Reports Suggest META May Begin Monetizing Excess Data Center Capacity

Research evidence excerpt

Reports Suggest META May Begin Monetizing Excess Data Center Capacity

TD Cowen Meta Platforms

Global Research July 2, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Internet & New Media:

Our valuation methodology is primarily based on Discounted Cash Flow analysis, comparable

company multiples such as EV/FCF, EV/EBITDA, and P/E, and sum-of-the-parts analysis (for

companies with ownership stakes in other equities or significant assets such as patents/IP).

However, this varies by company; for instance, we will often use EV/Revenue for high-growth

companies that have recently entered the public equity markets.

We make investment recommendations on certain early stage, pre-revenue companies based

upon an assessment of their business model, technology, probability of market success,

and the potential market opportunity, balanced by an assessment of applicable risks. Such

companies may not be assigned a price target.

Investment Risks

The industry in which our companies operate is fiercely competitive and technological

change is rapid. All of our companies face the risk that they are unable to keep pace with

new innovations or that new innovations impact competitive positioning. Additionally, our

companies are international operators and are therefore exposed to currency fluctuations and

other factors associated with operating in a foreign territory. Finally, our names sit within the

advertising industry more broadly and are exposed to the same seasonality and macro trends

as the rest of the group, including competition from TV and other offline channels.

Risks To The Price Target

Our largest downside concern related to META is if engagement were to begin to flag. The

company's total userbase includes ~3.6BN Daily Active People, but negative engagement