Applied Digital Stock Is Surging Thursday: What's Going On?

Applied Digital Corp APLD shares are trading higher Thursday after the company reported financial results for the fourth quarter.

What To Know: Applied Digital reported fourth-quarter revenue of $38.01 million, missing analyst estimates of $40.84 million, according to Benzinga Pro. The company reported an adjusted loss of 3 cents per share, beating estimates for a loss of 15 cents per share.

Total revenue was up 41% on a year-over-year basis, primarily driven by increased capacity coming online in the company’s data center hosting business.

Applied Digital signed multiple leases with CoreWeave Inc CRWV during the period that are expected to generate approximately $7 billion in contracted revenue over the term of the leases. The company said CoreWeave also exercised an option subsequent to quarter’s end that will add $4 billion in contracted revenue to the agreements.

“These long-term leases mark a defining moment for Polaris Forge 1, one of North America’s most ambitious data center projects. Purpose-built for artificial intelligence and high-performance computing, the campus combines massive power capacity with rapid deployment and is designed to scale up to 1 gigawatt,” said Wes Cummins, chairman and CEO of Applied Digital.

Applied Digital had $120.9 million of cash, cash equivalents and restricted cash as of May 31.

Following the company’s quarterly results, HC Wainwright & Co. analyst Kevin Dede maintained Applied Digital with a Buy rating and raised the price target from $12 to $15. Needham analyst John Todaro also maintained a Buy on Thursday and raised the price target from $12 to $16.

APLD Price Action: Applied Digital shares were up 25.3% at $12.56 at the time of publication Thursday, according to Benzinga Pro.

Read Next:

• Coinbase Q2 Preview: Can White House Momentum, Bitcoin All-Time Highs Help?

Photo: Shutterstock.