Wall Street analysts and executives in sectors hard-hit by sell-offs are pushing back against the "AI scare." As stocks sank on fears that AI will shrink margins and disrupt business models from software to logistics, insiders are arguing that AI integration will benefit rather than detract from their businesses. Figma (FIG) stock rose 6% on Thursday, reversing a 30% year-to-date decline after the cloud-based design software company noted a record number of new customers in 2025, with accelerating revenu ...

Core Insights - The CEO of C.H. Robinson, Dave Bozeman, emphasizes that the company is a disruptor in the logistics industry, not a victim of the AI hype [2][5] - A recent claim by Algorhythm Holdings about significant advancements in AI for freight logistics led to a sharp decline in the stock prices of logistics companies, including C.H. Robinson [3][4] - Despite the market reaction, C.H. Robinson has been a leader in AI adoption within transportation logistics, contributing to its recent stock performance [5][6] Company Performance - C.H. Robinson experienced a 14.5% drop in stock price, marking its largest one-day percentage loss in over six years due to market panic [5] - The company has maintained strong growth rates even amid a freight recession, showcasing resilience in its operations [6] - Analysts remain optimistic about C.H. Robinson's future performance, with positive sales and profit estimates for the next two years [7] Leadership and Strategy - Bozeman has been at the helm of C.H. Robinson for over two years, focusing on leveraging AI to enhance operating profits [6] - The leadership is confident about the company's trajectory, expressing excitement for upcoming developments in the next two years [7]

CrowdStrike, C.H. Robinson and Compass are among stocks that have been unfairly punished by fears of AI disruption, analysts say. ...

Market Overview - Global financial markets are experiencing significant volatility due to macroeconomic data and industry technological changes [1] - Investors are showing extreme caution ahead of key inflation data, leading to notable sell-off pressure across markets [1] - Precious metals, particularly gold and silver, have seen sharp declines, with gold dropping $160 to around $4920 per ounce and silver experiencing a double-digit percentage drop to $75 per ounce [1] Industry Impact - The impact of artificial intelligence (AI) is extending from the software sector to the logistics and transportation industry [2] - Traditional freight giants are facing severe setbacks, with Universal Logistics (ULH) down 10% and CH Robinson (CHRW) down over 14% following the announcement of AI freight scaling tools by Algorhythm Holdings (RIME) [2][5] - The technology sector is also underperforming, with Cisco Systems (CSCO) down 12% and Apple (AAPL) down 5%, contributing to a decline in the Nasdaq Composite Index [2][5] - Despite some companies seeing stock price increases of 30% due to AI announcements, the expectation of technological replacement is reshaping valuation logic and exacerbating the overall vulnerability of tech stocks [2][5] Labor Market and Monetary Policy - The latest non-farm payroll data for January shows an addition of 130,000 jobs, exceeding expectations by a factor of two, with the unemployment rate unexpectedly dropping to 4.3% [3][5] - Strong labor market data, combined with a projected year-on-year CPI inflation rate of only 2.5%, which remains above target, makes monetary policy easing unlikely in the near term [3][5] - The robust labor market and persistent inflation pressures create a closed loop, effectively blocking the possibility of the Federal Reserve initiating interest rate cuts in the short term [3][5] Future Outlook - Interest rate traders have reached a consensus that the Federal Reserve is likely to maintain interest rates in March [6] - Market confidence is expected to take time to rebuild amid multiple headwinds, including a $2 drop in oil prices due to oversupply concerns and ongoing declines in cryptocurrency [6] - As the next FOMC meeting is over a month away, the market will continue to digest inflation pressures and the industry pain caused by technological changes [6]

I originally covered C.H. Robinson Worldwide ( CHRW ) in early July last year and rated the stock a HOLD. At that time, there were some things to like about the business and someI have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for over 10 years starting as an analyst and working my way up to a management role. Dividend investing is a personal hobby and I look forward to sharing my thoughts with the Seeking Alpha com ...

Core Viewpoint - The analysis of C.H. Robinson Worldwide (CHRW) indicates a mixed outlook, with both positive and negative aspects noted in the business performance since the last coverage in early July of the previous year [1]. Company Analysis - The company was rated a HOLD in the previous analysis, suggesting that while there are favorable elements, there are also concerns that may limit growth potential [1]. - The analyst has a strong educational background with a master's degree in Analytics and a bachelor's degree in Accounting, which supports the credibility of the analysis [1]. Investment Context - The analyst has over 10 years of experience in the investment field, starting as an analyst and progressing to a management role, indicating a deep understanding of market dynamics [1]. - Dividend investing is highlighted as a personal interest, suggesting a focus on income-generating investments, which may influence the analysis of C.H. Robinson's stock [1].

