What Happened?
Shares of digital infrastructure provider Applied Digital (NASDAQ: APLD) jumped 12.7% in the morning session after the company reported impressive fourth-quarter 2025 results that substantially beat Wall Street expectations.
The company's revenue grew 98.2% year-over-year to $126.6 million, beating analyst estimates by 14.8%. The earnings performance was also a positive surprise, with Applied Digital reporting adjusted earnings per share of $0.00, whereas analysts had expected a loss of $0.21 per share. This strong performance was fueled by robust demand for its high-performance computing infrastructure, which is used for artificial intelligence and blockchain applications.
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What Is The Market Telling Us
Applied Digital’s shares are extremely volatile and have had 91 moves greater than 5% over the last year. But moves this big are rare even for Applied Digital and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 16 days ago when the stock dropped 6% on the news that 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.
Applied Digital is up 21.6% since the beginning of the year, but at $34.19 per share, it is still trading 9.4% 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 $189,968.
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