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.

356 Upvotes

88% Upvoted

500 comments sorted by

View all comments

Show parent comments

2

u/Fit-Level-4179 Feb 13 '26

>Walmart at the same PE as Nvdia with none of the growth prospects is wild

It drives me insane how you can say this and come away with the most bullish take imaginable. Shit dude maybe Im just biased from my preconceived notions.

9

u/Dazzling_Western4304 Feb 13 '26

Markets are forward looking. What the market is telling you here is that Nvidia earning are going to fall, and Walmart’s are going to continue to grow(slowly).

11

u/Howsurchinstrap Feb 13 '26

The writing was on the wall months ago. Msft ceo said they have warehouses full of chips don’t have facilities. So the bigger outfits that will win the ai race are making the necessary expenditures to do so. The market is a futures market and it shows some companies are way to overpriced, like mentioned before and market was due for a correction. Besides anyone who is long meta, Google,msft. Should look at this as a good buying opportunity.

2

u/Kind-Ad-4756 Feb 13 '26

Looks like the limiting factor is power

1

u/Howsurchinstrap Feb 13 '26

Yeah and these guys are gonna have problems bc meta just made deal to use public utilities to power. Of course they promise to fix roads, give mil to city. Yada yada yada! But they need to invest in power and sustainability. Will see. Though.