Applied Digital Corporation: AI Hype Meets Harsh Reality

Applied Digital Corporation ( (APLD) ) has fallen by -13.43%. Read on to learn why.

Applied Digital Corporation saw its share price fall 13.43% over the past week, despite staying in the spotlight of AI-themed trading. The stock’s slide follows a period of sharp gains and heightened volatility, with investors increasingly uneasy about insider selling and what it might signal about management’s confidence in the near term. While technical indicators still flash a “Buy” and options activity remains heavy, the recent pullback shows how quickly sentiment can turn in a momentum name.

Fundamentally, the story remains mixed. Applied Digital Corporation is posting strong revenue growth as it builds out high-performance, AI-focused data centers, but it is still generating net losses and facing cash flow pressures. TipRanks’ Spark AI Analyst currently rates the stock as Neutral, noting that weak profitability and an unattractive valuation are weighing on its overall score, even as Wall Street’s traditional analysts lean more bullish with at least one $40 price target on the name.

At the same time, the company continues to push an aggressive expansion strategy that keeps speculative interest alive. Applied Digital Corporation recently secured a development loan facility with Macquarie Group, with an initial $100 million earmarked to fund early-stage work on new “AI Factory” campuses for an investment-grade hyperscaler. This financing is designed to let the company secure and build out prime data center sites while preserving capital flexibility, but until clear progress toward sustained profitability emerges, traders should expect the stock’s combination of rapid price swings and headline-driven moves to continue.