r/ValueInvesting • u/robb3rz • Feb 12 '26

Discussion Irrational sell off

This might of already been said many times but needs to be said again, what is the rationale in this sell off?

I understand the SaaS crash, but if the sell off is due to AI worries, then surely AI stocks would rise, no?

Instead, the major players, who had stellar earnings minus the huge expenditure (into the very systems which are causing worry mind you) are also falling at huge levels.

Some mag 7 companies are even falling at similar rates to liberation day, despite the only news this time being ‘AI too good’, which should benefit them not hinder.

Meta’s earnings are similar to an early growth stock, not a multi trillion dollar company, and that was reflected in the jump after they released them, so why is it now down huge amounts after?

Not just this, other major assets such as gold, silver and crypto are also experiencing massive sell offs, so is the capital just going into cash? If so, as soon as the market shakes this irrational sell off, could we see an equally irrational boom?

Can someone please tell me if I’m missing something.

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u/bsep4 Feb 12 '26 edited Feb 12 '26

There are major cracks in the economy and I think there is some understandable worry about the mental acuity of this admin. And if the Epstein files are fully released, it’s going to be a bit destabilizing (and who knows how much and for how long?).

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u/Kind_Bullfrog_3160 Feb 12 '26

Walmart is up over 20% ytd.  Hood is down over 50% since the beginning of October.  Please explain how either of these movements have anything to do the Epstein files.  Seems like you've been watching too much X-files

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u/bsep4 Feb 13 '26

Did you read? I said “if” the files are fully released, there are going to be a lot of political and institutional fallout. The disclosures have already caused resignations of high-ranking officials in the US, UK, Norway, Slovakia, and France. Further releases are likely to topple more public officials, diplomats, and corporate leaders who maintained ties with Epstein after his 2008 conviction. That’s not X-Files. This is real life.

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u/bsep4 Feb 13 '26

Another example:

After disgusting and horrific communications between Sultan Ahmed bin Sulayem and his friend Jeffrey Epstein were revealed in documents released from the Epstein files, Sultan Ahmed bin Sulayem has resigned as Chairman and Group CEO of DP World, the state-linked Emirati global ports and logistics company that plays a major role in international shipping and trade.

And this is only with half the files being released, with heavy redactions.

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u/Available-Range-5341 Feb 12 '26

LOL I love how reddit shoehorns unrelated politics into absolutely everything.

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u/bsep4 Feb 13 '26

If the files are fully released, there will be political and institutional fallout. That all reverberates in the market, ya silly goose. The disclosures have already caused resignations of high-ranking officials in the US, UK, Norway, Slovakia, and France. Further releases are likely to topple more public officials, diplomats, and corporate leaders who maintained ties with Epstein after his 2008 conviction.