Meta Platforms Inc (NASDAQ:META) is one of billionaire David Abrams’ top stock picks with upside potential.
Analysts project more than 40% upside for Meta stock from the current level
This social media stock is popular with elite investors, as some 262 hedge funds own Meta shares. On July 2, Wolfe Research reaffirmed its Outperform rating on Meta Platforms Inc (NASDAQ:META) stock with a price target of $800 on the shares. The brokerage updated its call on Meta stock following a Bloomberg report that Meta is building a cloud infrastructure business similar to Amazon Web Services, Google Cloud, and Microsoft Azure.
According to the report, Meta plans to sell computing power and models to AI developers to capitalize on the growing demand for AI compute capacity. Wolfe Research believes that Meta’s potential cloud offering could provide a big boost to the company’s earnings. The brokerage estimates a 20% lift to the EPS for every gigawatt of cloud capacity that is monetized at a rate of $25 billion.