Why Meta Platforms Stock Crashed Thursday Morning

Meta Platforms stock fell 3.7-4% Thursday after Wolfe Research analysts warned that the company's reported plans to enter the cloud computing business could require capital expenditures to reach $200 billion by 2027, up from previous estimates of $160 billion. While the cloud market represents a $500+ billion opportunity with potential 20% EPS upside per gigawatt sold, the massive capital requirements spooked investors despite Meta's attractive 21x earnings valuation.