IREN Stock Falls As Bitcoin Weakens, Earnings Ahead

IREN Limited (NASDAQ:IREN) shares are trading lower Thursday. IREN shares often moves alongside Bitcoin (CRYPTO: BTC), which is trading lower today, down 3.79% at $70,251.44 at the time of writing.

IREN shares are retreating from recent levels. Why is IREN stock dropping?

With the company set to report earnings soon, attention is also turning to what investors can expect from IREN's upcoming results.

Earnings Preview

IREN is expected to report a loss of 10 cents per share and revenue of $228.13 million. The company has beat estimates in two of the last four quarters. In its most recent report on Nov. 6, the company reported earnings per share of $1.08, beating the consensus estimate of 16 cents. Furthermore, it reported revenue of $240.29 million, beating the consensus estimate of $235.50 million.

Investors should watch for any commentary on customer acquisition and retention rates, as these metrics will provide insight into IREN’s competitive positioning in the data center market. In addition, investors should monitor the impact of the Microsoft investment on operational efficiencies and cost management, as these factors will be crucial for future profitability.

Technical Analysis Of IREN

The technical indicators reveal that IREN is trading 22.1% below its 20-day simple moving average (SMA) and 18% below its 100-day SMA, indicating a bearish short-term trend. Shares have increased 305.96% over the past 12 months, but they are currently positioned closer to their 52-week lows than highs, highlighting potential weakness in the current market environment.

The RSI is at 42.71, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum, reflecting uncertainty among traders.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for IREN Limited Ordinary Shares, highlighting its strengths and weaknesses compared to the broader market:

Value: Weak (Score: 29.22) — Trading at a steep premium relative to peers.
Momentum: Bullish (Score: 98.98) — Stock is outperforming the broader market.

The Verdict: IREN’s Benzinga Edge signal reveals a strong momentum score, indicating that the stock is currently outperforming the market despite its weak value ranking. Traders should watch for potential support at $37.00, as a breach below this level could signal further downside.