Barclays Reiterates Overweight on Meta, $780 PT
Barclays analyst Ross Sandler reiterated an Overweight rating and $780 price target on Meta Platforms Inc.
(NASDAQ: META).
“META clarified some important points surrounding selling intelligence on its 2Q call. While the investor reaction was mixed, this is actually a big near term opportunity for the company, in our view.
Press reports have suggested a tie up with Anthropic potentially amounting to $5B per year, a figure that seems like the tip of a much larger compute iceberg.
Below, we attempt to analyze META’s first and third-party compute footprint, the mix of accelerators, and ultimately the revenue opportunity surrounding extra compute not being allocated to internal projects at MSL or Core.
In short, the strategy of selling intelligence likely takes many forms including APIs, tokens-as-a-service and potentially bare metal rental, and collectively could amount to $65B+ in annual revenue in a few years.”
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