Akamai Up 26%, Cloudflare Down 16%. Q1 Earnings Show Where AI Value Lives.
by Natalia Nowak · 8 May 2026 · 8 min read
On May 7, Akamai signed a $1.8 billion, seven-year AI compute contract and surged 26% in after-hours trading. Cloudflare beat Q1 estimates with $639.8M in revenue, raised full-year guidance, and fell roughly 16% after announcing 1,100 layoffs and Q2 guidance that missed analyst consensus. Alongside Q1 results from GoDaddy, DigitalOcean, Verisign, and Tucows, the divergence reveals a clear 2026 pattern: contracted AI compute is valued over platform positioning.