Investment Strategy - The investor manages a family portfolio primarily through a Self Managed Super Fund, focusing on generating alpha potential compared to the S&P 500 [1] - The investment approach is generalist, exploring and analyzing any sector with perceived alpha potential, with holding periods ranging from a few quarters to multiple years [1] - The investor encourages readers to evaluate performance based on the success of recommendations, which serves as a proxy for genuine investing and alpha-generating skill [1] Portfolio and Positions - The investor holds a beneficial long position in VOO through stock ownership, options, or other derivatives [2] - The investor plans to build a starter position in APLD within the next 72 hours [2]

Executive Appointment - Applied Digital Corporation appoints Laura Laltrello as Chief Operating Officer (COO) to strengthen its leadership in next-generation data centers and digital cloud solutions at the forefront of the AI revolution [1] - Laura Laltrello brings nearly 20 years of executive leadership experience, expertise in data center operations, building technologies, and large-scale infrastructure projects [2] - The appointment is expected to enhance the company's strategic vision execution and operational alignment with long-term objectives [3] Laura Laltrello's Background - Most recently, Laura Laltrello served as Vice President and General Manager of Building Automation Services at Honeywell International Inc [3] - She has a proven track record in operations, strategic execution, and profit management, having led transformative projects for global technology leaders [3] - Laura Laltrello holds a Bachelor of Applied Science degree in Applied Mathematics: Operations Research and Economics from Clemson University and completed the Executive Leadership Program at the International Institute for Management Development [3] Employment Inducement Award - Laura Laltrello was granted 600,000 time-based restricted stock units (RSUs) as part of her employment inducement award, with an effective grant date of January 6, 2025 [4] - The RSUs will vest over a three-year period, subject to continuous employment on each applicable vesting date [4] - The award was approved by the company's Board of Directors on December 27, 2024, and granted outside of the company's equity incentive plan in accordance with Nasdaq Rule 5635(c)(4) [5] Company Overview - Applied Digital Corporation develops, builds, and operates next-generation data centers and cloud infrastructure, specializing in accelerated compute, secure and scalable digital hosting, and GPU-as-a-Service solutions [6] - The company's purpose-built facilities are designed to support AI/ML, blockchain, and high-performance computing (HPC) workloads, backed by deep hyperscale expertise and a robust pipeline of available power [6]

Core Insights - Applied Digital Corporation (APLD) shares have increased by 47.9% over the past six months, significantly outperforming the broader Finance sector's return of 15.6% and the Zacks Financial Miscellaneous Services industry's appreciation of 3.9% [1] Financial Performance - In the first quarter of fiscal 2025, APLD's revenues surged by 67% year over year to $60.7 million, primarily driven by strong contributions from Cloud Services contracts [2] - The Data Center hosting segment generated $34.8 million in revenues, while the Cloud Services segment contributed $25.9 million [2] - The Zacks Consensus Estimate for fiscal 2025 revenues is projected at $270.77 million, indicating a year-over-year growth of 63.54% [11] - The consensus estimate for second-quarter fiscal 2025 revenues is pegged at $63.65 million, reflecting a year-over-year growth of 50.83% [29] Industry Trends - The growing complexity and power requirements of AI models are leading to increased energy consumption, with data centers' electricity consumption expected to grow by 125% by 2030, accounting for 9% of all electricity used in the United States [3] - APLD's access to hundreds of megawatts of affordable energy and its capability to construct high-quality AI data centers are enhancing its growth prospects [3] Operational Developments - APLD is finalizing a lease agreement with a U.S.-based hyperscaler for its 100 MW facility at the Ellendale HPC campus, which is currently under construction [5] - The company has successfully energized its on-site main substation transformer in the Ellendale HPC center [6] - APLD plans to accelerate the monetization of its more than 1.4 gigawatt pipeline and expects to deploy additional clusters in the second half of fiscal 2025 [7] - The company has added two additional clusters to its Cloud Services Business, increasing the total to six clusters, each containing 1,024 GPUs [16] Partnerships and Collaborations - APLD has partnered with Hewlett Packard, which provides powerful and energy-efficient supercomputers to support large-scale AI through APLD's cloud service [8] - The company has supply agreements with Dell for the delivery of AI and GPU servers [8] - APLD has a diverse partner base that includes NVIDIA, Super Micro Computer, Hewlett Packard, and Dell Technologies [20] Financial Position - APLD's liquidity position has improved, ending the first quarter of fiscal 2025 with $86.6 million in cash, cash equivalents, and restricted cash, compared to $31.7 million at the end of fiscal 2024 [10] - The company entered into definitive agreements for a $160 million private placement with institutional and accredited investors, including NVIDIA [9] - APLD's debt increased to $143.6 million compared to $125.4 million at the end of fiscal 2024 [10] Valuation Metrics - APLD is currently trading at a forward 12-month Price/Sales (P/S) ratio of 5.08X, which is higher than its median of 2.34X and the industry's 2.63X [12] - The company's valuation is considered stretched, with a Value Score of F indicating potential concerns for investors [25]

DALLAS, Dec. 19, 2024 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the "Company"), a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing (HPC) applications, will host a conference call on Tuesday, January 14, 2025, at 5:00 p.m. Eastern Time to discuss its operations and financial results for the fiscal second quarter ended November 30, 2024. A press release detailing these results will be issued after the m ...

