Orin
SHAZNasdaq·Information Technology Services

SharonAI Holdings, Inc. SHAZ

Market cap $2.0BP/E no earnings to divide byGross margin -69.6%Reports Thu 5 Nov, before the open
$57.73
−5.48 (−8.67%)Wed close 16:00 ET
52-wk $16.55 – $97.48
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Orin's take
0.55conviction · moderate
Refreshed 28 Aug · take v4. A new filing or a print queues the next refresh.

SharonAI Holdings remains a speculative hold: FY2025 revenue of $1,566,631 against total debt of $136,263,155 and negative stockholders' equity of -$10,039,372 underpins a P/S of 594.0x versus a peer median of 2.05x, making the stock impossible to justify on trailing fundamentals. However, the ~$8.8B total contract value, a six-year NVIDIA compute collaboration, successful delivery on a ~$950M contract milestone announced August 20, 2026, and a new $373M agreement with revenue starting Q1 2027 represent genuine operational progress.

Technicals have deteriorated since the prior call — the stock at $52.37 trades below its 50-day MA of $66.89 with RSI at 40.61 and a negative MACD histogram of -0.69 — while smart money fund count rose from 5 to 24 as of the quarter ended 2026-06-30, suggesting institutional interest is building but conviction remains low (score 0.0302). The thesis hinges on backlog converting to revenue without dilutive capital raises that further impair equity holders.

What could go wrong

  • Dilution / balance sheet fragility. Negative stockholders' equity of -$10,039,372 and total debt of $136,263,155 as of FY2025 mean the company likely needs equity issuance or additional debt to fund its 212MW capacity buildout, risking severe dilution at current valuations.
  • Extreme valuation compression. P/S of 594.0x versus a peer median of 2.05x leaves no margin for execution missteps; any delay in backlog-to-revenue conversion could trigger a sharp re-rating lower.
  • Technical deterioration. Stock at $52.37 is below its 50-day MA of $66.89 with RSI at 40.61 and negative MACD histogram of -0.69 as of 2026-08-28, indicating weakening momentum post-earnings.
  • Contract execution risk. The ~$8.8B total contract value and ~$950M milestone delivery are promising, but FY2025 revenue of only $1,566,631 demonstrates a wide gap between signed contracts and recognized revenue.

What would change my mind

Revenue acceleration from backlog. Quarterly revenue meaningfully exceeds FY2025 annual revenue of $1,566,631, demonstrating backlog conversion is underwaybullish
Dilutive capital raise. Company announces equity offering or convertible debt that materially increases share count or obligationsbearish
Technical breakdown below support. Stock closes decisively below $52.37 on high volume, confirming the post-earnings downtrendbearish
New large contract win or capacity expansion. Company announces a new multi-hundred-million-dollar contract or additional secured AI Factory capacity beyond 212MWbullish

Where this comes from: FMP fundamentals, fiscal year ended 2025-12-31 · peer_relative composite · PRNewsWire, Q2 2026 results announcement, 2026-08-06 · PRNewsWire, 2026-08-20. Orin's read on SHAZ; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Dec 25Feb 26Mar 26May 26Jun 26Aug 26Sept 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Diameter Capital Partners$126.7M5.1% of fund
Millennium Management$112.1M0.0% of fund
Two Seas Capital$109.5M2.2% of fund
Lone Pine Capital$102.4M0.6% of fund
Citadel Advisors$100.2M0.0% of fund
Sona Asset Management$63.4M1.3% of fund

37 filers · quarter ended Q2 2026 · positions, not flows

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Where it trades

· Technology
MetricNowOwn medianSector
P/B0.8×

What Wall Street published

1 firms · 2026-09-23
Consensus target

$62

$40$95 · +7% against today's price

How they rate it
  • 1 buy or overweight
  • 0 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 14.3× of 4 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
SHAZSharonAI Holdings, Inc. Class A Common Stock$2B-69.6%-15658.3%-157%
APLDApplied Digital Corp.$8B22.4%-42.3%-17%
CTSHCognizant Technology Solutions Corporation$27B12.7×7.0×32.0%10.3%15%
FISVFiserv, Inc.$25B8.8×7.5×47.2%13.4%11%
IBMInternational Business Machines Corporation$219B20.3×17.1×58.4%15.5%34%
ITGartner, Inc.$12B16.0×10.3×68.9%12.0%401%

The median is of the 4 peers listed above and nothing else — check it against the column. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year

What its sector has traded at

Technology
FY14 9.0×FY26 48.0×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Every estimate on one scale

price $57.73
52-week range$17 – $97
Analyst targets$40 – $95

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.