Today’s Stock: Allbirds Inc. (BIRD)Today’s Stock: Allbirds Inc. (BIRD)

Allbirds, Inc. manufactures and sells footwear and apparel products for men and women in the United States and internationally. The company offers a range of lifestyle products; shoes; and apparel, including classic tees and sweats, socks, and underwear

My Thoughts 💭My Thoughts 💭

I got swept up into the Allbirds hype around COVID time. Robinhood allowed retail to gain access to shares before their IPO. At that time I was trying to boycott products made in China to the best of my ability and wanted to own an American clothing company. Having bought a few pairs of shoes from Allbirds I thought this would be a sound investment. I bought and held shares for a short time before I dump them all due to a liquidity crunch I ran into late 2024. From august 2022 till Sept. 2024 I was DCA into this company. Once I solid I had a realized loss just under $1k at $11 per share.

At 4.5k sats per share ($91,210), and no dividend thus this company must grow to justify the sat investment. In the long run I expect 4.5k sats to have much more purchasing power than equity in Allbirds stock.

The company is unprofitable at this time thus has a negative PE.

PE:PE:

Expected Growth:Expected Growth:

Revenues and expenses:Revenues and expenses:

Balance Sheet:Balance Sheet:

Dividend:Dividend:

No DividendNo Dividend

Bitcoin per share:Bitcoin per share:

NoneNone

Ownership breakdown :Ownership breakdown :

Leadership:Leadership:

I really wanted to believe in this company and buying shares in 2022 felt like the right thing to to do. But apparel is ruthlessly competitive. Nike, Adidas, Lululemon, and many others that offer the same if not better products than Allbirds which limits growth.

Having bought their shoes and clothes the quality is okay but it is nothing special. I already had to get rid a few pairs of the shoes and clothes due to normal wear and tear. Due to their price point their target consumer is upper middle class which can limit growth.

Unless they get some major endorsements or it becomes a cult phenomenon like crocs this brand might flounder over the next 10 to 20 years.

For a fundamental standpoint this business is not doing well. Costs aren’t dropping fast enough and revenue is in a down trend. They aren’t profitable and the balance sheet is compressing where equity debt and cash on hand are converging on each other. The stock is mostly held my retail so unless Wall Street thinks they will become the next Crocs or Lululemon this stock will have a hard time catching a bid.

I had plans to repurchase the shares I sold to keep on brand with my approach to moral investment but taking another look at the fundamentals I will have to pass on this company.

Keep the 4.5k sats. I strongly believe 4.5k sats will have more purchasing power than equity in Allbirds in 10 to 20 years.