Bloomberg reported on July 1 that Meta is planning to enter the cloud infrastructure market by selling excessive artificial intelligence computing power that may put the company in direct competition with neocloud firms. Shares of CoreWeave, Nebius, and IREN were down 14%, 17%, and 5%, respectively.
IREN’s access to cheap renewable energy and outstanding data center efficiency allows the company to undercut competitors with low prices to capture more demand.
The long-term demand for AI cloud infrastructure is highly uncertain. If IREN is unable to ramp up revenue rapidly, the large amount of convertible notes on its balance sheet will significantly dilute existing shareholder interest.
|
Metric
|
IREN
|
ORCL
|
NBIS
|
|---|---|---|---|
Price/Earnings (Normalized) | 128.50 | 18.56 | — |
Price/Book Value | 5.10 | 10.86 | 7.59 |
Price/Sales | 15.46 | 6.13 | 65.46 |
Price/Cash Flow | 35.37 | 14.82 | 285.46 |
|
Metric
|
IREN
|
ORCL
|
NBIS
|
|---|---|---|---|
Quick Ratio | 3.57 | 1.01 | 8.02 |
Current Ratio | 3.72 | 1.12 | 8.33 |
Interest Coverage | 3.77 | 5.08 | 6.55 |
|
Metric
|
IREN
|
ORCL
|
NBIS
|
|---|---|---|---|
Return on Assets (Normalized) | 0.43% | 10.48% | −4.36% |
Return on Equity (Normalized) | 0.90% | 76.33% | −9.86% |
Return on Invested Capital (Normalized) | 0.37% | 15.95% | −4.54% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Morgan Stanley
MS
| LOCK|vgwtrkS | LOCK|K< | $351B | |||
| The Goldman Sachs Group Inc
GS
| LOCK|F<$LzZr | LOCK|DK | $311B | |||
| Charles Schwab Corp
SCHW
| LOCK|B^?!@^$ | LOCK|!dP | $179B | |||
| Robinhood Markets Inc Class A
HOOD
| LOCK|N>V>lc | LOCK|&^p< | $101B | |||
| Interactive Brokers Group Inc Class A
IBKR
| LOCK|P&#?RR | LOCK|nkw | $42B | |||
| LPL Financial Holdings Inc
LPLA
| LOCK|WxKhhG | LOCK|<cT | $25B | |||
| Tradeweb Markets Inc
TW
| LOCK|hlRxJ<WN | LOCK|?bP | $21B | |||
| Evercore Inc Class A
EVR
| LOCK|!g!#kVh | LOCK|rNz!X | $13B | |||
| Jefferies Financial Group Inc
JEF
| LOCK|VF@mt<g | LOCK|^F | $12B |
/author-service-images-prod-us-east-1.publishing.aws.arc.pub/morningstar/4b77f405-7bc5-4c94-9e73-943b641ea977.jpg)
United States