Meta Platforms (NASDAQ:META), the social media and advertising giant behind Facebook, Instagram and WhatsApp, builds and runs its own sprawling network of AI data centers. Now it appears ready to rent that muscle out to outside customers, a shift that sent its stock climbing and rattled rivals in the cloud computing business.
Shares of Meta traded at 605.7 dollars, up 0.49% on the day, giving the company a market cap of 1.53 trillion dollars. That modest daily tick sits well below the surge that hit the stock earlier this week, when a report that Meta plans to sell AI computing power sparked its biggest single day jump since late January. The stock still trades within its 52 week range of 540.18 to 682.5 dollars, meaning it has room on both sides before testing either extreme.
| Price | 605.7 USD |
|---|---|
| Day change | +2.95 (+0.49%) |
| 52-week range | 540.18 – 682.5 |
| Market cap | $1.53T |
| P/E ratio | 25.26 |
| EPS (ttm) | 23.98 |
| Dividend yield | 0.35% |
| RSI (14) | 54.74 |
| Volume | 9,635,604 |
Meta Compute and the Push Into AI Cloud Services
According to a Bloomberg report, Meta is weighing ways to squeeze revenue out of the enormous AI infrastructure it originally built to power its own apps and ad targeting systems. The initiative, run internally under the name Meta Compute, is reportedly examining two paths. One would let outside developers tap into Meta hosted AI models, an approach similar to what Amazon offers through its Bedrock service. The other would involve leasing raw computing capacity directly, giving customers access to Meta's data centers and AI chips.
The idea traces back to comments Mark Zuckerberg made in May, when he told investors a Meta cloud computing business was, in his words, definitely on the table. He also floated the notion of monetizing spare computing capacity as AI infrastructure demand keeps climbing across the industry.
A Playbook Borrowed From SpaceX
Meta is not the first company to look at its AI infrastructure as a product rather than just a cost center. SpaceX struck a deal last month with Anthropic, giving the AI firm access to the full capacity of its Colossus 1 data center in Memphis, more than 300 megawatts of compute power. Anthropic agreed to pay roughly 1.25 billion dollars a month through May 2029, and the two companies are reportedly exploring multi gigawatt AI infrastructure projects in space. Meta's move follows a similar logic: infrastructure built at massive scale can become a revenue source once internal needs are met.
Valuation, Momentum and Yield at Meta Platforms
Meta trades at a price to earnings ratio of 25.26, based on earnings per share of about 23.98 dollars implied by that multiple against the current price. The dividend yield sits at a modest 0.35%, reflecting a company that still prioritizes reinvestment over cash returns to shareholders. The relative strength index reads 54.74, a neutral to mildly positive reading that suggests neither overbought excitement nor oversold pessimism following this week's spike.
The bull case centers on optionality. If Meta can turn its AI infrastructure spending into a second revenue stream, the market could reward the stock with a higher multiple, much as it has rewarded Amazon and Microsoft for their cloud businesses. The bear case is that Meta would be entering a crowded, capital intensive market late, competing against CoreWeave, Nebius and the hyperscalers that already have entrenched customer relationships. Shares of CoreWeave (NASDAQ:CRWV) fell 11% on the news, while Nebius (NASDAQ:NBIS) dropped nearly 14%, a sign investors see this as a genuine competitive threat rather than a minor side project.
Can Meta Turn Infrastructure Into a New Growth Engine
The open question is whether Meta can execute a pivot that Amazon and Microsoft spent years building through AWS and Azure. Meta has the chips and data centers already in place, but selling compute to outside developers requires a different kind of customer relationship than running ads. Whether this becomes a durable business line or a modest side revenue stream will likely shape how investors view the stock's valuation in coming quarters.