JPMorgan Just Downgraded IREN Stock. Here Is Where Options Data Tells Us It Could Be Headed Next.

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levels.Alphabet Stock Off Its Peak - Is It Undervalued? It Could Be If FCF Stays StrongCarmax’s 2 Top 10 Unusually Active Options Sets Up for a Long Strangle: Should You Make the Bet?How This Stock Market ‘Epidemic’ Is Messing With Options StrategiesOur exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today!Despite today’s pullback, IREN shares are trading at more than 7x their price in early April.www.barchart.comIn a research note this morning, Smith cited valuation concerns for downgrading IREN shares.The Nasdaq-listed firm is currently trading at a forward price-earnings (P/E) ratio of roughly 67x, which trumps the multiples on best-of-breed AI stocks, even including Nvidia (NVDA), that’s going for 42x only.According to the JPM analyst, the company’s current share price already factors in overly optimistic scenarios, particularly regarding the potential colocation deal that could require over $10 billion in capital expenditure.Without concrete revenue-generating deals, IREN stock’s current premium is hard to justify, even with its artificial intelligence (AI) and high-performance computing (HPC) ambition, he concludedOptions data from Barchart signals heightened volatility in IREN stock with a near-term expected move of 10.18% through the end of next week.Looking further out, contracts expiring Dec. 19 suggest a broader range, from $25.66 on the downside to $57.18 on the upside.While this signals meaningful upside potential, JPMorgan’s downgrade highlights execution risk. Without revenue accretive deals to support the company’s AI and HPC commitment, the downside scenario may be more realistic.All in all, investors should weigh speculative enthusiasm against valuation discipline, especially as IREN shares trade well above the industry average multiple.Investors should also note that JPMorgan is not the only Wall Street firm recommending caution in buying IREN shares at current levels.According to Barchart, the consensus rating on IREN stock remains at “Moderate Buy” but the mean target of roughly $36 indicates potential downside of another 10% from here.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,643.70 +38.98 (+0.59%)Dow 3046,247.29 +299.97 (+0.65%)Nasdaq22,484.07 +99.37 (+0.44%)Russell 20002,434.32 +23.28 (+0.97%)VIX15.29 -1.45 (-8.66%)Gold3,809.00 +37.90 (+1.01%)PortfolioSign in to access your portfolioSign inTop gainersCRNX Crinetics Pharmaceuticals, Inc. 45.91 +10.02 (+27.92%)QMMM QMMM Holdings Limited 119.40 +19.40 (+19.40%)EA Electronic Arts Inc. 193.35 +25.03 (+14.87%)SRRK Scholar Rock Holding Corporation 38.75 +4.26 (+12.35%)PPTA Perpetua Resources Corp. 21.16 +2.16 (+11.37%)Top losersCNXC Concentrix Corporation 47.66 -7.33 (-13.33%)MP MP Materials Corp. 68.63 -8.50 (-11.02%)KC Kingsoft Cloud Holdings Limited 15.64 -1.83 (-10.48%)IREN IREN Limited 41.86 -4.43 (-9.57%)OKLO Oklo Inc. 110.53 -8.60 (-7.22%)Most activeINTC Intel Corporation 35.50 +1.51 (+4.44%)OPEN Opendoor Technologies Inc. 8.81 -0.28 (-3.08%)SNAP Snap Inc. 8.27 -0.06 (-0.72%)NVDA NVIDIA Corporation 178.19 +0.50 (+0.28%)F Ford Motor Company 12.01 +0.39 (+3.36%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersFWONK Formula One Group 104.93 +0.97 (+0.93%)BTC-USD Bitcoin USD 109,521.71 -101.30 (-0.09%)PPL PPL Corporation 36.72 +0.56 (+1.55%)XRP-USD XRP USD 2.79 -0.00 (-0.14%)AMKR Amkor Technology, Inc. 29.03 -0.14 (-0.46%)Top economic events