META Stock Drops 1% Overnight After 8.8% Rally on Cloud Computing Plans

According to Bloomberg, Meta Platforms shares fell 1% in overnight trading on Wednesday after rallying 8.8% during the regular session—the stock's best performance in nearly six months—on reports that the company is developing a cloud infrastructure business to sell cloud computing capacity and AI models to third-party customers.

Analysts said the cloud venture would provide Meta a clearer return on its record $141 billion 2026 capital expenditure and add "a margin of safety" to medium-term earnings, while the retail sentiment for META on Stocktwits flipped to bullish from bearish.