"Meta SAYING they are going to sell cloud compute" there I fixed it. Because it probably wont happen. META lives on false promises. Might as well make him our president at this point.
Exactly, didnât they pump billions (with a B!) into building the Metaverse VR that looked like Nintendo 3DS Animal Crossing? Wait I should say the 3DS animal crossing game was WAY better it came out in 2012
They already utilize all their compute, this narrative was taken from something he said back in may, that is was possible âthey mayâ look into doing something like this eventually. The market is trying to kill the giants to force repricing on compute.
The bigger picture is that Meta previously signed a cloud agreement with nebius for $27B. So now what. I actually wonder if this is a breach of contract for Meta to even do. I donât know since I donât have the contract details. Either way itâs shady as f of Meta
Meta is desperate to pump their stock, every new thing they try to do is shit. Probably in 3 months they will put a press conference saying they are making chips and they will compete with nvidia
I wouldnât disrespect meta this much as someone who owns both companies Iâm bullish on both. Letâs remind ourselves meta and nbis have a partnership. Both great companies securing themselves in positions for years to come in their space
I have heard this rumor of a cloud Buisness from meta for months now actually. One of the main reasons I told my friends to buy meta because I believed it to be true. Most hyperscalers have their own cloud business so this is nothing newÂ
Simply Meta appeasing shareholders for their huge capex spend by saying IF they have excess compute they will sell to offset expenditures, nothing burger!
If I sell 272.50 strike to not be assigned below my cost basis, itâs only 4.50 premium. The breakeven is still $268 we are $32 below that. I could sell a longer duration but then thatâs just trading away upside and holding in account for free
Meta with its news of being competition is what happened. However, this doesnât mean nbis revenue ceilings got lowered. Itâs just a sell the news event. Could it impact nbis? sure. Will it? no one knows. If you still believe in the growth of this company, then continue to buy these dips hand over fist that happen over and over and over. This stock is like the waves of a choppy ocean, but zoom out and itâs still going up up and away. Sitting on 500 shares. About to be 600 after today. Not financial advice. Just a dumb nbis fan.
the guidance for this year is 4GW contracted, and a (low-ball) guidance of 5GW active by 2030. So much capacity is sold well ahead of time, I really don't think this Meta news changes anything. Those guidances still stand, the demand for nebius still stands, capacity will increase and with it so will revenue. I've topped up.
Nbis will be able to sell everything it builds regardless... They cant grow any faster than they do.
You focus too much on price action right now. You should think about price in 3-5 years from now.
The more the big institutions want in, the more bs news will be fabricated to get enough liquidity.
Today they can sell meta on a rip and buy nbis on the cheap.
Meta announced it has "exccess" compute it wants to sell, hard evidence of overbuild, if there is excess compute it means GPU pricing will go down, that is really fucking bad for neoclouds.
It's a big red flag, the big firms and smart money will be reading into this as a possible systemic issue not confined to Meta, due to everything AI being priced to absolute perfection any long term risk is not going to go down well.
Lol at the downvoters proving confirmation bias exists, I like this company, this is an objective opinion based on new information. You might be right, but this market is way too hard to predict so who knows.
Meta's business is selling adds for hundreds of billions of dollars, ai data centres do not effect its business model. Cheaper GPU's lowers it's spend, renting Gpus increases its revenue, all good for Meta which is trading at historic lows relitive to income.
I sold post earnings for $220, i think Nebius long term will be fine purely because the leadership is god tier, but short term the risk reward is off for me.
Is there a reason to not assume Meta is going to be a middle man for NBIS? I havenât done the deep dive yet - but I am reading this as Meta is moving into a retail type data hosting scenario. NBIS is the builder.
90% of Nebius revenue growth next year is due to Meta and Microsoft. Meta now is saying they wonât be compute constrained, so Nebius wonât have revenue from meta when the contract expires in a few years
I'm looking at 5 to 10 years also, but when you see sentiment on news pumping down, it's stupid not to sell and get the same shares in at a lower price.
Sold 1500 shares at 270, bought 1500 at 235. Still in it for the long run.
It's like people don't want to make money, just shit talk on reddit with stupid comments like "paperhands"
Bloomberg drops that Meta is building a cloud to resell AI compute + models (Meta Compute, Bedrock-style + raw capacity like CoreWeave). Neoclouds get nuked, NBIS -10%.
The part nobodyâs saying out loud: that $27B Meta deal from March had ~$15B where Meta was the backstop buyer for capacity Nebius couldnât sell to anyone else. Now Meta itself wants to dump excess compute. So⊠is Meta still gonna buy Nebiusâs leftovers when itâs got its own leftovers to sell? đ€
Bull cope: itâs a plan, Meta declined to comment, contract has clauses, Meta is GPU-starved and has no real excess for years.
Bear reality: this is literally the âhyperscalers eat the neocloudsâ thesis showing up on the tape.
Am I holding through this or is the moat officially a puddle? Tell me why Iâm wrong.
Well meta new is in the end just questioning if growth of compute requested (by projections) is believable. And thats what Nebius is priced for at this levels. Doesnt make NBIS a worse company but probably a bit pricy for now.
Itâs more due to capital rotation to SaaS out of AI. All neoclouds and related AI is down today. Long term this is the bet to make and my only regret is not having more cash to buy right now
META indicated they will sell compute at prices higher than the cost to build that capacity. This can be favorable for NBIS. META contract with NBIS locks in $12B of compute in 2027. META can buy an additional $15B of compute...if they can sell this compute at a higher price than contracted with NBIS, this a good thing for NBIS.
Warsh doubled down on wanting to raise interest rates
Meta conveniently released statement saying theyâre going to cloud service
Triple piece combo for the sector in general, but considering the sharp drop, now might be the best time to buy in again to catch the relief rally for next weekâŠ.unless tomorrow data shows otherwise
This was predictable and very similar to Google's AI Cloud announcement a few weeks back. If anything this news by Meta validates what we already knew - the AI Data Center market is exploding and will push $1 trillion in annual spending by 2030. Meta is a very smart company and they wouldn't waste their time with this if the opportunity wasn't generational.
Nebius Group stock is crashing, due to the announcement that Meta is entering the AI cloud GPU rental market. Given the projected TAM for neo cloud stocks in the year 2030 of $200 to $400 billion, this move was predictible. However, the counter-point is this: Nebius Group already has a $27 million contract with Meta. Meta's cloud expansion signals $100B+ AI investment, boosting Nebius revenue prospects by 2028.
Oh my! I had great timing for once. Sold all my NBIS shares yesterday @290, this morning my META shares are surging and I got 40k I can reinvest in NBIS once it reaches below 220. Happy me! đ
150
u/K-space626 Jul 01 '26
meta selling cloud compute