Applied Digital Corporation (APLD) saw its stock decline by 1.99% to close at $8.37 on January 15, 2025, following the release of its fiscal second-quarter earnings report. Despite surpassing analyst expectations on revenue and earnings per share, the company reported widened losses due to debt conversion, which has raised investor concerns. The stock opened at $8.44 and fluctuated between a high of $8.69 and a low of $8.11, with trading volume reaching 34,457,449 shares, significantly above the average daily volume. The inability to secure a customer for its 100MW data center in Ellendale has further dampened investor confidence, overshadowing the 51.3% y/y revenue growth driven by its Cloud Services business.
Additionally, mixed analyst actions contributed to the stock's volatility. Cantor Fitzgerald lowered its price target from $15 to $14, citing execution delays, while H.C. Wainwright raised its target by $2, reflecting a more optimistic outlook. The recent announcement of a significant funding partnership with Macquarie Asset Management initially boosted the stock, but the lack of clarity on the timeline for closing a deal with a hyperscaler has left investors cautious.