Social media firm Myseum saw its stock surge 181% this week, following footwear maker Allbirds' dramatic pivot to AI. Allbirds, which announced plans to rebrand as 'NewBird AI' and sell most of its assets, initially jumped 582%. This investor frenzy highlights the allure of artificial intelligence for companies seeking to revitalize struggling legacy businesses.
Myseum is now operating as Myseum.AI, integrating proprietary AI into its secure messaging and social media platforms. This strategy mirrors past attempts by smaller U.S. firms to capitalize on market trends, such as Long Island Iced Tea Corp.'s pivot to blockchain technology in 2017.
While the AI pivot attracts capital, experts caution that late entrants risk investor losses. Kathleen Brooks, research director at XTB, noted the current market sentiment could be a sign of 'peak AI.' Analysts at William Blair have dropped coverage on Allbirds, citing deep uncertainty about its new cloud compute endeavors and significant losses from its former footwear business.
Allbirds' stock activity was extraordinary, with a record $3.87 billion in shares traded and significant retail investor interest, placing it among the most actively traded U.S. stocks. The company's market capitalization swelled dramatically, though it remains far below its 2021 debut levels. Short sellers incurred substantial losses amid the sharp price increase.