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Analysts are bullish on Meta’s reported cloud business
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Outperform, $835: Mizuho said Meta’s compute business adds “margin of safety” to mid-term EPS, adding that investors continue to struggle to see a credible path to AI monetization at Meta.
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Buy, $825: Jefferies analyst Brent Thill said the cloud business is strategic to Meta’s long-term AI initiatives though the company is late to the cloud strategy.
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Market Perform, $720: BMO analyst Brian Pitz said compute business provides a clearer and more immediate return on CapEx.
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Market Outperform, $825: Citizens said Meta’s entry into the compute business is likely intended to bridge capacity construction with usage as SpaceX does with short-term compute leases.
