Allbirds: AI Pivot Is A Fantasy With Limited Capital (Rating Downgrade)

Gary Alexander33.64K FollowersFollow5ShareSavePlay(8min)Comments(2)SummaryAllbirds, Inc. pivots from footwear to GPU-as-a-service, rebranding as NewBird AI after selling its shoe business.I downgrade BIRD stock to Sell, citing lack of management experience in cloud infrastructure and enterprise sales.BIRD's $50 million capital base is dwarfed by competitors' multi-billion dollar war chests, severely limiting competitive potential.The AI pivot is flashy but lacks substance; BIRD investors should sell into the spike as fundamentals remain weak. pingingz/iStock via Getty Images The art of the pivot was arguably perfected in Silicon Valley: when your business fails at one thing, find another thing that you can succeed at. A 180-degree pivot was on full display as Allbirds, Inc. (This article was written byGary Alexander33.64K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.