Introduction

Jim Cramer's rare praise for a stock during Mad Money's lightning round sparked immediate interest among investors. When he labeled Akamai Technologies a terrific buy, attention turned to the 28-year-old company at the center of the call. The endorsement underscores a major transformation underway at Akamai, as it moves beyond its origins in website acceleration toward higher-margin cybersecurity and cloud services.

What Happened

During the lightning round on CNBC's Mad Money, Cramer gave a firm endorsement to Akamai (AKAM), calling the stock terrific, as reported by CNBC. The company, founded in 1998, originally built its reputation on a content delivery network designed to speed up website loading times. However, co-founder and CEO Tom Leighton has spent the last decade steering the business toward cybersecurity and cloud infrastructure, areas now driving the majority of its growth. This strategic shift is precisely why Cramer's call carries weight with retail investors.

Why This Matters

Akamai's evolution reflects a broader trend in tech, where legacy infrastructure players are converging into security and AI-enabled services. The company's security segment now stands as its largest business, surpassing traditional content delivery. Additionally, Akamai has secured over $2.8 billion in multi-year cloud deals in 2026, including a $1.8 billion seven-year contract with Anthropic and a $600 million four-year agreement with a U.S. robotics firm. These deals provide years of visible AI revenue and signal that the company's newer segments are gaining serious traction with enterprise customers.

Key Takeaways

  • Revenue growth: Akamai reported $1.1 billion in Q2 revenue, up 5% year-over-year, driven by double-digit security gains and a 39% surge in cloud infrastructure.
  • Earnings pressure: Adjusted EPS declined 8% to $1.59, reflecting heavy AI spending and elevated capital expenditure.
  • Deal momentum: The company secured over $2.8 billion in multi-year cloud contracts in 2026, including a $1.8 billion deal with Anthropic and a $600 million agreement with a U.S. robotics firm.
  • Valuation and outlook: Shares trade near 40x earnings, up 30% year-to-date, with Citi setting a $122 price target and noting that near-term profit margins remain under pressure from expansion costs.

Conclusion

Cramer's endorsement brings fresh spotlight to Akamai, but the bull case hinges on whether the security and AI businesses can outpace the decline of the legacy delivery segment. The company's multi-year cloud deals offer meaningful revenue visibility, yet heavy capital expenditure and a full valuation demand patience from investors. For those tracking the intersection of edge computing, cybersecurity, and AI, Akamai represents a pivotal watchpoint in the coming quarters.