IREN Shares Rise Amid Short Squeeze Risk and Earnings Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy IREN?
Source: Benzinga
- Short Squeeze Risk Increases: Short interest in IREN rose from 41.95 million to 44.47 million shares, representing 14.03% of the public float, and with an average daily volume of 30.35 million shares, short sellers require 1.46 days to cover, thereby raising the squeeze risk.
- Equity Program Expansion: On March 5, IREN expanded its at-the-market equity program to $6 billion, although short-seller Jim Chanos questioned this move, highlighting the company's silence on its $500 million near-term digital revenue ARR target and deeming these deals uneconomic.
- Current Technical Analysis: IREN is currently trading at $40.34, which is 0.7% above its 20-day simple moving average but 14.4% below its 100-day simple moving average, and despite recent fluctuations, the stock has surged an impressive 491.28% over the past 12 months.
- Earnings Expectations and Analyst Outlook: The upcoming earnings report on May 13 is expected to show an EPS loss of 23 cents (down from 11 cents YoY) and revenue of $218.76 million (up from $148.10 million YoY), with a Buy rating and an average price target of $52.67.
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Analyst Views on IREN
Wall Street analysts forecast IREN stock price to rise
12 Analyst Rating
8 Buy
2 Hold
2 Sell
Moderate Buy
Current: 38.120
Low
39.00
Averages
80.40
High
136.00
Current: 38.120
Low
39.00
Averages
80.40
High
136.00
About IREN
IREN Limited is an Australia-based company, which owns and operates data centers powered by 100% renewable energy. Its facilities are optimized for Bitcoin mining, artificial intelligence (AI) cloud services, and other power-dense compute. Its data center mining facilities are in Canal Flats, Mackenzie, Prince George and Childress. Bitcoin Mining provides security to the Bitcoin network. Al Cloud Services provides cloud compute to Al customers, approximately 1,896 NVIDIA H100 and H200 GPUs. Its Canal Flats facility is in the Canadian Rockies, 100 kilometers (km) from Cranbrook regional airport and 500km east of Vancouver. Its facility is in Prince George, the city in northern British Columbia, located 500 km north of Vancouver. Its facility is located in Childress County, Texas, over 250 miles northwest of Dallas and in close proximity to multiple wind and solar generating facilities in the region. Its Childress operations comprise 200 Mega Watt of operating data centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
IREN Shares Rise Amid Short Squeeze Risk and Earnings Outlook
- Short Squeeze Risk Increases: Short interest in IREN rose from 41.95 million to 44.47 million shares, representing 14.03% of the public float, and with an average daily volume of 30.35 million shares, short sellers require 1.46 days to cover, thereby raising the squeeze risk.
- Equity Program Expansion: On March 5, IREN expanded its at-the-market equity program to $6 billion, although short-seller Jim Chanos questioned this move, highlighting the company's silence on its $500 million near-term digital revenue ARR target and deeming these deals uneconomic.
- Current Technical Analysis: IREN is currently trading at $40.34, which is 0.7% above its 20-day simple moving average but 14.4% below its 100-day simple moving average, and despite recent fluctuations, the stock has surged an impressive 491.28% over the past 12 months.
- Earnings Expectations and Analyst Outlook: The upcoming earnings report on May 13 is expected to show an EPS loss of 23 cents (down from 11 cents YoY) and revenue of $218.76 million (up from $148.10 million YoY), with a Buy rating and an average price target of $52.67.
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Serve Robotics Shares Surge After Strong Q4 Results and Upgraded Sales Guidance
- Strong Earnings Report: Serve Robotics reported a fourth-quarter adjusted loss of 34 cents per share, outperforming the expected loss of 53 cents, indicating significant improvements in cost control and operational efficiency, which bolstered investor confidence.
- Sales Performance Exceeds Expectations: The company achieved sales of $882,000, surpassing the consensus estimate of $762,500, demonstrating robust product demand that could drive future revenue growth and enhance market competitiveness.
