Applied Digital (NASDAQ:APLD) Trading Down 2.3% After Earnings Miss

Applied Digital Corporation (NASDAQ:APLD) was down 2.3% on Wednesday following a dissappointing earnings announcement. The stock traded as low as $29.52 and last traded at $29.56. Approximately 35,503,492 shares changed hands during mid-day trading, an increase of 4% from the average daily volume of 34,093,492 shares. The stock had previously closed at $30.26.

The company reported ($0.11) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.02). The company had revenue of $126.59 million for the quarter, compared to the consensus estimate of $82.22 million. Applied Digital had a negative net margin of 43.49% and a negative return on equity of 17.52%. The business’s revenue was up 250.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.06) earnings per share.

Applied Digital News Summary

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

Analysts Set New Price Targets

APLD has been the topic of several recent analyst reports. Lake Street Capital reissued a “buy” rating and issued a $45.00 target price on shares of Applied Digital in a report on Tuesday, December 30th. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research report on Wednesday, October 8th. Arete started coverage on Applied Digital in a report on Wednesday. They issued a “buy” rating on the stock. Roth Capital boosted their price target on Applied Digital to $58.00 and gave the stock a “buy” rating in a report on Thursday. Finally, Craig Hallum upped their price objective on Applied Digital to $39.00 and gave the stock a “buy” rating in a research report on Thursday, October 23rd. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $33.27.

Insider Transactions at Applied Digital

In related news, CFO Mohammad Saidal Lavanw Mohmand sold 100,000 shares of the business’s stock in a transaction on Friday, October 24th. The shares were sold at an average price of $34.08, for a total value of $3,408,000.00. Following the sale, the chief financial officer owned 158,912 shares of the company’s stock, valued at $5,415,720.96. The trade was a 38.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Chuck Hastings sold 50,000 shares of the stock in a transaction on Wednesday, October 29th. The shares were sold at an average price of $35.69, for a total value of $1,784,500.00. Following the completion of the sale, the director owned 451,612 shares of the company’s stock, valued at $16,118,032.28. The trade was a 9.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In 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 corporate insiders.

Hedge Funds Weigh In On Applied Digital

Hedge funds have recently bought and sold shares of the company. BNP Paribas Financial Markets boosted its position in Applied Digital by 24,356.8% during the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock valued at $52,561,000 after acquiring an additional 5,198,223 shares during the last quarter. Vanguard Group Inc. lifted its stake in shares of Applied Digital by 23.2% in the 3rd quarter. Vanguard Group Inc. now owns 17,722,174 shares of the company’s stock valued at $406,547,000 after purchasing an additional 3,339,062 shares during the period. Two Sigma Investments LP bought a new stake in shares of Applied Digital during the 3rd quarter valued at about $69,535,000. Situational Awareness LP grew its stake in Applied Digital by 63.3% during the second quarter. Situational Awareness LP now owns 6,591,800 shares of the company’s stock worth $66,379,000 after purchasing an additional 2,556,200 shares during the period. Finally, HRT Financial LP bought a new stake in Applied Digital in the second quarter worth approximately $14,759,000. Institutional investors own 65.67% of the company’s stock.

Applied Digital Stock Performance

The firm has a market capitalization of $10.52 billion, a P/E ratio of -69.78 and a beta of 6.89. The stock has a fifty day simple moving average of $27.33 and a two-hundred day simple moving average of $21.75. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.65 and a quick ratio of 0.65.

About Applied Digital

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.