The Allbirds pivot to data centers (and its 700% increase in value on the day) has me thinking about the two usual categories of investors and a potential new third category:
1. Investments based on company performance.
2. Investments based on other people’s perception of company performance.
3. *New*: Investments based on investments based on other people’s perception of company performance.
It would be deeply funny to me if Allbirds popped based solely on category #2 and #3 investors, and no one actually thought a shoe company was really the best fit for a sudden pivot to the datacenter business.
Edit: There is of course a fourth category of investor which invests in a company for reasons totally unrelated to predictions about company performance (e.g., for the memes), but I don’t think that’s what happened here.
The Allbirds pivot to data centers (and its 700% increase in value on the day) has me thinking about the two usual categories of investors and a potential new third category:
1. Investments based on company performance.
2. Investments based on other people’s perception of company performance.
3. *New*: Investments based on investments based on other people’s perception of company performance.
It would be deeply funny to me if Allbirds popped based solely on category #2 and #3 investors, and no one actually thought a shoe company was really the best fit for a sudden pivot to the datacenter business.
Edit: There is of course a fourth category of investor which invests in a company for reasons totally unrelated to predictions about company performance (e.g., for the memes), but I don’t think that’s what happened here.