**Meta Platforms Plans to Enter Cloud Computing Market**
Meta Platforms (NASDAQ: META) is reportedly shifting its strategy to build a cloud business aimed at leasing excess AI computing capacity. This change marks a significant departure from CEO Mark Zuckerberg’s previous stance of using all its data capacity for internal workloads. Unlike Meta, its competitors—Alphabet, Amazon, and Microsoft—have successfully monetized their cloud units, contributing substantially to their operating profits.
If executed, Meta’s cloud initiative could create a new revenue stream to support its ongoing data center investments. Currently, Meta’s stock trades at 18.7 times forward earnings, below the S&P 500’s valuation of 21.7 times. Investors are optimistic that this strategic pivot could enhance Meta’s market value, especially ahead of its upcoming Q2 earnings call on July 29.
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