Why Are Applied Digital Shares Falling Today?
Portfolio Pulse from Lekha Gupta
Applied Digital Corporation (NASDAQ:APLD) shares fell after reporting Q3 FY24 financial results below expectations. Revenue increased 208% Y/Y to $43.3 million, missing the $51.9 million consensus. Adjusted EBITDA showed a loss of $2.3 million, and adjusted EPS was a loss of $0.24, both underperforming against expectations. The company cited challenges including power outages at datacenter hosting facilities but highlighted progress in Cloud Services and a new 400 MW capacity lease at its Ellendale HPC campus.
April 12, 2024 | 11:58 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Applied Digital's shares fell due to disappointing Q3 FY24 results, with revenue and earnings missing expectations despite significant Y/Y growth. The company faced challenges but is making strategic progress in its Cloud Services and datacenter operations.
The negative impact on APLD's stock price is directly related to the reported financial underperformance in Q3 FY24, particularly the missed revenue and earnings expectations. The strategic developments mentioned, such as the progress in Cloud Services and the new capacity lease, may mitigate the impact slightly but are unlikely to offset the immediate negative reaction to the earnings miss.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100