amit(@amitisinvesting):$META Two more perspectives here as we digest this news, one bearish and one bullish. Bearish: If META has excess compute that they are willing to sell via a new cloud business…doesn’t that mean we aren’t compute constrained? Isn’t this really bad for neoclouds? Why would META give a deal to a CRWV or IREN if they just sell the compute themselves? Further more, wouldn’t they cut capex because idle compute as the basis for a new business means they DONT need as much compute as they bought which means capex…should come down? That would be bearish for all semis. Bullish: If META is building a cloud business, even if they are using idle compute (which means they aren’t compute constrained) they might end up spending MORE on capex to…compete with GCP AWS and Azure? Like if they realize that selling compute and services on top of a “Meta Cloud” is better than just ads, then wouldn’t they end up having to spend in the same way that GOOGL MSFT AMZN do in order to build out a full cloud business? More capex which would be good for semis? What do people think?

2026.07.01 13:15

$META Two more perspectives here as we digest this news, one bearish and one bullish. Bearish: If META has excess compute that they are willing to sell via a new cloud business…doesn’t that mean we aren’t compute constrained? Isn’t this really bad for neoclouds? Why would META give a deal to a CRWV or IREN if they just sell the compute themselves? Further more, wouldn’t they cut capex because idle compute as the basis for a new business means they DONT need as much compute as they bought which means capex…should come down? That would be bearish for all semis. Bullish: If META is building a cloud business, even if they are using idle compute (which means they aren’t compute constrained) they might end up spending MORE on capex to…compete with GCP AWS and Azure? Like if they realize that selling compute and services on top of a “Meta Cloud” is better than just ads, then wouldn’t they end up having to spend in the same way that GOOGL MSFT AMZN do in order to build out a full cloud business? More capex which would be good for semis? What do people think?

amit@amitisinvesting

2026.07.01 12:42

$META BREAKING: Meta is now building a cloud business to sell excess AI compute, as per Bloomberg. If this is true…then it is exactly what the market has been waiting for. - Justifies the heavy capex spend - Diversifies a line of business outside of advertising - If META can sell compute…they can probably begin selling more B2B agentic services to those same clients using their compute - Compute constraint narrative-driven stocks have RALLIED all year…adding that narrative to $META could be a potential game changer to sentiment around the stock. This is personally a pivot I have been waiting for all year as a shareholder and as annoying as it has been to buy this name (this rip might end up being sold off) this was one of the CORE reasons to continue DCA-ing. Hoping this is true but if Zucks gets into the neocloud game…it could be very exciting. LFG.