Applied Digital (APLD, Financial) is witnessing a significant surge in options activity, with an impressive 111,454 call options traded, which is ten times the anticipated volume. This heightened activity has led to a notable increase in implied volatility, jumping over 34 points to reach 140.05%. Among the options, the weekly 10 calls expiring on June 6 and the September 25 puts with a strike price of 5 are showing the most activity, accounting for nearly 25,100 contracts combined. The current Put/Call Ratio stands at 0.37, indicating a preference for call options over puts. Investors are keenly awaiting the company’s earnings report, scheduled for July 24th.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Applied Digital Corp (APLD, Financial) is $10.15 with a high estimate of $18.00 and a low estimate of $7.00. The average target implies an upside of 4.59% from the current price of $9.70. More detailed estimate data can be found on the Applied Digital Corp (APLD) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Applied Digital Corp's (APLD, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Applied Digital Corp (APLD, Financial) in one year is $9.46, suggesting a downside of 2.52% from the current price of $9.7046. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Applied Digital Corp (APLD) Summary page.
APLD Key Business Developments
Release Date: April 14, 2025
- Revenue: $52.9 million, up 22% over the prior comparable period.
- Data Center Hosting Revenue: $35.2 million.
- Cloud Services Revenue: $17.8 million.
- Cost of Revenues: Increased by $2.1 million to $49.1 million.
- SG&A Expense: Decreased by $7.3 million to $22.7 million.
- Depreciation and Amortization Expense: Decreased to $18.8 million from $26.2 million in the same period in 2024.
- Interest Expense: Increased by $4.1 million to $8.9 million.
- Net Loss: $36.1 million or $0.16 per basic and diluted share.
- Adjusted Net Loss: $17.8 million or $0.08 per diluted share.
- Adjusted EBITDA: Increased 878% to $10 million.
- Cash and Cash Equivalents: $261.2 million.
- Debt: $689.1 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Applied Digital Corp (APLD, Financial) operates 286 megawatts of fully contracted data center hosting capacity, running at full capacity, which is positive for business prospects.
- The company secured significant financial backing, including a potential $5 billion investment from Macquarie Asset Management and a $375 million financing arrangement with Sumitomo Mitsui Banking Corporation.
- Construction of the Ellendale campus is on schedule, with the first building expected to generate revenue by the fourth quarter of 2025.
- The company has resolved technical issues related to transitioning its cloud services business to an on-demand model, which is expected to ramp up revenue.
- Adjusted EBITDA increased by 878% to $10 million, indicating strong operational performance despite challenges.
Negative Points
- The company faces high costs of capital, which remains a challenge despite recent financial transactions.
- Revenue from the cloud services business declined sequentially due to technical hurdles in transitioning to an on-demand model.
- Interest expenses increased significantly by $4.1 million, driven by finance leases and interest-bearing loans.
- Net loss attributable to common stockholders was $36.1 million, highlighting ongoing financial challenges.
- Securing leases for the Ellendale campus is taking longer than expected, which could impact future revenue generation.
