in February.
Broader Market and Macro Backdrop
US stock futures were broadly higher on Friday morning. Futures tied to the S&P 500 rose 0.4%, Nasdaq 100 futures climbed 0.6%, and Dow Jones futures added 0.3%.
Investors were keeping a close eye on rising tensions between the US and Iran. Military clashes erupted near the Strait of Hormuz overnight, pushing crude oil prices higher. US benchmark West Texas Intermediate crude rose 0.4%.
TRUMP:
“WE SHOT DOWN IRAN’S SHIPS, THEY FELL BEAUTIFULLY DOWN TO THE OCEAN LIKE A BUTTERFLY DROPPING TO IT’S GRAVE.”
didn’t know our President was a poet
looks like retaliation back and forth on the blockade but hopefully not major escalation pic.twitter.com/2j7DvJ6bug
— amit (@amitisinvesting) May 7, 2026
President Trump posted on Truth Social that US destroyers were unharmed and described the military action as limited. He added that a ceasefire agreement remains in place.
Markets were also looking ahead to the April jobs report. Economists surveyed by Bloomberg projected a median of 65,000 new nonfarm payrolls added, with the unemployment rate expected to hold at 4.3%.
Earnings Still Rolling In
Several companies were scheduled to report earnings on Friday. Toyota, Sony, and Brookfield Asset Management were among those set to release results.
Enbridge, Fluor, and TeraWulf were also on the earnings calendar for the day.
The jobs data and earnings reports were expected to shape the direction of markets heading into the weekend.
Trade Desk shares had already been under pressure for much of the year before Friday’s drop. The 15% premarket fall added to a decline of 38% recorded through Thursday’s close.
Block’s earnings beat stood out as one of the few positive stories of the morning, with the company lifting its guidance despite the difficult environment.
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