Core Insights - Applied Digital Corporation has achieved a significant milestone with the energization of its main substation transformer at the HPC data center in Ellendale, North Dakota, marking progress towards operational readiness for AI and high-performance computing applications [1][2][3] Company Developments - The energization event was attended by key partners, including representatives from Montana-Dakota Utilities and the local community, highlighting the collaborative effort in the project's development [2] - Todd Gale, Chief Development Officer, emphasized the importance of this milestone in showcasing technological innovation and strengthening partnerships with the local community [3] - The company has submitted a petition for annexation of its property to the City of Ellendale, which is expected to enhance revenue streams and municipal services for the community [3] Community Engagement - The partnership between Applied Digital and the City of Ellendale was recognized with the Community Impact award at the 18th Annual Data Center Dynamics Awards, reflecting the company's commitment to the local community [4] Company Overview - Applied Digital specializes in developing, building, and operating next-generation data centers and cloud infrastructure, focusing on high-performance computing and AI applications [5] - The company aims to support demanding workloads in AI, machine learning, blockchain, and HPC through its purpose-built facilities [5]

The post-election market shift has created compelling opportunities in small-cap technology stocks. The Russell 2000 index has gained 7.8% since the election, compared with just 4.4% for the S&P 500, indicating renewed investor interest in smaller companies after years of large-cap dominance.This rotation toward small-caps comes at an opportune time for innovative technology companies overlooked during the artificial intelligence (AI) boom. While megacap tech stocks trade at premium valuations, many promisi ...

Core Viewpoint - Nvidia is experiencing tremendous demand for its GPUs across various sectors, leading to significant excess revenue, which the company is strategically investing to enhance product adoption [1] Group 1: Nvidia's Investments - Nvidia's third-quarter 13F filing revealed it holds 1.7 million shares of SoundHound AI valued at $8 million and a new position in Applied Digital worth $63 million [2] - Both SoundHound AI and Applied Digital have a symbiotic relationship with Nvidia, enhancing its market presence [2] Group 2: SoundHound AI - SoundHound AI has a market cap of approximately $2.3 billion and its stock price has nearly tripled over the last 12 months [4] - The company reported a revenue growth of 89% year over year in Q3, partly due to the acquisition of Amelia, expanding its technology into new markets [5] - SoundHound is collaborating with Nvidia to provide voice AI assistance and is gaining traction in the electric car market, with Stellantis utilizing its technology [6] - The company reported an adjusted net loss of $15 million in Q3 but aims for profitable growth by the end of 2025 [7] Group 3: Applied Digital - Applied Digital has a market cap of around $1.8 billion and its stock has increased by 112% over the past year [9] - The company builds data centers for AI, cloud services, and cryptocurrency mining, with a revenue growth of 67% year over year last quarter [10] - Despite reporting an adjusted net loss of $4 million, Nvidia's investment is crucial for Applied Digital's growth, enabling it to finance high-return projects [11] - Applied Digital is finalizing a lease for a 369,000-square-foot facility designed for AI workloads [12] - The cloud service segment generated nearly half of the company's revenue last quarter, indicating strong growth potential [13] - The company reported a profit of $20 million on an adjusted EBITDA basis, with a reasonable enterprise value-to-EBITDA ratio of 21, suggesting potential for excellent returns [14]

Wall Street bulls held their ground at the Nasdaq’s 21-day moving average to start a week that includes earnings reports from Nvidia, Walmart, Target, and other tech and economic bellwethers.See the Zacks Earnings Calendar to stay ahead of market-making news. The bulls appear in control of the stock market as they focus on earnings growth, and the likelihood of lower corporate taxes and less red tape during a second Trump term.CNN’s Fear and Greed Index (a contrarian stock market indicator) is sitting at Ne ...

Applied Digital is bringing up infrastructure for the artificial intelligence market. In today's video, I discuss recent updates affecting Applied Digital (APLD 7.19%), a company Nvidia (NVDA -1.29%) just invested in. To learn more, check out the short video, consider subscribing, and click the special offer link below. *Stock prices used were the after-market prices of Nov. 15, 2024. The video was published on Nov. 16, 2024. ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, November 15:AST SpaceMobile, Inc. (ASTS) : This space-based cellular broadband network provider has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days.AST SpaceMobile's shares gained 565.0% over the last six months compared with the S&P 500’s advanced of 12.2%. The company possesses a Momentum Score of A.Applied Digital Corporati ...