APLD Stock Breaks $15 as Buyers Return Despite Insider Selling — $20 Next?
Applied Digital’s latest earnings and AI infrastructure deal sparked a sharp rally, but a stubborn resistance level has capped the momentum
Quick overview
- Applied Digital Corporation's strong Q4 earnings and expanded AI infrastructure partnership with CoreWeave sparked a significant rally in its stock.
- The company's non-GAAP net loss of $0.03 per share was an 81% improvement over expectations, indicating potential operational efficiency gains.
- Despite the initial surge, the stock faced resistance at the $15 level, with insider selling contributing to a slowdown in momentum.
- Future movements in the stock may depend on new catalysts, such as additional AI contracts or positive operational updates.
Applied Digital’s latest earnings and AI infrastructure deal sparked a sharp rally, but a stubborn resistance level has capped the momentum—for now.
Earnings and AI Deal Ignite Rally
Applied Digital Corporation (NASDAQ: APLD) kicked off August with a surge fueled by a strong Q4 earnings beat and a massive expansion of its AI infrastructure partnership with CoreWeave Inc. The market initially responded with enthusiasm after the company posted a non-GAAP net loss of just $0.03 per share—an 81% improvement versus Wall Street’s expected $0.14 loss.
The narrower-than-expected loss signaled potential gains in operational efficiency and cost management, sparking optimism ahead of the upcoming Q2 earnings season. Investors interpreted the results as a sign that Applied Digital’s core data infrastructure business may be delivering better-than-projected margins.
CoreWeave Deal Expands to $11 Billion
The excitement was amplified by news that CoreWeave Inc. (NASDAQ: CRWV) had exercised an option to expand its contracted IT load capacity by 150 megawatts, bringing the total to 400 MW. This extension is projected to add $4 billion in revenue, boosting the total contract value with CoreWeave to an eye-catching $11 billion.
Following the announcement, APLD shares surged past the $10 mark and built steady gains through most of the week, reinforcing bullish sentiment and drawing increased trading volume.
Insider Sale and Resistance at $15
However, momentum slowed toward the end of the week. On Friday, August 8, director Richard N. Nottenburg sold 11,250 shares at an average price of $14.22, totaling $159,975. Post-sale, he retained 317,987 shares, valued at approximately $4.52 million—a reduction of 3.42% in his holdings.
APLD Chart Daily – Tough Resistance Should be Broken Soon
That same day, buyers tested the $15 resistance level but failed to break through convincingly. The stock retreated to $13.66 before staging a strong 7% recovery, once again touching $15 but closing just below it.
Looking Ahead
The tug-of-war between bullish momentum and technical resistance suggests that Applied Digital’s next big move may hinge on fresh catalysts—possibly further AI contract wins or stronger-than-expected operational updates. For now, the $15 mark stands as the key battleground for traders gauging whether the rally has more fuel left.
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