Meta (META) Stock Soars on Report of New Cloud Business Push

Meta Platforms, Inc. Class A Common Stock (NASDAQ:META) is best known for Facebook, Instagram and WhatsApp, but it is now reportedly building a business to sell cloud computing capacity and access to its own AI models, a shift that sent the stock sharply higher this week.

Shares closed at 601.23 dollars, down 2.39% on the day the pullback came after Wednesday's near 9% surge tied to reports the company is exploring monetizing its excess data center capacity. Meta's market cap stands at 1.56 trillion dollars, with a trailing P/E of 25.07 and earnings per share implied by that ratio near 23.98 dollars. The stock trades within a 52 week range of 540.18 to 683.33, well off its highs even after the recent pop, and pays a dividend yield of 0.35%.

At a Glance

• Meta is reportedly forming a unit to sell cloud computing power and AI model access, per Bloomberg.
• Shares jumped almost 9% on the report before settling; the stock closed at 601.23, down 2.39% most recently.
• Bernstein estimates Meta already controls roughly 20 gigawatts of global data center capacity, with 14GW more coming online.
• Rival neocloud names CoreWeave and Nebius fell almost 14% and 17% respectively on competitive concerns.
• CEO Mark Zuckerberg told investors in May that selling compute is