iPower (IPW) Plunges 33%: What's Behind the Sudden Collapse?

Summary
• iPower (IPW) trades at $15.51, down 33.18% from its previous close of $23.21
• Intraday range of $15.33–$19.15 highlights sharp volatility
• Company announced a 1-for-30 reverse stock split to regain Nasdaq compliance
• Recent news points to alternative funding efforts and U.S. manufacturing shifts

iPower’s stock has imploded in a single trading session, with a -33.18% drop that dwarfs broader market declines. The move follows a 1-for-30 reverse split announced on October 21, 2025, and a string of headlines about the company’s capital flexibility and strategic pivots. With a 52-week range of $12.38–$45.00 and a dynamic PE of -3.28, the stock’s technicals and fundamentals suggest a critical inflection point.

Reverse Split and Capital Strain Trigger Investor Flight
The 33.18% intraday drop in iPower’s stock is directly tied to its 1-for-30 reverse stock split, announced on October 21, 2025, to meet Nasdaq’s minimum bid price requirement. This move signals severe capital strain, as the company’s recent news highlights its pursuit of non-bank financing alternatives and a strategic shift toward crypto treasury services. The reverse split, combined with a 41% reduction in total debt to $3.7M in Q4 2025 and a 43.8% gross margin, underscores a desperate bid to stabilize liquidity. Investor sentiment has turned sharply bearish, with the stock trading near its 52-week low of $12.38.

Internet Retail Sector Mixed as iPower Dives
The Internet Retail sector, led by Amazon (AMZN) at -1.95% intraday, shows mixed momentum. While iPower’s -33.18% drop is extreme, peers like QVC Group (QVCGA) and Newegg (NEGG) are up 8–14%, reflecting divergent capital flows. iPower’s struggles with debt reduction and U.S. manufacturing pivots contrast with sector leaders’ focus on e-commerce scalability and supply chain resilience.

Technical Deterioration and ETF Correlation Signal Short-Side Focus
• RSI: 82.55 (overbought, but bearish divergence)
• MACD: 4.61 (bullish), Signal Line: 1.74 (bearish), Histogram: 2.87 (expanding bearish)
• Bollinger Bands: Price at $15.51 near lower band (-13.79), suggesting oversold conditions
• 200D MA: $0.96 (far below current price)

The technicals paint a conflicting picture: RSI suggests overbought conditions, but the MACD histogram’s expansion and Bollinger Band proximity to the lower bound indicate a potential short-term bounce. However, the 200-day MA at $0.96 and the 52-week low of $12.38 form a critical support cluster. A breakdown below $15.33 (intraday low) could trigger a test of $12.38. Given the lack of options liquidity, a cash-secured short position or a stop-loss order at $15.33 is warranted. ETFs like XRT (Consumer Discretionary) at -1.95% align with sector weakness.

Backtest iPower Stock Performance
The back-test results are ready. Please open the interactive panel below to review entry dates, P/L curve, risk metrics and individual trade details.Notes on auto-filled settings 1. Holding period: 5 trading days was chosen as a short-term bounce window, common in severe one-day capitulation studies. 2. No explicit stop-loss or take-profit was added; the fixed holding period alone controls risk. You can adjust these parameters and rerun the test if you prefer a different horizon or additional risk limits.

iPower’s Freefall: A Cautionary Tale for Retail Investors
iPower’s -33.18% collapse reflects a perfect storm of capital constraints, strategic overhauls, and regulatory pressures. While the reverse split aims to stabilize the stock, the 52-week low of $12.38 and $3.7M debt reduction efforts suggest a prolonged bearish phase. Investors should monitor the $15.33 intraday low and $12.38 support level for potential short-term bounces. For now, the sector leader Amazon (AMZN) at -1.95% underscores broader retail fragility. Action: Watch for a breakdown below $15.33 or regulatory updates on the reverse split.