Allbirds. The magic word.
Allbirds sold its shoe business for $39 million, kept the listed shell and rebranded it as an AI company. The stock jumped 600% in a day. We have seen this before.
THE GIST ON ALLBIRDS: "Tech Support"
What did Allbirds just do?
Allbirds has pulled off the most radical and audacious rebrand in living memory. A down-and-out ethical shoe company is now an AI business, and its stock jumped 600% in a day. What a time to be alive.
How did it get there?
As we covered a fortnight ago, Allbirds sold to a fashion accessories conglomerate for $39 million, but kept the public company shell and the Nasdaq listing.
Then it raised $50 million from one very shrewd investor and rebranded the empty company as New Bird AI.
Has this happened before?
Ten years ago a Long Island iced tea company rebranded as Long Blockchain Corp, and its stock went up 275%. Attach the hottest word to your name and the market loves it, until it doesn't.
Every time, it ends the same way. The magic word runs out of magic, and the businesses with no business in the new sector go first. When the AI bubble corrects, which it will, the companies that made that cynical pivot will be cannon fodder.
What is the real kicker?
The brand was built on saving the planet, and it deleted the environmental commitment from its charter to do this. Which tells you exactly what those values were worth in the first place.
Is this a good time to announce that The Gist is now an AI company? See you in the Bahamas.
Is an AI rebrand a clever pivot or a stunt?
Your take. One tap, then see how everyone else voted.
Quick answers
What is New Bird AI?
The renamed shell of Allbirds, which sold its shoe business for $39 million and kept its public listing.
What happened to the stock?
It jumped 600% in a day after the rebrand.
Has a rebrand like this happened before?
Yes. A Long Island iced tea company became Long Blockchain Corp ten years ago, and its stock rose 275%.
See you on the next one.
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