While there’s no fixed data that shows companies who adopt artificial intelligence technologies will see robust stock price growth as a result, the anecdotal evidence is piling up.
Exhibit “A” is drive-share giant Uber which saw share price gains after introducing new software upgrades for Uber Freight, the company’s freight management division.
As part of the rollout, Uber is unveiling a new AI-fueled data analysis tool called Insight AI. The announcement was made at Uber’s annual customer conference held on September 28 which hosts 300 of the world’s largest shipping customers.
The Insight AI release comes nearly two years after Uber’s $2.25B acquisition of the market’s largest transportation management company Transplace, a freight management company that partners directly with shippers to manage their logistics networks.
Two years later, with Uber operating $18B freight under management, the company is rolling out “a next generation of products that infuse Uber’s advanced technology development capabilities, including AI-powered software,” Uber states in a September 28 release.
Uber Freight “is deepening its investment in software solutions” with the launch of Uber Freight Exchange, a new tool that enabled shippers and carriers to expedite freight procurement cycles and gain speedier shipment execution.
Uber describes its new Freight Exchange as “a neutral platform open to all shippers and carriers—a shipper can utilize Uber Freight Exchange to run auctions with their own carriers, in addition to Uber Freight’s network of 100,000 carriers across the US.”
Leveraging integrated software-driven communication, simple bid functionality, and historical performance reporting, Uber Freight “enhances operational efficiency, fosters partnerships, and safeguards lane coverage risks in any market conditions.”
Insights AI is Uber Freight’s software cornerstone, a powerful generative-AI-powered insights tool “that will transform decision-making in logistics and support transportation teams from granular, tactical views to more complex, strategic analyses,” Uber says.
Insights AI will leverage LLM-based maritime shipping laws “to generate and surface insights from Uber Freight’s vast store of transportation data for customers,” the company noted.
A Big Share Price Uptick
Uber stock rose by 2.8% on the day of the announcement to $46.40 at the end of the trading session. It’s not normal for a stock to gain almost three points in a single trading day unless it makes huge news, like a company takeover, or after reporting skyrocketing quarterly earnings.
Aside from the announcement of a new CFO that week (former Analog Devices CFO Prashanth Mahendra-Rajah, who takes over the role on November 13), there was no major news coming out of Uber on or around September 28, aside from the company’s new AI-driven freight initiative.
As the saying goes, causation does not equal correlation, but the word seems to be getting out that investors are rewarding companies that leverage AI in a big way.
Uber’s same-day share hike may be an anomaly, but no smart investor is betting on that – it’s more likely they’re betting on AI.
Brian O’Connell, a former Wall Street bond trader and best-selling author, is a prominent figure in the finance industry. With a substantial background as an ex-Wall Street trader, he has authored two best-selling books: ‘The 401k Millionaire’ and ‘CNBC’s Creating Wealth’, demonstrating his profound knowledge of finance and investing.
Brian is also a finance and business writer for esteemed national platforms and publications, including CNN, TheStreet.com, CBS News, The Wall Street Journal, U.S. News & World Report, Forbes, and Fox News.
