iPower (IPW) Plunges 30.6%: Reverse Split, Funding Woes, and Sector Turbulence Spark Investor Panic

Summary
• iPower (IPW) trades at $16.11, down 30.59% from $23.21 close
• 1:30 reverse stock split announced October 21, effective October 27
• Company pursues non-bank financing amid $4.97M Q3 loss
• RSI at 82.55 signals overbought conditions despite intraday freefall

iPower’s stock has imploded in a single session, trading down 30.6% to $16.11 as investors grapple with a 1:30 reverse split, a $4.97M quarterly loss, and a desperate pivot to non-bank financing. The move has triggered a 52-week low of $12.38 and a 64.7% annual drop, with technical indicators flashing mixed signals. The Internet Retail sector, led by Amazon’s -1.39% decline, amplifies the bearish sentiment.

Reverse Split and Capital Crunch Trigger Investor Exodus
iPower’s 30.6% intraday collapse stems from a 1:30 reverse stock split announced October 21 and a strategic shift to non-bank financing. The company disclosed a $4.97M net loss for Q3 2025, with revenue declining 23.15% year-over-year to $66.14M. Management’s pivot to alternative funding—replacing its asset-based lending facility—has spooked investors, who fear liquidity constraints amid a -7.51% trailing profit margin. The reverse split, aimed at preserving Nasdaq compliance, has exacerbated short-term panic, with the stock trading at 15.33 (intraday low) as capital flight accelerates.

Internet Retail Sector Under Pressure as Amazon Slides
The Internet Retail sector mirrors iPower’s turmoil, with Amazon (AMZN) down 1.39% and ThredUp (TDUP) falling 2.66%. iPower’s 30.6% drop outpaces peers like QVC Group (QVCGA, +4.04%) and Newegg (NEGG, +9.43%), highlighting its precarious liquidity position. The sector’s 5.3% projected holiday e-commerce growth contrasts sharply with iPower’s 23.15% revenue decline, underscoring structural challenges in its e-commerce and packaging ventures.

Technical Divergence and Sector Weakness: Navigating the Volatility
• MACD: 4.61 (bullish), Signal Line: 1.74, Histogram: 2.87 (momentum)
• RSI: 82.55 (overbought), Bollinger Bands: Upper 22.27, Middle 4.24, Lower -13.79
• 200D MA: 0.96 (far below price), 30D MA: 3.00 (bearish divergence)

Technical indicators reveal a paradox: iPower’s RSI suggests overbought conditions, yet the stock plummets 30.6% as capital flight dominates. The 200-day MA at $0.96 underscores long-term bearishness, while the MACD’s 4.61 reading hints at short-term bullish momentum. Traders should focus on key levels: $15.33 (intraday low) as a critical support and $19.15 (day high) as a potential reversal point. The sector’s weakness, led by Amazon’s decline, amplifies downside risks. With no options data available, investors may consider short-term ETFs like XERT (e-commerce) for hedging, though liquidity constraints persist.

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Here is the back-test you requested.Key metrics • Total return: 12.8 % • Annualized: 4.2 % • Max drawdown: 13 % • Sharpe ratio: 0.29 • Average trade: 8.3 % (winners +29.7 %, losers −13 %)Interpretation A simple rebound strategy after an extreme 31 % daily loss produced a modest 12.8 % cumulative gain since 2022, but risk-adjusted performance is weak (Sharpe 0.29) and drawdowns of 13 % occurred. Results are sensitive to the chosen take-profit / stop-loss; consider refining exits or adding confirmation filters before deploying capital.Please explore the interactive panel above for full trade list and equity curve.

Act Now: iPower’s Freefall Tests $15.33 Floor Amid Sector Downturn
iPower’s 30.6% collapse reflects a liquidity crisis and sector-wide fragility. The 1:30 reverse split and $4.97M loss have eroded investor confidence, with technicals pointing to a potential breakdown below $15.33. Amazon’s -1.39% decline signals broader e-commerce headwinds, amplifying the bear case. Immediate action: monitor $15.33 support and $19.15 resistance. If the stock breaches $15.33, consider shorting or hedging with sector ETFs. Long-term holders should wait for a rebound above $19.15 before re-entering.