IronNet Inc Stock News and Forecast: Why is IRNT falling?

IronNet (IRNT) is the new name for many in the retail or meme stock space, as it has been trending heavily on social media for the last few days. The stock has exhibited crazy volatility which suits the meme-stock traders perfectly as they like to see wild swings giving them some action. The more seasoned and experienced traders tend to avoid it, as performing analysis on something so wild is a thankless task. So who or what is IronNet?

IronNet Inc (IRNT) recently combined with LGL Systems Acquisitions Corporation and under its current name and guise IronNet is a cyber security company. The company develops a Collective Defense Platform and identifies potentially suspicious behaviour on networks and shares these with members of the Collective Defense Community. IronNet offers two main products, IronNet and IronDome. The company is only a recent entry to the New York Stock Exchange, having only begun trading on August 27 after completing its business combination with LGL Systems Acquisition Corp on August 26. IronNet released results on September 14 for Q2 2022. These showed a quarterly net loss of $17.2 million versus $14.3 million and revenue of $6.1 million versus $7.9 million prior. The company said it sees full-year revenue of between $43 to $45 million.

The shares caught the attention of the retail meme stock crowd straight away with some stellar gains. On September 3, the stock surged over 26% and kept on going rising nearly 18% the next trading day. The stock saw numerous comments on social media and made it onto discussion pieces on CNBC. IRNT broke to the record high so far on Thursday, with a gain of nearly 29% on the day, with the stock peaking at $47.50. Friday was not so kind, with the stock retracing most of Thursday's gains. IRNT does not appear to be one of the classic short-squeeze memes, as the most recent short interest data from Refinitiv shows the short interest at only 3.5%. 

IRNT stock forecast

This stock is highly volatile and only in its infancy having launched on the market as recently as August. It is not a long-term investment potential in our view yet, as it is too early stage to do due diligence on. If you are trading this ticker be prepared to lose heavily as it is that volatile. Only risk what you can afford to lose. That is not to say you cannot make money trading in this name. It is a momentum stock, so try and ride the momentum but be prepared for wild swings. 

Having traded lower on Friday, the stock has retraced to the point of control since launching on the stock market. This is the price with the highest amount of volume. The Volume Weighted Average Price (VWAP) since launch is at $26.82. Both of these can be taken as some form of price support as volume is high, but technical analysis on something so volatile and new is not strong as there is just not enough data.

IRNT 1-hour chart