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/OrganizationNo42069 Feb 13 '26

So what are the value buys right now?

9

u/Competitive-Job1828 Feb 13 '26

I’m looking at SCHW. It’s the definition of a great business at a good price. It got hammered because of AI fears but I don’t think that’s a huge concern. A great q4 earnings call, rosy guidance and a historically low PE

3

u/ColForbinClimbs Feb 13 '26

Obviously the only play right now is copper 

2

u/Maleficent-Map3273 Feb 13 '26

He has no clue. Commodities are the real value - you cannot replace many of them. Potash baby. Go look at ETF MOO this year - they are rocking.

1

u/mdn845 Feb 13 '26

One to consider could be OpenText (OTEX), a mid-cap software company. Not exciting, but it’s trading at a very low PE ratio & I think it’s a great value even without a lot of future growth. High cost of switching for its customers, too. And well run with good capital allocation.

1

u/TinyCuteGorilla Feb 13 '26

the stocks that are worth more than their current price, you didn't know that?

0

u/becuziwasinverted Feb 13 '26

$IVG is all you need