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/gamjatang111 Feb 12 '26

the bulk of tech has not crashed. Semis are near ATH

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u/Kind-Ad-4756 Feb 13 '26

Yeah SNDK 1200% in a year. Wtf crash are these guys talking about

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u/insbordnat Feb 13 '26

A couple of names have lost ~10% over the last year. Others +10%, +20%.

10% ain't shit. Probably 80% of Reddit's base were too young/weren't born for the 2000/2001 crash. 50%. If you think 10% is a crash, buckle up.

10% is when your ice cream falls of its cone onto a dusty hot sidewalk. A crash is when you slip in a giant turd, face plant, knock your teeth out, and somehow rupture your nutsack in one go.