Applied Digital - AI Stock Analysis

Analysis generated January 11, 2026

Applied Digital is a prominent technology company specializing in digital solutions aimed at transforming business operations. The company's portfolio includes cloud computing, data analytics, and other innovative services that help organizations optimize their processes. It has established itself as a leader in the industry with a robust customer base and a commitment to further growth and technological advancements.

Fundamental Analysis

Revenue for the last quarter was $64 million, marking a 68.93% increase compared to the previous quarter. This substantial growth is a promising indicator of the company's upward trajectory. Furthermore, when compared to the same quarter last year, revenue has increased by 5.79%, pointing to steady year-over-year growth.

Net income for the last quarter stood at $17 million, rising by 67.78% quarter-over-quarter. Despite this short-term improvement, net income has plummeted by 298.54% year-over-year, raising potential concerns about long-term profitability.

EBITDA reached $18 million in the last quarter, albeit decreasing by 9.02% from the previous quarter. When compared to the same quarter last year, EBITDA has fallen by 148.54%, indicating significant operational challenges that need addressing.

Additionally, insider selling has been recorded in recent months, a potentially bearish signal that may suggest a lack of confidence from those most familiar with the company's inner workings.

Technical Analysis

As of today, Applied Digital's stock price sits at $37.68, an increase of 22.50% compared to a month ago, which underscores a positive short-term trend. Over the past year, the stock price has surged by 354.52%, reflecting strong long-term gains.

The current Simple Moving Average for the last 10 days (SMA10) is $31.94, higher than the previous SMA10 of $30.63, indicating a potential upward trend in price movement. The Relative Strength Index (RSI) is at 59.4, which suggests a neutral condition without significant overbought or oversold signals. Overall, the trend appears bullish.

Alternative Data Analysis

In the realm of job postings and employee sentiment, Applied Digital has 16 open positions, a decrease of 6% over the last few months. This reduction may indicate efforts to improve margins or cut costs, which is usually not a favorable sign for a growth-oriented company.

Customer acquisition metrics show an estimated 42,000 visitors to Applied Digital's webpage, representing an 8% increase in recent months—a bullish indicator as it can signal potential growth in customer base.

Customer engagement insights reveal that Applied Digital has 1,000 followers on Instagram, up by 13% in the last couple of months, and 9,200 followers on Twitter with a 31% increase. These metrics suggest growing interest and engagement with the company.

Furthermore, AltIndex's AI score for Applied Digital is 63, which is a buy signal based on a comprehensive evaluation of fundamental, technical, and alternative data analysis.

Conclusion and Recommendation

In summary, Applied Digital shows both promising growth and some areas of concern. The significant revenue increase is a strong positive indicator, but the sharp year-over-year decline in net income and EBITDA should be carefully considered. Technical indicators suggest a bullish trend in the stock price, while alternative data reflects growing customer interest and engagement.

Given these mixed signals, potential investors should be cautious. While the growth in revenue and positive sentiment from alternative data are encouraging, the decline in profitability and insider selling are red flags that cannot be ignored.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.