TLDR
- IREN stock fell 2% on Friday to $24.91 and was up 2% to $25.49 on Monday, near 52-week lows after a 40% drop in a month.
- IREN won authorization for a 300 MW AI data center campus in Badajoz, Spain, targeted to start in 2028.
- Analysts rate the stock a Moderate Buy with an average target near $80, but InvestingPro puts fair value at $25.
- AI Cloud revenue hit $70.5 million and passed mining for the first time, but quarterly revenue missed estimates by 13%.
- Debt is $7.84 billion and fiscal 2027 capex is guided at $25 billion to $30 billion.
IREN stock slipped 2% on Friday to $24.91. It closed at $25.51 the day before and hit a low of $24.88.
About 38 million shares traded, below the 43 million daily average. On Monday morning the stock bounced 2% to $25.49.
It has been a rough month for holders. The stock is down roughly 40% over that stretch and sits near 52-week lows.
The 50-day average is $39.88 and the 200-day average is $45.25. Market value is about $9.8 billion.
Spain campus and analyst views
IREN secured authorization for a proposed 300 MW AI data center campus in Badajoz, Spain. Operations are targeted for 2028.
The company also launched IREN Europe. It plans to use Nvidia GPUs and Mirantis software at the site.
MarketBeat lists a consensus rating of Moderate Buy and an average target of $80.79. The tally is one Strong Buy, 15 Buy, four Hold and one Sell.
Recent targets include $80 from BTIG, $90 from HC Wainwright and $100 from Bernstein. B. Riley cut its target to $91 from $96, and Needham holds a Hold rating.
Investing.com cites an average target of $77.81, which implies 214% upside. InvestingProās models put fair value at $25, only 1% above Mondayās price.
Situational Awareness LP raised its stake by 35% in the first quarter to about 11.7 million, valued at $401 million. Institutions and hedge funds own 41% of the company.
Revenue growth and balance sheet
AI Cloud revenue reached $70.5 million in the fiscal fourth quarter. That was 51% of total revenue and the first time it topped mining.
Contracted annual recurring revenue hit $1 billion after Microsoft accepted the 50 MW Horizon 1 site. Management expects it to pass $4 billion by the end of 2026.
The Microsoft deal is worth an estimated $9.7 billion through 2031. IREN also signed a cloud contract with Anthropic and a $2.4 billion GPU financing package led by Blue Owl Capital.
Total revenue was $137.2 million, which missed estimates by 13%. The net loss was $684 million, including $552.5 million in non-cash impairments on retired mining gear.
Debt rose to $7.84 billion at the end of fiscal 2026. Management guided fiscal 2027 capex to $25 billion to $30 billion.
A Gartner report warned that more than 80% of independent AI cloud providers could stop operating as standalone firms by 2030. IREN traded at $25.49 on Monday morning, up 2%.
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