Applied Digital Corporation (APLD) AI Stock Analysis

• Market Cap: $2.81B
• Dividend Yield: N/A
• Average Volume (3M): 65.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.86
• Revenue Growth: 53.70%
• EPS Growth: -72.91%
• Country: US
• Employees: 150
• Sector: Financial
• Sector Strength: 79
• Industry: Information Technology Services
• EPS (TTM): -0.08
• Shares Outstanding: 225,070,480
• 10 Day Avg. Volume: 122,153,979
• 30 Day Avg. Volume: 65,107,264
• PEG Ratio: -0.67
• Price to Book (P/B): 13.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.84
• Enterprise Value/Market Cap: 0.30
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 67.65
• Enterprise Value/Ebitda: -6.33
• 1Y Price Target: $12.65
• Price Target Upside: 4.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 56 Neutral
• Price Target: $12.50 ▲(3.73%Upside)

The overall stock score reflects significant financial performance challenges, particularly regarding profitability and leverage. However, strong technical indicators and promising corporate events, such as the preferred equity agreement, provide positive momentum. The valuation remains a concern due to negative earnings.

Positive Factors

Market Stability

The deal with CoreWeave is expected to end the frequent changes in price targets that have affected Applied Digital, providing stability to its valuation.

Revenue Growth

Applied Digital announced a 15-year, $7B deal with CoreWeave for 250MW in Ellendale, ND, which significantly impacts the company's future revenue growth.

Strategic Partnerships

Collaboration with a neocloud HPC provider like CoreWeave is seen as advantageous over traditional hyperscalers, due to their agility and responsiveness to market trends.

Negative Factors

Interest Costs

CoreWeave is not yet defined as a hyperscaler and doesn’t carry the same credit rating, which will likely result in higher interest costs for the construction loan and may require a different structure for the infrastructure equity than the previously announced deal with Macquarie.

Investor Concerns

Investor sentiment soured primarily because of expectations around HPC and the limited details on lease timeline.

Sales Impact

The discontinuation of Applied Digital's cloud service business will result in a $70M-plus impact on FY26 sales, which the new CoreWeave deal does not fully offset.

Applied Digital Corporation Business Overview & Revenue Model

Company Description

Applied Digital Corporation designs, develops, and operates digital infrastructure solutions and cloud services high-performance computing (HPC) and artificial intelligence industries in North America. It operates through three segments: Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The company offers infrastructure services to crypto mining customers; and GPU computing solutions for critical workloads related to AI, machine learning, and other HPC tasks. It also engages in the designing, constructing, and managing of data centers to support HPC applications. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.

How the Company Makes Money

Applied Digital Corporation generates revenue through its data center services by leasing high-performance computing capacity to clients. The company earns money by offering space, power, and cooling solutions to businesses that need robust infrastructure for cloud computing, artificial intelligence, and other intensive computational tasks. Revenue streams are primarily driven by long-term contracts with enterprises, and the company may also engage in partnerships that enhance the capacity and efficiency of its data centers, contributing to its earnings.

Applied Digital Corporation Financial Statement Overview

Summary

Applied Digital Corporation is experiencing strong revenue growth, but faces substantial profitability and cash flow challenges. High leverage and negative profit margins suggest financial instability, necessitating improvements in profitability and debt management.

Income Statement

Applied Digital Corporation has shown significant revenue growth, increasing from $8.5 million in 2022 to $221.2 million in TTM (Trailing-Twelve-Months). However, the company is facing substantial profitability challenges, with negative EBIT and net income margins. The gross profit margin is low, indicating cost management issues.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage, which poses a financial risk. Stockholders' equity has improved over the years, but the return on equity remains negative due to losses. The equity ratio suggests moderate equity financing, but liabilities are high relative to assets.

