Applied Digital (NASDAQ:APLD) Stock Jumps 2.6% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD)’s stock price traded up 2.6% during mid-day trading on Tuesday. The stock traded as high as $25.89 and last traded at $25.34. Approximately 22,449,408 shares were traded during mid-day trading, a decline of 1% from the average daily volume of 22,574,396 shares. The stock had previously closed at $24.70.

Trending Headlines about Applied Digital

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

• Positive Sentiment: Fiscal Q1 2027 revenue surged approximately 322% year over year to $341.9 million, substantially exceeding analyst expectations near $111 million. Adjusted revenue was reported at about $300.4 million, while the adjusted loss of $0.01 per share was far better than estimates for a loss of roughly $0.27-$0.30. Applied Digital revenue soars as AI data center demand drives growth
• Positive Sentiment: Management said AI factory expansion is accelerating, with plans targeting more than 600 megawatts of additional capacity. The company also delivered another 75 MW at Polaris Forge 1, bringing live campus capacity to 250 MW. APLD Q1 Earnings Call Focuses on AI Factory Expansion
• Positive Sentiment: Applied Digital reported approximately 1.41 GW of leased critical IT load and about $36 billion in contracted revenue over initial lease terms. Wells Fargo said the roughly 1.4-GW contracted buildout remains on schedule and raised its outlook, viewing financing and additional leasing as potential catalysts. APLD Stock Gets Target Hike From Wells Fargo Post Earnings
• Positive Sentiment: The company secured access to up to 1 GW of potential power capacity in Finland for a European AI campus, expanding its long-term growth pipeline and helping address the industry’s shortage of grid-connected power. Applied Digital climbs on securing 1GW power site
• Neutral Sentiment: Analyst views remain divided. Needham reduced its price target from $83 to $70 while maintaining a Buy rating, and another model trimmed fair value from $68.35 to $65.37, reflecting both confidence in AI contracts and concern about funding conditions. Applied Digital stock price target lowered despite solid Q1 earnings
• Negative Sentiment: GAAP net loss widened to $184.1 million, or $0.82 per share, as operating costs, interest expense and fair-value losses increased alongside expansion spending. Debt totaled approximately $6.4 billion versus $3.7 billion in cash, cash equivalents and restricted cash. Applied Digital’s revenue soars, loss widens
• Negative Sentiment: Investors remain concerned that building the contracted capacity will require substantial borrowing or equity issuance. Higher Treasury yields are also pressuring financing-dependent data-center stocks, contributing to the stock’s decline despite the earnings beat.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on APLD. Needham & Company LLC lowered their price target on Applied Digital from $83.00 to $70.00 and set a “buy” rating on the stock in a research report on Thursday. Rothschild & Co Redburn set a $22.00 target price on Applied Digital and gave the stock a “neutral” rating in a research note on Monday, September 21st. Wall Street Zen lowered Applied Digital from a “sell” rating to a “strong sell” rating in a report on Sunday, August 30th. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research note on Tuesday, July 21st. Finally, Zacks Research downgraded Applied Digital from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 26th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $60.27.

Applied Digital Stock Performance

The company has a market cap of $6.87 billion, a P/E ratio of -26.45 and a beta of 5.99. The stock has a 50 day moving average price of $27.15 and a two-hundred day moving average price of $32.54. The company has a quick ratio of 4.01, a current ratio of 4.01 and a debt-to-equity ratio of 2.88.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.30) by $0.29. Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The business had revenue of $300.39 million during the quarter, compared to the consensus estimate of $116.29 million. During the same period in the previous year, the company posted ($0.03) EPS. The firm’s quarterly revenue was up 367.8% on a year-over-year basis. On average, research analysts predict that Applied Digital Corporation will post -1.09 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Richard Nottenburg sold 75,000 shares of the company’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the sale, the director directly owned 133,378 shares in the company, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 9.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of APLD. Osbon Capital Management LLC bought a new stake in Applied Digital during the fourth quarter worth about $28,000. Bartlett & CO. Wealth Management LLC increased its holdings in Applied Digital by 244.3% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 1,205 shares of the company’s stock valued at $29,000 after buying an additional 855 shares during the period. FNY Investment Advisers LLC acquired a new position in shares of Applied Digital in the 2nd quarter valued at approximately $37,000. Global Assets Advisory LLC acquired a new position in shares of Applied Digital in the 1st quarter valued at approximately $53,000. Finally, Ancora Advisors LLC bought a new stake in shares of Applied Digital during the 2nd quarter worth approximately $56,000. Institutional investors own 65.67% of the company’s stock.

Applied Digital Company Profile

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing, artificial intelligence and other data-intensive applications. The company provides data-center capacity and related services to customers that require substantial computing power and electricity.

The company’s business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.