IREN shares form head-and-shoulders pattern as earnings approach

IREN shares fell to their lowest level since August, trading at $21.75, far below their 2025 peak of $76.63, as investors sell off neocloud companies ahead of the firm's quarterly earnings report. The stock has broken below key technical support levels, including the neckline of a head-and-shoulders pattern and the 61.8% Fibonacci retracement, signaling potential further declines. Revenue is expected to drop about 9% to $221 million, and the company relies heavily on one anchor client without announcing major new deals this year. The broader neocloud sector is under pressure, with CoreWeave losing nearly 10% and Nebius hitting its lowest point since May. A Gartner report warned that AI datacenter owners may need significant writedowns, as projected industry revenue of $3.6 trillion falls short of the $8.5 trillion needed by 2030.