Applied Digital Stock Drops 3.45% Despite $7 Billion AI Deal Ranking 179th in Market Activity

On June 11, 2025, Applied Digital (APLD) experienced a significant decline, with its trading volume dropping by 31.84% to $538 million, ranking 179th in the day's market activity. The stock price fell by 3.45%, marking the third consecutive day of decline, with a total decrease of 13.06% over the past three days.

Applied Digital has recently secured a substantial deal with CoreWeave, valued at $7 billion over 15 years. This agreement involves leasing space at Applied's North Dakota facility to host CoreWeave's expanding AI compute stack. The partnership is expected to drive growth and enhance Applied's position in the AI hosting market.

Despite the positive developments, Applied Digital's stock has faced selling pressure as investors adopt a more cautious stance. The recent decline in stock price may be attributed to market sentiment and investor concerns, rather than fundamental issues with the company's operations or financial health.

Analysts have expressed mixed views on the deal, with some highlighting the potential for significant returns over the contract period. However, others have raised concerns about the lack of upfront equity and the potential for unprofitable deals. The company's reliance on non-project debt and the need for additional capital to fund future projects have also been points of contention.

Overall, while the AI hosting deal with CoreWeave presents a promising opportunity for Applied Digital, the recent stock price decline reflects investor caution and the need for further clarity on the company's financial strategy and future prospects.