Applied Digital Stock Is Surging Thursday: What's Going On?
Applied Digital Corp (NASDAQ:APLD) shares are trading higher Thursday after the company reported financial results for the fourth quarter.
What To Know: Applied Digital reported fourth-quarter revenue of $38.01 million, missing analyst estimates of $40.84 million, according to Benzinga Pro. The company reported an adjusted loss of 3 cents per share, beating estimates for a loss of 15 cents per share.
Total revenue was up 41% on a year-over-year basis, primarily driven by increased capacity coming online in the company’s data center hosting business.
Applied Digital signed multiple leases with CoreWeave Inc (NASDAQ:CRWV) during the period that are expected to generate approximately $7 billion in contracted revenue over the term of the leases. The company said CoreWeave also exercised an option subsequent to quarter’s end that will add $4 billion in contracted revenue to the agreements.
“These long-term leases mark a defining moment for Polaris Forge 1, one of North America’s most ambitious data center projects. Purpose-built for artificial intelligence and high-performance computing, the campus combines massive power capacity with rapid deployment and is designed to scale up to 1 gigawatt,” said Wes Cummins, chairman and CEO of Applied Digital.
Applied Digital had $120.9 million of cash, cash equivalents and restricted cash as of May 31.
Following the company’s quarterly results, HC Wainwright & Co. analyst Kevin Dede maintained Applied Digital with a Buy rating and raised the price target from $12 to $15. Needham analyst John Todaro also maintained a Buy on Thursday and raised the price target from $12 to $16.
APLD Price Action: Applied Digital shares were up 25.3% at $12.56 at the time of publication Thursday, according to Benzinga Pro.
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