Akamai Surges on $12 Billion Anthropic AI Computing Deal | Closing Bell

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Original language: English

Original video: Akamai Surges on $12 Billion Anthropic AI Computing Deal | Closing Bell · Channel: Bloomberg Television · 10:02 · Watch on YouTube

Topics: AI infrastructure and hardware, Markets and economy

Summary

U.S. equities ended a third consecutive soft session as rising Treasury yields, elevated oil prices, and inflation concerns weighed on sentiment. The Dow fell, while the S&P 500 and Nasdaq finished little changed; energy outperformed as several cyclical sectors declined. The hosts reviewed notable stock movers, including Everpure, Oracle, GoDaddy, and MGM Resorts. In after-hours trading, Akamai shares jumped after news of a $12 billion Anthropic AI-computing deal, while the program later turned to lighter stories about medical scrubs and Pepsi pricing.

Key points

The Dow closed down about 160 points, while the S&P 500 and Nasdaq were roughly unchanged.
The ten-year Treasury yield rose about eight basis points; oil prices were elevated, with WTI near $95 and Brent near $107 a barrel.
Materials, industrials, and consumer discretionary stocks weighed on the market, while energy outperformed.
Everpure rose about 11% after forecasting 2028 revenue above the average analyst estimate; its shares were up more than 90% year to date.
GoDaddy shares rose after a Financial Times report that Gen Digital had made an offer, though talks were described as early and may not lead to a deal.
Oracle fell about 3.5% after issuing a force majeure notice related to a New Mexico data-center project and power commitments.
MGM Resorts fell 11% after People Inc. dropped plans to acquire the rest of the casino company.
Akamai rose about 14% after hours following news of a $12 billion Anthropic deal for AI computing.
The hosts also discussed FIGS supplying medical scrubs for the TV show The Pitt and Pepsi raising prices after earlier cuts did not materially increase sales volume.

Chapters

Start	Chapter	Summary
00:00	Market close and macro backdrop	The hosts review the soft session in U.S. equities and discuss the relationship between oil prices, inflation concerns, and Treasury yields.
02:07	Sector performance and stock gainers	They describe broad market breadth and sector moves before highlighting Everpure, GoDaddy, and Nebius.
04:48	Decliners, Akamai, and Treasury yields	The discussion covers Oracle, Gen Digital, and MGM Resorts declines, Akamai’s after-hours jump on the Anthropic deal, and rising yields.
07:21	FIGS, The Pitt, and Pepsi pricing	The hosts shift to FIGS medical scrubs and the show The Pitt, then discuss Pepsi’s decision to raise prices again.

Quotes

for every $1 per barrel increase in oil prices, the ten year Treasury yield has risen by roughly 1.38 basis points. — 01:01

The data storage company forecast revenue for 2028 that exceeded the average analyst estimate. — 03:12

We didn’t feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private. — 05:50

Anthropic striking a $12 billion deal with Akamai for AI computing. — 06:20

after cutting price, it didn’t really actually materially increase a volume sales much. — 08:58

Concepts and entities

Akamai, Anthropic, Oracle, Blue Owl Capital, Treasury, Everpure, Nebius Group, Barry Diller

Full transcript (original language)

00:00 And right now we are two minutes away from the end of the trading day. Romaine Bostick here with Sally Bakewell taking you through to that closing bell. It’s a global simulcast. There’s Carol Massar, there’s Tim. Welcome to our audiences across all of our Bloomberg platforms, television and radio. Our partnership with YouTube. A third straight day of softness in U.S. equity markets. Carol, as I think everyone, including equity investors and everyone in between, is probably a little bit more focused on the bond market. Yeah, absolutely. I mean, this is something that we’ve been talking about a lot. We did have an auction today that went a

00:30 little bit better than the five year yesterday. But having said that, whether it’s higher energy prices, concerns about inflation, I think the expectation is we are going to see more of a, uh, fed, you know, interest rate cycle to the upside, how long it goes on. And, you know, we’re definitely seeing it play out in the bond market. We just had a fascinating conversation with Marian Bartels over at sanctuary. And she touched on this exact thing. She ran this regression that talked about the relationship between the ten year Treasury Sally and oil prices.

