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.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Nvidia's Quantum Computing AI Product Drives 50%+ Stock Surge in IonQ and D-Wave
Nvidia's new AI product suite, Ising, launched on April 14, enhances quantum error correction, boosting speed by 2.5 times and accuracy by three times. This announcement spurred a significant rise in quantum computing stocks, indicating strong market interest, even amid volatility.
GateNews9m ago
Philippine Digital Bank GoTyme Launches In-App Stock Trading Feature
GoTyme Bank has introduced an in-app stock trading feature, allowing users to invest in the Philippine Stock Exchange directly from their banking app. This service, in partnership with DragonFi Securities, aims to simplify investment for new and existing customers.
GateNews11m ago
Wipro's Q4 Revenue Misses Estimates as Clients Cut Tech Spending
Wipro reported Q4 revenue of 242.4 billion rupees, a 7.7% increase but below expectations. The decline reflects decreased tech spending from clients, particularly Estee Lauder, and a broader trend in the Indian IT sector towards specialized hiring amid AI adoption.
GateNews13m ago
21Shares AG launches its first equity-linked ETP, with MicroStrategy (Strategy) priority securities as the underlying asset
Crypto ETP issuer 21Shares AG, headquartered in Zurich, has launched its Strategy Yield ETP (ticker: 21ST), which has been listed on Xetra and four other European exchanges. According to a 21Shares announcement, this is the company’s first ETP providing exposure to equity-related instrument structures, with the underlying asset being priority securities issued by MicroStrategy (Strategy).
MarketWhisper20m ago
Google-Backed Data Center Financing Hits Record $5.7B, CoreWeave Adds $1B in High-Yield Debt
CoreWeave raised $6.7 billion in high-yield debt, including a record $5.7 billion issue led by Morgan Stanley, to finance two data centers for Fluidstack. This reflects a surge in demand for AI-related infrastructure amid shortages.
GateNews43m ago
