Why Applied Digital (APLD) Stock Is Volatile Today

Zinger Key Points

Major AI partnerships are fueling Applied Digital's massive rally and long-term growth potential.
However, the stock pulling back Thursday, facing high skepticism from a large number of shorts.
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Applied Digital Corp APLD is capitalizing on the artificial intelligence revolution, announcing an infrastructure partnership with ABB this week.

The company says the collaboration will deliver innovative, energy-efficient power solutions for its 400 MW data center campus in North Dakota, specifically designed to meet the intense demands of AI workloads.

This development builds on last week's announcement of a 15-year lease agreement with AI hyperscaler CoreWeave Inc CRWV.

That deal, expected to generate roughly $7 billion in revenue, catalyzed a massive rally in the stock and prompted multiple Wall Street analysts to raise their price targets. Over the past month alone, shares have skyrocketed over 138%.

APLD stock has otherwise experienced a pullback Thursday afternoon. According to data from Benzinga Pro, Applied Digital stock is trading at $12.70, marking a 5.4% decline on the day. This price action unfolds against a backdrop of intense skepticism from short-sellers.

Data from shows an exceptionally high short interest, with 38.94% of the stock's float currently sold short, suggesting many are betting against its continued rise.

How To Buy APLD Stock

By now you're likely curious about how to participate in the market for Applied Digital – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Applied Digital, which is trading at $12.88 as of publishing time, $100 would buy you 7.76 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, APLD has a 52-week high of $15.42 and a 52-week low of $3.01.

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