Goldman Sachs points to an entry after Meta’s selloff ahead of earnings

Meta Platforms shares have been under pressure, and Goldman Sachs is arguing that investors may be over-rotating on the downside just ahead of the next earnings release. The Wall Street firm highlighted that Meta’s stock has fallen sharply from recent peak levels and that the move has been driven more by investor concern about costs than by evidence of weakening demand for its advertising products.

According to the report circulating in markets, Meta had traded at a high near $796 in 2025, supported by strong advertising demand and investor enthusiasm around AI. But in 2026, the stock pulled back, with the article describing a decline of about 9.1% year-to-date and, at one point, a drop of more than 25% from peak levels.

The key question for investors is whether Meta’s spending plans will translate into profits later. The post said Meta has raised its outlook for AI infrastructure spending to a range of $125 billion to $145 billion. That is the type of spending that can depress near-term margins if it ramps faster than revenue. Goldman’s view, as presented in the market note, is that the market is treating these concerns as if they are a problem with the core business, rather than a question of timing.

Goldman Sachs also pointed to additional pressure tied to legal issues, according to the same report. Despite that, the firm reportedly maintained a Buy rating on Meta and kept a target price of $830, implying it expects the selloff to be less durable than the market reaction suggests.

On the fundamentals, the article leaned on Meta’s most recent quarter as evidence that growth remains intact. It said Meta’s first-quarter revenue reached $56.31 billion, up 33% year-over-year, and that the company exceeded analyst expectations. Adjusted earnings per share, a company profit measure that removes certain items for comparability, were described as $7.31 versus a consensus estimate near $6.67.

The report also emphasized advertising as the main growth engine. It said the company’s Family of Apps revenue totaled about $55.9 billion for the quarter, while Reality Labs contributed about $400 million. Profit growth was described as stronger still, with net income up 61% year-over-year to $26.77 billion.

Sector context matters because Goldman’s thesis, as presented here, is not that Meta’s business is shrinking, but that expectations may have moved faster than the company’s underlying trajectory. In other words, the note suggests that the stock’s recent decline is more about worries over cost structure and uncertainty around the timing of AI-related returns than about a sudden deterioration in demand.

What the market post does not fully spell out is whether Goldman expects Meta’s margins to hold at current levels, improve, or simply absorb the AI buildout for longer. The article also does not provide additional details on the legal concerns, how they may affect operating costs or risk, or what specific earnings metrics Goldman is most focused on. As a result, the main takeaway is directional: Goldman sees the setup as a potential opportunity into earnings, not a claim that there is no risk in the stock.