What Happened?
Shares of digital infrastructure provider Applied Digital (NASDAQ: APLD) fell 6% in the afternoon session after the company announced a $100 million loan facility with Macquarie Group to fund new AI data center projects.
While the financing was intended to fuel growth in the AI infrastructure space, the move appeared to raise worries among investors about the company's increasing debt. The additional loan seemed to outweigh the potential benefits of expansion, especially in the volatile AI data center sector, leading to a negative market reaction.
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What Is The Market Telling Us
Applied Digital’s shares are extremely volatile and have had 93 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 14.9% on the news that the company announced it secured $100 million in financing to fund the development costs for new data center projects.
The loan facility was established with Macquarie Group to support the initial planning, permitting, and early construction of several new data center campuses. These new sites were being built for an unnamed "investment-grade hyperscaler," a term for a large cloud services company. The funds provided the company with capital to advance its high-quality sites. Applied Digital's stock also appeared to benefit from a broader rally in cloud infrastructure stocks, which were recovering from a recent sell-off.
Applied Digital is up 234% since the beginning of the year, but at $26.07 per share, it is still trading 31% below its 52-week high of $37.76 from October 2025. Investors who bought $1,000 worth of Applied Digital’s shares 5 years ago would now be looking at an investment worth $108,621.
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