APLD's third-quarter fiscal 2025 results reflect strong cloud growth and better EBITDA despite a year-over-year dip in Data Center Hosting revenues.
Shares of Applied Digital Corp (NASDAQ:APLD) fell 32% on Tuesday after the company reported weaker-than-expected quarterly results and announced plans to exit its cloud services business. The cryptocurrency miner and data center operator posted third-quarter revenue of $52.9 million, missing analyst estimates of $63.4 million.
Applied Digital Corporation (NASDAQ:APLD ) Q3 2025 Earnings Conference Call April 14, 2025 5:00 PM ET Company Participants Matt Glover - IR, Gateway Group, Inc. Wes Cummins - CEO Saidal Mohmand - CFO Conference Call Participants Nick Giles - B. Riley Securities Thomas Shinske - Cantor Fitzgerald Rob Brown - Lake Street Capital Darren Aftahi - ROTH Capital Partners Mike Grondahl - Northland Securities George Sutton - Craig-Hallum John Todaro - Needham Operator Good afternoon, and welcome to Applied Digital's Fiscal Third Quarter 2025 Conference Call.
Applied Digital Corporation (APLD) came out with a quarterly loss of $0.16 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to loss of $0.52 per share a year ago.
Applied Digital's third-quarter fiscal 2025 results are likely to benefit from an expanding data center capacity. However, stretched valuation is a concern.
Both Applied Digital and Core Scientific are diversifying their business from crypto-mining to high-performance computing.
Applied Digital (APLD -9.21%) stock is falling Thursday amid bearish sentiment shaping the broader market. The company's share price was down 8.8% as of 3:40 p.m.
The semiconductor giant Nvidia (NVDA -1.51%) is quite the company, developing high-end graphics processing units (GPUs) that help power artificial intelligence (AI) applications. Many investors view Nvidia as the picks-and-shovels play for AI, which would be pretty remarkable given how much AI is expected to change nearly all aspects of our daily lives.
Applied Digital's robust data center business and strong partner base make the stock worth holding amid the AI-stock selling frenzy.
The first quarter of 2025 has brought significant challenges for technology investors. With the S&P 500 (^GSPC 1.08%) struggling amid renewed trade tensions and economic policy shifts under the Trump administration, many innovative companies have seen their market valuations compress dramatically -- regardless of their operational progress.
Applied Digital (APLD 11.13%) stock recorded a day of strong gains in trading Wednesday. The data center specialist's share price closed out the daily session up 11.1%.
Many investors might be wary of buying the hottest growth stocks as the market hovers just a few percentage points below its all-time highs. The threats of higher tariffs, rising inflation, and elevated interest rates could also cap their near-term gains.