Cash Flow

Applied Digital Corporation's cash flow situation is concerning, with negative free cash flow and a high operating cash flow deficit in TTM (Trailing-Twelve-Months). The free cash flow to net income ratio indicates cash flow issues despite financing activities supporting liquidity.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
221.19M	165.57M	55.39M	8.55M	0.00	0.00
	Gross Profit
12.34M	17.23M	11.00M	-957.00K	-1.00K	0.00
	EBIT
-61.98M	-99.02M	-44.05M	-20.90M	-332.00K	-263.00K
	EBITDA
-46.07M	-43.38M	-36.88M	-20.71M	-331.00K	0.00
	Net Income Common Stockholders
-243.28M	-149.27M	-45.61M	-22.49M	-804.00K	-263.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
68.74M	3.34M	43.57M	38.80M	11.75M	0.00
	Total Assets
1.71B	762.87M	263.96M	119.98M	15.05M	0.00
	Total Debt
993.67M	427.81M	91.81M	13.54M	2.13M	1.90M
	Net Debt
924.92M	424.47M	48.24M	-25.25M	-9.62M	1.90M
	Total Liabilities
1.21B	638.04M	194.28M	40.74M	17.64M	2.02M
	Stockholders Equity
497.87M	124.83M	59.52M	72.26M	-2.58M	-2.02M
Cash Flow		Free Cash Flow
-468.67M	-128.01M	-72.54M	-59.12M	-3.38M	0.00
	Operating Cash Flow
-156.36M	13.79M	58.73M	-872.00K	-83.00K	0.00
	Investing Cash Flow
-515.60M	-172.44M	-132.09M	-45.87M	-3.30M	0.00
	Financing Cash Flow
892.20M	146.76M	70.63M	81.29M	15.13M	0.00

Applied Digital Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APLD, the sentiment is Positive. The current price of 12.05 is above the 20-day moving average (MA) of 9.01, above the 50-day MA of 6.58, and above the 200-day MA of 7.40, indicating a bullish trend. The MACD of 1.88 indicates Negative momentum. The RSI at 68.01 is Neutral, neither overbought nor oversold. The STOCH value of 66.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APLD.

Applied Digital Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TASK	81 Outperform	$1.49B	28.07	11.35%	―	14.05%	17.90%
FLYW	71 Outperform	$1.26B	385.82	0.63%	―	20.97%	―
GDYN	66 Neutral	$1.03B	93.73	2.42%	―	18.72%	347.70%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
AI	60 Neutral	$3.40B	―	-33.73%	―	25.27%	4.68%
APLD	56 Neutral	$2.81B	―	-78.94%	―	53.70%	-72.91%
VYX	52 Neutral	$1.68B	―	-19.49%	―	-50.48%	-15.75%

Applied Digital Corporation Corporate Events

Applied Digital Announces Datacenter Leases and Warrant Issuance

On June 2, 2025, Applied Digital Corporation announced the execution of datacenter leases and the issuance of an initial warrant. The company is considering an ‘at the market’ offering of up to $200 million in common stock to fund growth capital expenditures and other corporate needs, although the decision to proceed is contingent on market conditions.

The most recent analyst rating on (APLD) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Applied Digital Corporation stock, see the APLD Stock Forecast page.

Applied Digital Plans Sale of Cloud Services Unit

On February 26, 2025, Applied Digital Corporation‘s Board of Directors approved the negotiation for the potential sale of its Cloud Services Business, which was classified as ‘held for sale’ on April 10, 2025. This strategic move, reflecting a shift in the company’s operations, will be reported as discontinued operations starting from the fourth quarter of the fiscal year ending May 31, 2025, and aims to assist investors in understanding its financial impact.

The most recent analyst rating on (APLD) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Applied Digital Corporation stock, see the APLD Stock Forecast page.

Applied Digital Secures $150M Preferred Equity Agreement

On April 30, 2025, Applied Digital Corporation entered into a preferred equity purchase agreement with institutional investors, allowing the company to sell up to $150 million of Series G Convertible Preferred Stock over a 36-month period. This arrangement is intended to fund the development of their Ellendale High Performance Computing Campus and other corporate needs, providing flexibility in capital access without mandatory draw requirements. The stock is convertible into common shares under specific conditions, with protective measures like beneficial ownership caps and redemption rights in place to ensure compliance with Nasdaq rules.

Applied Digital Approves Performance Stock Units for Executives

On March 27, 2025, Applied Digital Corporation’s board approved performance stock unit grants for key executives under its 2024 Omnibus Equity Incentive Plan. These grants, which are subject to performance-based vesting conditions, include 1,600,000 units for CEO Wes Cummins, 245,000 units for CFO Saidal Mohmand, and 600,000 units for COO Laura Laltrello, highlighting the company’s commitment to aligning executive incentives with performance goals.