01:01 and she said that for every $1 per barrel increase in oil prices, the ten year Treasury yield has risen by roughly 1.38 basis points. So a really a direct relationship between the two at least of late. It’s also interesting to see how materials have sold off today, as the U.S. and China just agreed to extend that trade truce, which the market is reading, is good news for diplomacy, but may be bad news for anyone betting on American rare earth independence, because investors may see this as a potential increase in access to Chinese supply and hence lower prices. The yield higher on the day.

01:34 So too is the dollar. Oil price is also elevated with WTI at 95 bucks a barrel, Brent crude up 4% on the day to 107 bucks a barrel. And equities basically treading water trying to stay above the line. The Dow Jones Industrial Average is going to close below that line on the day, down roughly about 160 points, or about 3/10 of a percent. We’re going to call it the S&P on change. It takes a while for these numbers to settle. But right now it’s sitting at 7704. That’s down about two points, though less than a 10th of a percent lower. The Nasdaq Composite also unchanged on

02:07 the day, adding about three points. Similar story for the Nasdaq 100. The Russell 2000 down about a 10th of a percent. All right so back to the S&P 500 I go. Definitely signs of a risk off trade today. As we said the focus has really been on what’s going on in the Treasury trade. But so investors 328 names Sally in the S&P 500 lower today 174 to the upside one unchanged. We see if we look at the map we see three cyclical or growth sectors IT

02:38 materials industrials and consumer discretionary a dragging the index down somewhat today, which is consistent with concerns about rising rates or a potential growth scare. And of course, Oracle fell some 4% after Bloomberg reported about its fourth measure notice. Energy is a clear out performer, driven of course, probably by oil prices moving higher. All right. So let’s get to some of the individual gainers if I may. This is the number one gainer in the S&P 500 on this Thursday. We’re talking about ever pure. A ticker is P and the stock is uh was at

03:12 its high almost up 20% intraday finishing the day with a gain of about 11%. The data storage company forecast revenue for 2028 that exceeded the average analyst estimate. Analysts like what the company had to say at Citi, raising its price target to 160 from 130 a share b of raising its price target to 180 from 150 a share, the stock closing just below 122 a share. So there’s some room to the upside. Stock is up more than 90% year to date. Remember this name joined the S&P 500 just on Monday.

03:43 So we’ve seen quite a bounce I think it’s up about 24% give or take a little bit for the week. Overall. We’ve got one more day to go. All right. Let’s go on over to GoDaddy ticker GD, y Gen Digital. It’s the company that makes Norton 360 antivirus software. It’s made an offer for GoDaddy, uh, in a deal that would roll up a number of major legacy software brands. This is according to a report by the Financial Times. Do you saw GoDaddy shares move up about 4.6%? After going on to say that these talks are in early stages may not lead to a deal, citing people familiar with the

04:16 matter who didn’t name who those folks are. But nonetheless, we did see some movement in this name. And then I just want to throw one more, uh, number one gainer in the, uh, Nasdaq 100 nebulous Group. It’s an AI cloud firm. Uh, you know, a Nio cloud. It’s been building out data centers to meet demand for AI. It was raised to outperform by BNP Paribas. Price target, uh, up to 3.99 a share from 260. Stock closing uh, at 243. And change stock is up almost 200% year to date. So we know this area has been on quite a tear.

04:48 All right. That’s a look at the gainers. Okay. Well let’s talk about some of the decliners. Sally mentioned this one. It’s an important one to get to. It’s this is like the most read story on the Bloomberg. It’s about Oracle’s finishing down 3.5%. The company sent that notice citing force majeure to the project developer, a unit of Blue Owl Capital, regarding a massive data center being built in New Mexico, an event tied to meeting power commitments could result in a delay on rent for Oracle, but the company would still have to pay other costs and know the rent for the full term once payments began. Shares of Blue Owl also fell today, and Carol mentioned, uh, Jen Digital and

05:19 GoDaddy. Well, GoDaddy may be higher, but Jen Digital took a hit on that news down more than 12%. Again, the company that makes Norton 360 antivirus, making that offer for GoDaddy, and a deal that would roll up a number of major legacy software brands. This according to the Financial Times. The deal might not happen, but as we often see in these announced deals or the reported deals, the acquiring company takes a bit of a hit. Share shares down, uh, today by 12%. Uh, and speaking of, uh, some M&A or maybe not some M&A.