- Significant Stock Price Increase: Following the positive earnings report, Serve Robotics shares surged 16.2% to $11.24 on Wednesday, reflecting market optimism about the company's future prospects and potentially attracting more investor interest.
- Upgraded Sales Guidance: The company raised its FY26 sales guidance, indicating management's confidence in future performance, which may further drive stock price appreciation and enhance market recognition of its long-term growth potential.
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Stock Performance: Following the news of the investment, Nebius's stock experienced a significant rise early Wednesday.
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- Stock Performance: Nebius stock experienced a significant rise, increasing by double digits on Wednesday.
- Investment Announcement: The cloud-computing company is set to receive an investment from Nvidia, a major chip maker.
- AI Industry Support: Nvidia's investment reflects its ongoing support for the booming artificial intelligence sector.
- Market Implications: The partnership between Nebius and Nvidia may enhance Nebius's capabilities in cloud computing and AI technologies.
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IREN Shares Plunge 23.8% Amid Earnings Report
- Earnings Performance: IREN reported fourth-quarter revenue of $184.7 million, a 59% year-over-year increase, while adjusted EBITDA rose 20.7% to $75.3 million; however, the quarter-over-quarter decline reflects the company's strategic shift from Bitcoin mining to AI infrastructure investment.
- Market Reaction: Despite showing growth, investors were disappointed by the lack of new large-scale neocloud deals, particularly after a stock price increase in January, leading to heightened expectations for announcements similar to the partnership with Microsoft.
- Capacity Expansion: IREN secured an additional 1.6 GW of grid-connected land in Oklahoma, raising total capacity to 4.5 GW, yet with only 10% to 20% of current capacity leased, this expansion may raise questions about the scarcity of resources.
- Financing Situation: The company secured GPU-backed financing for the Microsoft deal at rates below 6%, and while skeptics criticize the deal's economics, if GPUs retain rental value beyond the five-year contract, IREN's discounted stock could represent a viable investment opportunity.
See More
IREN Shares Plunge Following Earnings Report Despite Positive Developments
- Earnings Performance: IREN reported fourth-quarter revenue of $184.7 million, a 59% year-over-year increase, with adjusted EBITDA at $75.3 million, up 20.7%, yet both metrics fell quarter-over-quarter, highlighting challenges in the company's transformation process.
- Strategic Shift: The company is intentionally reducing its Bitcoin mining operations to invest in AI infrastructure, which, while causing short-term financial declines, may enhance its competitive position in the long run.
- Market Reaction: Despite management's comments on multiple advanced negotiations for larger-scale deployments, investor disappointment over the lack of new large-scale deal announcements led to a 23.8% drop in stock price in February, indicating market sensitivity to growth expectations.
- Capacity Expansion: IREN secured an additional 1.6 GW of grid-connected land in Oklahoma, increasing total capacity to 4.5 GW; although only 10% to 20% of this capacity is currently leased, this expansion could support future growth opportunities.
See More
IREN Shares Rise Amid Short Squeeze Risk and Earnings Outlook
- Short Squeeze Risk Increases: Short interest in IREN rose from 41.95 million to 44.47 million shares, representing 14.03% of the public float, and with an average daily volume of 30.35 million shares, short sellers require 1.46 days to cover, thereby raising the squeeze risk.
- Equity Program Expansion: On March 5, IREN expanded its at-the-market equity program to $6 billion, although short-seller Jim Chanos questioned this move, highlighting the company's silence on its $500 million near-term digital revenue ARR target and deeming these deals uneconomic.
- Current Technical Analysis: IREN is currently trading at $40.34, which is 0.7% above its 20-day simple moving average but 14.4% below its 100-day simple moving average, and despite recent fluctuations, the stock has surged an impressive 491.28% over the past 12 months.
- Earnings Expectations and Analyst Outlook: The upcoming earnings report on May 13 is expected to show an EPS loss of 23 cents (down from 11 cents YoY) and revenue of $218.76 million (up from $148.10 million YoY), with a Buy rating and an average price target of $52.67.
