IREN Should I Buy
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IREN Ltd is not a strong buy for a beginner investor with a long-term focus at this moment. While the company shows potential for long-term growth, recent concerns over shareholder dilution, negative sentiment from Congress trading data, and weak technical indicators suggest caution. The stock may be worth monitoring for a better entry point after the current uncertainties are resolved.
The MACD is negative and expanding, indicating bearish momentum. RSI is neutral at 42.594, and moving averages are converging, showing no clear trend. Key support is at 38.602, and resistance is at 42.307. The stock is trading below its pivot level, suggesting weakness.
Expansion of GPU purchases to 150,000 units, projecting annualized revenue of over $3.7 billion.
Long-term growth potential with AI compute and cloud services.
Positive analyst ratings from Cantor Fitzgerald, B. Riley, and Macquarie, highlighting the company's growth story.
Concerns over shareholder dilution due to $6 billion and $9.3 billion equity raises.
Negative sentiment from Jim Chanos regarding transparency and revenue guidance.
Congress trading data shows 4 sale transactions and no purchases in the last 90 days, indicating caution.
Weak technical indicators and bearish momentum.
In Q2 2026, revenue increased by 59.02% YoY to $184.69M, but net income remained negative at -$155.41M, despite improving by 610.01% YoY. EPS improved to -0.52, up 420% YoY. Gross margin dropped significantly to 10.7%, down 73.98% YoY, indicating profitability challenges.
Analysts have mixed views. Cantor Fitzgerald and B. Riley maintain positive ratings with price targets of $82 and $83, respectively, citing long-term growth potential. Macquarie lowered its price target to $70 but remains optimistic. Goldman Sachs initiated coverage with a Neutral rating and a $39 price target, citing hyper growth but concerns over valuation.