05:50 MGM resorts shares fallen today by 11%. Uh, this after a People Inc.. Barry Diller’s People, Inc. dropped plans to acquire the rest of the casino giant. Uh, here’s what Barry Diller said. We didn’t feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private. At this time, MGM resorts down 11% today. One other mover and this is in the after hours trade, not the cash trade. It’s Akamai, up about 13%. The redhead crossing the Bloomberg terminal. Anthropic striking a $12 billion deal

06:20 with Akamai for AI computing. Akamai also talking about some of its longer term CapEx plans as well. We’ll get you some more details on that. But that right now is the biggest mover in the after hours trade, now up about 14%. I do want to go back to yields, because we actually did see the selling in treasuries intensify as we got closer to those closing bells. That included on your benchmark ten year, which is now closing out the day up by eight basis points. Similar story for the 30 year yield up about eight basis points.

06:51 I just want to point out that ten year yield right now, if we get another day like this tomorrow, this is setting up for what is now going to be the biggest, a weekly gain in yields that we’ve seen. Uh, or the second biggest, I should say, uh, all year long really only rivaling not that big pop that we saw, uh, back in mid-May. Every time I look at those boards to see if those 5% numbers are above 5%, it’s kind of still a bit shocking because we haven’t been there for a while. All right, let’s get to some stories that are on our radar. Some fun ones. This has to do with tens of thousands of fans.

07:21 Uh, products from figs are trying to get their hands on the newest release of medical scrubs. You know, medical scrubs. Yes. They create all those medical scrubs, and apparently they’ve been selling, um, they’re functional. You know, it’s people in the medical community use it, but they’ve been doing it for over a decade, and they’ve posted, I think it’s five straight years of growth. Are they just selling to folks in the medical community or. Yeah, anyone who has a doctor. They’ve. Yeah, both. Yes and yes. Okay. Um, yeah, I, I, I don’t know. Have you guys seen the pit?

07:52 Yeah, I heard about it I, I can I love the first iteration when it was called. Er yeah. Hey shout out to Noah Wiley. Yeah. Who’s awesome. That guy can’t wait for his next act. Um. Oh my God, it’s so good. Don’t don’t hate on them. I’m not going to hate on it. Here’s I, here’s something. Oh, hey. Come on, give me. Breathe life into me. Um. I can’t watch shows like this. Why not? I don’t like the hospital setting at all. So we watched the first few minutes of this. Like when the first season came out. Yeah. And, um, I was like, I said to my wife, you’re gonna have to watch this without me. So.

08:23 Yeah, yeah, I can’t I can’t watch shows like this. A little bit too realistic for you yet. Too scary. I’m sorry. Oh my God, Sally, come on, let’s save this. Let’s save it. Anyway, they do supply, um, some stuff, I think, to the first week for Sally. She’s here. Yeah. Let’s get this back on track. My question was going to be exactly that. Do they use the figs in in this in the pits. The show’s costume department did the outreach and placed orders for the cast. According to a spokesperson for figs. The company even produced a custom tuxedo for the show’s producer and lead actor, Noah Wiley, to wear to the 2025 Emmy Awards, where he won them this.

08:58 Naturally, I miss this story, so thanks for catching me up. One story I know from one story that I saw and that’s been kind of, uh, been burning up the term all day is on Pepsi, which is actually raising prices. And, um, if you remember, like a few months ago, we were talking about Pepsi actually lowering prices because it actually made some mistakes in holding the line. But I actually found that apparently after cutting price, it didn’t really actually materially increase a volume sales much. So now it’s just like, well, hey, we might as well just raise them back again and try our luck with that. Thanks, Pepsi. Maybe there’s something else that that they should that they should try. What’s that?

09:28 I don’t know. If if lower prices would fix. Maybe changing the product lineup I don’t know. Yeah, I’m just here talking about it. I’m not making. Can they do can I get like, you know, just like, normally to hold up, you know, a Pepsi and, you know, I did you buy a Pepsi. Did you get some scrubs? Yeah. I don’t know if you guys know this, but, um, Noah Wiley and I went to the same high school. You’ve told us that story several times. You went to a fancy high school, right? Well, we weren’t the same year. Oh, and and look at you now. Yeah. I don’t think he knows who I am, but. Okay. Well, because now, as he reached out for you to do a catch, you know, he’s, he’s

10:02 on the list of notable alumni, like romaine. Romaine. That was still just like Rome in the crypto show. We’ll get you there.