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StocksMediumUpdated×4•Originally published 7 May 2026•Updated 8 May 2026•

1 min read

Cloud and AI Stocks Rally Led by Datadog and Akamai Following Massive Deals

Key Facts

1Datadog raised its annual forecast after beating Wall Street expectations for first-quarter results.

2Shares rose 29% fueled by high demand for cloud security products and rising artificial intelligence adoption.

The cloud infrastructure and AI sectors are seeing significant momentum as Datadog raised its full-year guidance following Q1 revenue of $1.1 billion, sending its stock up 30% to $186. Adding to the sector's strength, Akamai shares surged over 25% in premarket trading after securing a massive $1.8 billion deal with a leading frontier AI model provider. This surge in enterprise spending reflects a broader trend of investment in digital security and innovation, prompting analyst Dan Ives to raise his price target for DDOG to $220. The positive sentiment extended to other cloud players like Snowflake and MongoDB, solidifying the SaaS sector's leadership in global digital transformation. These results and billion-dollar contracts highlight the capacity of tech firms to capitalize on the accelerating adoption of AI. Investors remain bullish as cloud and artificial intelligence integration becomes a primary catalyst for revenue growth.

27 days ago

Version History

1 additional source confirmed this story

Version 427 days ago

What changed: Updated the story to include Akamai's 25% stock surge following a $1.8 billion deal with a frontier AI model provider.

Version 327 days ago

What changed: The story was updated to include the broader sector rally in cloud infrastructure stocks, specifically noting gains in Snowflake and MongoDB following Datadog's strong results.

Version 227 days ago

What changed: Updated the story to include the specific 30% stock price surge and the upward revision of Wedbush's price target to $220.

Version 128 days ago

What changed: Added specific revenue figures ($1.1B vs $960M expectations), the 32% growth rate, and the new bullish buy rating from Wedbush analyst Dan Ives.