Meta Platforms by Primakov via Shutterstock
Meta Platforms (META) stock soared on July 1 following a Bloomberg report that the tech behemoth plans on launching its own cloud infrastructure business dubbed Meta Compute.
As investors cheered the news, META ripped through its major moving averages (20-day, 50-day, and 100-day), indicating bulls have taken control across multiple timeframes.
Despite today’s surge, however, Meta shares remain down about 5% year-to-date.
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Significance of the New Business for Meta Stock
The expected launch of Meta Compute is bullish for the giant’s share price as it addresses a major concern regarding its growing capital expenditures.
Meta Platforms has guided for as much as $145 billion in capex for the current year to fund its state-of-the-art artificial intelligence (AI) data centers and hardware.
But the Nasdaq-listed firm…
