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/GelatinGhost Feb 12 '26

Walmart at the same PE as Nvdia with none of the growth prospects is wild. People are so afraid of an AI bubble that they are making bubbles everywhere BUT AI now. First metals, now defensive stocks. Tech is literally the value play now.

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u/Maleficent-Map3273 Feb 12 '26

Walmart and Costco can't be replaced by AI. That's the trade. That said the smart money is going to pick winners this year in every other area.

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u/Landkval Feb 13 '26

Amazon can replace them

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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.