Applied Digital (NASDAQ:APLD) Shares Up 18% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD) shares were up 18% during mid-day trading on Friday . The company traded as high as $38.32 and last traded at $37.68. 86,094,318 shares were traded during mid-day trading, an increase of 60% from the average session volume of 53,760,750 shares. The stock had previously closed at $31.94.

Key Stories Impacting Applied Digital

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

• Positive Sentiment: Company delivered a blowout Q2: revenue jumped ~250% YoY to ~$126.6M driven by Polaris Forge 1 ramp and HPC tenant fit-outs; management disclosed a large lease pipeline and multi-year contracts that underpin long-term growth. Applied Digital beats quarterly revenue estimates on AI data center demand, shares jump
• Positive Sentiment: Multiple bullish analyst moves: Arete Research initiated coverage with a Buy and $99 price target (large bullish signal), Freedom Capital initiated a Buy ($36 PT) and Needham reiterated Buy ($41 PT) — these upgrades and high targets amplify buying interest. Arete Research Initiates Applied Digital (APLD) with $99 PT, Buy Rating
• Positive Sentiment: Market commentary highlights accelerating momentum: analysts and outlets point to a growing backlog (reported ~$15B), plans to add ~900 MW of capacity, a goal of $1B NOI over coming years, and potential new hyperscaler customers — all supportive of higher future cash flows. Applied Digital Reignites Momentum After a Blowout Quarter
• Positive Sentiment: Press coverage flags an impending hyperscaler lease and continued AI demand as near-term catalysts that could drive additional revenue and give the stock more upside. Applied Digital Teases New AI Hyperscaler Customer in 2026. The Stock Rises.
• Neutral Sentiment: Detailed company disclosures and the full Q2 earnings/call transcript are available for investors evaluating execution, margin trends and cadence of lease signings. Review the transcript for operator commentary and guidance signals. Applied Digital Corporation (APLD) Q2 2026 Earnings Call Transcript
• Negative Sentiment: GAAP/profitability caveats: higher costs dragged reported EPS below consensus (company reported a loss per share vs. mixed adjusted metrics), with negative net margin and negative ROE on a GAAP basis — investors should watch margin recovery and cash flow conversion. Applied Digital’s Q2 Earnings Miss Estimates, Revenues Rise Y/Y

Analyst Upgrades and Downgrades

Several research firms recently issued reports on APLD. Lake Street Capital reaffirmed a “buy” rating and issued a $45.00 price target on shares of Applied Digital in a report on Tuesday, December 30th. Wall Street Zen lowered shares of Applied Digital from a “hold” rating to a “sell” rating in a research note on Sunday, October 19th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research note on Wednesday, October 8th. HC Wainwright upped their price objective on Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a research note on Friday, October 10th. Finally, Citigroup reaffirmed an “outperform” rating on shares of Applied Digital in a report on Tuesday, December 30th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of $33.27.

Applied Digital Stock Performance

The company has a market cap of $10.52 billion, a P/E ratio of -69.78 and a beta of 6.89. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.29. The company has a 50 day moving average price of $27.27 and a 200-day moving average price of $21.55.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings data on Wednesday, January 7th. The company reported ($0.11) earnings per share for the quarter, missing the consensus estimate of ($0.09) by ($0.02). The company had revenue of $126.59 million during the quarter, compared to analyst estimates of $82.22 million. Applied Digital had a negative return on equity of 17.52% and a negative net margin of 43.49%.The business’s revenue for the quarter was up 250.1% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.06) EPS. Equities analysts expect that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Rachel H. Lee sold 24,213 shares of the stock in a transaction that occurred on Friday, October 24th. The shares were sold at an average price of $33.20, for a total value of $803,871.60. Following the completion of the transaction, the director directly owned 59,400 shares in the company, valued at $1,972,080. This trade represents a 28.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Ella G. Benson sold 42,569 shares of Applied Digital stock in a transaction on Wednesday, October 29th. The shares were sold at an average price of $35.30, for a total value of $1,502,685.70. Following the transaction, the director owned 69,256 shares in the company, valued at approximately $2,444,736.80. This trade represents a 38.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 328,035 shares of company stock valued at $11,376,479. 9.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Digital

Institutional investors and hedge funds have recently bought and sold shares of the business. Atlantic Union Bankshares Corp bought a new stake in shares of Applied Digital in the 2nd quarter worth approximately $25,000. Noble Wealth Management PBC acquired a new position in Applied Digital in the fourth quarter worth approximately $25,000. Larson Financial Group LLC increased its holdings in shares of Applied Digital by 56,450.0% in the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock valued at $26,000 after buying an additional 1,129 shares in the last quarter. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Applied Digital during the 2nd quarter valued at $26,000. Finally, Dagco Inc. bought a new stake in shares of Applied Digital during the 3rd quarter worth $27,000. 65.67% of the stock is owned by institutional investors and hedge funds.

Applied Digital Company Profile

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.