Meta Jumps 18% on Cloud Plan and Muse Spark 1.1 Launch
Updated
Updated · CNBC · Jul 10
Meta Jumps 18% on Cloud Plan and Muse Spark 1.1 Launch
3 articles · Updated · CNBC · Jul 10
Summary
Meta shares climbed nearly 18% from the June 30 close and rose more than 5% Friday to above $667, extending a weeklong rally as investors embraced new AI monetization plans.
Zuckerberg's cloud push addressed the market's main concern over Meta's huge AI spending by signaling it can rent out excess compute rather than rely only on internal use.
Muse Spark 1.1 added to the momentum after Meta said the model can write and debug code, use external tools and handle text, images and video with less human intervention.
The shift matters because Meta expects about $135 billion in capital spending this year and, unlike Microsoft, Alphabet and Amazon, has lacked a cloud business to justify that outlay.
Wall Street remains broadly bullish, with 91% of analysts rating the stock a buy and the average price target near $821, implying more than 20% upside.