APLD
Cramer says “small bite,” traders say “sell the dip”
Applied Digital just got the kind of TV attention that usually sends retail traders reaching for the buy button — and yet the stock still fell about 6% on Friday. Jim Cramer said he likes the name “coming down,” but added the very unsexy caveat that you should start small because the company is still losing money. Translation: this isn’t your grandma’s dividend stock.
The market mood is doing no favors
The other headwind is the tape itself. Growth names are getting whacked, risk appetite is cooling, and the broader market is flashing a mildly panicked look. When the Nasdaq-ish corner of the market sneezes, high-beta AI infrastructure names like APLD tend to catch the flu.
A few things are piling on:
- APLD was trading around $24.72, down 6.51% at the time of publication.
- QQQ and SPY were both lower, which means the selloff isn’t just an APLD problem.
- The stock is still living below its key moving averages, which is chart-speak for “the trend is not exactly sending you a Valentine.”
July 27 is the real test
The bigger catalyst is right around the corner: Applied Digital is set to report fiscal fourth-quarter results on July 27 and hold a conference call that day to walk investors through operations and financial results.
That matters because the Street is expecting:
- a loss of 36 cents per share,
- revenue of $91.91 million,
- and a whole lot of hand-waving turned into actual execution, preferably with fewer red ink stains.
Why you should care
Applied Digital is one of those stocks where the story is bigger than the current P&L. It’s pitching itself as digital infrastructure for AI and high-performance computing, which is catnip for investors — until the market asks the annoying question: “Cool, but when does it make money?”
Big picture: Friday’s drop looks less like a verdict on the business and more like a reminder that in a jittery market, expensive growth stocks can go from “favorite” to “feet first” real quick. The earnings call on July 27 is where the company has to show the story is still intact.