The deep research logic is organized as follows:
Okay, let's tackle this question. The user is asking whether they should buy Applied Digital (APLD) stock at $600 or if it's too late. First, I need to check the data provided in the references.
Looking at the references, the latest stock price mentioned is $13.25 as of 2025-06-04. There's a query about a price discrepancy between $600 and $13.25, but the result shows 0 findings. That means there's no data supporting a $600 price for APLD. The user might be confused or there's a typo.
The user's profile mentions a €2000 budget for swing/long trading, moderate risk tolerance, and interest in technical analysis. They previously asked about BABA and buying stocks based on market sentiment. So, they're likely looking for a stock that's undervalued or has growth potential.
From the references, APLD has had significant price movements recently. The stock surged after announcing a $7B deal with CoreWeave. The latest price is $13.25, but the user is asking about $600, which is way higher. Maybe they saw a different source or there's a misunderstanding.
The financial data shows APLD is still losing money, with a net loss of $35.56M in Q3 2025. The revenue growth is positive, but the company has high cash burn and negative operating cash flow. The balance sheet shows total assets of $1.71B and liabilities of $1.21B, which isn't too bad, but the debt is a concern.
Analyst ratings are mixed, with a 12-month average price target of $12.31, which is below the current price. The technical indicators like MACD and RSI suggest overbought conditions. The user's budget is €2000, so even if APLD were at $600, they couldn't afford many shares. But since the actual price is $13.25, maybe they're considering a different stock or there's a mix-up.
The user's previous question about BABA and tariffs suggests they're interested in high-impact news events. APLD's recent deal with CoreWeave is a big news driver, but the stock might be overbought now. The user's risk tolerance is moderate, so a high-risk stock like APLD might not be suitable unless they're looking for high volatility.
I need to explain the discrepancy in the price, provide the correct data, and advise based on the user's profile. They should be cautious about the high price target mismatch, financial losses, and technical overbought signals. Maybe suggest waiting for a pullback or looking at other stocks with similar growth potential but better fundamentals.
Conclusion 🚨
DO NOT BUY APLD at $600. The stock is currently trading at $13.25 12 and there is no data supporting a price of $600 7. APLD has recently surged due to a $7B AI data center deal with CoreWeave 89 but the stock remains overvalued with negative earnings and high cash burn 12.
📊 Key Analysis
1. Stock Price & Recent Performance
- Current Price: $13.25 (as of 2025-06-04) 12
- Recent Surge: APLD rose 29.27% in the last month 12 driven by the CoreWeave deal 89
- Price Target: Analysts project a $12.31 average price target (21.40% upside from $10.14) 17.
2. Financial Health
| Metric |
Q3 2025 (MRQ) 12 |
| Revenue |
$52.92M (22.08% YoY growth) |
| Net Loss |
-$35.56M (43.42% YoY worse) |
| Diluted EPS |
-$0.16 (69.23% YoY worse) |
| Operating Cash Flow |
-$5.9M (negative cash burn) |
| Total Cash |
$68.74M (limited liquidity) |
3. Risks
- High Debt: Total liabilities = $1.21B 18.
- Negative EBITDA: Adjusted EBITDA = -$26.7M 1920.
- Competition: CoreWeave’s $7B deal 89 may cannibalize APLD’s future revenue.
4. Technicals
- Overbought: RSI = 92.61, KDJ = 95.25 3.
- Moving Averages: Price ($13.25) > 5-day MA (9.5) 4.
- Fund Flow: Net outflow = -$45.93M 21.
📉 Why It’s Too Late
- Valuation: APLD is trading at 10.8x forward revenue (vs. industry average 5x) 178
- Profitability: APLD has no path to profitability in the short term 12.
- Market Saturation: The AI data center space is crowded (e.g., Brookfield’s $9.9B AI data center in Sweden 22).
📈 Alternatives
If you’re interested in AI infrastructure, consider:
- CoreWeave (CRWV): Direct beneficiary of the $7B deal 89
- Nvidia (NVDA): Leading AI chip provider 89
- C3.ai (AI): Enterprise AI solutions with $108.7M revenue 23.
🚨 Final Take
APLD is too risky for your €2000 budget. Stick to blue-chip AI stocks like NVDA or CRWV for safer exposure to the AI boom.
6/5/2025 08:21am
