APLD is growing revenue at 139% year-over-year and has beaten earnings expectations in three consecutive quarters with an average positive surprise exceeding 100%, ranking it as the top growth performer among peers; however, free cash flow is deeply negative at 469% of revenue consumed, business quality is below minimum thresholds, 29% of the float is sold short, and a put/call ratio of 1.37 signals significant market skepticism—the investment case is a direct bet on whether the exceptional growth trajectory can eventually justify the cash consumption and silence the short thesis.
Thesis pillars
- Exceptional Revenue Growth Leadership→Stable
- Severe Cash Burn Quality Floor Breach→Stable
- High Short Interest Market Skepticism→Stable
- +1 more pillar — see the Why tab for full reasoning
Applied Digital Corporation (APLD) Stock Analysis
Catalyst-Driven edge
Technology · Information Technology Services
Sell if holding. Engine safety override at $33.09: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.4/10 and A.R:R 6.0:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 28%; Below-average business quality; Negative price momentum.
Applied Digital Corporation designs and operates data center infrastructure in North Dakota for crypto mining (Data Center Hosting) and high-performance computing/AI workloads (HPC Hosting). During fiscal year 2025, the Data Center Hosting segment — where one customer accounted... Read more
Sell if holding. Engine safety override at $33.09: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.4/10 and A.R:R 6.0:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 28%; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.4/10, moderate confidence.
Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 24d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: aggressive.
About Applied Digital Corporation
About Applied Digital Corporation
Applied Digital Corporation operated two data center businesses in fiscal year 2025: a Data Center Hosting segment generating 100% of revenue from continuing operations, where one crypto mining customer accounted for 93% of that revenue; and a pre-revenue HPC Hosting segment under active construction. The company reported net losses of $231.1 million for the fiscal year ended May 31, 2025, operated roughly 286 MW of total hosting capacity across two sites in Jamestown and Ellendale, North Dakota, and employed approximately 205 full-time staff.
The Data Center Hosting Business leases energized infrastructure space to crypto mining customers priced by power consumption; as of the filing date, one customer remained under a contract with 2.5 years remaining. The HPC Hosting Business targets high-density GPU workloads, with three data centers under construction at the Polaris Forge 1 campus in Ellendale, North Dakota — a 100 MW and a 150 MW building under active construction — and a single tenant holding two fifteen-year leases covering 250 MW of combined capacity, signed in May 2025. Applied Digital competes with Digital Realty, Equinix, NTT, Bitdeer Technologies Group, and Riot Platforms. The company relies on a limited number of vendors for certain products, with some contracts providing a single source of materials, and power supply depends entirely on third-party utilities. Tariff impacts on specialized electrical infrastructure components required for HPC facility buildout remain difficult to predict.
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Customer concentration poses the most acute revenue risk: the Data Center Hosting segment's sole remaining crypto mining customer holds a contract with 2.5 years remaining and may unilaterally reduce or discontinue at any time subject to notice provisions. If that customer exits and Applied Digital cannot replace the revenue, the company's ongoing losses could accelerate against a capital base requiring substantial additional financing to complete Polaris Forge 1. The HPC Hosting segment had generated no revenue as of the filing date, and the profitability of the two fifteen-year leases cannot yet be determined.
See also: Technology · Information Technology Services
From Applied Digital Corporation's most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-07-07Recent Developments — Applied Digital Corporation
Latest news
- NEWS 10 Information Technology Stocks With Whale Alerts In Today’s Session — benzinga Jul 2, 2026 neutral
- NEWS Shares of crypto-linked stocks are trading lower amid a continued selloff as Bitcoin prices drop. Weakness in the digita — benzinga Jun 24, 2026 negative
- NEWS MDU Resources Subsidiary Signs Agreement With Applied Digital To Offer Power To AI Factory Polaris Forge 3 In North Dako — benzinga Jun 22, 2026 positive
- NEWS 10 Information Technology Stocks Whale Activity In Today’s Session — benzinga Jun 19, 2026 neutral
- NEWS Northland Capital Markets Maintains Outperform on Applied Digital, Raises Price Target to $82 — benzinga Jun 17, 2026 positive
Generated 2026-07-07T12:51:46Z.
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Rating Breakdown
3 floor-breakers·1 ceiling hit
Hyper-growth tech sacrificing current profitability for scale. Floor tripped because model treats negative margins uniformly; the growth dimension tells the other half of the story.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $33.09: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.4/10 and A.R:R 6.0:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 28%; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $31.16. Score 5.4/10, moderate confidence.
Take-profit target: $63.83 (+90.5% upside). Prior stop was $31.16. Stop-loss: $31.16.
Quality below floor (2.5 < 4.0).
Applied Digital Corporation trades at a P/E of N/A (forward -34.3). TrendMatrix value score: 5.4/10. Verdict: Sell.
19 analysts cover APLD with a consensus score of 4.2/5. Average price target: $73.
What does Applied Digital Corporation do?Applied Digital Corporation designs and operates data center infrastructure in North Dakota for crypto mining (Data...
Applied Digital Corporation designs and operates data center infrastructure in North Dakota for crypto mining (Data Center Hosting) and high-performance computing/AI workloads (HPC Hosting). During fiscal year 2025, the Data Center Hosting segment — where one customer accounted for 93% of revenue — was the sole revenue source from continuing operations.