Applied Digital (NASDAQ:APLD) Stock Falls 9.4% – Here’s What Happened

Posted by Brian Himes on Oct 14th, 2026

Shares of Applied Digital Corporation (NASDAQ:APLD – Get Free Report) traded down 9.4% on Wednesday. The stock traded as low as $20.01 and last traded at $20.33. 29,816,432 shares traded hands during mid-day trading, an increase of 30% from the average daily volume of 22,910,643 shares. The stock had previously closed at $22.44.

Key Stories Impacting Applied Digital

Here are the key news stories impacting Applied Digital this week:

Positive Sentiment: Applied Digital reported fiscal first-quarter 2027 revenue of approximately $341.9 million, up 322% year over year. The company also has about $36 billion in contracted revenue and plans to bring more than 600 megawatts online over the next 12 months, supporting its long-term growth story. Applied Digital latest update
Positive Sentiment: Northland Securities maintained an Outperform rating and an $82 price target, suggesting substantial potential upside if Applied Digital successfully executes its expansion plans. Applied Digital analyst coverage
Neutral Sentiment: The company’s planned Finland expansion and accelerated power-capacity buildout could strengthen its AI infrastructure position, but investors are focused on how quickly new facilities can become operational and generate cash flow. What Could Derail Applied Digital Stock?
Negative Sentiment: Despite strong revenue growth, Applied Digital posted a much wider GAAP net loss of $237.1 million. Data centers require major upfront capital before tenants pay, raising concerns about cash needs, debt and possible shareholder dilution. Applied Digital expansion financing
Negative Sentiment: Northland reduced its projected EPS for fiscal 2027 to a loss of $1.50 per share from a loss of $0.44, while lowering quarterly forecasts as well. Although the firm retained its bullish rating, the estimate cuts reinforce concerns that profitability may remain distant.
Negative Sentiment: Broader AI data-center stocks are weakening after Cipher Digital’s $850 million zero-coupon convertible-note financing highlighted the sector’s dependence on expensive capital markets. That financing and dilution concern is weighing on Applied Digital by association. AI data-center stocks decline

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Wells Fargo & Company reiterated an “overweight” rating and issued a $55.00 price objective (up from $50.00) on shares of Applied Digital in a research report on Thursday, October 8th. Needham & Company LLC decreased their price target on Applied Digital from $83.00 to $70.00 and set a “buy” rating on the stock in a research note on Thursday, October 8th. Wall Street Zen lowered shares of Applied Digital from a “sell” rating to a “strong sell” rating in a research report on Sunday, August 30th. B. Riley Financial restated a “buy” rating and set a $75.00 target price (up from $66.00) on shares of Applied Digital in a research report on Monday, August 3rd. Finally, Rothschild & Co Redburn set a $22.00 price objective on shares of Applied Digital and gave the stock a “neutral” rating in a report on Monday, September 21st. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $62.25.

View Our Latest Analysis on Applied Digital

Applied Digital Stock Performance

The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 3.90. The stock’s 50 day moving average is $26.70 and its 200 day moving average is $32.44. The stock has a market capitalization of $6.15 billion, a price-to-earnings ratio of -12.40 and a beta of 5.99.

Applied Digital (NASDAQ:APLD – Get Free Report) last announced its earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.30) by $0.29. The company had revenue of $300.39 million during the quarter, compared to analysts’ expectations of $116.29 million. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. The firm’s quarterly revenue was up 367.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.03) earnings per share. On average, analysts predict that Applied Digital Corporation will post -1.93 earnings per share for the current year.

Insider Buying and Selling at Applied Digital

In related news, Director Richard Nottenburg sold 75,000 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the sale, the director owned 133,378 shares of the company’s stock, valued at $4,154,724.70. This trade represents a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 9.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Digital

Institutional investors have recently modified their holdings of the company. Whitaker Myers Wealth Managers LTD. acquired a new stake in shares of Applied Digital in the second quarter worth approximately $1,841,000. Cambridge Investment Research Advisors Inc. raised its position in shares of Applied Digital by 39.6% in the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 146,633 shares of the company’s stock worth $5,469,000 after buying an additional 41,562 shares during the period. Dimensional Fund Advisors LP purchased a new position in shares of Applied Digital in the 1st quarter worth $1,970,000. Situational Awareness LP boosted its holdings in Applied Digital by 14.1% in the second quarter. Situational Awareness LP now owns 15,384,616 shares of the company’s stock valued at $574,000 after acquiring an additional 1,906,178 shares during the last quarter. Finally, TFR Capital LLC. boosted its holdings in Applied Digital by 425.3% in the first quarter. TFR Capital LLC. now owns 372,960 shares of the company’s stock valued at $9,497,000 after acquiring an additional 301,954 shares during the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.

Applied Digital Company Profile

(Get Free Report)

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing, artificial intelligence and other data-intensive applications. The company provides data-center capacity and related services to customers that require substantial computing power and electricity.

The company’s business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.