Digital infrastructure company Applied Digital Corp. (NASDAQ:APLD) sank in trading after the company’s second-quarter results left investors disappointed. The company reported an adjusted net loss of -$0.05 per share. For reference, analysts were expecting a profit of $0.07 per share.
Total revenues came in at $42.2 million in the second quarter, a surge of 242% year-over-year, but still fell short of Street estimates of $55.6 million.
More disappointingly, due to a delay in the delivery of networking components for GPU clusters, Applied Digital now anticipates that its revenues and EBITDA will be in the lower range of its previously issued guidance for FY24. In FY24, the company expects an annual revenue run rate of around $500 million and an annualized adjusted EBITDA run rate of $250 million.
What is the Future of APLD Stock?
Analysts remain bullish about APLD stock with a Strong Buy consensus rating based on three Buys. Over the past year, APLD stock has surged by more than 200%, and the average APLD price target of $16.50 implies an upside potential of 120.3% at current levels.
