Applied Digital Retail Traders Expect Stock To Snap 3-Session Losing Streak, Pinning Hopes On More Datacenter Deals

Data center infrastructure provider Applied Digital’s (APLD) stock is on traders’ radar after it fell for a third straight session on Friday. In the overnight session, the stock climbed 2.35%, according to Yahoo Finance.

Applied Digital stock has risen about 72% for the year-to-date period, capitalizing on the demand surge from high-performance computing and artificial intelligence (AI) end markets. On Stocktwits, retail sentiment toward the stock stayed ‘bullish’ (67/100) as of late Sunday and the message volume on the stream was at ‘high’ levels.

A bullish watcher expected the stock to rebound to the $25 level this week.

Another user flagged CoreWeave, Alphabet, Nutanix and Cisco as potential partnerships that Applied Digital could announce this week.

Last Monday, the stock added nearly 20% amid the exuberance seen in the AI space and hit an all-time intraday high of $25.61 in the very next session. The stock pulled back approximately 15% from its peak before closing the week at $21.71. 

Traders will likely focus on a shelf-registration statement the company filed with the SEC late Friday regarding a second offering of its common stock. In a Form S-3 registration statement, Applied Digital said selling stockholders would resell up to 8.4 million shares from time to time. The prices and terms would be determined at the time of any such offering, the company said. 

The next major catalyst for the stock will likely be the company’s first-quarter results for the fiscal year 2026, due after the market closes on Oct. 9. According to Fiscal.ai, Applied Digital is expected to report a loss per share of $0.14 for the quarter and revenue of $43.67 million, down 28% year-over-year (YoY).

The Koyfin-compiled average analysts’ price target for the stock ($21.11) suggests the stock is fairly valued at current levels.

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