Feb. 13 at 3:31 PM
$SPY Happy Friday! The Dow Jones Transportation Average just got slammed, plunging over 5% for its worst day in nearly a year as an AI fear trade ripples through the sector. What does this mean for your money? The Daily Rip, at thedailyrip.stocktwits.com/
The number one trending story is Algorhythm Holdings
$RIME, which skyrocketed nearly 30% Thursday. The penny stock dropped news about a SemiCab AI unit that showed it scaled freight volumes by 400% without adding any employees. It was a massive wake-up call for trucking.
The tape was a total bloodbath for traditional middlemen. Shipping giants are getting wrecked as investors fear their manual models are becoming obsolete. C.H. Robinson Worldwide
$CHRW collapsed over 21%, Landstar System
$LSTR dropped 18.5%, and Expeditors International
$EXPD fell 14%. Even the broader Russell 3000 Trucking Index slid nearly 7%.
The thing is, Algos news cut more market cap from the transport industry than the tiny stock is even worth, it was a karaoke machine maker up until 2024, when it pivoted to AI.
Analysts at Jefferies and Baird are warning that the competitive moats for these giants are dissolving overnight. This one set of news, from a small player, showed the industry might shift from AI-resistant to AI-vulnerable. It's the latest in an AI death ray that is hitting one industry after another with fears the future is here, and some will be left behind.
check out the newsletter, The Daily Rip, at thedailyrip.stocktwits.com/ and let it rip!
