Meta Platforms' New Cloud Business Could Be a Game Changer for Its Stock

Meta Platforms is planning to launch a cloud computing business by renting excess computing capacity and potentially hosting large language models, similar to Amazon, Microsoft, and Alphabet. This move aims to address investor concerns about high data center spending while leveraging strong demand for AI infrastructure services. Meta's core business is performing well with 33% revenue growth, driven by AI-improved ad targeting and recommendations, and the company trades at a relatively cheap forward P/E ratio of 18x.