IREN, trading at $21.71, counts Microsoft and NVIDIA as customers and is shifting from Bitcoin mining to AI cloud services, but its stock has fallen 46.37% in a month. Fiscal 2026 revenue rose 41.1% to $707 million, yet fourth-quarter revenue of $137.2 million missed estimates and fell 26.8% year over year, and a $450.4 million impairment drove a $684 million net loss for the quarter. Management targets $4 billion of contracted ARR in operation by year-end, and the company holds $5.90 billion in cash. However, it posted a $702.6 million loss for fiscal 2026, spent $4.33 billion on capex, and fiscal 2027 EPS estimates have fallen sharply. The article says the outlook now depends on delivery over the next one or two earnings reports.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
IRENbitcoincloud computingdata centers
Open a keyword to see other news on the same topic.
Related news
- B. Riley’s $64 Target Says IREN’s Selloff Went Too Far
On October 30, B. Riley cut its IREN price target to $64 from $91 but kept its Buy rating, implying 161% upside from $24.51. The stock is down 68% from its November 2025 high, weighed by a weak fiscal fourth quarter, worries about what neoclouds pay to borrow, and Microsoft's lower-than-expected capital spending. June-quarter revenue fell to $137.2 million from $187.3 million a year earlier as IREN shifted from Bitcoin mining to AI cloud, while analysts expect fiscal 2027 revenue to jump 297% to $2.81 billion. Management guided fiscal 2027 capex of $25 billion to $30 billion, and shares outstanding rose 48% in fiscal 2026, so funding the build without many more shares is the key risk; the Nov. 5 report is the next test.
- IREN’s radical AI pivot: Is this 43% plunge a buying opportunity or a value trap?
IREN shares fell about 40% over the past month to near $24.80, at 52-week lows, even though the average analyst price target is $77.81. The company is shifting from Bitcoin mining to high-density AI data center infrastructure, with major contracts from Microsoft and Anthropic. In the fiscal fourth quarter, AI Cloud revenue reached $70.5 million, or 51.4% of total revenue, surpassing mining as its largest business for the first time. Against this, IREN carries $7.8 billion in debt and plans $25 billion to $30 billion in capital expenditure for fiscal 2027, while its latest quarter posted a $684 million net loss, including $552.5 million in impairments on retired mining equipment. InvestingPro's valuation models put fair value at $25.00 per share, implying only 0.7% upside.
- IREN Limted Crashed 40% This Month: Three Wall Street Analysts Agree It’s Going to Quadruple
IREN shares fell 42.97% in one month to $26.62, just above their 52-week low of $26.55, as earnings expectations shrank; the December-quarter EPS estimate dropped from 0.085 to -1.34 in 30 days. Last quarter's revenue of $137.2M missed the $140.75M consensus, and the net loss of $684M included a $450.4M impairment on retired mining hardware. Analysts' average target of $77.81 implies 192.3% upside across 20 analysts, with Bernstein's $100.00 the highest and Northland and Cantor Fitzgerald at $99.00. Bulls point to a 5GW power portfolio, $9.7B and $3.4B contracts with Microsoft and NVIDIA, and a $4B ARR target to be operating by year end. The article says the December quarter, when Horizons 2 through 4 for Microsoft are due and mining winds down, will test that case.
- IREN Stock Drops After Report Says It's Behind Microsoft's AI Spending Delay, As Investors Turn To Earnings
Microsoft spent less than expected on capital expenditures last quarter, blaming delays in some third-party capacity coming online. IREN's stock fell after a report said it was lagging behind Microsoft's AI spending delay, as investors turned their attention to earnings.
- IREN Fell 4% on Cipher’s Miss, Then Jumped 10%. Here’s What Its November 5 Report Has to Settle
IREN fell 4% on Nov. 2 after Cipher Digital missed revenue estimates, then rose 10% the next morning as AI data center stocks rebounded. Cipher said change orders and higher construction costs at its Barber Lake campus would have cut its yield on cost to about 13% from roughly 15%, but it agreed to pay $359 million of the roughly $409 million in change orders in exchange for a 10-year lease extension. IREN, which builds its own cloud, plans $25 billion to $30 billion of capex this fiscal year and has said costs for new deployments will run 15% to 20% higher. Its five-year, $9.7 billion Microsoft contract relies on about $5.8 billion of GPUs and equipment agreed to be bought from Dell. The article says the funding gap and share count matter most in IREN's Thursday report, with the stock trading at 3.1x forward sales versus a three-year average of 5.2x.
