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iRobot files for Chapter 11 bankruptcy just 11 days after its record one-day gain

Last one to leave the Roomba, please turn off the lights.

iRobot, maker of robotic vacuums and other cleaning products, announced on Sunday that it was filing for Chapter 11 bankruptcy as part of a restructuring agreement that would see 100% of the company’s equity interests be acquired by its secured lender and its primary contract manufacturer, Shenzhen PICEA Robotics Co., Ltd., and Santrum Hong Kong Co., Limited.

IRBT shares have sunk more than 80% since Friday’s close to hover around the $0.74 level, per Bloomberg data as of 6:18 a.m. ET.

In a press release, the company said that this move “will delever the Company’s balance sheet and enable iRobot to continue operating in the ordinary course, pursue its product development roadmap, and maintain its global footprint.”

Shares of iRobot recently booked their biggest one-day gain on record, rising 74% on December 3 on the heels of a Politico report that the Trump administration was planning on going “all in” to boost the robotics industry.

That report spurred a wave of buying from traders who were presumably looking to get exposure to the theme, enticed by the name of a company that has “robot” in it, and less than fully versed on its financial position. Back in March, management had warned investors that “there is substantial doubt about the Company’s ability to continue as a going concern for a period of at least 12 months.”

Volumes exceeded 228 million on December 3, also far and away a daily record for the stock.

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Markets droop as AI credit fears grow and jobs report looms

The S&P 500, Nasdaq 100, and Russell 2000 all slumped on Monday.

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To AI-nfinity... and beyond!

Deutsche Bank highlights four roadblocks for tech CEOs’ obsession: Data centers in space

The good news: “There are clearly technical challenges to making this a viable endeavor but these seem to be engineering constraints as opposed to physics,” per Deutsche Bank.

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Bitcoin-sensitive stocks hammered as crypto declines

Bitcoin-sensitive stocks tumbled Monday, enduring a much steeper drop than the keystone crypto asset itself, which was down nearly 4%, falling below $87,000, as of 12:20 p.m. ET.

Goldman Sachs’ themed basket of bitcoin-sensitive equities was down more than 8%. (It consists of companies tied to bitcoin, either through mining, digital payments, crypto investment, or blockchain technology.) It was one of the worst performers among Goldman’s thematically curated baskets of shares on Monday.

Among the basket’s constituents, miners Cipher Mining, CleanSpark, Hut 8, TeraWulf, and IREN were getting the worst of it.

At midday, the basket was on its way to its worst day since November 24, when bitcoin was also languishing below $90,000 and the broader tech sector was going through a brief downturn related to rising worries about durability of the AI boom.

Among the basket’s constituents, miners Cipher Mining, CleanSpark, Hut 8, TeraWulf, and IREN were getting the worst of it.

At midday, the basket was on its way to its worst day since November 24, when bitcoin was also languishing below $90,000 and the broader tech sector was going through a brief downturn related to rising worries about durability of the AI boom.

GameStop rallies on bullish options activity as Michael Burry teases post

And let’s not sell the artist formerly known as “Best Buy Rilie” short, either.

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Nvidia’s favorite stocks are getting shellacked as AI credit risk spreads

Nvidia’s “House of GPUs” is looking a little wobbly.

Shares of Applied Digital, CoreWeave, and Nebius — three of the four biggest equity positions held by the chip designer as of September 30 — are getting crushed on Monday.

Nvidia owned about $3.6 billion worth of these data center and neocloud stocks (with the overwhelming majority in CoreWeave) per its most recent 13F filing.

The AI credit risk that’s been most talked about in reference to Oracle’s widening credit default swaps spreads is also present in some of these firms, as well.

An Applied Digital bond due in 2030 is trading below $96 for the first time this month. That issuance was made to support data centers where CoreWeave will be the main tenant.

CoreWeave, which earlier this year received warrants enabling it to purchase a large chunk of Applied Digital shares as part of a data center leasing deal, sank last week after announcing a $2 billion convertible note offering that was later upsized.

Of course, it’s not just Nvidia-owned stocks, but the entire data center ecosystem that’s under pressure on Monday. Cipher Mining and IREN are also getting walloped — with Monday’s crypto tumble also likely weighing on these two bitcoin miners turned data center companies.

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