Why Did Allbirds Stock Surge 28% Overnight?

• Allbirds is selling its intellectual property, assets, and liabilities to American Exchange Group.
• The company will seek shareholder approval and intends to close the deal in the second quarter.
• Stocktwits sentiment on BIRD shifted to ‘bullish’ from ‘neutral’ one day ago

Shares of Allbirds, Inc. (BIRD) surged 22% in overnight trading, heading into Tuesday after the once-popular brand known for its minimalistic footwear said it was selling its intellectual property and assets to American Exchange Group for $39 million.

The deal is the culmination of years of struggle at Allbirds, which went public in 2021. At the time, its shoes had gained a cult following, especially among tech workers and celebrities, thanks to their minimalist design and sustainable materials. However, consumer interest subsequently died down, leading to a sharp drop in sales in 2023 and 2024. Allbirds, which started as an online-only brand before pivoting to brick-and-mortar stores, closed nearly all its U.S. stores earlier this year.

BIRD said on Monday that it would  file ​a proxy statement by April 24 ​seeking shareholder approval for the asset sale, subsequent dissolution, and winding-down of the company.

The company expects the deal to close in the second quarter of the year, with the proceeds from the sale expected to be distributed in the third quarter.

Subsequently, Allbirds has cancelled the release of its fourth-quarter results and the accompanying analyst call, scheduled for Tuesday, and said it would instead release its annual report.

BIRD Cuts 2025 Revenue Outlook on Transition Costs

Allbirds’ third-quarter revenue had declined 23% to $33 million, according to results published last November. Net loss narrowed to $2.49 per share, compared to a loss of $2.68 per share in the corresponding quarter a year ago.

At the time, the company forecast a revenue impact of $23 million to $25 million for 2025 due to its pivot from direct selling to a distributor-based model in certain international markets and the closure of certain stores in the U.S.

Allbirds had reduced its 2025 net revenue forecast to the range of $161 million to $166 million, down from its previous guidance of $165 million to $180 million. It also lowered its expectation for core loss for the year to between $63 million and $57 million from its earlier guidance of a loss of $65 million to $55 million.

What Does Retail Think?

Stocktwits sentiment for BIRD shifted to ‘bullish’ from ‘neutral’ the previous day, even as the stock has declined 27% year-to date. However, engagement on the platform has dropped: the message volumes on BIRD have fallen 50% over the last week.

One retail user said “$BIRD after they pay the $40+ million debt nothing left for shareholders lol,”

Another added, “$BIRD so are they still gonna sell shoes? I like them”

On Wall Street, the two analysts covering BIRD rate it ‘Buy,’ with an average price target of 14, according to Koyfin data.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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