IREN Stock Slides 11% After Q2 Earnings Disappointment

TLDR

• IREN shares plunged 11.5% Thursday after posting Q2 EPS loss of ($0.52) versus ($0.07) consensus and revenue of $184.7M versus $229.6M expected.
• The company swung to a ($155.4M) net loss from $384.6M profit in Q1, a $540M quarterly profitability decline.
• Wall Street maintains “Moderate Buy” rating with $69.36 average price target across 13 buy ratings, 5 holds, and 1 sell.
• Microsoft AI partnership execution remains the key catalyst analysts are watching for potential upside.
• Stock volatility is amplified by Bitcoin price correlation and new inverse ETF products tracking IREN.

IREN stock crashed 11.5% Thursday following a brutal second-quarter earnings report that missed on both the top and bottom lines. Shares closed at $39.79, down from $44.94 the previous session.

The company reported an EPS loss of ($0.52) for Q2. Analysts were expecting a loss of just ($0.07). That’s a miss of ($0.45) per share that caught Wall Street off guard.

Revenue landed at $184.7 million versus consensus estimates of $229.6 million. The $45 million revenue shortfall represents a roughly 20% miss. Trading volume surged 35% to 60.4 million shares as investors headed for the exits.

IREN Limited, IREN

The stock hit an intraday low of $38.90 during the selloff. That marked the worst single-day performance in recent months for the AI infrastructure play.

Profitability Swing Raises Concerns

Net income told an even grimmer story. IREN posted a loss of ($155.4M) in Q2 compared to a profit of $384.6 million last quarter. That’s a staggering $540 million swing in quarterly profitability.

Co-CEO Daniel Roberts tried to spin the results positively. He emphasized the company’s 4.5 gigawatts of secured power capacity. He also pointed to a $3.4 billion annual recurring revenue target as evidence of future growth potential.

The Microsoft AI partnership remains front and center for analysts tracking the stock. If IREN can execute on that deal and scale it meaningfully, the stock could see a sharp reversal. But execution is everything right now.

Analyst Ratings Hold Despite Miss

Wall Street hasn’t abandoned ship yet. The consensus rating sits at “Moderate Buy” with 13 buy ratings, 5 holds, and 1 sell. The average price target of $69.36 implies 74% upside from current levels.

Roth MKM maintains a $94 price target with a buy rating. Citigroup initiated coverage with an outperform rating last November. Citizens JMP set an $80 target with a market outperform rating.

Those targets assume IREN can get back on track with revenue growth and margin improvement. Right now, the numbers aren’t backing up the bullish thesis.

Crypto Correlation Adds Volatility Risk

IREN’s stock price moves in tandem with Bitcoin. When crypto prices weaken, IREN typically follows. That correlation showed up again this week as Bitcoin softened heading into earnings.

The launch of the Tradr 2X Short Iren Daily ETF adds another wrinkle. Inverse products can amplify trading volatility and create additional downward pressure during selloffs.

Some retail traders accused institutions of market manipulation after the stock dove 14% before earnings were released. That highlights the elevated short-term trading risk around this name.

Institutional ownership stands at 41.08%. Hood River Capital Management established a new $74.2 million position in Q2. Situational Awareness LP increased its stake by 90.1% to 6.4 million shares worth $93.3 million.

The company’s balance sheet shows a debt-to-equity ratio of 0.34 and a current ratio of 5.52. Market cap sits at $11.28 billion with a P/E ratio of 20.51. The stock carries a beta of 4.27, indicating high volatility.

IREN’s 50-day moving average is $46.78, while the 200-day stands at $42.27. The stock now trades well below both technical indicators after Thursday’s decline.

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