Applied Digital (US:APLD) Yahoo Financeยท2025-10-15 15:27Company Overview - Applied Digital (APLD) has seen a significant increase in its stock price target from $21 to $41 by a Needham analyst, following impressive fiscal first-quarter results, leading to a 27% stock price increase in one trading session and a year-to-date gain of 375% [1][4] - The company operates large-scale data centers that provide critical infrastructure for AI, cloud computing, and high-performance digital workloads across the U.S. [4] Financial Performance - APLD reported revenue of $64.2 million for its October 2025 earnings, marking an 84% increase from the previous year, driven by $26.3 million in tenant fit-out services and additional data center business [5] - The cost of revenues increased by 144% to $55.6 million, primarily due to fit-out expenses and ongoing hosting business [6] - Selling, general, and administrative expenses rose by 165% to $29.2 million, attributed to higher stock-based compensation and staff costs [6] Market Dynamics - The U.S. hyperscale data center investments are projected to reach $290 billion by 2030, with a compound annual growth rate (CAGR) of 7.47%, driven by the rise of AI and cloud technologies [2] - By 2030, U.S. data centers are expected to consume nearly 8% of global electricity, prompting operators to invest in renewables and energy efficiency to meet national decarbonization goals [2] Valuation Metrics - APLD is valued at $9.31 billion, with a price-sales (P/S) multiple of 55.65x and a price-book (P/B) ratio of 13.25x, both significantly above the sector medians of 3.48x and 3.70x [5]