Stocks and other equities moved sharply in midday trading as company-specific developments drove investor sentiment across software, energy services, media, and retail. Akamai Technologies jumped on a major long-dated cloud-related agreement, while Twilio slid after HSBC cut its rating. In publishing, Scholastic fell after reporting a wider-than-expected loss for its fiscal first quarter, even as Costco rose following results that beat analyst expectations.
Key takeaways
- Akamai Technologies shares rose after the company announced a seven-year agreement and a large deal with Anthropic, with the transaction also including a warrant tied to equity ownership.
- Twilio fell after HSBC downgraded the stock to a sell-equivalent stance, citing negative risk-reward following a recent rally.
- Scholastic dropped as the children’s book publisher reported an adjusted loss for its fiscal first quarter and revenue declined year over year.
- Costco advanced after reporting fiscal fourth-quarter results that topped expectations.
- JPMorgan initiated coverage of Genius Sports with an overweight rating, supporting a strong gain for the sports data and technology provider.
What drove the biggest stock moves
Akamai Technologies was among the strongest performers. The company gained about 5% after announcing a seven-year contract and an $11.6 billion deal with Anthropic. Akamai also issued a warrant giving Anthropic the right to buy roughly 5% of Akamai’s shares at an exercise price of $111.33 each. For investors, the combination of long-duration revenue visibility and an equity participation component appeared to underpin the positive reaction.
Atlas Energy Solutions surged sharply, rising about 17% after the company said two subsidiaries executed separate cost reimbursement agreements with a “leading frontier AI lab.” The move suggests investors focused on incremental economics tied to the agreements rather than broader commodity-driven factors.
Genius Sports jumped roughly 13% after JPMorgan initiated coverage with an overweight rating. The bank highlighted a “scarce combo” of diversified above-market growth, strong execution, improving profitability and free cash flow, and an attractive valuation, framing the stock as a relative winner within its sector.
Twilio slid about 6% after HSBC cut its rating to a sell-equivalent. HSBC said it continues to value Twilio’s “AI optionality,” but argued the post-rally setup has “negative risk reward.” The bank also suggested the stock appears expensive versus “better quality alternatives,” including Microsoft and Salesforce, pointing to valuation and competitive positioning as the key issues.
People Inc rose around 10% after a report by The Wall Street Journal, citing people familiar with the matter, said MGM Resorts is weighing a bid to purchase the publishing company. The news came after People Inc withdrew a proposal to buy MGM Resorts. MGM shares were last down about 2% on the day, implying traders were reevaluating the two-way deal dynamics.
Scholastic fell about 9% after posting an adjusted loss of $3.63 per share for its fiscal first quarter, worse than the $2.52 per share loss in the year-ago period. Revenue of $216.8 million was down 4% from the prior year. Investors typically scrutinize both profitability and top-line traction in publishing, and the year-over-year revenue decline added to the pressure.
Costco Wholesale rose about 2.7% after reporting results that beat expectations. Costco earned an adjusted $6.60 per share on revenue of $95.72 billion, compared with analysts’ expectations of $6.53 per share on revenue of $94.86 billion, according to a survey by LSEG.
Microsoft increased about 3% after rolling out a refreshed Copilot app aimed at competing for enterprise customers and challenging Anthropic’s Claude. The move reflected continued investor focus on how AI productivity tools are packaged and monetized in business settings.
Meta Platforms dropped more than 3% as traders took profits following a recent run. The stock was on track for about a 12% weekly gain driven by consumer interest in its AI product Muse, and the midday decline pointed to traders reassessing near-term momentum after strong prior performance.
Market reaction: earnings beat versus valuation and downgrade pressure
The midday tape underscored how divergent catalysts can drive stock performance within a short window. Costco’s upward move was tied to a straightforward earnings surprise, with results coming in ahead of estimates on both profit and revenue.
By contrast, Twilio’s decline appeared driven less by operational metrics in the moment and more by how a broker reassessed the stock’s setup. HSBC’s sell-equivalent downgrade framed the risk-reward balance as unfavorable after the rally, and the comparison to larger, “better quality” alternatives suggested investors may be weighing competitive positioning and valuation more heavily.
Scholastic’s slide was rooted in weaker reported performance, with an adjusted loss and declining revenue. That type of fundamental disappointment tends to attract immediate sell-side scrutiny, especially when quarterly results show deterioration relative to the year-ago period.
What to watch next
Investors are likely to track follow-through from the deal-driven winners—particularly Akamai’s long-term contract framework and the warrant structure tied to Anthropic’s equity participation. On the lagging side, attention will remain on Twilio as investors weigh whether the negative risk-reward view reflects a durable valuation concern or a temporary sentiment shift after recent strength. For earnings-sensitive names, the next quarterly updates for Scholastic and Costco will be key to confirming whether the current moves reflect one-off dynamics or a broader trend in profitability and demand.
