Zuckerberg Is Quietly Turning Meta Into A Compute Provider Ahead Of Q2 Earnings

Meta Platforms, Inc.'s Q2 earnings will focus on CapEx guidance (already revised for 2026); market sentiment hinges on Meta's ability to monetize AI infrastructure investments. Meta's recent pivot toward becoming a neocloud provider and compute lessor, including a potential $10B Anthropic deal, could reduce its persistent valuation discount by providing a path to such monetization. Integration of AI models within Meta's social ecosystem and the scaling of Meta Glasses are key forward catalysts, though risks remain around CapEx returns and hyperscaler competition. I rate META stock a Buy, with a long-term price target of ~$1000 and a compelling entry point in the mid-$650s ahead of Q2 earnings.

For some time now I have argued that Meta Platforms, Inc. (META) is deeply undervalued. Core to such a cheap valuation, I think, is the fundamental distrust of CEO Mark Zuckerberg.

I write about Macro and fundamentals, with the (painful) awareness momentum and sentiment are what really matters. That’s why I never try to time the market and I only buy stocks if I am willing to hold them for at least 10 years. When it comes to fundamentals, everybody knows the market is forward looking, but few understand what that means. I don’t look at a P/E number and decide to buy if a stock is “cheap”. I see the market as literally just the meeting point between demand and supply and I always try to understand what it sees in a stock beyond the numbers. This often implies trying to understand sectors, industries and long term growth trends. My approach requires ingenuity, curiosity and a good dose of naivete, as well as being comfortable with (sometimes) going against the current.