Former Karaoke Company Drags Logistics Into the ‘AI Scare Trade’

Logistics stocks plunged on Thursday as the group became the latest victim of the artificial intelligence “scare trade.” At the center of the selloff: a former karaoke company with a stock-market value of only $6 million.

The little-known company is worth just a fraction of the value it knocked off of a constellation of others — all of which were dumped by investors fearful of even the faintest threat posed by AI. The company’s trumpeting of its logistics platform sent the Russell 3000 Trucking Index sliding 6.6%. CH Robinson Worldwide Inc. tumbled 15% — and at one point was down by a record 24% — while Landstar System Inc. fell 16%.