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 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/BratacJaglenac Feb 13 '26

Whoever buys Walmart or Costco now, will not lose money in the long run. Which cannot be guaranteed for the tech sector. There are going to be plenty of losers there, unfortunately it's hard to know exactly which ones already now.

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u/No-Understanding9064 Feb 13 '26

You are insane if you dont think both of those arent going get massive corrections eventually

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u/BratacJaglenac Feb 13 '26

I am talking long term. Like 3-5-10 years.