When Allbirds disclosed a plan to rebrand as NewBird AI, its shares vaulted 582% in a single session, reviving a pattern that dates back to the late‑1990s tech frenzy. Finance professor Michael Cooper, who chronicled the “.com” name‑change rally, sees the AI pivot as the latest incarnation of a well‑known market trick. Investors rushed in, chasing hype despite modest margins.

Cooper’s 2001 study showed firms that tacked “.com” or “Internet” onto their names enjoyed a 53% short‑term boost, while a follow‑up after the bubble burst found a 64% lift when companies stripped those tags. A similar surge followed crypto‑themed rebrands; Long Blockchain Corp. stock jumped 531% before vanishing from exchanges. The rally often collapsed once novelty faded, leaving investors bruised.

Cooper, alongside Peter Won and Hanjun Kim, examined firms that declared an AI‑centric strategy, measuring performance 30 days before and 90 days after the announcement. Their data revealed an average outperformance comparable to earlier naming fads, confirming that AI buzz still translates into short‑run market gains. Investors should weigh hype against fundamentals. Especially in sectors where AI adoption remains speculative.