DALLAS, TX – Shares of Applied Digital Corporation (APLD) are facing intense selling pressure in morning trading, with the stock plunging significantly after the market opened. As of 10:14 AM EDT, the stock was trading at $9.65, a steep decline of 7.65%, or $0.80 per share.
The digital infrastructure company, which focuses on data centers for high-performance computing, saw its stock open at $10.14, already below the previous day’s close of $10.45. The downward momentum continued, pushing the stock to a day’s low of $9.35.
The key concern for investors highlighted in the company’s financials is its current lack of profitability, with a negative Earnings Per Share (EPS) of -$1.47 over the trailing twelve months. Furthermore, the stock exhibits extreme volatility, evidenced by a Beta of 5.87. A Beta this high indicates the stock is nearly six times more volatile than the overall market, making it a high-risk proposition for investors.
Should You Buy or Sell APLD Stock Today?
Given the sharp drop and high volatility, investors should approach APLD with extreme caution.
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For Short-Term Traders: The stock is in a clear and strong downtrend for the day. The high volatility creates opportunities for experienced traders, but also carries substantial risk. Attempting to buy into this sharp decline (“catching a falling knife”) is highly speculative. The significant gap between the bid (9.71) prices further underscores the current instability and risk.
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For Long-Term Investors: The decision is more complex. The company is currently unprofitable, which is a major red flag for fundamental investors. However, there is a stark contrast between its current performance and analyst expectations. The 1-year analyst target estimate is $14.61, suggesting significant potential upside from the current price. An investment in APLD at this stage is a speculative bet on the company’s future growth in the high-demand AI and data center sectors, and it is only suitable for investors with a very high tolerance for risk.
Our Opinion on APLD Stock
Applied Digital (APLD) is the definition of a high-risk, high-reward stock. Its business is positioned in a booming sector, which has attracted significant analyst optimism, as reflected in the high price target.
However, the reality of its current financial situation—being unprofitable and exhibiting extreme market volatility—cannot be ignored. The sharp sell-off today is a reminder of the risks involved. We believe this stock is not suitable for conservative investors or those with a low-risk tolerance. For those willing to take on substantial risk in the hope of capturing future growth, thorough due diligence on the company’s path to profitability is essential before making any investment decision.
Frequently Asked Questions (FAQ) about APLD Stock
1. What is happening with Applied Digital (APLD) stock today?
As of the time of the screenshot (10:14 AM EDT), APLD stock has fallen sharply to $9.65, a decrease of 7.65% from the previous day’s close.
2. Is Applied Digital a profitable company?
No. According to the provided data, the company has a negative Earnings Per Share (EPS) of -$1.47 for the trailing twelve months (TTM), which indicates it has been unprofitable over the last year.
3. Why is APLD stock considered highly volatile?
The stock has a Beta of 5.87. Beta measures a stock’s volatility in relation to the overall market. A beta greater than 1 means the stock is more volatile than the market; at 5.87, APLD is considered extremely volatile.
4. What is the 52-week trading range for APLD?
The stock has traded between a low of $3.01 and a high of $15.42 over the past 52 weeks. The current price of $9.65 is in the middle of this range.
5. What is the analyst forecast for Applied Digital stock?
The average 1-year analyst target estimate for APLD is $14.61. This suggests that analysts, on average, believe the stock has significant upside potential from its current price over the next year.
6. Does Applied Digital pay a dividend?
No, the “Forward Dividend & Yield” field is marked with a dash, indicating that the company does not currently pay a dividend to its shareholders.
7. When is the next earnings date for APLD?
The data lists an earnings date of July 24, 2025. Investors should verify this date on the company’s official investor relations website, as dates provided on financial platforms can sometimes be placeholders or subject to change.