- IREN And 2 Top AI Stocks To Watch
The article says bond investors are becoming less focused on the Federal Reserve and more on whether huge AI infrastructure buildouts can be financed sustainably. It highlights three stocks from a screen that surfaced 34 more companies tied to AI data center buildouts: IREN, Nebius Group and Alphabet. IREN still runs a Bitcoin mining business, generating about $578 million of revenue in FY26 versus roughly $129 million from AI Cloud Services, with a market cap near $9.8b. Nebius Group reported about US$1.31b from Nebius AI Cloud in its last report. Google Cloud ranks #3 globally behind AWS and Azure with over 11% market share.
Related markets
Latest news
- Binance Cuts Off SignalPlus API Keys Over 'Potential Security Issue' at Trading Platform
Binance has removed all API keys linked to SignalPlus, a Hong Kong-based third-party crypto options and derivatives platform, after SignalPlus reported a 'potential security issue.' Binance said its own systems are unaffected and user funds remain safe, and urged SignalPlus users to review their positions and open orders and wait for SignalPlus to confirm the issue is resolved before reconnecting. Automated strategies running through SignalPlus will stop until users create new keys, and Binance asked all integrated third-party platforms to review their security controls. The move follows Binance's hack a week earlier, in which about $6.4 billion was drained from hot wallets and which the FBI has attributed to North Korean hackers; Binance says it has replenished about 98% of the stolen assets and is reopening withdrawals in phases.
- Renegade Gold Identifies New Gold Targets Along the LP-Uchi Corridor in Red Lake
Renegade Gold reported first-pass till and soil geochemical results from its 2026 program at the LP-Uchi project, about 50 km east of Red Lake, Ontario, identifying multiple new multi-kilometre gold anomalies along the LP fault corridor. The anomalies coincide with fault structures interpreted from the winter 2025/2026 drone magnetic survey, and 884 samples were collected in total. The results complement high-grade channel samples from BobJo (16.2 g/t Au over 5.0 m) and Belanger (25.9 g/t Au over 0.3 m), and fieldwork across the Confederation Belt is now complete. The company plans to rank the targets and advance them toward drill-readiness for its 2027 exploration program.
- Wendy's rejects takeover proposal from Nelson Peltz's Trian
Wendy's said it is rejecting a $1.4 billion takeover offer from a group led by Nelson Peltz's Trian Fund Management, which proposed $7.35 per share in cash on Oct. 28 to take the burger chain private. The group also includes BlueFive Capital, Sixth Street Partners and Flynn Group, one of Wendy's largest franchisees. An independent board committee formed in February concluded the proposal 'substantially undervalues' Wendy's and does not reflect the potential gains from its ongoing turnaround. In its third-quarter report, same-store sales fell for a seventh straight quarter, but earnings and revenue beat Wall Street expectations, and Trian declined to comment.
- An Anthropic IPO when the AI trade is this turbulent? Godspeed!
Wall Street is taking a harder look at AI costs following historic midterm election results. The piece also highlights the potential upside of Apple's limited spending on artificial intelligence.
- Microsoft Is Executing an Irreproducible Balance-Sheet-Backed Infrastructure Pre-Sale at Scale
The author keeps adding to Microsoft (MSFT), most recently at $555.80 after the October earnings report, because the company sells AI and cloud capacity years ahead and funds the build with its own cash flow. Commercial remaining performance obligation (RPO) rose 73% to $677 billion, Azure grew 48%, and Microsoft Cloud revenue reached $63.9 billion, up 30% year over year. Operating cash flow hit $58.0 billion, and Microsoft still returned $10.2 billion to shareholders while raising its quarterly dividend to $0.98 from $0.91. The risks the author flags include capex of about $170 billion expected for the calendar year and a 23.19% drop in free cash flow in Q4 FY26. The article also explains why the author does not invest in Amazon or Oracle, pointing to Amazon's negative free cash flow and Oracle's reliance on outside funding.
- Apple Vs. Tesla: Low CapEx Only Matters if Non-Cyclical Cash Flows Come With It
Apple and Tesla both reported spending below expectations: Apple's fiscal 2026 capex fell 28.9% to $9.04 billion, while Tesla cut its 2026 capex guidance to about $20 billion from $25 billion. Apple's September-quarter revenue rose 11.7% to a record $114.48 billion, with Services reaching $31.6 billion at a 76% gross margin, while Tesla's revenue was flat at $28.05 billion and GAAP operating income fell to $718 million. Tesla said capex would keep expanding over the next few years, and Elon Musk put spending on its planned Terafab chip fab at “certainly in the tens of billions” through early 2028. The author views Apple's cash flow as more resilient in a downturn, while Tesla suits investors willing to fund autonomy before cash arrives. Apple shares are up 28.92% this year, while Tesla is down 14.35%.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.