**Meta Platforms Considers Cloud Expansion Amid Earnings Miss**
Meta Platforms (NASDAQ: META) reported second-quarter revenue of $60.8 billion, up 28% year over year, but missed adjusted earnings per share expectations of $6.18, posting a 15% shortfall due to heavy infrastructure costs. CEO Mark Zuckerberg indicated significant potential in monetizing excess data center capacity, stating that the company is receiving offers for compute services at a “significant premium” to its costs.
As part of this initiative, Meta has engaged in a 1-gigawatt data center project with BlackRock in Texas, contributing to its substantial $226 billion in net property and equipment. Analysts forecast that if Meta successfully taps into the cloud services market, it could contribute tens of billions in revenue, positioning the company closely behind Google Cloud’s $99 billion in annualized revenue. The competitive landscape is challenging, as major players like Amazon and Microsoft exceed $100 billion in annualized revenue.
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