Meta Platforms (META) has entered into a partnership with Lumen Technologies (LUMN) to expand its network capacity significantly. This collaboration aims to bolster Meta’s infrastructure, enabling it to effectively support the growing demands of its artificial intelligence (AI)-driven services.
Under the deal, Lumen’s Private Connectivity Fabric (PCF) will provide Meta with enhanced interconnection and bandwidth flexibility. Lumen PCF is a network fabric that allows companies to design custom network architecture. The deal will grant Meta access to use Lumen’s both existing and new fiber routes between data centers. This expanded network reach will help Meta meet the complex computing needs of their global user base.
Meta and Lumen’s collaboration reflects a broader trend of tech giants investing heavily in network infrastructure to bolster their AI initiatives. By leveraging Lumen’s network expertise, Meta can focus on developing cutting-edge AI technologies while ensuring a robust and reliable network foundation.
What to Expect Ahead of META’s Q3 Earnings?
Meta’s partnership to boost its AI infrastructure was announced before its third-quarter earnings, set to be released on October 30. Wall Street expects META to report earnings per share (EPS) of $5.21 and revenues of $40.18 billion, reflecting year-over-year growth of 18.7% and 17.7%, respectively.
Is Meta Stock a Good Buy?
Turning to Wall Street, META has a Strong Buy consensus rating based on 42 Buys, four Holds, and one Sell assigned in the last three months. At $624.12, the average Meta Platforms price target implies 8.51% upside potential. Shares of the company have gained about 63% year-to-date.