We recently shared Jim Cramer Rubbished Circular AI Deals & Commented On These 18 Stocks. Allbirds, Inc. (NASDAQ:BIRD) is one of the stocks discussed by Jim Cramer.
Allbirds, Inc. (NASDAQ:BIRD) made quite a splash earlier this month when it announced that it would pivot into becoming an AI chip company. Its shares are up by a whopping 106% year-to-date, primarily on the back of a 582% jump on April 15th when it made the announcement. Cramer didn’t take kindly to the affair, as he called Allbirds, Inc. (NASDAQ:BIRD)’s management “clowns and fraudsters” after they announced the shift. In this appearance, he remarked that the market as a whole would suffer if more people followed Allbirds, Inc. (NASDAQ:BIRD)’s approach and added that the firm should be investigated by the Securities and Exchange Commission (SEC):
“You know by the way, I would just say. . .traveALLsty, it’s wrong, if they do this stuff, more of these do it, you and I are going to have to say senora to the market. The SEC should be looking into what they’re doing. . .the SEC should call them in and say, can I understand your plan?”
In his Mad Money appearance on the 16th, Cramer explained his chagrin towards Allbirds, Inc. (NASDAQ:BIRD):
“Why am I so adamant that speculation is getting out of control again? Well, exhibit A has to be a company called Allbirds… Six weeks ago, Allbirds seemed to be headed into the dustbin of history… It doesn’t make any money. But rather than shut down, it did something I’m sure it thought was genius. Allbirds sold its shoe business to American Exchange Group, and it announced a definitive agreement with an institutional investor for a $50 million convertible bond, which, and I’m quoting from the release here, “will enable the company to pivot its business to AI compute infrastructure, with a long-term vision to become a fully integrated GPU-as-a-Service and AI-native cloud solutions provider.
“Yep, they pivoted from casual shoes to AI, and they’re changing the name to NewBird AI. The company sees a need for more compute and it’s going to bridge the gap. They say that NewBird AI will, and I quote, “initially seek to acquire high-performance, low-latency AI compute hardware and provide access under long-term lease arrangements, meeting customer demand that spot markets and hyperscalers are unable to reliably service.” Oh, I got it. There’s a compute shortage and we know who to call, a casual shoemaker… Allbirds wasn’t even a successful shoe company, for heaven’s sake, yet the stock rallied nearly 600% yesterday on this… news story.”
While we acknowledge the risk and potential of BIRD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BIRD and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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