Why Is IREN Stock Down In Wednesday’s Pre-Market Trade?

• IREN shares are down 2.2% in premarket trade
• H.C. Wainwright downgraded the stock to sell from buy but raised the price target by 25%
• The brokerage believes the stock is now significantly overvalued

Shares of IREN were down 2.2% in Wednesday’s pre-market session after analysts at H.C. Wainwright downgraded the stock.

H.C. Wainwright downgraded IREN to ‘Sell’ from ‘Buy’ but increased its price target to $45 from $36, implying a 25% upside, according to TheFly. In a research note, they recommended booking profits at current levels, cautioning that enthusiasm surrounding the company’s artificial intelligence cloud business has entered a phase of “irrational exuberance.”

The brokerage believes the stock is now significantly overvalued after surging nearly 920% over the past six months.

Earlier this month, the company signed multi-year cloud service agreements with AI firms for NVIDIA Blackwell GPU deployments. The company had also recently expanded its AI Cloud capacity and remains on track to surpass $500 million in annualized run-rate revenue (ARR) by the end of Q1 2026.

How Did Stocktwits Users React?

The downgrade dragged retail sentiment on Stocktwits to ‘extremely bearish’. It was ‘bearish’ a session back.

One user was bearish, pointing out that while mining costs are rising, Bitcoin’s price is falling.

IREN has been under some selling pressure lately, declining in seven of the past 10 sessions. However, its year-to-date (YTD) gains have surpassed a whopping 500%.