Allbirds shares rocketed more than 600% in New York trading on Wednesday after the beleaguered sneaker brand said it was abandoning its sustainable footwear roots, rebranding as 'NewBird AI' and refocusing the business on artificial intelligence computing infrastructure.
The news came after a bruising few years for Allbirds, once a darling of Silicon Valley wardrobes and Millennial marketing decks. Founded around wool trainers and an explicit environmental mission, the company floated in November 2021 at a valuation of around $4 billion, positioning itself as the ethical alternative to fast fashion. But by last month, it had agreed to sell its footwear assets and branding to American Exchange Group for just $39 million, effectively ending its life as a consumer shoe company.
