Applied Digital Corporation (NASDAQ:APLD) shares are trading lower by almost 6% on Friday as risk appetite cools across growth names and traders digest fresh TV commentary that frames the stock as a "buy-the-dip" idea — but with position-size caution because the company is still losing money.
• Applied Digital stock is showing notable weakness. What’s behind APLD decline?
On CNBC’s "Mad Money Lightning Round," Jim Cramer said he likes Applied Digital with the stock "coming down," but warned investors to "start it small, don’t start it big" because it is losing money. The company has also scheduled a conference call for Monday, July 27, to discuss operations and financial results for the fiscal fourth quarter.
The broader tape is also leaning risk-off: Invesco QQQ Trust (NASDAQ:QQQ) is down 2.03%, and State Street SPDR S&P 500 ETF Trust (NYSE:SPY) is down 0.89%, which can amplify downside moves in volatile infrastructure/AI-adjacent names when sentiment turns.
S&P 500 futures are down 0.9%, setting a softer tone for higher-beta tech trades early in the session.
Technical Analysis
The chart is in a clear downtrend on multiple timeframes, with the stock trading 29.6% below its 20-day SMA, 39% below its 50-day SMA, and 24.6% below its 200-day SMA — classic "below the stack" behavior that usually keeps rallies capped until price can reclaim key averages.
The 20-day SMA is also below the 50-day SMA (bearish), even though the 50-day SMA remains above the 200-day SMA, which hints that the longer-term uptrend has been damaged but not fully erased.
Applied Digital is a designer, developer and operator of next-generation digital infrastructure across North America, providing digital infrastructure solutions and cloud services tied to High-Performance Computing (HPC) and Artificial Intelligence (AI).
Earnings & Analyst Outlook
The countdown is on: Applied Digital is set to report earnings on July 27 (confirmed).
- EPS Estimate: Loss of 36 cents (Down from loss of three cents year-over-year)
- Revenue Estimate: $91.91 million (Up from $38.01 million YoY)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price forecast of $42.22. Recent analyst moves include:
- Northland Capital Markets: Outperform (Raises target to $82 on June 17)
- Craig-Hallum: Buy (Raises target to $79 on June 9)
- Lake Street: Buy (Raises target to $90 on June 9)
Top ETF Exposure
- Amplify Blockchain Technology ETF (NYSE:BLOK): 2.99% Weight
- Fidelity Crypto Industry and Digital Payments ETF (NASDAQ:FDIG): 3.65% Weight
- VanEck Digital Transformation ETF (NASDAQ:DAPP): 5.65% Weight
Significance: Because Applied Digital carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
APLD Price Action
APLD Stock Price Activity: Applied Digital shares were down 6.51% at $24.72 at the time of publication on Friday, according to Benzinga Pro data.
Photo: Shutterstock
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