IREN shares fall 11.54% intraday amid valuation concerns and execution risks following Microsoft deal uncertainties and mixed analyst narratives.

IREN fell 11.54% intraday following a sharp pullback after a multi-day rally. The decline aligns with analyst concerns highlighted in recent coverage, including overvaluation risks from a 41.78x price-to-sales ratio (well above its proprietary fair ratio of 20.11x) and bearish narratives warning the stock is "priced for perfection." Recent bullish catalysts—such as a $9.7 billion Microsoft cloud services deal and a $106.43 DCF-intrinsic value estimate—had driven prior gains, but the correction reflects profit-taking and skepticism about execution risks in scaling gigawatt-scale projects and sustaining AI infrastructure margins. Analysts noted the stock’s rapid 630% YTD surge had likely priced in aggressive growth assumptions, leaving it vulnerable to profit-related selling pressure amid mixed valuations and operational uncertainties.