AI Triggers Bloodbath in Logistics and Real Estate

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Hello Peter Anthony Hovis,

AI Triggers Bloodbath in Logistics and Real Estate

Yesterday’s most dramatic story unfolded in the business of transporting goods.

Namely, the trucking and logistics industry found itself in the crosshairs of a “SaaS-style” apocalypse. The catalyst was a whitepaper from Algorhythm Holdings, a company that recently pivoted from selling in-car karaoke machines to developing freight-optimization AI.

Their SemiCab platform promised a future where “empty miles,” which are one out of every three miles trucks currently drive without cargo, are virtually eliminated.

“What we’re proving with SemiCab is that when freight is managed as a coordinated network rather than isolated transactions, utilization improves dramatically,” said Ajesh Kapoor, CEO of SemiCab.
“The substantial reduction in empty miles that we are able to achieve for our customers represents a fundamental shift in how logistics economics work.”

(Source: SemiCab)

The results were immediate and unforgiving.

Logistics powerhouses C.H. Robinson and RXO saw their valuations crater, each dropping more than 20% in a single session.

The carnage didn’t stop at the loading dock.

The panic in commercial real estate stocks continued for its second straight day, and the sector suffered its deepest losses since the 2020 pandemic. Investors are increasingly haunted by the “agentic AI” threat, where tools like Anthropic’s “Claude Cowork” can audit thousands of leases in seconds.

It may threaten the high-fee, labor-intensive models of firms like CBRE and Jones Lang LaSalle. CBRE’s stock tumbled 12.8%, a move so sharp it echoed the darkest days of the 2008 financial crisis.

The mood was further darkened by a viral essay from OtherSide AI CEO Matt Shumer, who warned that the “white-collar gutting” from AI would be more impactful than Covid.

OtherSide AI CEO Matt Shumer (Photo: AI Speakers Agency)

This sentiment was bolstered by Elon Musk’s recent podcast appearance, where he said AI-first corporations would outperform the current corporation structure filled with people.

He used an example of the past days, when skyscrapers were filled with humans doing calculations. Not anymore. They are replaced by a smaller number of humans using laptops that run calculations on spreadsheets.

“Corporations that are purely AI and robotics will vastly outperform any corporations that have people in the loop,” Musk told the “Dwarkesh Podcast.” “Computer used to be a job that humans had… Now, that entire skyscraper of humans doing calculations can be replaced by a laptop.”

The AI fear is spreading across sectors, and not a single sector is safe from it. While some, like AWS CEO Matt Garman, argue the fear is “overblown,” the market’s current “sell first, ask questions later” mentality suggests that investors are extremely anxious about how disruptive AI can be to incumbents.

For now, the fear is more powerful than the optimism surrounding AI. The market has lost its momentum after its strong recovery from the steep software sell-off, and investors are waiting for the next major catalyst to get the bull market back on the track.

Why 908 Devices Is Currently One of Wall Street’s Most Liquid Small-Caps

Today’s Stock Pick: 908 Devices Inc. (MASS)

908 Devices is the company that builds handheld devices that can detect fentanyl in seconds.

How it works is simple.

Point a device the size of a handheld radio at a suspicious substance, wait a few moments, and sophisticated mass spectrometry identifies exactly what you’re dealing with.

(Source: 908 Devices)

For law enforcement officers, customs agents, and first responders facing the deadliest drug crisis in American history, these devices aren’t just convenient. They’re potentially lifesaving.

(Source: 908 Devices)

Wall Street hasn’t fully embraced the stock yet, with the market cap sitting at just $232 million. 908 Devices presents an intriguing opportunity at the intersection of three powerful trends: the opioid epidemic, rising defense spending, and border security concerns.

The Strategic Pivot That Changes Everything: In March 2025, 908 Devices made a defining move. Management sold its entire desktop bioprocessing product line to Repligen Corporation for $70 million cash, nearly doubling the balance sheet overnight.

