Goldman Sachs: Lower Meta target to $725 and reaffirm buy-in rating

On 4 August, Goldman Sachs released a report that indicated that, with the release of performance for the second quarter of 2026, Meta management continued to show a healthy return by providing several key narratives, including ongoing AI-driven computing investments by companies; that AI agents were likely to be a more visible extension beyond the core business; and that, in the context of broader corporate AI opportunities, management had outlined opportunities to cover basic models, tools for building/expanding operations such as one-stop business programmes and direct changes in computing, such as cloud-based authorized transactions, although investors might still have doubts about the scale and liquidity of investments in these operations; and that infrastructure investments remained high and targeted over the medium term, but lacked visibility or a specific framework for longer-term capital plans. As a result of the management ' s qualitative description of market opportunities and the persistent power supply and demand imbalance, the Bank increased its cumulative capital expenditure for Meta 2027-2028 by an estimated 14 per cent. In the short term, the Bank expects investors to continue to focus on the speed and scale of their investments over the next 12-18 months; on the future realization opportunities around AI; and on evidence of how companies manage a range of their own and external financing options to finance these investments. Goldman Sachs reiterated Meta's “buy-in” rating, with the target price revised downward from $815 to $725. "The New Wave"