Applied Digital Corp (APLD) Stock Analysis
Verdict: AVOID
Hyper-growth in $36B AI data center backlog is offset by -$2.78B FCF burn, $5.10B debt, and four straight quarterly EPS misses.
Investment score: 30/100
Analysis as of
Is Applied Digital Corp stock worth reviewing? AI model thesis
Applied Digital Corp presents extreme capital burn and balance sheet leverage ($5.10B debt, -$2.78B FY2026 FCF) that override its top-line growth (+457%) and $36B backlog, prompting the AI model to maintain an AVOID stance.
7-factor investment score
- Valuation: 30/100 (weight 20%)
- Financial Health: 35/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 15/100 (weight 15%)
- Insider Sentiment: 25/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 25/100 (weight 15%)
Applied Digital Corp opportunities and risks
What speaks for APLD
- $36 Billion Contracted Lease Backlog
What speaks against APLD
- Massive Free Cash Flow Burn and Debt Burden
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| APLD | n/a | 6.8x | n/a | 20.2% | -54.2% | -77.2% |
| AKAM | 31.9x | 3.0x | 16.4x | 56.4% | 9.5% | 4.8% |
| GDDY | 15.2x | 2.7x | 11.7x | 63.8% | 17.8% | 12.4% |
| DOCN | 44.2x | 12.9x | 36.9x | 57.2% | 23.3% | 0.1% |
| FSLY | n/a | 5.7x | 3202.9x | 61.5% | -11.8% | 1.1% |
| SHAZ | n/a | 349.2x | n/a | -69.6% | -15658.3% | -29.1% |
| Peer median | 15.2x | 5.7x | 16.4x | 57.2% | 9.5% | 1.1% |
Frequently asked questions about Applied Digital Corp (APLD)
Is APLD stock a good investment?
The cached TradeMates AI model rates Applied Digital Corp as AVOID with an investment score of 30/100. Applied Digital Corp presents extreme capital burn and balance sheet leverage ($5.10B debt, -$2.78B FY2026 FCF) that override its top-line growth (+457%) and $36B backlog, prompting the AI model to maintain an AVOID stance. This is algorithmic model output, not personal investment advice.
Is APLD stock a buy?
The TradeMates model verdict for APLD is AVOID with an investment score of 30/100. Treat this as a model signal to review, not a personal buy recommendation.