The desktop products served pharmaceutical and biotech companies, generating $13.2 million in 2024. But they represented a distraction from what CEO Kevin Knopp saw as the company’s real future:

Handheld chemical detection devices for frontline health, safety, and defense applications.

By divesting these assets, 908 Devices shed a third of its workforce, eliminated $20 million in annual operating losses, and sharpened its focus on the faster-growing handheld market.

The company emerged with ~$110 million in cash and essentially zero debt.

That’s right — its cash position is 47% of its total market cap.

(Source: 908 Devices)

More importantly, it positioned itself squarely in front of secular tailwinds that show no signs of slowing.

Three Crises Creating One Market Opportunity: The opioid crisis has evolved into a full-blown national emergency. Over 100,000 Americans died from drug overdoses in 2023, the leading cause of injury deaths, surpassing automobile accidents. The federal government declared a nationwide public health emergency in June 2024.

Traditional drug testing strips can’t keep pace. What law enforcement needs is adaptable technology that can identify unknown substances quickly and accurately.

Beyond drugs, toxic industrial materials pose growing threats. Consumer products in California emit over 5,000 tons of hazardous volatile organic compounds annually. Cancer accounts for 72% of firefighter line-of-duty deaths in the United States. First responders need better detection equipment, yet most operate with outdated technology from the early 2010s.

Rising global tensions add a third dimension. In 2024, 80 countries held national elections. President Trump designated drug cartels as “Foreign Terrorists” in January 2025, elevating border security to a national priority. The Organization for the Prohibition of Chemical Weapons reports increased risks of chemical weapons use. These trends are creating what industry analysts estimate to be a 15,000-unit equipment modernization opportunity across customs agencies, law enforcement departments, and military units worldwide.

(Source: 908 Devices)

908 Devices has assembled something its larger competitors don’t offer: A comprehensive suite of handheld devices covering the full spectrum of chemical analysis needs.

The MX908 flagship product is the only handheld mass spectrometer on the market, analyzing solids, liquids, vapors, and aerosols. Over 2,800 MX devices have been fielded globally.

In July 2025, the company launched VipIR, a 3-in-1 handheld analyzer combining Raman and Fourier-transform infrared spectroscopy. Its proprietary “Smart Spectral Processing” algorithms integrate data from both technologies to analyze complex or mixed substances from one sample. The library contains over 39,000 chemical spectra.

(Source: 908 Devices)

For customs officials or hazmat teams, VipIR eliminates the need for multiple devices or laboratory testing. Everything happens on scene, in real time.

The company has also built connected services that competitors ignore. The Team Leader app provides 24/7/365 expert support, fleet management, usage tracking, and AI-powered guidance.

(Source: 908 Devices)

For enterprise customers managing hundreds of devices, these software tools transform individual instruments into an integrated detection network.

The Path to Profitability Is Clear: For years, 908 Devices burned cash trying to be everything to everyone. In 2024, the company generated $47.7 million in revenue from continuing operations but recorded an adjusted EBITDA loss of $29.7 million.

The transformation changes the math entirely.

Management expects adjusted EBITDA positivity by Q4 2025 and full-year cash flow positivity in 2026.

If accomplished, it may be a game-changer for its stock price.

(Source: 908 Devices)

Recurring revenue reached $9.1 million in the first half of 2025, representing 37% of total revenue and growing 31% year-over-year. As the installed base grows, recurring revenue becomes increasingly predictable and profitable.

With $119 million in cash and zero debt, 908 Devices has the runway to execute without raising capital or diluting shareholders.

Future Guidance: Management guides for $54 million to $56 million in revenue for 2025, representing 13% to 17% growth.

Looking ahead to 2026, management expects to return to over 20% growth as the three catalysts kick in.

If the company hits that growth rate and achieves projected gross margins in the mid-to-high 50% range, the operating leverage becomes compelling.

Bottom line: For growth investors comfortable with small-cap volatility, 908 Devices offers an asymmetric opportunity. If management executes and the catalysts play out, the stock could do well. The downside is cushioned by $110 million in cash, representing over 40% of the current market cap.

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