Core Insights - Applied Digital Corporation reported financial results for the fiscal third quarter ended February 28, 2025, highlighting significant operational updates and financial metrics [1][2][4]. Financial Highlights - Total revenues reached $52.9 million, representing a 22% increase from the prior year [9][17]. - Net loss attributable to common stockholders was $36.1 million, up 43% from the previous year [9][21]. - Adjusted net loss attributable to common stockholders was $17.8 million, with an adjusted net loss per diluted share of $0.08 [9][22]. - Adjusted EBITDA for the quarter was $10.0 million, compared to an adjusted EBITDA loss of $1.3 million in the same quarter last year [9][22]. Operational Updates - The company achieved key milestones, including a $5 billion investment agreement with Macquarie Asset Management to support the development of next-generation data centers [5]. - A financing arrangement of $375 million was closed with Sumitomo Mitsui Banking Corporation, emphasizing the trust in the company's data center value [6]. - The Ellendale campus is viewed as a strategic asset, with ongoing discussions to lease capacity to multiple US-based hyperscalers [7][13]. Business Segments - The Cloud Services Business generated $17.8 million in revenue, a 220% increase year-over-year, although it saw a sequential decline of $9.9 million due to a shift in service model [14]. - The Data Center Hosting Business reported $35.2 million in revenue, a 7% decrease compared to the previous year [16]. Cost and Expenses - Cost of revenues increased to $49.1 million, up 4% from the prior year, driven by business growth [18]. - Selling, general, and administrative expenses decreased by 24% to $22.7 million, attributed to revenue-generating GPU cluster deployments [19]. Balance Sheet - As of February 28, 2025, the company had $261.2 million in cash and equivalents, with total debt amounting to $689.1 million [23].

Core Viewpoint - Applied Digital Corporation (APLD) is expected to report strong revenue growth in its third-quarter fiscal 2025 results, driven by its Cloud Services and data center hosting segments, despite facing challenges related to valuation and competition [2][4][19]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for APLD's third-quarter fiscal 2025 revenues is $63.57 million, reflecting a year-over-year growth of 46.63% [2]. - The consensus estimate for loss is 11 cents per share, unchanged over the past 30 days, compared to a loss of 52 cents per share in the same quarter last year [2]. - APLD has missed the Zacks Consensus Estimate in three of the last four quarters, with a negative average surprise of 185.39% [3]. Group 2: Business Segments and Growth Drivers - APLD's Cloud Services business is experiencing strong demand, particularly due to the deployment of additional GPU clusters, which is expected to significantly contribute to revenue growth [5]. - The Cloud Services segment generated revenues of $27.7 million in the second quarter of fiscal 2025, marking a 523% year-over-year increase [5]. - The data center hosting segment for cryptocurrency clients remains robust, with revenues of $36.2 million in the second quarter of fiscal 2025, supported by the recent rise in Bitcoin prices [6]. Group 3: Strategic Partnerships and Financial Support - APLD's partnership with Macquarie Asset Management, involving a $5 billion perpetual preferred equity financing facility, is anticipated to provide financial support for future expansion [7][8]. - Investments from CIM Group, NVIDIA, and Macquarie are expected to lower the cost of capital, enhancing APLD's financial flexibility and growth prospects [8]. Group 4: Stock Performance and Valuation - APLD shares have declined by 33.1% year-to-date, underperforming the broader Zacks Finance sector's decline of 16.3% and the Zacks Financial - Miscellaneous Services industry's decrease of 19.4% [9]. - The company's forward 12-month Price/Sales (P/S) ratio is 3.29, which is higher than the industry average of 2.93, indicating a stretched valuation [12]. Group 5: Competitive Landscape and Future Outlook - APLD's expanding data center capacity is viewed positively for its long-term growth prospects, although the company faces stiff competition from major data center providers like Equinix [19]. - The company has established partnerships with key players such as Super Micro Computer, Hewlett Packard Enterprise, and NVIDIA to enhance its operational capabilities [15][16][17].

As artificial intelligence and blockchain technologies continue to reshape the digital economy, investors are eyeing the infrastructure behind these trends. Applied Digital (APLD) and Core Scientific (CORZ) are two emerging players straddling both worlds — offering data center solutions that power AI workloads while maintaining strong ties to crypto mining, particularly Bitcoin.With demand surging for high-performance computing and decentralized infrastructure, both companies are angling for growth in a fas ...

