** Meta Platforms META.O was in focus after Bloomberg News reported that co is building a cloud business to sell excess AI computing capacity

** META rose more than 10% on the report; YTD, stock down about 7% vs 15% on Tuesday

** Meta declined to comment. Reuters could not independently verify the report

ZUCK SPLASHES INTO CLOUD

** Morgan Stanley ("Overweight," PT: $775) positive on co's "neocloud" opportunity, estimates that leasing excess capacity could add more than $3 per share, or over 8%, to earnings, flags broader cloud offering would require substantial investment

** J.P.Morgan ("Neutral") says monetizing AI infrastructure could generate incremental revenue and meaningful returns, but prefers co use capacity to support own products and services across its nearly 4-billion-user base

** Morningstar (fair value: $850) says move is strategically sound and could help address investor concerns over returns

** Jefferies ("buy," PT: $825) says leasing could improve Meta's infrastructure utilization, boost returns and generate more cash to fund future AI investments