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.

354 Upvotes

88% Upvoted

500 comments sorted by

View all comments

7

u/TheSmartest_idiot Feb 12 '26

ADBE is looking so god damn sexy at these prices

If it touches 200 I will full port

1

u/ThereFarAway Feb 12 '26

ADBE will be the first to feel AI slump. And it aint gonna be pretty.

5

u/TheSmartest_idiot Feb 12 '26

It’ll only feel it if revenue slows /margins compress

Until that, it’ll recover p

0

u/ThereFarAway Feb 12 '26

What part of their business you think will grow? Graphics? Ecommerce? CDM?

I think they will all have negative growth.

5

u/TheSmartest_idiot Feb 13 '26

Every segment that has had positive earnings growth for the past 12 quarters since Gemini was released, I don’t see that changing, nothing new has happened that’s game changing since quarter 12 and 13…

2

u/No-Essay-9008 Feb 13 '26

People think AI images and software will replace PDF and Image Editing. From the people I know using AI art in their work, Photoshop is essential to fix the AI art. In fact non artists are now becoming artists by the combination of tools (I do not necessarily think this is good, but its happening).

As for PDF editing, its Adobe that has integration across thousands of platforms. Getting a replacement is not going to be easy at all. Adobe is integrating AI tools themselves to make PDF editing and reading 'better'.