Last week, AI transformation drove the stock price of Allbirds (BIRD.US) to soar, Allbirds updates performance guidance.

Allbirds (BIRD.US) released performance guidance updates before the release of its first-quarter financial report on Tuesday. The company expects net revenue for the first quarter to be $22.3 million, compared to $47.68 million in the previous quarter, with adjusted EBITDA at $16.1 million. The company anticipates a net loss of $19.6 million for the quarter, with a margin of error of $3 million. The official first-quarter financial report is expected to be released in the first two weeks of May. Last week, the once-popular "Silicon Valley darling" Allbirds saw a significant increase in stock price after announcing its transformation into an AI infrastructure company. The former footwear retailer stated, "The rise of AI research and applications has created unprecedented structural demand for specialized, high-performance computing, a demand that the market is currently struggling to meet." Just days before the announcement, Allbirds sold its footwear technology intellectual property (IP) for $39 million. Allbirds' origins trace back to New Zealand in 2007, developing a shoe concept using wool fabric by former soccer player Tim Brown. In 2015, Brown partnered with bioengineering Joey Zwillinger, and the company launched its flagship product, the "Wool Runner," in 2016, adopting a direct-to-consumer (DTC) model focused on simplicity and sustainability. The brand quickly grew by tapping into Silicon Valley's preference for minimalism and eco-friendly products, expanding into retail and new materials like eucalyptus fiber. Allbirds went public in November 2021, but after experiencing prolonged quarterly losses, its stock price had been declining over the past four years. Following a 2.0% increase on Monday, Allbirds' stock price rose another 3.5% in pre-market trading on Tuesday. While still far below its high point of $24.31 in 2026, the stock price has more than doubled since announcing its entry into the AI field. According to the latest data from NASDAQ, short positions for Allbirds account for 17% of its total outstanding shares.