Shares of "environmentally friendly" footwear maker Allbirds (NASDAQ: BIRD) jumped a huge 19% at the open on Jan. 6. That didn't hold for long, though, with the stock up just 4% an hour or so into the session. The news driving the seesaw action was an analyst upgrade, and both the swift jump and the subsequent pullback make sense when you dig into what was said.
Allbirds is a relatively young company, holding its initial public offering (IPO) in early November last year with a $15-per-share price. Pitched as a lifestyle brand using naturally derived materials, the shoe retailer's stock took flight, initially jumping to a high of more than $32 per share. That didn't last long, however, and steady declines since that peak have left the stock trading below its IPO price. This background is important because Morgan Stanley just announced that it upgraded Allbirds from equal weight to overweight, partly due to the stock price having fallen so much.
Image source: Getty Images.
For further details see:
Why Allbirds Stock Soared 19% at the Open Today