US Stock Market Move | Meta Platforms (META.US) fell nearly 4% in early trading after rising 9% the previous day.

On Thursday, Meta Platforms (META.US) fell nearly 4% in early trading, after the company's stock soared 9% in a single day on Wednesday, marking its best one-day performance in over a year. Meta's plan to sell idle computing power has sparked drastically different interpretations on Wall Street. On the pessimistic side, D.A. Davidson analyst Gil Luria has a cautious stance on this. He believes that Meta's shift towards selling computing power is a signal of the company "abandoning the forefront of the AI race". Despite launching the new Muse Spark model since the establishment of Meta Superintelligence Labs last year, the company is still lagging behind Anthropic and OpenAI in terms of model competitiveness. On the optimistic side, Jefferies analyst Brent Thill offers a completely different judgment. In his research report on Wednesday, he bluntly stated that criticizing the sale of computing power as "overcapacity building" is a "distortion of priorities," because the current market demand for computing power continues to exceed supply. Thill concluded that Meta is "not exiting the AI race, but rather turning early aggressive capacity commitments into an option to create strategic value."