This article is from: srnnews.com
By Lance Tupper
Feb 12 (Reuters) – Shares of trucking and logistics companies sank on Thursday, the latest industry to be sideswiped by worries that quickly advancing AI technology will lead to increased competition for established firms that rely on software for their services.
Logistics firms Landstar System and C.H. Robinson both tumbled more than 14%, while the Dow Jones Transportation Average sank 4% after hitting a record high in the previous session.
The steep drop in logistics shares follows a recent selloff in software stocks, with investors worried in both cases that future AI products could unleash steep competition for established businesses and eviscerate their profit margins.
Those fears stand in contrast to optimism about AI technology that has helped drive Wall Street to record highs in recent years.
“The glaring theme underneath the surface for not just Tech, but for every corner of the market right now is an aggressive shoot 1st ask questions later for any area of the market that has an AI headline,” Jefferies trader Jeffrey Favuzza wrote in a client note on Thursday.
Thursday’s rout came as AI-focused logistics firm Algorhythm Holdings said its SemiCab unit boosted customers’ freight volumes by 300%-400% “without a corresponding increase in operational headcount.” Algorhythm’s stock surged about 30%, lifting its stock market value to about $6 million.
Algorhythm previously sold karaoke machines. It sold that business to Stingray Music in August and changed its name to Algorhythm Holdings from The Singing Machine Company.
Global markets were rattled last week after AI developer Anthropic’s launch of plug-ins for its Claude Cowork agent reignited fears that rapidly progressing AI systems could encroach on the core businesses of traditional software companies.
(Reporting by Lance Tupper in New York and Noel Randewich in San Francisco;)
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