Allbirds Plummets 29% Intraday: Earnings Woes and Technical Breakdown Trigger Investor Panic

Summary
• BIRD trades at $6.93, down 29.35% from $9.81
• Intraday range spans $6.77–$8.94 amid 197,449 shares turnover
• 52-week low of $3.93 looms as RSI hits 43.6 (oversold territory)

Today’s catastrophic selloff in Allbirds has left investors scrambling for answers. With no official news or sector catalysts to explain the 29.35% collapse, the stock’s sharp descent into bearish territory raises urgent questions about technical breakdowns and market sentiment. The $6.77 intraday low now sits just 1.3% above its 52-week low, signaling extreme vulnerability in a stock already trading at a -0.65 P/E ratio.

Lowered Guidance and Gross Margin Pressure Spark Sharp Selloff
Allbirds’ Q2 2025 earnings report revealed a net revenue of $40 million, aligning with guidance but accompanied by a 40.7% gross margin—a 9.8% year-over-year decline. The adjusted EBITDA loss of $13 million, exceeding guidance by $3 million, underscored deteriorating profitability. CEO Joe Vernaccio’s emphasis on product innovation and international expansion masked structural challenges, including a 21% inventory reduction and a 20% Vietnam tariff burden. The technical breakdown, confirmed by a bearish MACD crossover (-0.154) and RSI in oversold territory (43.6), accelerated the selloff as traders reacted to weak fundamentals and deteriorating margin health.

Footwear Sector Steadies as Allbirds Crashes
While the Apparel, Accessories, and Footwear sector remains stable, Allbirds’ performance diverges sharply. Sector leader NIKE (NKE) trades down 0.17%, contrasting with BIRD’s 29.35% plunge. This disconnect suggests the selloff is stock-specific rather than sector-driven. NKE’s resilience indicates broader consumer confidence in footwear remains intact, but Allbirds’ technical breakdown appears fueled by independent market forces.

Technical Divergence Demands Tactical Precision
• MACD: -0.154 (bearish crossover)
• RSI: 43.6 (oversold but descending)
• 200D MA: $7.76 (critical support)
• Bollinger Bands: Price at 55% of upper band width (extreme volatility)

Key levels to monitor: The 200D MA support at $7.76 and the 6.36–6.52 zone. Short-term traders should consider tight stop-loss orders below $7.00 to protect against further breakdowns. With no options chain provided, focus remains on price action: A rebound above $8.94 (intraday high) could trigger a short-covering rally, but this seems unlikely without fundamental catalysts. The backtest of BIRD’s performance after a -27% intraday plunge shows mixed results, with a 48.05% 3-day win rate but a -6.77% 30-day return, underscoring the stock’s volatility.

Backtest Allbirds Stock Performance
The backtest of BIRD's performance after an intraday plunge of at least -29% shows mixed results. While the 3-day win rate is 48.16%, indicating a higher probability of a positive return in the short term, the longer-term performance is lackluster, with a 10-day win rate of 44.03% and a 30-day win rate of 36.01%. The returns also decrease with increasing time horizons, with a maximum return of only -0.46% over 30 days. These results suggest that while BIRD may recover from a significant intraday drop in the short term, long-term performance remains underwhelming.

Urgent Action Required as Allbirds Tests 52-Week Low
The selloff shows no immediate signs of abating, with technical indicators aligning for continued downside. Investors must prioritize liquidity management and avoid overexposure to this volatile position. Watch the 200D MA ($7.76) as a critical psychological level—breaking below this could accelerate the slide toward the 52-week low. Meanwhile, NIKE’s -0.17% decline underscores the sector’s relative stability, offering a benchmark for risk assessment. Act now: Set stop-loss orders below $7.00 and monitor volume spikes for potential short-covering rallies.