Meta spent a year being punished for its AI spending. Then it told investors how it would get the money back.
TL;DR
Meta’s stock rose about 6% on Friday and roughly 15% on the week, its best week since early 2024, after the company gave investors a concrete plan to monetise its AI infrastructure via Meta Compute. Wolfe Research estimates each gigawatt monetised at a ~$25bn rate could lift EPS around 20%, and options volume ran over three times its 30-day average. But Meta Compute has not sold anything yet, has never served external cloud customers, and faces three entrenched hyperscalers.
Meta has had a miserable year on the market, flat while the Nasdaq-100 climbed 18%. That changed abruptly, with the stock posting its best week since early 2024, CNBC reports.
Shares rose about 6% on Friday and roughly 15% across the week. The move was not driven by advertising, the business that actually makes Meta’s money.
It was driven by a story about compute.
What changed
The 💜 of...
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