Applied Digital's Cloud Services Business Divestment Looks Promising

Key Takeaways Applied Digital (APLD) announced its plan to sell its cloud services division — about one-third of its FY2025 revenues — in April to sharpen its focus on becoming a pure-play data center REIT. This pivot reflects strategic and financial advantage: Customer Conflicts & Market Positioning: The company's cloud unit was increasingly seen as a competitor by potential hyperscale customers, complicating its primary leasing business for HPC/data-center infrastructure. Tightening Capital Models: Divest ...