Key Takeaways:
- Applied Digital (APLD, Financial) shares dropped 8% due to CoreWeave's divestment, while CoreWeave saw a 3% increase.
- Analysts suggest a 24.44% upside with a $13.85 average price target for APLD.
- GuruFocus estimates a potential 15% downside, reflecting on its GF Value.
In an unexpected market move, Applied Digital (APLD) witnessed its shares tumble by 8% as CoreWeave sold its entire stake in the company, as indicated in a recent regulatory filing. Interestingly, despite this sell-off, CoreWeave's own stock managed to climb by 3%. Previously, a series of significant lease agreements were established between Applied Digital and CoreWeave, which was projected to generate a staggering $7 billion in revenue.
Wall Street Analysts' Forecast
When considering the one-year price targets provided by a cohort of 10 analysts, the consensus suggests a promising future for Applied Digital Corp (APLD, Financial). The average price target stands at $13.85, with the highest estimate reaching $18.00, while the lowest is at $7.00. This average target forecasts a potential 24.44% upside from the current stock price of $11.13. For a deeper dive into these estimates, visit the Applied Digital Corp (APLD) Forecast page.
From a broader perspective, the consensus recommendation from 10 brokerage firms rates Applied Digital Corp's (APLD, Financial) stock at an average of 2.1, indicating an "Outperform" status. This rating operates on a scale from 1 to 5, where 1 symbolizes a Strong Buy, and 5 represents a Sell.
Assessing GF Value
According to GuruFocus estimates, the projected GF Value for Applied Digital Corp (APLD, Financial) in the coming year is estimated at $9.46. This suggests a potential 15% downside when compared to the current price of $11.13. The GF Value is GuruFocus' benchmark for a stock's fair market value, derived from historical trading multiples, past business growth, and anticipated future performance. For more insight into these valuations, visit the Applied Digital Corp (APLD) Summary page.
