Meta Platforms Enters Cloud Computing Amid Investor Concerns
Meta Platforms (NASDAQ: META) is reportedly planning to venture into the cloud computing market, aiming to create a business that leverages its excess computing power and AI models. This information emerged from a Bloomberg report earlier this week and has contributed to Meta’s shares dropping as much as 4% on Thursday morning, currently down 3.7% as of 10:49 a.m. ET.
Analysts at Wolfe Research suggest that while this could increase Meta’s earnings per share by 20% for every gigawatt of compute power sold, capital expenditures could rise significantly—from $160 billion to $200 billion by 2027—necessitating a capital raise to support this spending. The cloud market is projected to exceed $500 billion this year, providing Meta with a potential revenue boost.
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