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Applied Digital - AI Stock Analysis
Analysis generated June 24, 2025
Applied Digital is a pioneering player in the technology sector, focusing on high-performance computing solutions. The company offers various services and products tailored for data-intensive applications. Its primary offerings include cloud computing, cryptocurrency mining, and advanced data processing solutions. With an emphasis on innovative technologies, Applied Digital aims to cater to businesses that require robust and scalable computing infrastructure.
Fundamental Analysis
The revenue for Applied Digital in the last quarter was $53 million, marking a decrease of 17.14% compared to the previous quarter. This dip signals a potential concern for the company’s short-term performance. However, the revenue has increased by 22.08% when compared to the same quarter last year, showing positive year-over-year growth.
Net income for the last quarter was $36 million, an increase of 74.37% compared to the previous quarter, which is a very positive sign of financial health and operational efficiency. Year-over-year, net income grew by 43.42%, further reinforcing the company’s long-term growth trajectory.
EBITDA for the last quarter stood at $7.8 million, reflecting a 92.59% increase compared to the previous quarter. This substantial rise points to improving operational performance. Compared to the same quarter last year, EBITA increased by 84.64%, indicating strong year-over-year growth.
Technical Analysis
Applied Digital's stock price is currently $10.32, an impressive rise of 40.22% compared to a month ago, suggesting a robust short-term bullish trend. Year-over-year, the stock has increased by 63.03%, which is an excellent indicator of long-term investor confidence.
However, the overall trend is bearish, as evidenced by the SMA10 currently at 10.61, down from the previous SMA10 of 10.70. This poses potential downward pressure on the stock. Additionally, the Relative Strength Index (RSI) is 39.2, placing it in a neutral position but leaning towards oversold conditions, which could signify future buying opportunities.
Alternative Data Analysis
In terms of job postings and employee sentiment, Applied Digital has 6 open positions, a figure that has remained stable in recent months, indicating a stable work environment. However, customer acquisition metrics show an estimated 22,000 visitors to their website, down by 37% over the last few months. This downward trend could imply a decrease in customer interest or engagement.
On the flip side, the company’s social media engagement reveals promising signs. Applied Digital's Instagram page has 800 followers, showing a 7% increase in the last couple of months, and their Twitter page has 5,300 followers, up by 35%. These upticks in social media followers indicate a rising interest in the company among the online community.
According to AltIndex’s AI score, which integrates multiple data points, Applied Digital has a score of 61, signaling a buy recommendation.
Conclusion and Recommendation
In conclusion, Applied Digital showcases a mixed bag of performance indicators. The company has demonstrated strong year-over-year growth in revenue, net income, and EBITDA, reflecting sound financial health and operational efficiency. However, a recent revenue dip and bearish technical indicators present short-term risks.
Despite the decline in web traffic, increased social media engagement and a high AI score from AltIndex provide a positive outlook from a market sentiment perspective. Given the comprehensive data reviewed, the stock could be considered as a buy for investors looking for long-term growth, tempered with caution due to short-term bearish indicators and declining web traffic.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
