Applied Digital Earnings Near: APLD Stock Ends Week 12% Down, Q2 Loss Expected
Applied Digital stock stumbles ahead of next week's Q2 earnings, with investor sentiment turning cautious following volatility tied to its..
Quick overview
- Applied Digital stock has declined 12% over the past week, reversing gains made after the CoreWeave acquisition announcement.
- Investor sentiment has turned cautious, with concerns about capital demands and operational risks overshadowing initial excitement.
- The upcoming Q2 earnings report is expected to show a net loss of $0.12 per share, leading to decreased trading volume as investors await clarity.
- Technical indicators suggest that bullish momentum is waning, putting additional pressure on the stock.
Applied Digital stock stumbles ahead of next week’s Q2 earnings, with investor sentiment turning cautious following volatility tied to its CoreWeave acquisition.
Early-Week Optimism Reverses Into Losses
Applied Digital Corporation (NASDAQ: APLD) kicked off last week with a gap higher at Monday’s open, continuing a short-lived rally that had seen shares rise 30% following a CoreWeave-related spike in June. However, the bullish tone quickly faded.
By Monday’s close, the stock had reversed nearly 7%, and the downward pressure continued to mount. After a brief midweek pause, Friday brought another drop of 4%, leaving the stock down 12% for the week and finishing at $10.74 — just off session lows of $10.35.
APLD Chart Daily – Price Action Shows Caution by Investors
This marks a full erosion of the gains made after the CoreWeave acquisition announcement, with investor enthusiasm now giving way to mounting skepticism. Previously trading as high as $15.45 in June, the stock has sharply corrected amid rising concerns around capital demands, operational risks, and the broader business outlook.
Earnings Outlook and Trading Activity
Ahead of its second-quarter earnings report expected next week, the market seems to be bracing for disappointment. The Zacks Consensus Estimate projects a quarterly net loss of $0.12 per share — a notable improvement from last year, but still a loss. Revenue is forecasted at $42.99 million, which would mark a 1.6% decline year-over-year.
Trading activity reflected investor hesitation. Just 7.39 million shares changed hands during Friday’s session, a steep 81% drop compared to the average daily volume of over 38 million shares. The decline in volume suggests sidelined investors waiting for clarity after next week’s earnings report.
From Hope to Hesitation
The selloff underscores a shift in sentiment following Applied Digital’s initial excitement around its CoreWeave acquisition. While that event sparked a brief price surge and hopes of a turnaround, doubts surrounding execution risks and financial durability have reemerged.
The upcoming earnings report will be a key moment for the company to reassure investors and lay out a clearer path for its strategy. Until then, Applied Digital remains under pressure, with technical and sentiment indicators suggesting that the bulls may be losing control — at least for now.
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