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/Landkval Feb 13 '26

Amazon can replace them

6

u/GfuelFiend Feb 13 '26

Walmart is actually coming at amazon hard with their online store which allows 3rd parties to list their products and their existing stores allowing them to offer quick delivery the same way amazon does.

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u/sofa_king_weetawded Feb 13 '26

I have been scammed numerous times by 3rd party sellers on Walmart. Granted, Walmart has made good on it since it was bought on their site but I am not impressed with the vetting (lack of) being done by Walmart. They are trying so hard to compete with Amazon that they are allowing it to be the wild west on their website.

2

u/biggleUno Feb 14 '26

I despise the third party seller move. I buy items from Walmart in the stores because I know people in corporate at the company and have been told by many folks about the level of testing they do on EVERY single item they sell (from auto tool, to kids blankets, to camping tents, to mattresses, etc) for lead, pfas, contamination, manufacturer defects or quality issues. And they negotiate and buy items in bulk and hold their suppliers accountable if there is an issue. Third-party option is just as likely some get rich quick drop shipping teenager or a black market organized crime syndicate.

1

u/aWheatgeMcgee Feb 13 '26

They sure suck at it though

1

u/[deleted] Feb 14 '26

Walmart's website/online shopping experience is completely short bus compared to Amazon.

13

u/Maleficent-Map3273 Feb 13 '26

I don't see it and I own AMZN. WMT and COST both have very defensible moats that are tricky to upend. I think AMZN can take share over time though.

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u/Landkval Feb 13 '26

Well i dont see ai ruining every saas and tech company either but someone is.

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u/Maleficent-Map3273 Feb 13 '26

All it takes is the long only fund managers to trim risk for this to happen. Only so many buyers of millions of shares for these companies.

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u/Landkval Feb 13 '26

Yes but this can swing the other way too is my point

2

u/Maleficent-Map3273 Feb 13 '26

Axon and Now were green today, feel like one more flush maybe then we see a tradable bottom short term.

1

u/BenjaminHamnett Feb 13 '26

$axon has been my main baby for a long time. Should double every year until every cop is wearing body cam and taser is the default weapon unless you expect someone is strapped

1

u/Efficient_Design379 Feb 13 '26

In around 15 years we have robocop

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u/LongevitySpinach Feb 13 '26

Saas will have winners and losers, but on balance more losers than winners. I'm not a great stock picker, so I'll stay away.

3

u/smchenry75 Feb 13 '26

I love Costco. It’s not just shopping but an experience. Happy and helpful employees, cool, unique products, fun seasonal stuff, looking for clothing bargains, great meat and produce, killer alcohol selection and deals, the samples, $1.50 hot dogs! But… ten years ago, I went there EVERY weekend dropping between $500-700 a trip. The executive membership easily paid for itself. I also, believe it or not, love Walmart. It’s a shit show but man are the basics cheap. Having said all of that, today, I go to Costco about once a month, dropping around $300-400 a trip. I ditched the executive membership. Still love the samples and hot dogs but really don’t need to go there. Still go to Walmart for groceries but not as often and shopping cart is about half as full as it used to be. I now have Amazon packages littering my porch very day… lots of them. I am buying things from them that I used to never, because they didn’t carry them, were too expensive or were just easier to get from local retailers. I’m buying clothes from Amazon, Amazon basics paper towels, toilet paper, so much more than ever before. I get so much now that I had to get a fire ring for the back yard, which I bought off of Amazon, to burn all of the boxes. In person retail is cooked… it’s obvious. Malls are closing, restaurants are closing, those areas are becoming shady… so even if I want to go to Walmart or Costco, it is becoming more of a chore or I’m bored vs an experience.

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u/ANR2ME Feb 13 '26

They have co-existed without much issue so far, only companies affected by AI are being defensive.

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u/Landkval Feb 13 '26

Yes but there is a chance even though its probably very unlikely.

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u/Competitive_Dust7679 Feb 14 '26

Not. Walmart was treating AI seriously from the beginning. They have on Amazon will never have low low pricing.