Mark Zuckerberg's Meta Is in Talks for a $10 Billion Anthropic Deal That Would Make Meta the Fourth Major Cloud Provider. Meta Stock Reports Q2 Earnings on July 29.

Investors have long known that Meta Platforms (NASDAQ: META) planned to continue growing through AI. Most investors assumed that it would leverage its massive data collection to train AI models in ways that its competitors could not precisely replicate.

Hence, even though Meta has been a hyperscaler for years, it may have come as a surprise to some to hear that Mark Zuckerberg was also contemplating a move into leasing cloud computing capacity. Knowing that, investors will likely be watching Meta and its CEO closely when the company reports its Q2 earnings on July 29.

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The move into the neocloud

So far, investors don't seem enthusiastic about Meta's expensive AI ambitions. The company has pledged to spend between $125 billion and $145 billion on capital expenditures in 2026 alone, primarily to develop its AI. That comes after it spent almost $70 billion on capex in 2025.

Additionally, the social media stock trades at a P/E ratio of 23, the lowest among the "Magnificent Seven" stocks. Its revenue grew by 33% year over year in the first quarter of 2026, a level of growth that supports the investment thesis for Meta, particularly given its low multiple and its success in digital advertising.

Nonetheless, uncertainty about where it could derive significant long-term growth from may partially explain its low P/E ratio.

Today, an average of 3.56 billion people, about 43% of the world's population, already log into a Meta-owned site daily. That past success has left it with relatively few potential new users to pursue.

For now, the start of its shift to the neocloud appears to hinge on a proposed two-year, $10 billion deal with Anthropic, and some believe an announcement during its July 29 earnings call that such a deal has been sealed will send the stock soaring. That deal would allow Meta to put some of its AI infrastructure to use in a way that directly translates into revenue.

Admittedly, that deal is not final and could still fall through. However, there is plenty of demand for cloud infrastructure across the market. Though it has been viewed as one of the four major hyperscalers throughout the AI build-out, analysts including Mark Mahaney of Evercore see what Meta is likely to offer to its clients as more akin to the specialized cloud offerings of the smaller neocloud providers.

That looks like a promising model: Mordor Intelligence estimates a compound annual growth rate of 46% for the neocloud through 2031.

However, if such an announcement occurs, it still may not ease investor concerns. Nearly 98% of Meta's revenue came from digital advertising in Q1, and Zuckerberg has yet to prove that he can turn his company into a cloud infrastructure provider on par with Amazon Web Services or Microsoft Azure. Until investors feel more confident about Meta's pivot in this direction, many may remain skeptical.

Should investors buy Meta Platforms stock before earnings?

The good news for investors is that Meta Platforms stock is likely a buy before July 29, when Zuckerberg will probably offer more clarity on its AI ambitions.

Indeed, Meta Platforms stock could take a hit if the Anthropic deal falls through. Additionally, its massive capex spending on new AI data centers is concerning to many investors, given that almost all of the company's revenue still comes from digital ads.

Fortunately, that digital ad business is likely not going anywhere, and the company's AI efforts have enhanced its effectiveness. Considering its rapid revenue increases and the 23 P/E ratio, the company's growth should continue even if Meta's AI plans fail to meet investor expectations.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.