Applied Digital Corporation (APLD) is experiencing a decline in its stock price today following the release of its fiscal second-quarter earnings report after market hours yesterday. Despite beating analyst estimates on both revenue and earnings per share, the company reported widened losses due to debt conversion, which has raised concerns among investors. The adjusted net loss for the quarter ended November 30, 2024, has overshadowed the positive revenue growth of 51.3% year-over-year, driven by the expansion of its Cloud Services business. Additionally, the company's ongoing inability to secure a customer for its 100MW data center in Ellendale has further dampened investor confidence in management's execution capabilities.
The stock is also reacting to mixed analyst actions, with Cantor Fitzgerald lowering its price target from $15 to $14, citing concerns over execution delays. This comes despite a recent announcement of a significant funding partnership with Macquarie Asset Management, which initially boosted the stock by nearly 10% on Tuesday. However, the lack of clarity on the timeline for closing a deal with a hyperscaler for the data center has left investors cautious.
Applied Digital's stock is currently trading at $8.26, down 3.28% from its previous close of $8.54, and has decreased by 2.13% from its opening price of $8.44.