Allbirds Stock Surges Amid Tech Pivot, AI Rebrand

Allbirds Inc (NASDAQ:BIRD) stock is 632.5% higher to trade at $18.24 at last check, easily leading the Nasdaq Composite (IXIC) and helping set the tech-heavy index on track to extend its win streak to 11 days. This bull gap comes after the shoe company revealed it will rebrand into an AI compute infrastructure business.

Allbirds secured a $50 million convertible financing agreement and will change its name to Newbird AI. As part of the move, it will sell its footwear brand assets to the American Exchange Group. Plus, a special dividend in the fiscal third quarter is now anticipated.

Prior to today's bombshell, BIRD was trading in penny stock territory. Shares hit a March 31, record low of $2.15, but are today hit a two-year high of $24.31 -- a more than 1,030% jump. BIRD is trading firmly above the 320-day moving average, and now sports a 320.2% year-to-date lead.

There are not a lot of brokerages covering Allbirds stock, but the two that do call it a "hold." As the equity breaks into the AI space, more analysts could feel compelled to issue ratings.