Allbirds Inc.’s shift from wool sneakers to artificial intelligence infrastructure has resulted in a significant stock decline. Shares fell as much as 31% on Thursday, following a more than 582% surge the previous day. Nearly 300 million shares changed hands on Wednesday, far exceeding the daily average of just over 20 million.
Adam Sarhan, chief executive of 50 Park Investments, described the situation as reminiscent of a meme stock, where emotions overshadow logic. He noted that the market rewarded the stock despite a lack of actual AI advantage, indicating a rise in AI-related speculation.
William Blair analyst Dylan Carden referred to the surge as “by any measure a Hail Mary” for a stock that has lost about 96% of its value since its 2021 public debut. He attributed the spike to a “very shallow float, automated momentum, and unchecked hype” and has since dropped his coverage of the stock.
Allbirds was not alone in benefiting from an AI pivot this week; Myseum Inc. also saw a boost after announcing a rebrand to Myseum.AI, Inc.
