<p><span style="font-weight: 400;">Shares of Allbirds surged 600% after the footwear company announced it was pivoting towards AI computing infrastructure. </span></p>
<p><span style="font-weight: 400;">At its IPO in November 2021, Allbirds was valued as a $4B shoe company but was recently sold for $39M. Allbirds shoes will continue to exist, but the brand, intellectual property, and inventory were sold to American Exchange Group on March 30. Left behind was a stock ticker, shareholders, and a stock market listing, allowing Allbirds’ CEO Joe Vernachio to effectively start a new public company, bypassing the traditional process of raising capital and going public through an IPO.</span></p>
<p><span style="font-weight: 400;">Traders buying shares today are no longer buying a shoe company but a newly formed AI venture which is built on the remnants of a failed retail brand. At market open, the stock was $4.40, hitting an intra-day high of $24.31 per share. The stock has since pulled back and is currently hovering under $20 a share. </span></p>
<p><span style="font-weight: 400;">Allbirds, which will be renamed “NewBird AI,” secured $50 million to build the new AI company in a convertible financing facility allowing the investor to convert the debt into equity if desirable. The company states it will use the $50 million to purchase GPUs and rent them out to companies in need of computing power, positioning itself as a player in the AI cloud infrastructure market. If successful, Allbirds would ultimately be competing with dominant cloud providers like Amazon, Microsoft, and Google.</span></p>
<p><span style="font-weight: 400;">The pivot is contingent on shareholder approval at a special meeting scheduled for May 18. If approved, and once the financing is completed, the company will move into the execution phase of its AI strategy.</span></p>
<p><span style="font-weight: 400;">The brand&#8217;s announcement shows the market’s appetite for companies tied to artificial intelligence, with it valuing the company tens of millions of dollars higher before the company has earned a single dollar from its new venture. Some see this enthusiasm as evidence of an emerging AI bubble driven more by hype than fundamentals.</span></p>
<p><span style="font-weight: 400;">Michael Burry, the investor famous for predicting the housing market crash in 2008, warns the AI boom is a bubble. “The government will put all the stops to save the AI bubble to save the market to save the economy,” he </span><a href="https://finance.yahoo.com/news/big-short-investor-michael-burry-130840772.html"><span style="font-weight: 400;">said</span></a><span style="font-weight: 400;">. “The problem is too big to save.” </span></p>
<p><span style="font-weight: 400;">Others disagree. Amazon CEO Andy Jassy has called AI a “once-in-a-lifetime opportunity,” while BlackRock CEO Larry Fink says he does “not believe we have a bubble at all.” Supporters argue that, unlike the dot-com era, many AI companies today are already profitable and generating cash.</span></p>
<p><span style="font-weight: 400;">Critics, however, contend that the technology has yet to produce value commensurate with the hype.</span></p>

<script async src="https://www.instagram.com/embed.js"></script>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<script async src="https://www.tiktok.com/embed.js"></script><div data-widget-host="revcontent" data-pub-id="165152" data-widget-id="290588"></div><script src="https://delivery.revcontent.com/165152/290588/widget.js"></script>

Failing Shoe Company Says Market’s Magic Word, Stock Skyrockets 600%

CONTINUE READING

Girl Math: Democrat Gov Says Party Doesn’t Need Any Male Voters

When Was Jill Lying? How She Went From ‘He’s Fine’ To ‘I Thought He Was Having A Stroke.’

The Fed’s Favorite Inflation Reading Spells Bad News For Interest Rate Cuts

Trump Set To Officially Launch App For Millions Of Trump Accounts

WATCH: Jill Biden Recalls Private Fear During Biden-Trump Debate

Kathy Hochul Tries To Own Trump On Sports Fandom, Faceplants

News

advertising

Free Market

A video goes viral showing a baby being refused his mother by two gay "dads". This is just the tip of the iceberg, which is why we will have an important discussion today about surrogacy. 

Hour 1

The Matt Walsh Show

Ep. 1765 - This Video Is One Of The Worst Things I've Seen In A Long Time 

The Strait of Hormuz officially opens for business (kind of), the Pope makes “shocking” comments on immigration, and President Trump promises UFO disclosure at TPUSA. 


The Michael Knowles Show

Ep. 1956 -  Pope Leo's "SHOCKING" Immigration Comments EXPLAINED

A false miscreed has corrupted our leadership class.


The Andrew Klavan Show

Ep. 1275 - Dumb, Dumber and Progressive

President Trump announces a 10-day ceasefire between Lebanon and Israel, a murder-suicide involving former Democratic Lieutenant Governor Justin Fairfax shakes Virginia, and France and Britain hold a conference to secure the Strait of Hormuz – after the Iranian conflict ends. Get the facts first with Morning Wire.

- - -

Ep. 2738

- - -

Wake up with new Morning Wire merch: https://bit.ly/4lIubt3

- - -

Today's Sponsors:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text 'WIRE' to 83848 to learn more.

Pocket Hose - Text MORNING to 64000 to get a FREE pocket pivot and their 10-pattern sprayer with the purchase of ANY size Copper Head hose. Message and data rates may apply.

Morning Wire

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26 [Member Exclusive]

A ceasefire goes into effect between Israel and Lebanon, a tragic murder-suicide rocks Virginia, and Dairy Queen deploys AI in the drive-thru. Get the facts first with Evening Wire.
- - -
Ep. 2737
- - -
Wake up with new Morning Wire merch: https://bit.ly/4lIubt3 
- - -
Today’s Sponsor:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text “WIRE” to 83848 to learn more.


Menu

— News —

Failing Shoe Company Says Market’s Magic Word, Stock Skyrockets 600%