The AI Bubble Sell Off: Why Software Stocks Are CRASHING

Software stocks have seen a huge correction lately, for a handful of reasons that I discuss in today's video. I personally don't think there was one "thing" that triggered the recent sell-off but a handful of things that I try to explain from both finance, AI, and macroeconomics perspective. My opinion is that it is still an overreaction given how early we are in the AI capex investment cycle. I don't think SaaS is dead but rather will be forced to pivot/innovate/adjust, In lieu of AI developments, investors want to understand where the value prop is. Let me know if you enjoy this style of video with longer analysis. TIMESTAMPS 00:00 Introduction 00:34 The Big Picture Concern Right Now 01:20 The First Problem (Valuation) 03:10 The Second Problem (ROI On Capex) 03:34 Oracle Raising $50 Billion 04:21 Are We In A Bubble? 05:07 AI Developments: Agentic AI 05:39 AI Developments: Vibe Coding 06:49 AI Developments: Claude Code 07:30 AI Developments: The LLM Arms Race 08:29 Valuation Impacts 09:38 Macroeconomic Update 09:55 #1: Margin Debt At All Time High 11:18 #2: Jobs Report January 2026 11:36 #3: Interest Rates 12:09 #4: US Dollar Weakening 12:33 The Easy Money Phase Is Over 12:56 How To Diversify Out Of AI Risk ⭐️ DOWNLOAD MY PERSONAL FINANCE TRACKER https://www.alicecee.com/personalfinancetracker RELATED VIDEOS 🔵 Japan's Bond Yield https://youtu.be/CGoYHWT-0Tk 🔵 If I Were To Start Investing In 2026, Here's What I'd Do -https://youtu.be/_6FlZ74rRjY 🔵 Silver Prices Are Going CRAZY - https://youtu.be/v8Csg71G8Z0 WHERE YOU CAN FIND ME 🟢 SUBSCRIBE TO MY PODCAST - https://open.spotify.com/show/6VCEJZeJmLKQ9fjudIXvlP 🟢 INSTAGRAM - https://www.instagram.com/alicecee_/ 🟢 THREADS- https://www.threads.com/@alicecee_ 🟢 TWITTER - https://x.com/TheAliceCee 🟢 LINKEDIN - https://www.linkedin.com/in/alicecee/