Gate News message, April 17 — Allbirds, a struggling shoe retailer that announced a pivot to artificial intelligence infrastructure and a rebrand to NewBird AI on April 15, saw its stock plunge 36% on April 16, reversing most of the previous day's extraordinary 582% surge that added $127 million in market value.
Nearly 300 million shares traded on April 15, several times the daily average of 20 million, driven by record retail buying that surpassed even the company's initial public offering. Analysts characterized the move as a meme stock phenomenon driven by emotion rather than fundamental AI advantages. William Blair analyst Dylan Carden called the pivot "a Hail Mary" for a stock that has lost 96% of its value since going public in 2021, citing a shallow float, automated momentum, and unchecked hype.
Allbirds was not alone in capitalizing on AI enthusiasm. Myseum, a social media company with a market cap of just over $6 million on April 15, announced a rebrand to Myseum.AI and saw its stock jump 130% on April 16. Similar patterns have emerged with other companies pivoting to trending sectors—CaliberCos and Eightco Holdings spiked on crypto moves last year, while Algorhythm Holdings soared over 200% in February after shifting focus to AI-related logistics, only to fall about 70% from that peak.
Gene Munster, managing partner of Deepwater Asset Management, noted that such moves reflect retail investor optimism about AI and their search for the next meme stock winner. "What you need for a meme stock is a big opportunity and a healthy dose of absurdity," he said of Allbirds' announcement.
