Freight Technologies Stock Rockets On Nestle Mexico Logistics Win: Retail Chatter Hits 9-Month High

Shares of supply chain solutions provider Freight Technologies (FRGT) rose over 12% on Monday after the firm announced Nestle Mexico has selected it to provide domestic logistics services.

The company said that following an extensive service provider evaluation process, Nestlé Mexico chose Fr8App to support its complex logistics needs in Mexico.

The company explains Fr8app (Freight App) as a cloud-based marketplace that simplifies the once-complex process of international over-the-road (OTR) shipping.

Nestle has entrusted Fr8App with the responsibility of supporting the seamless transportation of its products across Mexico, the firm said. As per the initial two-year agreement, Fr8App will deploy its advanced freight-matching technology to optimize over-the-road shipments across numerous Mexican lanes.

Following the development, retail sentiment on Stocktwits continued to trend in the ‘bullish’ territory (70/100). The move was accompanied by an ‘extremely high’ message volume (91/100) that hit a nine-month high.

FRGT’s Sentiment Meter and Message Volume as of 12:02 p.m. ET on Dec. 9, 2024 | Source: Stocktwits

One Stocktwits user believes the firm is undervalued at the current stock price.

Another user believes it may be worth adding more stock at current levels.

In September, Fr8App was awarded six essential cross-border lanes to provide truckload services for Bayer’s various business units in the United States. Bayer CropScience LP selected Fr8App to support its key goals of supplier consolidation, cost optimization, cross-divisional synergies, and enhanced carrier performance.

The company said Fr8App’s role included facilitating seamless and secure transportation across the US-Mexico border, ensuring timely and reliable delivery of Bayer’s agricultural products.

Meanwhile, Freight Technologies announced a 1-for-25 reverse split of its shares in the same month. Later, it disclosed that it regained compliance with Nasdaq listing requirements.

Notably, the firm's shares have lost over 98% of their value since the beginning of the year.

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