CoreWeave Inks Upto $14.2 billion Contract with Meta Platforms (META), Reports WSJ

Meta Platforms, Inc. (NASDAQ:META) is one of the Best Wide Moat Stocks to Buy Right Now. The company has a wide economic moat due to its intangible assets and strong network effects. On September 30, WSJ reported that CoreWeave inked an up to $14.2 billion contract with Meta Platforms, Inc. (NASDAQ:META) to offer the social-media company with AI cloud infrastructure. The cloud-computing contract with Meta Platforms, Inc. (NASDAQ:META) will go through 2031, noted WSJ. However, Meta would be having an option to extend the commitment for an additional year.

From a business perspective, Meta Platforms, Inc. (NASDAQ:META) is focused on pursuing 5 basic opportunities. These include improved advertising, more engaging experiences, business messaging, Meta AI, and AI devices. With respect to advertising, the strong performance in Q2 2025 was mainly due to the AI unlocking greater efficiency and gains throughout the ads system. In Q2 2025, ad impressions delivered across its Family of Apps rose by 11% YoY. The average price per ad went up by 9% YoY.

Fred Alger Management, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Meta Platforms, Inc. (NASDAQ:META) is the world’s largest social-media company, spanning Facebook, Instagram, WhatsApp and Messenger, and its Reality Labs arm pursues next-generation augmented- and virtual-reality hardware. Its Family of Apps averaged 3.4 billion daily active users in March 2025, highlighting the unrivalled scale that underpins its advertising franchise. The company’s AI powered ad-delivery tools are driving higher pricing and better campaign performance, while new initiatives—such as the rollout of ads in WhatsApp—have the potential to unlock fresh revenue streams and are supported by a cash-rich balance-sheet that now includes a quarterly dividend. Shares rose during the quarter after fiscal first-quarter results came in better-than-expected due to strong revenue growth and operating margin expansion. Additionally, management guided fiscal second-quarter revenue above consensus and trimmed full-year expense guidance even as it lifted capital-expenditure plans to accelerate AI-infrastructure build-out.”

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Disclosure: None. This article is originally published at Insider Monkey.