Applied Digital Corporation (NASDAQ: APLD) experienced a volatile trading session, closing the day with a modest loss. The stock’s performance reflects a broader story of intraday swings and key financial indicators that potential investors should note. Let’s break down what the data from today’s trading chart reveals.
Today’s Stock Performance
Based on the provided chart, Applied Digital Corporation (APLD) closed the main trading session at $10.45, representing a decrease of 10.40**, down an additional 0.48% as of 1:43:20 PM EDT.
The intraday chart shows the stock opened strong at $10.60, near the day’s high of $10.67. However, it faced selling pressure through the morning, hitting a low of $10.26 around midday. The afternoon saw a partial recovery before settling at the closing price. This pattern indicates resilience from its lows but an overall negative sentiment for the day compared to the previous close of $10.56.
A notable observation is the day’s volume of 17.69 million shares, which is significantly lower than its average volume of 53 million shares. Lower-than-average volume can sometimes indicate a lack of strong conviction behind the price movement.
Should You Buy or Sell APLD Stock Today?
Determining whether to buy or sell is a decision that depends on an individual’s investment strategy and risk tolerance. Here are the key bullish and bearish indicators from the chart to help inform that decision:
The Bullish Case (Reasons for a Positive Outlook):
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Analyst Target: The 1-year target estimate for APLD is $14.61, suggesting significant upside potential from its current price if analyst predictions hold true.
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Intraday Recovery: The stock demonstrated an ability to bounce back from its session low of $10.26, indicating some buying interest at that level.
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Wide 52-Week Range: The 52-week range of $3.01 – $15.42 shows that the stock has the potential for large price swings, which could be attractive to growth-focused investors.
The Bearish Case (Reasons for Caution):
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High Volatility: The stock’s Beta is an extremely high 5.87. A beta above 1 indicates a stock is more volatile than the overall market; a beta of this magnitude suggests very high-risk price swings.
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Lack of Profitability: The company’s Earnings Per Share (EPS) for the trailing twelve months (TTM) is negative at -1.47, and it does not have a PE Ratio. This indicates the company is not currently profitable.
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Negative Momentum: The stock closed down for the day and continued to trend lower in after-hours trading, suggesting short-term negative momentum.
Our Opinion on This Stock
Applied Digital Corporation (APLD) presents the profile of a high-risk, high-potential-reward growth stock. The bullish analyst target points to future optimism, likely tied to its position in the digital infrastructure and AI sectors. However, this is contrasted sharply by its current lack of profitability and extreme volatility.
This stock is not for the faint of heart. Investors seeking stable returns and dividends (APLD pays none) should likely look elsewhere. For traders and investors with a high tolerance for risk who are betting on the company’s future growth, the current price might be seen as an entry point. However, the high beta and negative earnings are significant risk factors that cannot be ignored.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. All investment decisions should be made based on your own research and consultation with a qualified financial advisor.
Frequently Asked Questions (FAQ) about APLD Stock
1. What is the stock symbol for Applied Digital Corporation?
The stock trades on the Nasdaq exchange under the ticker symbol APLD.
2. Is Applied Digital a volatile stock?
Yes, extremely. Its Beta of 5.87 indicates it is significantly more volatile than the overall stock market, meaning its price can experience large swings in both directions.
3. Is Applied Digital profitable?
Based on the provided data, the company is not currently profitable. Its EPS (TTM) is negative at -$1.47.
4. What is the analyst consensus on the APLD stock price?
The 1-year analyst target estimate shown on the chart is $14.61, which is considerably higher than its current trading price.
5. Does APLD stock pay a dividend?
No, the chart indicates that Applied Digital does not currently pay a forward dividend.
6. What was the trading volume for APLD today?
The trading volume for the day was 17,692,741 shares, which is notably below its average 3-month volume of 53,002,342 shares.