Market Overview - U.S. stocks stabilized on Friday following a positive inflation update, easing concerns about the impact of artificial intelligence on businesses [1][10] - The S&P 500 remained relatively unchanged after experiencing significant losses, while the Dow Jones Industrial Average increased by 48 points (0.1%) and the Nasdaq composite decreased by 0.2% [1][10] Inflation and Economic Indicators - Treasury yields decreased after a report indicated that inflation slowed more than expected, with U.S. consumers facing a 2.4% increase in prices compared to the previous year [2][10] - Although inflation remains above the Federal Reserve's 2% target, it improved from December's 2.7% rate, with a key underlying measure of inflation reaching its lowest level in nearly five years [10][11] Company Performance - AppLovin saw a significant drop of nearly 20% on Thursday despite reporting stronger-than-expected profits, but rebounded with a 6.4% increase on Friday [5][11] - C.H. Robinson Worldwide experienced a 14.5% decline on Thursday but recovered with a 4.9% rise on Friday after news of an AI platform that could increase freight volumes by up to 400% without increasing operational headcount [6][11] - Applied Materials was a major contributor to the S&P 500's upward movement, rising 8.1% after reporting better-than-expected profits, attributed to increased investments in AI computing [8][11] - DraftKings fell 13.5% despite exceeding profit expectations, as its revenue forecast for the year did not meet market expectations [8][11] - Norwegian Cruise Line Holdings dropped 7.6% following the replacement of its CEO just weeks before reporting quarterly results [9][11] - Nvidia, being the largest stock on Wall Street, declined by 2.2%, significantly impacting the S&P 500 due to its market weight [9][11] Market Sentiment - The market has shown aggressive reactions to perceived threats from AI disruption, with analysts describing the sentiment as a "shoot first, ask questions later" approach [7][11]

How a Former Karaoke Company Slammed Freight Stocks and What to Buy Now - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# How a Former Karaoke Company Slammed Freight Stocks and What to Buy NowBy [Al Root]ShareResize---ReprintsIn this article ...

Financial Performance - Adjusted gross profits for 2025 totaled $2,588,641 thousand, a decrease from $2,633,810 thousand in 2024 and $2,486,636 thousand in 2023[37] - Transportation services accounted for approximately 95% of adjusted gross profits in 2025, 2024, and 2023[36] - Truckload services generated $1,052,281 thousand in adjusted gross profits in 2025, while LTL and Ocean services contributed $609,736 thousand and $432,874 thousand, respectively[37] Customer and Shipment Data - The number of customers served worldwide decreased to 75,000 in 2025 from 83,000 in 2024, primarily due to the sale of the Europe Surface Transportation business[40] - In 2025, the company managed approximately 37 million shipments for 75,000 customers using over 450,000 contract carriers[46] - The company serves 75,000 customers and has 450,000 contract carriers on its platform[70] Employee and Workforce Insights - C.H. Robinson has a total of 11,855 employees across 37 countries, with 99% working full-time[72] - The employee turnover ratio for 2025 was 19%, with a voluntary turnover rate of 11%, lower than industry peers[75] - C.H. Robinson's workforce reflects diversity, with employees speaking 70 languages and encompassing four generations[70] - C.H. Robinson's equity program grants equity to about 11% of employees, with 36% of eligible employees participating in the employee stock purchase plan[85] - The 2025 employee engagement survey yielded a score of 76%, indicating strong alignment with the company's strategic direction[76] - The company emphasizes a performance culture, focusing on compensation, work-life balance, and career growth opportunities to drive retention[75] Environmental and Community Initiatives - The company exceeded its goal of reducing Scope 1 and 2 carbon intensity by 40% by 2025, achieving this two years early[91] - The company has logged over 3 million miles on alternative fuels and electric vehicles since launching its Alternative Fuel Program[89] - The company actively engages in community support through grantmaking, scholarship programs, and employee-driven philanthropy[87] Financial Position and Risk Management - As of December 31, 2025, the company had $160.9 million in cash and cash equivalents, primarily in demand accounts[246] - The company has a $1 billion revolving credit facility, with no outstanding balance as of December 31, 2025[247] - The company issued $325 million in Senior Notes, with a fair value of approximately $311.8 million as of December 31, 2025[248] - The company has a Receivables Securitization Facility with $500 million available, with $166.7 million outstanding as of December 31, 2025[250] - A hypothetical 100-basis-point change in interest rates would not materially affect the company's earnings[251] - A 10% weakening of the U.S. Dollar against key currencies would decrease net income by approximately $14.2 million, while a 10% strengthening would increase it by approximately $11.6 million[254] - The company is exposed to foreign exchange risks primarily with the Euro, Chinese Yuan, Singapore Dollar, Canadian Dollar, and Mexican Peso[252] - The company has a credit agreement with fixed rates consisting of $150 million of 4.26% Senior Notes due August 27, 2028, and $175 million of 4.6% Senior Notes due August 27, 2033[248] - The company does not use derivative financial instruments to manage interest rate risk or speculate on future changes in interest rates[251] - The company may use foreign currency forward contracts to manage exposure to foreign currency exchange rate fluctuations, although the impact was not material as of December 31, 2025[253] Technology and Innovation - The company has over 800 technologists focused on developing proprietary technology that enhances logistics services through AI and data analytics[44] - Enhancements to dynamic costing and pricing models allow the company to respond to market signals more quickly and accurately[51] - The company operates under various regulatory frameworks, including licensing by the U.S. Department of Transportation and the Federal Maritime Commission[61] Market Position - The largest truck transportation provider accounted for less than 1% of total transportation costs in 2025, with carriers operating fewer than 100 trucks handling approximately 72% of truckload shipments[55]

Core Viewpoint - The stock market is experiencing significant volatility due to fears surrounding the adoption of generative artificial intelligence technology, impacting various industries and companies [1]. Industry Impact - The Dow Jones Transportation Average (DJT) saw a decline of 4% recently, indicating a broader market reaction to AI disruptions [1]. - C.H. Robinson Worldwide (CHRW) experienced a notable drop in its stock price, falling by 14.5%, reflecting investor concerns about the implications of AI on the transportation sector [1].