Applied Digital (NASDAQ:APLD) shares fell 4% in early Tuesday trading after the company announced preliminary results for its fiscal fourth quarter that ended March 31.
The company sees FQ4 sales of $22 million, easily below the consensus of $30M. A net loss is expected at $6.8M while adjusted Ebitda is seen in the region of $2.7-3.2M.
Applied Digital designs and operates data center. Shares in the company surged 400% year-to-date after it added several large AI customers.
In the business update published today, Applied said demand for its AI Cloud product is high. It ordered over 26,000 graphics processing units (GPUs) to support its AI cloud services.
In a separate statement, the company said it has entered into a sale agreement with Craig-Hallum, under which it may offer and sell, from time to time, up to $125M of shares of its common stock.
The investment firm’s analysts raised the price target on Applied Blockchain to $15.00 from $13.00 yesterday while maintaining a Buy rating.
"After signing deals of $180mm over two years (#1) and $460mm over three years (#2), it is clear that Applied is part of the top-tier ecosystem of players who can provide both the GPUs, the power and the available space that is at a huge premium in today’s market,” the analysts said.