Meta Teams Up with Lumen to Enhance AI Network Capacity
Meta Platforms (META) has formed a partnership with Lumen Technologies (LUMN) to significantly increase its network capacity. This collaboration is designed to strengthen Meta’s infrastructure to better meet the rising demands of its artificial intelligence (AI)-driven services.
The agreement allows Meta to utilize Lumen’s Private Connectivity Fabric (PCF), which offers improved interconnection and bandwidth flexibility. Lumen PCF is a customizable network architecture that enables companies to tailor their networks for specific needs. With access to both existing and new fiber routes between data centers, Meta aims to address the complex computing requirements of its global users.
This partnership reflects a larger trend among technology companies investing heavily in network infrastructure to support their AI endeavors. By leveraging Lumen’s expertise, Meta can direct its focus toward advancing innovative AI technologies while maintaining a stable and efficient network backbone.
Outlook for META’s Q3 Earnings Report
The announcement of Meta’s new deal comes just ahead of its third-quarter earnings report, which is set for October 30. Analysts on Wall Street anticipate that META will post earnings per share (EPS) of $5.21 and revenue of $40.18 billion. These figures represent a year-over-year growth of 18.7% and 17.7%, respectively.
Assessing the Investment Potential of Meta Stock
Recent assessments from Wall Street show that META has a Strong Buy consensus rating, consisting of 42 Buys, four Holds, and one Sell in the last three months. Currently priced at $624.12, the average price target for Meta Platforms suggests an 8.51% increase. This year, share prices have surged by approximately 63% so far.
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