Analyst covering Meta and AI infrastructure, skeptical of Meta Compute strategy citing late entry to crowded compute rental market and margin dilution risk.
no scored calls yet — needs a stated position or a categorical verdict, with a matured window vs SPY
Meta is late to the compute rental party which is already crowded with players like CoreWeave, and for a company with 50% operating margins, compute rental will not be a high-margin business compared to their core advertising.