Meta Jumps 6% to $669 on AI Cloud Business and Strong Cash Flow

Meta Platforms (META) jumped 6% to $669.21 on July 11, 2026, as investors cheered the company’s new Meta Compute cloud service and robust cash generation. The stock now trades 15.5% below its 52-week high of $790 set in August 2025. Free cash flow of $64.5 billion annually supports a discounted cash flow valuation of $768 per share, implying 17.8% upside from current levels. Meyka rates the stock a B with a neutral stance, citing mixed valuation signals.

Why Meta’s cloud strategy matters

Meta Compute directly monetizes the company’s massive AI infrastructure investment, transforming what was feared as a cost center into a revenue-generating business. This positions Meta as the fourth major US hyperscaler alongside AWS, Azure, and Google Cloud. The move addresses investor concern that heavy capital spending on AI chips and data centers would erode shareholder returns without offsetting revenue.

Valuation shows room to run

A discounted cash flow model pegs Meta’s intrinsic value at $768 per share, suggesting the stock trades at a 17.8% discount. Meta’s trailing twelve-month free cash flow stands at $64.5 billion. However, Simply Wall St scores the stock 4 out of 6 on valuation checks, a mixed picture that reflects both attractive and less compelling metrics. Large capital spending and regulatory cases remain headwinds to value realization.

Analyst sentiment and technical signals

Wall Street consensus rates Meta a buy, with two buy ratings and one hold among tracked analysts. Meyka’s technical analysis shows RSI at 66.14, approaching overbought territory, while the stock trades above its 50-day moving average of $600.49. The company reports earnings on July 29, 2026. Over three years, Meta has returned 127.5%, outpacing the broader market.

What investors should watch

Meta’s 21.88 price-to-earnings ratio sits below the industry average of 24.18x, per Meyka data. The company’s return on equity of 33.2% and return on assets of 17.9% rank among the strongest in tech. However, debt-to-equity of 0.36 and a dividend yield of just 0.31% mean Meta prioritizes growth over income. The stock’s ability to sustain gains depends on Meta Compute adoption and whether AI infrastructure spending moderates.

Final Thoughts

Meta’s cloud monetization strategy and strong free cash flow justify a closer look, though valuation remains mixed. With Meyka grading the stock a B and two analysts recommending buy, the risk-reward tilts modestly positive near $669.

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