Applied Digital (NASDAQ:APLD) Trading Up 20.5% - Here's Why

Key Points

• Applied Digital shares surged 20.5% to $27.97 in heavy trading after bullish analyst coverage and optimism surrounding its AI and high-performance-computing data-center strategy.
• The company reported 406.3% year-over-year revenue growth to $240.35 million, beating estimates, while its reported EPS loss of $0.39 was significantly worse than the expected $0.09 loss.
• Analysts remain broadly positive, with a consensus “Buy” rating and $67.15 target price, supported by approximately $36 billion in contracted lease value; however, unprofitability, high capital needs and data-center execution risks remain concerns.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price was up 20.5% on Thursday . The stock traded as high as $28.56 and last traded at $27.97. 25,632,796 shares traded hands during mid-day trading, an increase of 4% from the average daily volume of 24,576,574 shares. The stock had previously closed at $23.22.

Key Stories Impacting Applied Digital

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

• Positive Sentiment: Needham reiterated its “Buy” rating on Applied Digital, reinforcing the bullish view that the company’s AI and high-performance-computing data-center strategy can support further growth. Needham Reaffirms Buy Rating for Applied Digital
• Positive Sentiment: A bullish analysis highlighted Applied Digital’s fiscal 2026 performance, including reported fourth-quarter revenue of $258.7 million and non-GAAP EPS of $0.04, both above consensus estimates. The company also reportedly has approximately $36 billion in contracted lease value, up 125% year over year, with investment-grade hyperscalers supporting its future revenue visibility. Applied Digital Blowout FY 2026
• Neutral Sentiment: Zacks Research upgraded Applied Digital from “Strong Sell” to “Hold,” indicating that the analyst view has improved but does not yet represent a bullish recommendation. Zacks Research
• Neutral Sentiment: Analysts continued to assess Applied Digital alongside other technology companies, keeping attention focused on its growth outlook and execution in AI data-center infrastructure. Analyst Insights on Applied Digital
• Negative Sentiment: Applied Digital’s latest quarterly results included an EPS loss of $0.39, substantially worse than the expected $0.09 loss, despite revenue of $240.35 million that exceeded estimates and rose sharply year over year. The company remains unprofitable, which could limit investor enthusiasm.
• Negative Sentiment: Applied Digital and other former Bitcoin miners that pivoted toward AI data centers have fallen heavily over the past month. The sector selloff reflects concerns that high valuations, capital requirements, power constraints, and execution risks may undermine the broader AI-infrastructure investment thesis. Data Center Stock Selloff

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Zacks Research upgraded shares of Applied Digital from a "strong sell" rating to a "hold" rating in a research note on Monday. Compass Point reiterated a "buy" rating and issued a $70.00 price objective on shares of Applied Digital in a research note on Friday, May 22nd. B. Riley Financial reissued a "buy" rating and set a $66.00 target price (up from $53.00) on shares of Applied Digital in a report on Wednesday, May 27th. Citigroup reaffirmed a "market outperform" rating on shares of Applied Digital in a report on Tuesday, June 9th. Finally, Craig Hallum lifted their price objective on Applied Digital from $75.00 to $79.00 and gave the company a "buy" rating in a research note on Tuesday, June 9th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus target price of $67.15.

Applied Digital Trading Up 20.5%

The company's 50-day moving average price is $38.01 and its 200-day moving average price is $34.46. The firm has a market cap of $7.99 billion, a price-to-earnings ratio of -31.43 and a beta of 5.67. The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its earnings results on Monday, July 27th. The company reported ($0.39) earnings per share for the quarter, missing the consensus estimate 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%. The business's revenue was up 406.3% compared to the same quarter last year. During the same quarter last year, the business earned ($0.24) EPS. Equities analysts expect that Applied Digital Corporation will post -1.1 EPS for the current fiscal year.

Institutional Trading of Applied Digital

A number of hedge funds and other institutional investors have recently made changes to their positions in APLD. Vanguard Group Inc. lifted its holdings in shares of Applied Digital by 36.4% in the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company's stock worth $592,601,000 after acquiring an additional 6,445,908 shares during the last quarter. Situational Awareness LP increased its holdings in Applied Digital by 18.9% in the 1st quarter. Situational Awareness LP now owns 13,478,438 shares of the company's stock valued at $319,978,000 after purchasing an additional 2,139,378 shares during the last quarter. Geode Capital Management LLC increased its holdings in Applied Digital by 5.1% in the 4th quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company's stock valued at $154,151,000 after purchasing an additional 304,228 shares during the last quarter. Value Aligned Research Advisors LLC purchased a new stake in Applied Digital in the fourth quarter valued at approximately $138,380,000. Finally, BNP Paribas Financial Markets raised its position in Applied Digital by 24,356.8% in the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock valued at $52,561,000 after purchasing an additional 5,198,223 shares during the period. Institutional investors and hedge funds own 65.67% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source