APLD stock rises sharply despite insider sales, $2.7 billion debt, and reliance on a single tenant for AI data center leases.
Applied Digital (NASDAQ:APLD) shares have climbed 338% from a 52-week low of $9.02 to $45.20, even as insiders sold shares in the $25 to $35 range without offsetting buys. The company faces $2.7 billion in debt and depends solely on CoreWeave for revenue, raising concentration risks.
The company reported Q3 FY26 revenue of $126.64 million, up 139.3% year over year, beating consensus by 61.37%. Adjusted EBITDA swung to $44.14 million from a $6.26 million loss. Despite this, GAAP losses deepened by 352%, and all 11 analysts maintain a Buy rating with a $73.36 target.
Applied Digital operates liquid-cooled data centers for AI hyperscalers, with 600 MW of contracted capacity tied to $16 billion in prospective revenue. The stock’s $13.2 billion market cap reflects growth in hyperscaler capex, which rose from $400 billion to nearly $700 billion annually.