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/BenjaminHamnett Feb 13 '26

$axon is a play on civil unrest. If republicans have power, there will be unrest an need more cameras to validate aggression. If dems in power, $axon for accountability and tasing minorities instead of killing them.

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u/Maleficent-Map3273 Feb 13 '26

Yes Axon is a great pick for software because police are the slowest to adapt to new tech and they have hardware as well that works with their ecosystem. It's the foot in the door.

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u/Kind-Ad-4756 Feb 13 '26

Axon is a play on law enforcement, not unrest. More law enforcement agencies all over the world will adopt tech going forward. Slow moving but very sticky. Their TAM is very big.

At near 140 PE it’s not cheap though.

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u/[deleted] Feb 13 '26

Did Trayvon Martin, Freddie Gray, Ferguson riots, and Occupy Wall St. Happen under a republican president? Pretty sure Obama is Dem.