Meta launches cloud business Meta Compute, stock surges 15% last week

By Dave Kovaleski, The Motley Fool Published: July 17, 2026 at 9:20 AM PDT | 3 min read

Meta Enters the Cloud Computing Arena

At Meta Platforms' (NASDAQ: META) annual shareholders meeting in May, CEO Mark Zuckerberg surprised many by stating that selling computing access—essentially entering the cloud computing market—was "definitely on the table."

"Almost every week there are different companies that come to us from the outside asking us to both stand up an API service or asking if we have compute that they could buy from us at some premium to what we've bought it at," Zuckerberg said.

According to multiple reports, including Bloomberg, the initiative—now called Meta Compute—is in development. Meta confirmed the project is underway but noted that plans could change and offered no further details, per Bloomberg.

This move would place Meta in direct competition with fellow "Magnificent Seven" members Amazon, Microsoft, and Alphabet in the cloud computing space. On July 9, Zuckerberg confirmed in a Bloomberg interview that offering computing access "makes sense," reinforcing expectations that Meta is preparing to enter the market.

Stock Surges on Cloud Ambitions

Since Bloomberg's initial report on July 1, Meta's stock has risen approximately 21% to $677 per share. Last week alone, following Zuckerberg's interview, shares surged 15%—marking the company's best weekly performance in over two years.

Potential Cloud Offerings (Unconfirmed)

Bloomberg's report outlined possible directions for Meta's cloud business:

• Charging developers for access to AI models hosted on Meta's infrastructure
• Selling excess computing capacity, similar to other cloud providers

What Investors Should Know

It remains too early for investors to draw firm conclusions, as details on Meta's cloud strategy are still scarce. More information is expected when Meta reports earnings on July 29.

Given Meta's size, resources, and industry relationships, the company has the capacity to generate meaningful revenue in the rapidly growing cloud market—likely fueling current investor enthusiasm. However, the specifics will be critical.

Analyst Outlook

• 91% of analysts rate Meta a buy
• Median price target: $810 per share (suggesting ~20% upside)
• Current valuation: 24x earnings; 21x forward earnings (below the S&P 500 average)

In my view, Meta stock remains a strong buy heading into earnings.

This article originally appeared on The Motley Fool.