Allbirds Inc. (NASDAQ:BIRD) shares fell 8.20% to $10.02 after the bell on Thursday, with the rally tapering down after surging nearly 700% on Wednesday.
The California-based company, which plans a “sneakers-to-servers” reset, closed the regular session at $10.91, down 35.79%, according to Benzinga Pro data.
Traders Pile In, But Technicals Flash Caution
Volume for Allbirds hit 30.81 million on Thursday, more than triple the 9.77 million average, reflecting heavy trading activity.
The Relative Strength Index (RSI) stood at 66.71, indicating strong bullish momentum while nearing the overbought threshold of 70.
Sneakers Out, Servers In
The massive gains on Wednesday came amid Allbirds’ announcement of an AI pivot backed by a $50 million convertible financing facility and a rebranding as “NewBird AI,” targeting GPU-as-a-Service and AI-native cloud solutions.
The announcement follows a late March deal in which Allbirds agreed to sell its brand and footwear assets to American Exchange Group for $39 million.
CNBC’s Jim Cramer expressed skepticism about the AI pivot’s feasibility, saying on X that he wished the team luck while calling the move “the first definitive sign that things have gone too far.”
Trading Metrics, Technical Analysis
Allbirds has a market capitalization of $95.01 million, with a 52-week high of $24.31 and a 52-week low of $2.15.
Over the past 12 months, the small-cap company has gained 138.21%.
Currently, the stock is positioned around 39.5% of its 52-week range, below the midpoint.
With a strong Momentum in the 99th percentile, Benzinga’s Edge Stock Rankings indicate that BIRD has a positive price trend across all time frames.
Photo Courtesy: Ritu Manoj Jethani on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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