Social media giant Meta Platforms (META) is planning to build its first wholly-owned subsea cable, which will span over 40,000 kilometers and potentially cost more than $10 billion, according to TechCrunch. The purpose of this massive fiber-optic project is to support the company’s growing data demands as its platforms account for a significant share of global internet traffic. The cable is expected to increase infrastructure reliability and give Meta full control over its data pipelines in order to ensure better performance for its services.
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It will also follow a “W” shape across the globe that will connect the U.S., India, South Africa, and Australia while avoiding high-risk geopolitical zones like the Red Sea and South China Sea, where conflicts have damaged cables in the past. This design is part of Meta’s strategy to reduce disruptions and make sure connectivity remains consistent. However, building such a project will take years due to the limited availability of specialized ships and resources, and construction will likely happen in phases.
Interestingly, India is a key part of the project, and some believe it could play a bigger role in Meta’s future plans. The country’s low-cost data centers and massive user base—over 375 million Facebook users and 536 million WhatsApp users—make it a perfect spot for expanding AI development. There is speculation that Meta might use the cable to support AI training in India. Regardless of the exact details, investors seemed to like Meta’s cable idea, as shares were up at the time of writing.
Is META Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 40 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 75% rally in its share price over the past year, the average META price target of $662.62 per share implies 15% upside potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
