Applied Digital (NASDAQ:APLD) Trading Down 3% After Earnings Miss

Applied Digital Corporation (NASDAQ:APLD)’s stock price was down 3% on Monday after the company announced weaker than expected quarterly earnings. The company traded as low as $25.77 and last traded at $26.38. 21,726,527 shares were traded during trading, a decline of 11% from the average daily volume of 24,357,430 shares. The stock had previously closed at $27.19.

The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). The firm had revenue of $240.35 million during the quarter, compared to analysts’ expectations of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 17.53%. Applied Digital’s revenue was up 406.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.24) EPS.

More Applied Digital News

Here are the key news stories impacting Applied Digital this week:

• Positive Sentiment: Fiscal fourth-quarter revenue surged approximately 407% year over year to $258.7 million, beating Wall Street expectations. Non-GAAP earnings were $0.04 per share, also ahead of consensus, as demand for AI-focused data-center infrastructure and tenant fit-out services accelerated. Applied Digital revenue quadruples on AI data center demand
• Positive Sentiment: Management reported $36 billion of contracted lease value, up 125% year over year, and approximately 1.4 gigawatts of contracted AI capacity across five campuses. Long-term hyperscaler agreements, including business with CoreWeave, could support multi-decade revenue visibility. Applied Digital expects $1B NOI run rate
• Positive Sentiment: Applied Digital is targeting a $1 billion annual net operating income run rate within roughly one year and is pursuing lower-cost financing and additional natural-gas power generation to expand capacity. Needham reaffirmed its Buy rating and set an $83 price target, signaling substantial upside if the expansion plan succeeds. Needham reiterates Buy rating
• Neutral Sentiment: Zacks upgraded APLD from “Strong Sell” to “Hold,” reflecting improved operating momentum but insufficient conviction for a bullish rating. Zacks.com
• Negative Sentiment: The company posted a GAAP loss of $0.39 per share, missing the approximately $0.09-per-share consensus estimate by $0.30. Negative margins, negative return on equity and a debt-to-equity ratio of 1.65 underscore profitability and balance-sheet concerns despite the revenue growth. Applied Digital Q4 earnings results
• Negative Sentiment: Investors remain concerned that rapid campus construction, power procurement and reliance on external financing could pressure cash flow and dilute returns. The stock’s elevated volatility and lofty growth expectations may also be contributing to profit-taking after the earnings announcement.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on APLD shares. Compass Point reiterated a “buy” rating and issued a $70.00 price objective on shares of Applied Digital in a research report on Friday, May 22nd. Wall Street Zen cut shares of Applied Digital from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. Citizens Jmp boosted their price objective on shares of Applied Digital from $40.00 to $60.00 and gave the company a “market outperform” rating in a research report on Thursday, May 21st. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a research note on Tuesday, July 21st. Finally, Roth Capital reissued a “buy” rating and issued a $65.00 price target on shares of Applied Digital in a research note on Thursday, April 23rd. Three analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Applied Digital currently has a consensus rating of “Buy” and a consensus target price of $67.15.

Insider Buying and Selling at Applied Digital

In related news, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the transaction, the director directly owned 208,378 shares in the company, valued at $7,207,795.02. This trade represents a 5.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 9.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Newbridge Financial Services Group Inc. boosted its position in shares of Applied Digital by 8.6% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company’s stock worth $93,000 after purchasing an additional 300 shares in the last quarter. Concurrent Investment Advisors LLC boosted its holdings in Applied Digital by 1.5% in the fourth quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company’s stock worth $523,000 after acquiring an additional 318 shares in the last quarter. Brookstone Capital Management grew its stake in shares of Applied Digital by 3.6% in the fourth quarter. Brookstone Capital Management now owns 9,275 shares of the company’s stock worth $227,000 after acquiring an additional 321 shares during the last quarter. Independent Advisor Alliance increased its holdings in shares of Applied Digital by 4.6% during the fourth quarter. Independent Advisor Alliance now owns 9,215 shares of the company’s stock valued at $226,000 after acquiring an additional 407 shares in the last quarter. Finally, GAMMA Investing LLC raised its position in shares of Applied Digital by 28.5% in the 2nd quarter. GAMMA Investing LLC now owns 2,092 shares of the company’s stock worth $78,000 after purchasing an additional 464 shares during the last quarter. Institutional investors own 65.67% of the company’s stock.

Applied Digital Trading Down 9.7%

The stock’s 50 day moving average is $38.34 and its 200-day moving average is $34.52. The company has a market cap of $6.87 billion, a P/E ratio of -26.91 and a beta of 5.67. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65.

About Applied Digital

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.