Applied Digital Outlook: Technical Neutrality Amid Mixed Analyst Signals

Market Snapshot

Applied Digital (APLD.O) is in a state of technical neutrality, with moderate attention from our internal diagnostic scores. The stock has seen a recent price decline of -13.68%, but technical indicators remain mixed with 3 bullish and 1 bearish signals.

News Highlights

• May 30, 2025: Altair Recognized as a Leader in AI and ML Platforms – This recognition from Gartner highlights the growing importance of AI tools in enterprise environments, potentially benefiting AI-related stocks like APLD.O.
• May 22, 2025: Forbes Daily on Nike’s Price Hikes and AI Market Dynamics – The article discusses the shifting focus in the tech and AI space, emphasizing steady AI development over volatile consumer tech, which may support APLD’s niche positioning.
• May 14, 2025: eGain Q3 Earnings – Risks in AI Development – This report highlights the pace of AI advancements and their impact on business models, a theme relevant to Applied Digital’s operations in the AI space.

Analyst Views & Fundamentals

Analyst ratings are mixed, with a simple average rating of 4.75 and a performance-weighted rating of 2.97. The ratings show a lack of consensus, with several "Strong Buy" and "Buy" calls but no clear alignment with the current price trend, which is down -13.68%.

• Revenue-MV: -2.37 – Internal diagnostic score: 1/10
• Net income-Revenue: -13.33% – Score: 3/10
• Asset-liability ratio: 70.84% – Score: 2/10
• Non-current assets / Total assets: 83.94% – Score: 0/10
• PB-ROE: 1.95 – Score: 3/10
• Current assets turnover ratio: 0.52 – Score: 3/10
• Cash-UP: 0.53 – Score: 2/10
• Asset-MV: -1.13 – Score: 3/10

Money-Flow Trends

Big-money flows into Applied Digital are showing a negative trend, with overall inflow ratios at 49.60%. The largest investors, including extra-large ones, are also showing negative tendencies, at inflow ratios of 49.91% and 48.81%, respectively. This suggests a cautious approach from large players, but retail flows are similarly subdued with a small inflow ratio of 48.41%.

Key Technical Signals

The technical score for APLD.O is 6.02, indicating technical neutrality with moderate attention. Bullish indicators such as the Bearish Engulfing (score 8.0) and WR Oversold (score 7.27) are strong, while the bearish Dark Cloud Cover (score 1.0) is a significant drag.

Recent chart patterns include:

• Dec 17: WR Oversold, Bearish Engulfing
• Dec 18: Long Upper Shadow, Marubozu White
• Dec 16: Long Lower Shadow, WR Oversold

These patterns suggest a volatility-driven market, where the direction is still unclear. However, the dominance of bullish signals (3 to 1) suggests a potential bias toward a rebound if the trend stabilizes.

Given the mixed analyst signals, declining price, and moderate technical neutrality, investors might consider waiting for a pull-back or clearer momentum before taking a position. APLD.O remains a volatile play in a competitive AI space, and upcoming fundamentals or analyst updates may offer a clearer direction.