US stock
Shoe maker Allbirds’ share price soared nearly 600% on Wednesday after the company announced it was raising funding and transforming itself into an AI computing infrastructure company. Allbirds now plans to change its name to “Newbird AI” and focus on cloud computing capabilities and AI services.
On Wednesday, Allbirds’ shares opened at $6.82 on the Nasdaq Stock Exchange, up 174% from the previous closing price of $2.49. During trading, the stock rose by a tremendous 876% and reached a new 52-week high of $24.31. The stock ultimately closed at $16.99, a gain of $14.50 or 582.33%. Due to this, the valuation of the company increased to around $147.95 million, which was only $22 million till Tuesday. Behind this rise was huge trading volume of around 288.16 million shares.
Shift towards AI infrastructure
The San Francisco-based company said that it has signed a deal with an institutional investor for $50 million funding to transform its business into AI infrastructure. This money will be used to buy GPU. It is expected that this deal will be completed in the second quarter of this year. The company said that due to the increasing use and development of AI, the demand for high-performance computing is increasing rapidly, but the market is not yet able to meet it completely. Newbird AI is being created to fill this gap.
According to a Reuters report, Allbirds has closed many of its physical stores in the last few months due to reduced demand and increased online partnerships. Last month, the company sold its brand and footwear assets to American Exchange Group for $39 million. Allbirds was listed on Nasdaq in 2021 at a valuation of about $3 billion, but till now the company has lost about 99% of its market value.
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