IREN Ltd. (NASDAQ:IREN) shares are bouncing Tuesday, after a steep selloff, as investors position ahead of its fiscal first-quarter earnings report due Thursday after the close.
- IREN stock is among today’s top performers. Why is IREN stock up today?
IREN Stock Rises Ahead of Earnings After a Steep Selloff
IREN shares are climbing Tuesday ahead of the company’s fiscal first-quarter results, due after the close on Thursday, November 5.
The rise follows a sharp drop. IREN has lost close to 45% over the last 30 days as investors turned cautious on AI infrastructure companies. It slid again Monday, when technology shares fell 1.09% despite gains in the Nasdaq and the S&P 500.
What to Expect From IREN’s Earnings
Analysts project a loss of 67 cents a share on revenue of $223.19 million, according to Benzinga Pro. That would represent about 63% growth from last quarter’s $137.2 million in revenue, which fell short of the $142.32 million estimate. It would also narrow the loss from last quarter’s 74 cents, which was wider than the 49 cents loss analysts expected.
Last quarter’s revenue also slipped $7.6 million from the quarter before as IREN pulled mining equipment to make room for GPUs. The net loss reached $684 million, including $450.4 million in non-cash write-downs, mostly tied to mining hardware.
The new estimates assume the move to AI cloud services is starting to pay off. Revenue above $223.19 million, or a loss smaller than 67 cents, would suggest that GPU contracts, including the Microsoft site, are adding to sales faster than analysts expected. Results below those marks would raise doubts about how quickly the shift is arriving, especially after a quarter that missed on both measures. Investors will also look for updates on annual recurring revenue.
IREN Shares Are Rising
IREN Price Action: IREN shares were up 10.45% at $24.33 at the time of publication on Tuesday. The stock is near its 52-week low of $21.86, according to Benzinga Pro.
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