{"id":10292,"date":"2026-04-16T20:00:54","date_gmt":"2026-04-16T20:00:54","guid":{"rendered":"https:\/\/musictechohio.online\/site\/allbirds-stock-now-crashing\/"},"modified":"2026-04-16T20:00:54","modified_gmt":"2026-04-16T20:00:54","slug":"allbirds-stock-now-crashing","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/allbirds-stock-now-crashing\/","title":{"rendered":"Allbirds Stock Now Crashing as Reality Sets in About Its Delusional AI Pivot"},"content":{"rendered":"
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Tech bro sneaker company Allbirds made a huge splash<\/a> yesterday when it announced<\/a> a baffling pivot to AI infrastructure \u2014 news that was met with a mix of incredulity and ridicule<\/a>.<\/p>\n

The company\u2019s blindsiding metamorphosis into what it\u2019s calling \u201cNewBird AI\u201d had investors leaping from their office chairs, sending shares surging by over 700 percent on Wednesday.<\/p>\n

That\u2019s despite Allbirds\u2019 core business being at death\u2019s door. In its final throes, the company sold off its intellectual property and other assets for a measly $39 million mere weeks ago, leaving its once lofty $4 billion market cap five years ago long behind.<\/p>\n

But don\u2019t break out the champagne quite yet. The rally subsequently came to a \u201cscreeching halt,\u201d as Bloomberg<\/em> put it<\/a>, with shares sinking a dismal 35 percent on Thursday.<\/p>\n

In other words, possibly ketamine-crazed<\/a> Wall Street bros realized the morning after that a struggling shoe company may not be able to prop up a trillion-dollar industry with its promises of buying up impossible-to-get AI chips.<\/p>\n

The bizarre stock market performance perfectly highlighted persistent concerns over an AI bubble, with business fundamentals taking a backseat as investors bet big on a bright and profitable future that may \u2014 or may not \u2014 still be years away.<\/p>\n

Some investors were baffled why an ailing shoe brand got so much attention in the first place.<\/p>\n

\u201cThis has the feel of a meme stock, where emotions take over and logic and reason get thrown out the window,\u201d 50 Park Investments chief executive Adam Sarhan told Bloomberg<\/em>. \u201cThat the market actually rewarded the stock yesterday when it doesn\u2019t seem to have any kind of actual AI edge tells me that froth, specifically AI froth, is picking up.\u201d<\/p>\n

\u201cBetween the risk of a huge reversal or a short squeeze, I can\u2019t see any reason why you\u2019d want to play this,\u201d Sarhan added. (A short squeeze is a rapid increase in the price of a stock primarily being driven by an excess of short sellers buying back their shares to cover their losses, not any underlying business fundamentals.)<\/p>\n

\u201cThe vast majority of times, these things end in tears,\u201d he added.<\/p>\n

The spike is reminiscent of other companies that have announced they were jumping on the blockchain or cryptocurrency bandwagon in past years, temporarily resulting in a major surge in interest from investors.<\/p>\n

Case in point, the beverage brand Long Island Iced Tea announced<\/a> in 2017 that it was pivoting to become \u201cLong Blockchain Corp,\u201d sending its stock leaping by more than 200 percent. It didn\u2019t end well: the company\u2019s shares were delisted in early 2021<\/a>, with the Securities and Exchange Commission accusing it of never having actually pivoted to blockchain tech. (The SEC also charged three people<\/a> with insider trading in connection with the company.)<\/p>\n

Allbirds may similarly be overindexing on hype alone. <\/p>\n

\u201cThe market is not pricing risk,\u201d Siebert Financial CIO Mark Malek wrote in a note<\/a>. \u201cIt is pricing narrative. It is pricing the word \u2018AI\u2019 the same way it once priced the word \u2018blockchain\u2019 and before that the suffix \u2018.com.’\u201d<\/p>\n

More on the hype:<\/strong> What It Really Means That a Failing Shoe Brand \u201cPivoted to AI\u201d and Its Stock Soared 700 Percent<\/em><\/a><\/p>\n

The post Allbirds Stock Now Crashing as Reality Sets in About Its Delusional AI Pivot<\/a> appeared first on Futurism<\/a>.<\/p>\n<\/div>\n

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Tech bro sneaker company Allbirds made a huge splash yesterday when it announced a baffling pivot to AI infrastructure \u2014 news that was met with a mix of incredulity and…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177,3841],"tags":[],"class_list":["post-10292","post","type-post","status-publish","format-standard","hentry","category-artificial-intelligence","category-ethics"],"_links":{"self":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/10292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/comments?post=10292"}],"version-history":[{"count":0,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/10292\/revisions"}],"wp:attachment":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/media?parent=10292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/categories?post=10292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/tags?post=10292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}