Why Applied Digital Stock Plummeted by Nearly 20% Today
Sooner or later, almost every high-flying stock obeys gravity. On Tuesday, that rule very much applied to a data center specialist pushing hard into the artificial intelligence (AI) realm, Applied Digital (NASDAQ: APLD). On the back of the company's release of preliminary fourth-quarter results and news of a fresh stock issue, its share price nosedived by nearly 20% on the day.
For the quarter, which ended on May 31, Applied Digital disclosed in a regulatory filing that it expects to post roughly $22 million in revenue, and a net loss of around $6.8 million (approximately $0.07 per share, according to the latest share count). Non-GAAP (generally accepted accounting principles) adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) should come in between $2.7 million and $3.2 million.
On average, the clutch of analysts currently tracking Applied Digital stock is expecting slightly over $30 million in revenue and a notably narrower net loss of $0.03 per share.
Source Fool.com
