Applied Digital (APLD) experienced a significant surge in social media activity, with volume quadrupling, which has drawn increased attention to the stock. This heightened interest comes amid a backdrop of substantial short interest in the company, with 49.10 million shares shorted, representing 30.78% of the float. The short interest ratio stands at 3.1 days to cover, indicating a considerable level of bearish sentiment among investors. The increase in social media discussions may have been fueled by this high short interest, as traders and investors speculate on potential short squeeze opportunities.
The company's focus on providing digital infrastructure solutions, including AI cloud services and high-performance computing datacenter hosting, positions it within the rapidly evolving technology sector. However, the significant short interest suggests that some investors remain skeptical about its near-term prospects. The recent spike in social media volume could be a catalyst for increased volatility, as market participants react to both the company's strategic positioning and the broader sentiment reflected in the short interest data.
Applied Digital's stock closed at $6.475 on January 27th, down 27.73% from the previous close of $8.96, with a notable after-market recovery of 5.33% to $6.8199. The stock experienced high volatility, with a trading range between $6.12 and $8.27, and a trading volume of 56,757,705 shares, significantly above its average.