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Iren Shares Tumble After JPMorgan Downgrade

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 8/2/2025, 9:40 am ET 8/2/2025, 9:40 am ET | 5 min 5 min read
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IREN Limited’s stocks have been trading down by -5.4 percent due to investor concerns over potential regulatory challenges.

Finance industry expert:

Analyst sentiment – negative

Iren’s financial fundamentals suggest a company facing significant challenges. The pre-tax profit margin is -756.9, an alarmingly low figure indicating substantial unprofitability. Despite generating $188.8 million in revenue, the price-to-sales ratio of 71.66 is exceptionally high, suggesting the stock is overvalued relative to its sales. Furthermore, the return on assets and return on equity are both negative at -2.78% and -3.1%, respectively, underlining poor asset and equity efficiency. With a leverage ratio of 1.1, the company maintains a relatively conservative capital structure, yet it is not translating into profitable performance. These metrics highlight Iren’s dire need for strategic shifts to reverse its downward trajectory.

Analyzing Iren’s weekly price movements reveals a consolidating pattern, with fluctuations between $15.22 and $17.18. The dominant trend is bearish, evidenced by consecutive lower highs and lower lows, culminating in a close of $15.24. Notably, the support level around $15.20 is critical; a break below could trigger further downtrend, while resistance at $17.10 remains a potential cap. Recent price action also indicates increased selling pressure as evidenced by declining volumes in upward moves. A suggested trading strategy would entail shorting the stock on a confirmed break below $15.20, with a stop-loss above $15.80 to mitigate risk.

In the wake of a JPMorgan downgrade from buy to neutral, Iren’s shares suffered a 6.6% drop, with the price target adjustment to $16 signaling lowered expectations. Such a market reaction underscores investor sentiment aligning with skepticism. Comparing Iren’s performance to broader Finance and Capital Markets benchmarks further illuminates its struggles, especially in light of more robust sector performances. Despite a challenging outlook, current support at $15.20 and resistance at $17 offer strategic entry and exit points. Nonetheless, given the strategic and operational hurdles, sentiment leans towards cautiousness.

Candlestick Chart

Weekly Update Jul 28 – Aug 01, 2025: On Friday, August 01, 2025 IREN Limited stock [NASDAQ: IREN] is trending down by -5.4%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Iren’s recent performance numbers present a mixed bag. The company recorded a revenue of $188.76M, translating to $0.996 per share, while its market valuation measures stand at a hefty $2.65B. The Price to Sales (P/S) ratio, an indicator of market expectations, was an elevated 71.66, suggesting investor hopefulness, albeit not always sustainable. Additionally, profitability metrics raise concerns; Iren’s pretax profit margin has a dramatic negative tilt at -756.9%, underlining operational struggles.

More Breaking News

The balance sheet reflects both strengths and vulnerabilities. With $404.6M in cash and equivalents paired against total liabilities of $55.68M, liquidity isn’t immediately concerning. However, shareholder equity displayed a significant amount at $1.1B, indicating invested resources not yet reflecting adequate returns, a focal point for future profitability prospects. The company’s decent leverage ratio of 1.1 shows it hasn’t over-borrowed, but conversion of resources into profit remains a key issue as evident from negative return measures.

Conclusion

The recent dip presents a pivotal moment for stakeholders to reassess Iren’s risk-reward threshold. As millionaire penny stock trader and teacher Tim Sykes says, “Consistency is key in trading; don’t let emotions dictate your trades.” While the downgrade has injected near-term uncertainty, potential recalibrations in strategy following these revelations could reset market momentum. Observers could witness volatility as intervener dynamics shift, aligning with global sentiment on energy and utility sectors. Proactive corporate governance and adaptive business shifts remain imperative for Iren to reignite growth and reassure stakeholders of promising prospects ahead. Looking forward, maintaining operational efficiency and strategic foresight will dictate how swiftly Iren can recover trader confidence amid an evolving competitive landscape.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”