Applied Digital (NASDAQ:APLD) Shares Gap Down – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD) shares gapped down before the market opened on Tuesday. The stock had previously closed at $23.25, but opened at $22.13. Applied Digital shares last traded at $21.6840, with a volume of 6,031,756 shares trading hands.

More Applied Digital News

Here are the key news stories impacting Applied Digital this week:

• Positive Sentiment: Applied Digital reported approximately $341.9 million in fiscal first-quarter 2027 revenue, up 322% year over year, and says it has about $36 billion in contracted revenue. The company also plans to bring more than 600 megawatts of capacity online over the next 12 months, supporting its long-term AI data-center growth story. Applied Digital Wants to Add 600 Megawatts in a Year. Can It Pay for It?
• Positive Sentiment: The company’s planned Finland expansion could benefit from relatively favorable power availability, grid stability and permitting conditions as hyperscalers seek additional locations for AI data centers. Google’s $13 Billion Nordic Bet Points to a New Global Front in the AI Power Race
• Neutral Sentiment: Northland Securities retained an Outperform rating and an $82 price target, indicating significant potential upside if Applied Digital executes successfully. However, the firm lowered its FY2027 EPS forecast to a loss of $1.50 from a loss of $0.44, with quarterly loss estimates also reduced.
• Negative Sentiment: Although revenue growth was strong, Applied Digital posted a much wider GAAP net loss of $237.1 million. Investors are increasingly focused on whether the company can finance construction before tenants begin generating payments, particularly as it seeks to rapidly expand capacity. What Could Derail Applied Digital Stock?
• Negative Sentiment: Analyst estimate cuts reinforce concerns about persistent losses, while commentary also highlights Applied Digital’s heavy debt burden and the large capital requirements associated with its data-center buildout. The contrast between its sizable contract backlog and roughly $7 billion market value reflects execution and financing risk. Should Investors Hold or Fold APLD Stock After Its Q1 Earnings Miss?

Wall Street Analysts Forecast Growth

APLD has been the topic of several research analyst reports. Morgan Stanley set a $41.00 price target on Applied Digital and gave the company an “equal weight” rating in a report on Friday. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $55.00 price objective (up from $50.00) on shares of Applied Digital in a report on Thursday, October 8th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a report on Tuesday, July 21st. Citigroup reiterated a “market outperform” rating on shares of Applied Digital in a research report on Thursday, October 8th. Finally, Zacks Research downgraded Applied Digital from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 26th. Three analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $62.25.

Applied Digital Stock Down 5.8%

The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 3.90. The stock has a market cap of $6.62 billion, a P/E ratio of -13.32 and a beta of 5.99. The company’s 50 day moving average price is $26.87 and its two-hundred day moving average price is $32.48.

Applied Digital (NASDAQ:APLD) last announced its earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.30) by $0.29. The company had revenue of $300.39 million during the quarter, compared to analyst estimates of $116.29 million. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. The firm’s quarterly revenue was up 367.8% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.03) earnings per share. Equities analysts forecast that Applied Digital Corporation will post -1.09 earnings per share for the current year.

Insiders Place Their Bets

In other Applied Digital news, Director Richard Nottenburg sold 75,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total value of $2,336,250.00. Following the transaction, the director directly owned 133,378 shares in the company, valued at approximately $4,154,724.70. This trade represents a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently modified their holdings of the stock. GAMMA Investing LLC lifted its position in Applied Digital by 28.5% during the second quarter. GAMMA Investing LLC now owns 2,092 shares of the company’s stock valued at $78,000 after purchasing an additional 464 shares in the last quarter. Krilogy Financial LLC increased its position in Applied Digital by 4.1% in the second quarter. Krilogy Financial LLC now owns 14,243 shares of the company’s stock worth $531,000 after buying an additional 561 shares in the last quarter. Vermillion Wealth Management Inc. increased its position in Applied Digital by 29.4% in the first quarter. Vermillion Wealth Management Inc. now owns 2,563 shares of the company’s stock worth $61,000 after buying an additional 583 shares in the last quarter. Envestnet Asset Management Inc. increased its position in Applied Digital by 4.7% in the second quarter. Envestnet Asset Management Inc. now owns 13,333 shares of the company’s stock worth $497,000 after buying an additional 596 shares in the last quarter. Finally, Handelsbanken Fonder AB raised its stake in shares of Applied Digital by 1.0% in the second quarter. Handelsbanken Fonder AB now owns 71,600 shares of the company’s stock worth $2,671,000 after buying an additional 700 shares during the period. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

About Applied Digital

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing, artificial intelligence and other data-intensive applications. The company provides data-center capacity and related services to customers that require substantial computing power and electricity.

The company’s business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.