Daniel Newman, CEO of Futurum Equities, said IREN Ltd’s (NASDAQ:IREN) business momentum remains strong despite a share price he views as disconnected from fundamentals.
During pre-market trading on Friday, IREN’s stock surged about 15%, nearly reversing the roughly 17% decline on Thursday’s close.
Newman posted on X on Thursday that he had spoken with the company’s Co-CEO Daniel Roberts after the company’s earnings report, which he said “largely spoke for itself.”
The Futurum Group CEO said short-term agreements lasting three to six months have reached $40 million per megawatt, while long-term contracts are coming in at $22 million per megawatt. He described those figures as evidence of strong demand and said the company’s patience in negotiating longer-term agreements is producing results.
“No doubt the market (read share price) is challenging for IREN because it feels very disconnected from the fundamentals,” said Newman.
He said IREN remains focused on execution, adding that his conversation with Roberts reinforced his confidence in the business.
IREN’s AI Growth Meets Execution Hurdles
On Thursday, IREN reported first-quarter fiscal 2027 results, with AI cloud revenue nearly tripling to $200 million. However, it reported a quarterly loss of 66 cents per share, missing the 48-cent loss expected by analysts. The mixed results underscore the tension between growth investments and near-term profitability.
Earlier this week, Aterio satellite analysis pointed to possible construction delays at IREN’s Texas data center projects under a $9.7 billion Microsoft Corp. (NASDAQ:MSFT) deal. An Oct. 21 review found IREN’s Horizon 4 facility still lacked backup generators and cooling equipment, raising questions about its year-end delivery target.
IREN said delays to its Microsoft data center project would not trigger financial penalties, as they resulted from Microsoft-requested changes to the network design, Reuters reported.
Co-CEO Daniel Roberts also said its Horizon 1 facility entered service for Microsoft with Nvidia Corp.‘s (NASDAQ:NVDA) Exemplar status. He added that more than $4 billion in contracted ARR is now targeted for January, potentially extending to February, following a customer-requested design change and supplier delays.
Price Action: Year-to-date, IREN Stock plunged 52.26%, as per Benzinga Pro. The stock surged about 15.31% to $20.79 premarket on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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