Back to top

Image: Bigstock

Leading Stocks Pullback: Should Investors Buy Now? (IREN, NBIS, OKLO)

So far this year, we’ve seen the emergence and persistence of several powerful market themes, from artificial intelligence and data infrastructure to next-generation energy, and a handful of innovative stocks have led the charge. Among the biggest winners have been IREN Limited ((IREN - Free Report) ), Nebius Group N.V. ((NBIS - Free Report) ), and Oklo Inc. ((OKLO - Free Report) ), each soaring between 300% and 400% year-to-date. Together, they represent some of the market’s most exciting frontiers: hyperscale data centers, crypto mining, and advanced nuclear power.

However, the story has shifted in recent weeks. These speculative high-growth names are now under pressure as the broader market consolidates and investors rotate out of riskier corners. Many of these leaders have already corrected 20–30% in a matter of days, a natural but sharp pullback following massive runs.

While these stocks may represent compelling long-term opportunities, the near-term technical picture suggests more volatility ahead. In this piece, we’ll take a closer look at their Zacks Ranks and price trends, and identify where selective buying could make sense once the dust settles.

Zacks Investment Research
Image Source: Zacks Investment Research

NBIS, IREN and OKLO Shares Fall Amid Earnings Downgrades

After massive gains earlier this year, Nebius, IREN, and Oklo have pulled back sharply as earnings revisions turn negative. Earlier in the rally, estimate cuts didn’t seem to matter much as momentum was driving the trade. But now that the technical picture has weakened, these downgrades are having a bearish effect.

Over the past 60 days, both IREN and NBIS have seen major revisions lower, pushing their Zacks Ranks down to #4 (Sell). Current year earnings for IREN have been reduced by almost 40%, while next quarter projections for NBIS have dropped 88%, even as full year estimates edged higher.

Oklo, on the other hand, doesn’t even have earnings to revise. The company remains pre-revenue, highlighting just how speculative the stock is, while growing to a $20 billion market cap. While its vision for compact nuclear reactors is promising, it’s still years away from generating meaningful cash flow.

Of the three, IREN is the only name currently producing positive earnings. Nebius remains loss-making, and Oklo is still developing. These differences matter especially when sentiment shifts, as stocks with little or no profitability tend to experience the steepest declines.

These are exciting but highly volatile plays. They can deliver huge upside in strong markets, and just as easily give it back when momentum fades.

Technical Setups in NBIS, OKLO and IREN Stocks

The technical picture for Nebius, Oklo, and IREN is not encouraging. All three stocks made new lows again today, with little evidence of sustained buying pressure to establish a floor.

Each has retraced back to its most recent breakout zone, a level that once signaled strength but is now being retested as support. As shown in the IREN chart below, the setup looks vulnerable, and the same pattern is evident across NBIS and OKLO. At this stage, buying into weakness would be risky, the classic case of trying to catch a falling knife.

TradingView
Image Source: TradingView

For context, consider AppLovin ((APP - Free Report) ), another stock that’s seen powerful rallies and sharp corrections over the last few years. In mid-2025, APP formed a large pennant consolidation between February and July following a 50% decline. That multi-month compression eventually set the stage for a strong next leg higher.

I think we may see a similar process unfold in IREN, NBIS, and OKLO, a prolonged consolidation after steep drawdowns, followed by new bases from which stronger, more sustainable advances can form. The timing, however, remains uncertain, but I wouldn’t be surprised if it was at least a couple of months before these stocks were ready to rally again.

TradingView
Image Source: TradingView

Should Investors Buy Shares in OKLO, IREN and NBIS?

At this stage, patience may be the best strategy. These three names, remain some of the most exciting and innovative stories in the market, but the charts and earnings revisions suggest the correction is not yet finished. Momentum has clearly shifted, and until new bases form, rallies are likely to meet resistance.

For now, I would let these stocks finish correcting and build fresh setups, because in volatile, speculative sectors like this, waiting for the right entry can make all the difference between catching the next leg higher or getting caught in sharp drawdown.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AppLovin Corporation (APP) - free report >>

IREN Limited (IREN) - free report >>

Oklo Inc. (OKLO) - free report >>

Nebius Group N.V. (NBIS) - free report >>

Published in