Why Iren Stock Was Getting Clobbered This Week
- - Why Iren Stock Was Getting Clobbered This Week
Eric Volkman, The Motley FoolDecember 19, 2025 at 3:48 AM
0
Key Points -
An analyst at a prominent investment bank launched coverage of several data center companies.
He recommended two as buys, and Iren wasn't among that duo.
10 stocks we like better than Iren ›
Iren (NASDAQ: IREN), a crypto miner that's been leaning harder into its data center operations, hasn't been an investor favorite over the past few trading sessions. It's struggling with several headwinds, notably the recent decline in the popularity of cryptocurrency, and a broad investor pull-back from artificial intelligence (AI)-linked companies (such as next-generation data center operators).
Compounding this, a prominent investment bank flagged several data center companies as promising investments, but Iren wasn't one of them. As of early morning Friday, the company's shares were down by nearly 11% week-to-date, according to data compiled by S&P Global Market Intelligence.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Getting real about REITs
That researcher was white-shoe investment bank Goldman Sachs, which on Thursday initiated coverage of several data center stocks. The company's prognosticator Michael Ng was bullish on data center real estate investment trusts (REITs) Equinix and Digital Realty Trust, flagging them both as buys.
Person looking at laptop screen with head in hands.
Image source: Getty Images.
His take on Iren wasn't as optimistic, however. In Ng's estimation, the stock only rates a neutral, at a price target of $39 per share.
According to reports, the analyst finds much to like about Iren's business, including its numerous successes with data center build-outs. While its growth has been impressive, it is a well-known stock in the crypto miner-turning-data center operator space, so its valuations are high-- a major concern Ng expressed in his note.
Richly priced
I would share that concern, even though it's clear that there's a bright future ahead for the companies that can most effectively play in the next-generation data center sandbox. Iren does indeed have much going for it as a business, but it's not the only player in this game, and it's not yet clear it can pull ahead. Given all that, I'd agree with Ng that it seems expensive at current levels.
Should you buy stock in Iren right now?
Before you buy stock in Iren, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Iren wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $511,196!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,047,897!*
Now, it’s worth noting Stock Advisor’s total average return is 951% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of December 19, 2025.
Eric Volkman has positions in Digital Realty Trust. The Motley Fool has positions in and recommends Digital Realty Trust, Equinix, and Goldman Sachs Group. The Motley Fool has a disclosure policy.
Source: “AOL Money”
