NEW YORK, July 1, 2026, 12:03 EDT
- Shares of Meta Platforms gained 9.5% to $616.64 by midday, putting about $137 billion in market cap on the table, which lines up with the middle of its 2026 capital spending forecast.
- Meta is working on a cloud unit to offer spare AI computing power, according to a Bloomberg report cited by Reuters. Reuters said it could not confirm the story. Meta did not comment.
- CoreWeave NASDAQ:CRWV dropped 12.9% and Nebius Group NASDAQ:NBIS lost 13.8%. Both AI cloud providers have Meta contracts.
Meta Platforms NASDAQ:META shares rallied Wednesday after a report said the Facebook owner could start renting out extra AI computing power. The move would shake up the main stock debate, which had centered on whether Meta’s AI spending was too high to pay off. Reuters, via Bloomberg, said Meta is working on a cloud business that might sell access to AI models on its servers and could also offer raw compute capacity for sale.
The swing in the market forced a shift in the numbers. Meta was last quoted at $616.64, up $53.35, or 9.5%, from its previous finish at $563.29. That move puts about $136.8 billion more on Meta’s market cap, nearly matching the $135 billion middle of its $125 billion to $145 billion capital expense target for 2026.
| Company | Ticker | Midday price | Day move | Read-through |
|---|---|---|---|---|
| Meta Platforms | NASDAQ:META | $616.64 | +9.5% | Capex could get turned into capacity for sale |
| CoreWeave | NASDAQ:CRWV | $86.67 | -12.9% | Customer may pivot to competing |
| Nebius Group | NASDAQ:NBIS | $238.08 | -13.8% | Meta’s resale may weigh on orders |
| Amazon.com | NASDAQ:AMZN | $241.88 | +1.5% | Hyperscalers didn’t move much |
| Microsoft | NASDAQ:MSFT | $384.82 | +3.2% | Hyperscalers didn’t move much |
| Alphabet | NASDAQ:GOOGL | $359.61 | +0.6% | Cloud peer stock held up better than smaller players |
Meta stock’s been stuck between weak sentiment and solid numbers, according to three articles. INDmoney noted Meta was off about 29% from its August 2025 high despite Q1 revenue jumping 33%. Seeking Alpha on June 29 said Meta should get a better rating given its current valuation and potential to make money from its infrastructure. TradingKey flagged ongoing capex as a main issue driving volatility.
Wednesday’s report flipped the trade. Now, it’s not just about how much Meta needs to put into AI data centers. The issue is also how much extra capacity can be sold off before investors start hitting the stock again for more spending.
Meta turned in Q1 revenue of $56.31 billion, up 33%. Operating income climbed 30% to $22.87 billion and the margin stayed at 41%. The company posted $19.84 billion in capex, including principal on finance leases, with free cash flow at $12.39 billion.
| Meta metric | Q1 2026 / 2026 guide | Why investors care |
|---|---|---|
| Revenue | $56.31 bln, +33% | Ad business still expanding |
| Operating margin | 41% | Profit level staying solid |
| Q1 capex | $19.84 bln | 35.2% of Q1 revenue |
| Q1 free cash flow | $12.39 bln | 22.0% of Q1 revenue |
| 2026 capex guide | $125 bln-$145 bln | Midpoint is roughly 10.9 times Q1 free cash flow |
Meta bumped its 2026 capex outlook in April, now guiding for $125 billion to $145 billion, up from $115 billion to $135 billion. The company pointed to pricier parts and new data-center investments for future needs. That capex line was the main debate among investors ahead of the cloud report.
D.A. Davidson managing director Gil Luria told Reuters that extra Meta capacity is “more likely to be on neoclouds than the big hyperscalers.” Luria said CoreWeave and Nebius “may not need them anymore” if Meta has enough of its own computing power. At Meta’s May shareholder meeting, Zuckerberg said cloud computing was “definitely on the table,” according to Reuters. Reuters
Supplier risk is already playing out. In April, CoreWeave said it expanded a long-term AI infrastructure deal with Meta, bringing the contract’s value to around $21 billion through December 2032. CoreWeave CEO Michael Intrator said then, “leading companies are choosing CoreWeave’s AI cloud.” CoreWeave Investors
Nebius said in March it signed a five-year deal with Meta that could be worth around $27 billion. The agreement covers $12 billion in dedicated capacity and up to $15 billion more in extra available capacity. CEO Arkady Volozh said the move is about locking in “large, long-term capacity contracts.” Nebius
For Meta, selling capacity would add a fresh revenue stream alongside its core ad business. The company posted $55.02 billion in Q1 ad revenue, with Reality Labs bringing in $402 million and posting a $4.03 billion operating loss.
Reuters said the plan is still being worked out and details might shift. Meta wouldn’t comment. Reuters also said it hasn’t independently verified what Bloomberg reported.
