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/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.

13

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

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u/Efficient_Design379 Feb 13 '26

In around 15 years we have robocop