On Wednesday, shares of Allbirds Inc. skyrocketed 582.33% during the regular trading session but slipped 24.66% in after-hours trading, according to Benzinga Pro.
The rally came after the company unveiled a strategic overhaul, including a $50 million convertible financing facility and a $39 million deal to sell its brand and footwear assets to American Exchange Group.
The company said it plans to exit its legacy footwear business entirely and pivot toward artificial intelligence and cloud computing capacity, with a rebrand to “NewBird” expected following the deal’s anticipated close in the second quarter of 2026.
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Critics were quick to question the feasibility of the move, including Jim Cramer, who took to X and said, “I wish the Allbirds people luck in their attempt to pivot to GPUs. Maybe they can do it.”
He added, “I regard this as the first definitive sign that things have gone too far.”
I wish the Allbirds people luck in their attempt to pivot to GPUs. Maybe they can do it. But i regard this as the first definitive sign that things have gone too far. What a bunch of jokers and mountebanks they are..
— Jim Cramer (@jimcramer) April 15, 2026
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William Blair analyst Dylan Carden described the stock’s move as “hyperbolic,” adding that there is “no valuation metric here” given the absence of a stable business model during the transition, TipRanks reported.
He also pointed to structural factors such as a limited public float, momentum-driven trading and “unchecked hype” as key drivers behind the surge, warning the rally could prove fragile.
Carden further downplayed the significance of the $50 million financing, calling it “a drop in the bucket” compared with the billions typically required to compete in the AI infrastructure and cloud computing space.
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Photo courtesy: katz / Shutterstock.com
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