Reddit’s Most Popular Stock Trades at 19x Sales After 3,568% EBITDA Jump

Shares of IREN (NASDAQ:IREN) are trading at $47.9, extending an impressive 17% gain over the past week. The stock now commands the highest social sentiment score across all tracked equities, registering 85 out of 100 on Reddit as of December 7. That puts IREN 18.6 points ahead of the second-place stock, Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction), which scored 66.4.

Reddit Activity Surges on r/stocks

IREN discussion on Reddit reached elevated levels over the December 6-7 weekend, with activity scores peaking at 44 and remaining above 30 across eight consecutive periods. The sentiment data shows concentrated discussion around the Microsoft AI Cloud contract, the company’s profitability transformation, and its GPU deployment plans. The concentration of discussion within r/stocks, rather than dispersed across promotional subreddits, signals genuine community interest in the stock’s fundamentals. One r/stocks user noted: “IREN just announced a landmark partnership with Microsoft for AI Cloud services. This is a $9.7B contract that could generate $3.4B in annualized revenue by end of 2026. The company also swung to profitability with $384.6M in net income vs a $51.7M loss last year.”

Retail enthusiasm centers on three catalysts:

• IREN secured a $9.7 billion AI Cloud contract with Microsoft, targeting $3.4 billion in annualized run-rate revenue by the end of 2026
• The company swung from a $51.7 million loss in Q1 2025 to $384.6 million in net income for Q1 2026, with adjusted EBITDA surging 3,568% year-over-year to $91.7 million
• Plans to deploy 140,000 GPUs across renewable-rich data centers position IREN as a vertically integrated AI infrastructure play

CEO Daniel Roberts described the Microsoft partnership as “landmark” during the November 6 earnings call, emphasizing the company’s expansion into hyperscale customer segments. Despite missing revenue estimates by $5.5 million at $240.3 million, the profitability transformation and forward guidance drove the bullish community response.

Volatility and Valuation Context

IREN trades at 19.4 times sales with a forward price-to-earnings ratio of 65.4, reflecting aggressive growth expectations. The stock’s beta of 4.24 indicates extreme volatility, appealing to risk-tolerant traders betting on AI infrastructure demand. Analysts maintain a consensus price target of $81.85, implying 76% upside from current levels. With 10 of 14 analysts rating the stock Buy or Strong Buy, Wall Street validation aligns with the Reddit community’s bullish stance.