Chart of the Day: When it Comes to AI, BIRD is the New Word

When it comes to AI, BIRD is apparently the new word. As in, the ticker symbol for the latest “Artificial Intelligence Play” Allbirds Inc. (BIRD).

Take a look at the MoneyShow Chart of the Day — a 1-year chart showing BIRD shares. You can see how they had been slumping toward oblivion since last August. But then, they rose from the proverbial ashes like a phoenix this week...10X-ing on April 15!

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Allbirds Inc. (BIRD)

Source: TradingView

What caused the stock to, er, take flight? The struggling wool sneaker company said it would stop making footwear and transform into an artificial intelligence-focused company called NewBird AI.

More specifically, the company said it would sell as much as $50 million in convertible debt. It will then use the money to buy computer gear and pursue a “long-term vision to become a fully integrated GPU-as-a-Service (GPUaaS) and AI-native cloud solutions provider.” Right then.

As the chart shows, the wax holding Allbirds’ wings together already appears to be melting. It had surrendered about half its post-pivot gains as of Thursday afternoon. But the move shows how sprinkling “magic AI dust” onto a stock can have a big impact – just like adding “dot-com” to a company’s name did in the late 1990s.

If there’s a carrier pigeon-style message for investors, it’s this: AI euphoria appears to be alive and well here. For now, anyway.

But given the enormous rally we’ve seen in tech and AI names off the Iran war lows, a little caution might be in order. You don’t want to be the dodo who loads up on too much risk...right before a short-term top!