What's Going On With Applied Digital Stock Wednesday?

Applied Digital Corp APLD shares are roughly flat Wednesday on the heels of the company’s second-quarter financial results. Here’s a look at what you need to know.

• Q2 Revenue: $63.9 million, versus analyst estimates of $63.4 million

• Q2 EPS: Loss of 6 cents, versus estimates for a loss of 15 cents

Revenue jumped 51% on a year-over-year basis, primarily driven by the continued expansion of the company's Cloud Services business. Cloud Services revenue came in at $27.7 million in the second quarter, up 523% year-over-year. 

Applied Digital's Data Center Hosting business generated $36.2 million in revenue during the quarter. The company noted that it's in late-stage discussions with multiple hyperscalers to finalize a lease agreement for its 100 MW HPC Data Center facility. Applied Digital also said it plans to bring an extra 300 MW online through two additional facilities currently being designed.

The company ended the quarter with $314.6 million in cash, cash equivalents and restricted cash, and $479.6 million in debt.

"Applied Digital was one of the first companies to recognize this growing demand for power and data centers. Anticipating these needs, we began construction of our facilities ahead of many hyperscalers fully grasping the shifting demand landscape. As a result, we believe we are well-positioned to capitalize on these trends," said Wes Cummins, chairman and CEO of Applied Digital.

Check This Out: JPMorgan Chase Q4 Earnings: Investment Banking Revenue Jumps 46%, CEO Jamie Dimon Says ‘Inflation May Persist For Some Time’

Following the print, Needham analyst John Todaro reiterated Applied Digital with a Buy and maintained a price target of $11. Cantor Fitzgerald analyst Brett Knoblauch maintained an Overweight rating and lowered the price target from $15 to $14.

It’s worth noting that Applied Digital shares climbed nearly 10% on Tuesday ahead of the print after the company announced a partnership with Macquarie Asset Management for funding of up to $5 billion focused on HPC data center expansion.

APLD Price Action: Applied Digital shares were down 0.47% at $8.49 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.