DALLAS, March 31, 2025 (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 Monday, April 14, 2025, at 5:00 p.m. Eastern Time to discuss its operations and financial results for the fiscal third quarter ended February 28, 2025. A press release detailing these results will be issued after the mark ...

Applied Digital Corporation (APLD) shares have plunged 23.5% over the past three months, underperforming the broader Finance sector’s growth of 4%.This steep decline raises the question: Should investors cut their losses and exit, or is it worth holding on to? While the near-term headwinds are real, the long-term growth story for Applied Digital remains intact, making a strong case for holding the stock.APLD Three-Month Price PerformanceImage Source: Zacks Investment ResearchReason Behind Applied Digital’s ...

The first quarter of 2025 has brought significant challenges for technology investors. With the S&P 500 (^GSPC 1.08%) struggling amid renewed trade tensions and economic policy shifts under the Trump administration, many innovative companies have seen their market valuations compress dramatically -- regardless of their operational progress.These market conditions have created a rare buying opportunity across multiple emerging technology subsectors. From advanced computing to nuclear innovation, and from dru ...

Applied Digital (APLD 11.13%) stock recorded a day of strong gains in trading Wednesday. The data center specialist's share price closed out the daily session up 11.1%. Meanwhile, the S&P 500 index ended the day up 1.1%, and the Nasdaq Composite index ended the session up 1.4%.Applied Digital's valuation rose today amid news about Microsoft and Meta Platform's big pushes in agentic artificial intelligence (AI) solutions. The company's share price also got a boost from a significant adjustment to tariff poli ...

Applied Digital, AppLovin, and Reddit have plenty of upside potential.Many investors might be wary of buying the hottest growth stocks as the market hovers just a few percentage points below its all-time highs. The threats of higher tariffs, rising inflation, and elevated interest rates could also cap their near-term gains.But if we dig a bit deeper, we'll notice plenty of high-growth stocks still trading at reasonable valuations. I believe these three stocks -- Applied Digital (APLD 0.58%), AppLovin (APP - ...

Core Insights - Applied Digital's stock experienced a significant decline of 24.3% in a week, reflecting broader bearish trends in the AI sector and macroeconomic concerns [1][2][5] Company Performance - The company's share price fell sharply following Nvidia's earnings report, which led to a sell-off in AI stocks despite Nvidia's strong quarterly results [1][5] - Applied Digital is closely tied to Nvidia, as it is one of the few companies in which Nvidia has direct investments, resulting in correlated stock movements [4] Macroeconomic Factors - Recent indicators of inflation and macroeconomic health have been worse than expected, contributing to investor anxiety and selling pressure on AI stocks [2] - The Trump administration's plans to introduce new tariffs on Canada and Mexico, along with potential export restrictions on AI chips to China, have raised concerns about increased hardware costs for Applied Digital [3]

Core Viewpoint - Applied Digital's stock is experiencing significant sell-off pressure, primarily due to broader market concerns regarding growth-dependent AI stocks and macroeconomic risks [1][2]. Group 1: Stock Performance - Applied Digital's share price fell by 10.8% as of 3 p.m. ET, having previously dropped as much as 18% during the trading session [1]. - The stock has declined over 10% in the last month, with a current market capitalization of approximately $1.8 billion, translating to a valuation of about 7 times this year's expected sales [5]. Group 2: Market Sentiment and Influences - Traders are selling off AI stocks as they focus on emerging macroeconomic risks, leading to a weakening bullish sentiment ahead of Nvidia's fourth-quarter report [2]. - Concerns are heightened by the Trump administration's plans to impose new tariffs on Canada and Mexico, which may exacerbate inflation fears and impact the tech sector [3]. Group 3: Nvidia's Impact - Nvidia's upcoming earnings report is critical for Applied Digital, as it is a significant investor in the company and a bellwether for the data center market and AI demand [4]. - There are worries that Nvidia may provide softer-than-expected guidance, particularly in light of reports suggesting Microsoft might be moderating its data center expansion strategy [6]. Group 4: Growth Metrics - Despite the recent pullback, Applied Digital's stock is still up by 99% over the past year, with a year-over-year sales growth of 51% reported last quarter, indicating a potential valuation premium [5][6].