Meta Stock Surged 9% to $612.91 on July 1 After Reports That Mark Zuckerberg Is Building a Cloud Business to Compete With Amazon, Microsoft, and Alphabet

Meta Platforms announced plans to launch Meta Compute, a cloud business selling excess AI computing capacity to compete with Amazon, Microsoft, and Alphabet. The stock surged 9% on July 1 but dipped 5% on July 2. While the move could monetize Meta's massive $72.2 billion capex spending and capitalize on high AI compute demand, it raises concerns about potential overinvestment in data centers. Meta's core advertising business remains strong with 33% year-over-year revenue growth.