Beware of Applied Digital's Skyrocketing Stock
ByAinvest
Wednesday, Feb 4, 2026 9:35 am ET1min read
APLD--
Applied Digital's share price has risen 375% in the past 12 months, driven by surging demand for AI data center capacity. However, the company's business model has significant drawbacks and faces potential headwinds. Despite a 250% increase in sales to $127 million in fiscal Q2, expenses also rose 230%, and the company is not profitable. The non-GAAP diluted loss per share was $0.07, and the company's rapid spending growth raises concerns about its sustainability.
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