Allbirds Rebrands as Smartbird, Hires AWS Exec as CEO, June 18

By Danny Kontos

June 18, 2026

02:41 PM

3 min read

Share with:

preferred News SourceSelectMeykaasyourpreferredNewsSource

Key Points

Allbirds rebrands to Smartbird, completes footwear business sale to American Exchange Group.

Stock down 77% to $3.94 since April AI pivot announcement despite initial 600% surge.

Former Amazon executive Nadia Carlsten appointed as new CEO to lead AI infrastructure strategy.

Company raised $50 million convertible financing and is designing first customer cluster deployments.

Be the first to rate this article

Allbirds formally changed its name to Smartbird on June 17 and appointed former Amazon executive Nadia Carlsten as CEO. The company completed the sale of its sneaker brand to American Exchange Group and is now focused on AI infrastructure. The stock closed at $3.94 on Tuesday, down 77% since the April announcement despite an initial 600% surge.

From Shoes to AI Servers

Allbirds debuted on public markets in November 2021 with a $2.2 billion valuation and hit $4.1 billion after its first trading day. Sales declined significantly over the following years while store costs rose. In April 2026, the company announced a dramatic pivot to become an AI compute infrastructure provider, which sent shares surging nearly 600% in a single day.

New Leadership Takes the Helm

Nadia Carlsten, an industry veteran in advanced computing, replaces Joe Vernachio as president and CEO. Vernachio was appointed in 2024 to help turn around the struggling sneaker business. Carlsten’s appointment comes as the company completes its transformation from a footwear maker to an AI infrastructure firm.

Stock Momentum Fades After Initial Surge

The initial enthusiasm about Smartbird’s AI pivot has largely faded. The stock closed at $3.94 on Tuesday, down 77% from the April 15 announcement. Despite the pullback, Smartbird says it is in active discussions with prospective customers and is currently designing its first cluster deployments across target verticals.

Why the Pivot Raised Eyebrows

The April announcement sparked skepticism among market observers. Morningstar’s chief U.S. market strategist Dave Sekera noted echoes of the 1990s tech bubble, asking what a shoe company knew about operating data centers. The company raised $50 million in convertible financing to fund the transition.

Final Thoughts

Smartbird’s rebrand and new leadership signal commitment to its AI infrastructure strategy, but the 77% stock decline since April suggests investor skepticism remains. The company must prove it can execute on customer deployments to rebuild confidence.

FAQs

Why did Allbirds change its name to Smartbird?

The company pivoted from footwear to AI infrastructure, selling its sneaker brand. The name change reflects its new focus on enterprise-grade AI computing services.

Who is the new CEO of Smartbird?

Nadia Carlsten, a former Amazon executive with advanced computing expertise, became president and CEO on June 17, 2026, replacing Joe Vernachio.

What happened to Allbirds stock after the AI announcement?

Stock surged 600% in April following the AI pivot announcement, then declined 77% by mid-June to $3.94, reflecting investor concerns about the transformation.

Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.

About Author

Danny Kontos

Co Founder

Danny Kontos has been a stock investor since 2007 and co-founded Meyka in 2023. He keeps a small, focused portfolio and only moves when the numbers are hard to argue with. He has waited years on a single position before. Before Meyka, he ran a web hosting company and a mortgage lending platform, so he knows what a well-run business actually looks like under the hood. This article did not come from a news cycle. It came from someone who has been watching this space for a long time.