See More
Serve Robotics Shares Surge After Strong Q4 Results and Upgraded Sales Guidance
- Strong Earnings Report: Serve Robotics reported a fourth-quarter adjusted loss of 34 cents per share, outperforming the expected loss of 53 cents, indicating significant improvements in cost control and operational efficiency, which bolstered investor confidence.
- Sales Performance Exceeds Expectations: The company achieved sales of $882,000, surpassing the consensus estimate of $762,500, demonstrating robust product demand that could drive future revenue growth and enhance market competitiveness.
- Significant Stock Price Increase: Following the positive earnings report, Serve Robotics shares surged 16.2% to $11.24 on Wednesday, reflecting market optimism about the company's future prospects and potentially attracting more investor interest.
- Upgraded Sales Guidance: The company raised its FY26 sales guidance, indicating management's confidence in future performance, which may further drive stock price appreciation and enhance market recognition of its long-term growth potential.
See More
Implications of Nvidia's $2 Billion Investment in Nebius for CoreWeave Stock and AI Market
Investment from Nvidia: Nebius is set to receive an investment from chip maker Nvidia, which is actively supporting the artificial intelligence sector.
Stock Performance: Following the news of the investment, Nebius's stock experienced a significant rise early Wednesday.
See More
Nvidia Allocates $2 Billion to Nebius (NBIS) Shares: Implications for CoreWeave and AI Market
- Stock Performance: Nebius stock experienced a significant rise, increasing by double digits on Wednesday.
- Investment Announcement: The cloud-computing company is set to receive an investment from Nvidia, a major chip maker.
- AI Industry Support: Nvidia's investment reflects its ongoing support for the booming artificial intelligence sector.
- Market Implications: The partnership between Nebius and Nvidia may enhance Nebius's capabilities in cloud computing and AI technologies.
See More
IREN Shares Plunge 23.8% Amid Earnings Report
- Earnings Performance: IREN reported fourth-quarter revenue of $184.7 million, a 59% year-over-year increase, while adjusted EBITDA rose 20.7% to $75.3 million; however, the quarter-over-quarter decline reflects the company's strategic shift from Bitcoin mining to AI infrastructure investment.
- Market Reaction: Despite showing growth, investors were disappointed by the lack of new large-scale neocloud deals, particularly after a stock price increase in January, leading to heightened expectations for announcements similar to the partnership with Microsoft.
- Capacity Expansion: IREN secured an additional 1.6 GW of grid-connected land in Oklahoma, raising total capacity to 4.5 GW, yet with only 10% to 20% of current capacity leased, this expansion may raise questions about the scarcity of resources.
- Financing Situation: The company secured GPU-backed financing for the Microsoft deal at rates below 6%, and while skeptics criticize the deal's economics, if GPUs retain rental value beyond the five-year contract, IREN's discounted stock could represent a viable investment opportunity.
See More
IREN Shares Plunge Following Earnings Report Despite Positive Developments
- Earnings Performance: IREN reported fourth-quarter revenue of $184.7 million, a 59% year-over-year increase, with adjusted EBITDA at $75.3 million, up 20.7%, yet both metrics fell quarter-over-quarter, highlighting challenges in the company's transformation process.
- Strategic Shift: The company is intentionally reducing its Bitcoin mining operations to invest in AI infrastructure, which, while causing short-term financial declines, may enhance its competitive position in the long run.
- Market Reaction: Despite management's comments on multiple advanced negotiations for larger-scale deployments, investor disappointment over the lack of new large-scale deal announcements led to a 23.8% drop in stock price in February, indicating market sensitivity to growth expectations.
- Capacity Expansion: IREN secured an additional 1.6 GW of grid-connected land in Oklahoma, increasing total capacity to 4.5 GW; although only 10% to 20% of this capacity is currently leased, this expansion could support future growth opportunities.
See More
