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Applied Digital - AI Stock Analysis

Analysis generated June 3, 2025

Applied Digital is a technology company specializing in the digital space, providing innovative solutions to drive efficiency and effectiveness. The company offers a range of services including software development, data analytics, and digital marketing. It is a relatively new entrant in the tech space but has rapidly gained traction due to its cutting-edge technology and strategic business practices.

Fundamental Analysis

Revenue for the last quarter stood at $53 million. While this represents a decrease of 17.14% compared to the previous quarter, it marks an encouraging 22.08% increase over the same quarter last year. This year-over-year growth is a positive indicator of the company's upward performance trajectory.

The net income for the last quarter was $18 million, an impressive increase of 87.18% from the previous quarter and a 71.71% rise compared to the same quarter last year. This substantial growth in net income demonstrates the company's efficiency and profitability.

EBITDA for the last quarter was $19 million. This signifies an increase of 81.92% compared to the quarter before and a notable 62.51% growth year-over-year. The growing EBITDA indicates robust operational performance and strong cash flow generation capabilities.

Technical Analysis

Today’s stock price is $10.35, a significant 95.28% increase compared to a month ago, signaling a highly positive short-term trend. Compared to a year ago, the stock price has surged by 143.53%, indicating a robust long-term upward trend. The current stock trend is bullish.

The current SMA10 (Simple Moving Average over 10 days) is 7.76, which is higher than the previous SMA10 of 7.46. This upward movement in the SMA10 suggests a potential upward trend in price.

The RSI (Relative Strength Index) is at 64.6, indicating a neutral condition. Typically, an RSI above 70 is considered overbought, while below 30 is seen as oversold. Hence, the RSI being in a neutral position suggests there is still room for upward movement without being overbought.

Alternative Data Analysis

Starting with job postings and employee sentiment, Applied Digital has 4 open positions, which is up by 33% over the last couple of months. This indicates the company is looking to expand and possibly introduce new projects, a healthy sign of growth.

However, customer acquisition data shows an estimated 34,000 visitors to their webpage, a decrease of 6% in the last couple of months. This drop could be concerning as it may indicate a loss in customer interest or engagement.

Customer engagement metrics reflect that Applied Digital has 770 followers on their Instagram page, up by 4% in recent months, showing a slight increase in interest. On Twitter, the company has 4,600 followers, which is up by 21% recently. Both these figures suggest growing interest in the company and its activities.

According to AltIndex’s AI score, Applied Digital has a score of 60, which translates to a hold signal. This score is derived from an amalgamation of fundamental, technical, and alternative data points.

Conclusion and Recommendation

Applied Digital shows signs of robust growth in several key areas, notwithstanding some concerns in others. The impressive year-over-year growth in revenue, net income, and EBITDA are positive indicators of the company's financial health and operational efficiency. The bullish trend in stock price, supported by technical indicators like SMA10 and RSI, further reinforces the potential for continued upward movement.

On the flip side, the decline in webpage visitor numbers could be a cause for concern, reflecting potential issues in customer retention or acquisition strategies. However, the increase in social media following and open job positions hint at an expanding business.

Given the comprehensive analysis, Applied Digital appears to be a promising stock with significant growth potential, albeit with some areas to monitor closely. Based on this data, a hold recommendation is prudent, suggesting keeping an eye on future developments and additional data points for a more informed investment decision.

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.