In one of the strangest stock market stories of the year-to-date, shares in shoe brand Allbirds (BIRD) soared 580% on 15 April. The catalyst was the company’s announcement of plans to pivot from footwear to artificial intelligence (AI).
A firm whose stock had collapsed from over $500 post-IPO to under $3, with no track record in data centres or enterprise infrastructure, is now an AI infrastructure player. Allbirds’ meteoric one-day rise evokes memories of the ‘meme stock’ phenomenon that gained prominence during Covid.
The lockdown period saw shares in video games retailer Gamestop (GME), cinema chain AMC Entertainment (AMC) and retailer Bed Bath & Beyond (BBBY) surge. Their stock prices rocketed on strong interest from retail investors on social media sites such as Reddit (RDDT), X and TikTok.
In this article, we explain what’s afoot at Allbirds and ponder whether the meme phenomenon is on its way back. We also analyse the stock price plunge at another former meme stock, Beyond Meat (BYND). Shares in the plant-based burger pioneer have taken an absolute pounding over the past five years.
Why Allbirds soared
San Francisco-based Allbirds has struck a $50 million deal to become an ‘AI compute infrastructure’ business and change its name to ‘NewBird AI’.
Allbirds announced $39 million deal in March to sell its namesake brand and footwear assets to fashion conglomerate American Exchange Group. So in effect, Allbirds is using the stock market-listed shell to move from shoes into an entirely new line of business.
The announcement sent Allbirds surging more than 580% in one trading session. Solely by putting ‘AI’ in a regulatory announcement, Allbirds became a meme stock. AI mania appears to be at play here, since NewBird AI has no track record or earnings related to its new business activity.
For the uninitiated, Allbirds floated on Nasdaq around five years ago. But the shoe brand that once adorned the feet of Leonardo DiCaprio and Barack Obama struggled to generate profits. Demand for the brand flagged and sales dwindled.
Right before the AI pivot was unveiled, its market value had plummeted from a high of $520 to around $2.50. And at today’s $10.50, the stock is still some 98% below those late 2021 highs.
Meme stocks explained
A meme stock is a share in a company, often with poor fundamentals, that gains popularity among retail investors through social media. This popularity is generally based on internet ‘memes’ that are shared among these risk-tolerant traders.
Interest in meme stocks is associated with Robinhood (HOOD), the trading platform which pioneered commission-free trading. According to The New York Times, Robinhood was ‘the tool of choice for traders in the original meme stocks’.
| Meme stock | 5-year price perf | 1-year price perf | Market cap |
| Allbirds | -98.1% | +111.6% | $91.4m |
| Beyond Meat | -99.1% | -56% | $594.1m |
| Gamestop | -33.6% | -6.2% | $11.3bn |
| AMC Entertainment | -96.1% | -34.4% | $1.04bn |
| Bed Bath & Beyond | -91.3% | +55.9% | $454.7m |
| Source: Google Finance, 21 April 2026 |
Some meme stocks became popular among retail investors after being targeted by professional short-sellers such as hedge funds.
By driving their share prices up, retail investors had the explicit aim of inflicting losses on hedge funds with short positions.
Why Beyond Meat turned sour
Before Covid, war in Ukraine, Liberation Day and the Middle East conflict, plant-based foods was a hot investment theme.
Consumers were embracing healthier lifestyles and looking for environmentally-friendly alternatives to meat. So it seemed plant-based foods leader Beyond Meat was set to gorge itself on market share.
Led by CEO Ethan Brown, Beyond Meat achieved a $1.5 billion valuation at its May 2019 initial public offering (IPO).
Excitement surrounding the growth potential of the plant-based protein market drove its stock to a record high of $234.9. This resulted in a peak valuation of $14.1 billion or over 47 times its 2019 revenue.
Racking up losses
At the time of writing, the company’s market tag has tumbled to below $600 million. That means Beyond Meat now has small cap status.
So why did Beyond Meat lose its sizzle? Well, investor interest in Environmental, Social and Governance (ESG) strategies has tailed off dramatically. Consumers are also more aware of the risks posed by ultra-processed foods including plant-based meat.
The company’s primary meat substitute offerings have faced stiff headwinds. Beyond Meat has seen lower sales of chicken and burger products to US-based Quick Service Restaurant customers and international foodservice operators.
Concerns over its losses and debts have also weighed on sentiment towards the stock. Revenues fell almost 20% to $61.6 million for the fourth quarter of 2025, which saw Beyond Meat rack up losses of $133.6 million.
Meme stock comeback
But could Beyond Meat be staging a comeback as a meme stock favourite? Well, the shares exploded 41% higher on 20 April 2026, finishing at $1.16. This rise was due to a resurgence of retail investor interest in Beyond Meat, stoked by two product launch announcements.
On 13 April, Beyond Meat unveiled a new breakfast sausage product range.
And on 16 April, the plant-based food maker announced a strategic distribution agreement with a non-alcoholic beverage distributor. Big Geyser is to carry its Beyond Immerse drink products throughout more than 26,000 retail locations in the New York area.
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