Shares in Allbirds surge after maker of wool sneakers announces pivot to AI
7 hours ago
- #Stock Volatility
- #AI Boom
- #Corporate Pivot
- Allbirds is rebranding as NewBird AI and shifting from shoe manufacturing to focusing on artificial intelligence infrastructure.
- The pivot caused Allbirds' stock to surge 582% in mid-day trading, turning it into a volatile meme stock amid market speculation.
- Despite previous struggles including a 99% stock decline since 2021 and a $20.3 million loss last quarter, the company secured $50 million in funding for its new AI operations.
- Allbirds plans to become a GPU-as-a-Service and AI cloud solutions provider, moving away from its eco-conscious public benefit corporation status to a conventional corporation.
- The company’s initial success with sustainable wool sneakers attracted celebrity investors and high-profile endorsements, but sales declined, leading to store closures and a pending sale to American Exchange Company.