Artificial intelligence is increasingly disrupting traditional industries, prompting investors to abandon shares in companies vulnerable to automation. Firms like Wix.com, Shutterstock, Adobe, ManpowerGroup, Robert Half, and Omnicom Group are experiencing significant declines as AI tools can perform tasks such as graphic design, administrative work, and ad creation more efficiently and cheaply. Bank of America strategists have identified 26 companies at risk, with the sector underperforming the S&P 500 by about 22 percentage points since mid-May. Major tech firms like Microsoft, Meta, Alphabet, and Amazon are investing heavily in AI, spending a combined $350 billion on capital expenditures. Analysts warn that service-based businesses with high headcounts are particularly vulnerable, citing historical precedents like the rise of the internet and Netflix's disruption of Blockbuster. While some companies like Duolingo are thriving due to AI integration, broader investor anxiety about AI-driven obsolescence is intensifying, leading to defensive market moves and a shift in investment themes.

DoorDash (NYSE:DASH) is set to announce Q2 earnings results, with analysts expecting revenue growth of 20.3% year-on-year to $3.16 billion, slower than the 23.3% increase in the same quarter last year. The company missed revenue expectations by 2.1% in Q2 2024, reporting $3.03 billion in revenue, while peers like Fiverr and Shutterstock outperformed estimates.

MercadoLibre, a Latin American e-commerce and fintech company, is set to report Q2 earnings, with analysts expecting 28.9% year-on-year revenue growth to $6.54 billion, down from 41.5% in the same quarter last year. The company reported 66.6 million daily active users, up 24.5% year-on-year, and has a history of outperforming earnings estimates. Peer companies like Shutterstock and eBay also reported growth, though their stock performance varied.

MercadoLibre, a Latin American e-commerce and fintech company, is set to report Q2 earnings, with analysts expecting 28.9% year-on-year revenue growth to $6.54 billion. The company previously beat revenue expectations by 8.1% in Q1, reporting 66.6 million daily active users. Peer companies like Shutterstock and eBay also reported strong Q2 results, with Shutterstock exceeding analyst estimates by 7.5% and eBay topping forecasts by 3.1%.

Artificial intelligence is increasingly disrupting traditional industries, prompting investors to sell shares in companies vulnerable to AI automation. Firms such as Wix.com, Shutterstock, Adobe, ManpowerGroup, Robert Half, Omnicom Group, and WPP Plc are experiencing significant declines as investors anticipate AI-driven replacements for human labor in areas like graphic design, administrative work, and advertising. Despite AI companies like OpenAI and Anthropic raising billions, major tech firms including Microsoft, Meta, Alphabet, and Amazon are investing heavily in AI infrastructure. Analysts note that service-based businesses with high headcounts are particularly at risk, with historical precedents like Blockbuster and the automobile industry showing how new technologies can erase entire sectors. The market sentiment has shifted from earlier concerns about Chinese AI challenging US dominance to a widespread fear of AI-driven disruption, leading to defensive investor behavior and a reclassification of stock valuations.