APLD has failed to break above $30 since February
Shares of Applied Digital Corp (NASDAQ:APLD) are plunging 6% to trade at $26.13 this morning, brushing off a revenue beat after it suffered a wider-than-expected fiscal third-quarter net loss. The hyperscaler AI company cited increasing costs and a $59.7 million impairment charge on its cloud services.
Despite its impressive 384% year-over-year lead, APLD just yesterday was rejected by $30 and its 80-day moving average, both of which have kept a tight lid on gains since February. APLD is keeping a grip on its year-to-date breakeven level, though.
Analysts have been heavily bullish on the equity, with all but one of the 14 covering brokerages sporting a "buy" or "strong buy" recommendation. Should APLD continue to languish, keep an eye out for analyst adjustments that could weigh.
Options traders have come out in droves following the report, with 45,000 calls and 16,000 puts traded in the first hour-- four times the average intraday rate. Most popular are the weekly 4/10 30- and 24.50-strike calls.