Roth Capital: Meta's Cloud Business Plan Boosts Stock by 10%
Roth Capital analyst Rohit Kulkarni notes that according to news reports, Meta (META) is building a cloud unit to sell excess AI compute, spanning an AWS (AMZN) Bedrock-style hosted-model track and raw GPU capacity that competes with neoclouds. Meta's shares rose as much as 10% intraday, while CoreWeave (CRWV) and Nebius (NBIS) each fell roughly 12%-15%. The firm views the neocloud reaction as an overreaction on a still unconfirmed, capacity-gated plan, and it would be a buyer of CoreWeave on this weakness. Specifically, on Meta, the firm sees potential revenue diversification into Cloud and Subscriptions as a clear positive, with 98% revenues coming from advertising.
