Shares of the Magnificent Seven giant Meta Platforms (NASDAQ: META) recently received a serious boost after the company’s potential cloud push moved closer to reality. Shares jumped 8.8% on July 1 due to reports that it plans to sell its excess compute capacity to third parties.
While the market’s reaction was clearly positive, if Meta follows through, the move has both positives and negatives for investors to consider. Although Meta’s cloud push could be a significant source of revenue and profit, it also raises questions about the long-term competitiveness of its AI products.
