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Applied Digital - AI Stock Analysis

Analysis generated October 10, 2025

Applied Digital is a forward-thinking company operating in the tech sector, known for its innovative solutions and strategic market positioning. The firm focuses on providing high-tech, data-driven services and products to its global client base. With a history of consistent growth and market adaptation, Applied Digital leverages its technological capabilities to capitalize on emerging opportunities and navigate challenges within the industry.

Fundamental Analysis

The revenue for Applied Digital in the last quarter was $38 million, representing a significant decrease of 28.17% compared to the previous quarter. This downturn indicates a need for concern regarding the short-term revenue generation capacity of the company. However, the year-over-year comparison shows an impressive increase of 157.82%, reflecting robust long-term growth.

Net income for the last quarter stood at $53 million, down 47.76% from the previous quarter. Although this sharp decline raises questions about the company’s profitability in the short term, the year-over-year increase of 18.48% suggests that the company is still on a positive growth trajectory over a longer period.

EBITDA for the last quarter was $17 million, facing a significant decrease of 114.35% compared to the previous quarter. Additionally, there was a year-over-year decrease of 186.60%, which is a major point of concern for stakeholders as it might point to deeper operational issues.

Moreover, recent insider selling of the stock could indicate a bearish sentiment among executives and is a potential red flag for investors to consider.

Technical Analysis

Today's stock price for Applied Digital is $35.55, which is up by 109.36% compared to a month ago, suggesting a strong short-term upward trend. Over the past year, the stock price has surged by 388.32%, indicating a solid long-term trend as well.

The current Simple Moving Average (SMA) for 10 days (SMA10) is $27.89, which is higher than the previous SMA10 of $26.62, further signaling a potentially upward trend in price movement.

The Relative Strength Index (RSI) is at 60.4, indicating a neutral condition in the market and neither overbought nor oversold territory.

Alternative Data Analysis

Regarding job postings and employee sentiment, Applied Digital has 17 open positions, up by 750% in the last couple of months. This surge suggests that the company is actively looking to grow and expand, which can be seen as a positive indicator of the company’s potential future performance.

Customer acquisition data shows an estimated 39,000 visitors to Applied Digital’s webpage. However, this number is down by 24% in the last couple of months, a worrisome sign that could indicate a decline in customer interest or engagement.

On the customer engagement front, Applied Digital’s Instagram page has 900 followers, up by 13% in the last couple of months. Similarly, the Twitter page has 7,200 followers, up by 31% over the same period, showing increased interest in the company.

Additionally, AltIndex’s AI score, which aims to predict a company's stock price based on fundamental, technical, and alternative data analysis, places Applied Digital at a score of 70, which is interpreted as a buy signal.

Conclusion and Recommendation

Applied Digital's stock presents a mixed bag for potential investors. On the bright side, the company has demonstrated substantial long-term revenue and net income growth, along with a bullish stock price trend over the past year. The surge in hiring also hints at future growth and expansion.

However, significant quarterly declines in revenue, net income, and EBITDA raise short-term concerns. Insider selling adds another layer of caution. In terms of customer acquisition, the dip in web traffic is concerning but is somewhat mitigated by the rise in social media followers, indicating some level of increased interest.

Overall, the AI score of 70 suggests a buy signal. Potential investors should weigh the encouraging long-term growth and bullish technical indicators against the short-term financial setbacks and insider selling. Therefore, a cautious buying approach with continuous monitoring of quarterly results and insider trading activities is recommended.

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.