APLD Stock Today: Earnings Beat, $5B Hyperscaler Lease — January 8
APLD stock got a lift after Applied Digital (APLD) reported results on January 7 and topped revenue and EPS expectations. Management also announced a 15-year, 200MW hyperscaler lease with about $5 billion in total contract value, plus progress on a $2.35 billion notes deal. With 600MW contracted capacity and North Dakota buildouts tied to CoreWeave and an investment‑grade customer, momentum in AI data centers is clear. Below, we explain the quarter, funding plans, key price levels, and risks US investors should watch.
Earnings beat and new hyperscaler lease
Applied Digital reported after the close on January 7, with Applied Digital earnings beating revenue and EPS estimates as AI data‑center demand accelerated. Management cited strong contributions from hosting and cloud services. Shares moved higher on the results as investors focused on scale and visibility. Full details are in the company release here.
The company highlighted a 15-year, 200MW hyperscaler lease worth about $5 billion in total contract value, lifting visibility on long-term cash flows. Total contracted capacity now stands near 600MW across North Dakota campuses tied to CoreWeave and another investment‑grade customer. Coverage from Yahoo Finance provides added color on the beat and market reaction here.
Funding buildouts and liquidity outlook
Management noted major progress on a $2.35 billion notes deal designed to fund data‑center buildouts. Proceeds are expected to support construction, power and interconnect, and long‑lead equipment across North Dakota sites. The company emphasized liquidity to advance phased energization, aligning capital spending with customer start dates and contracted payments.
Long-term leases with hyperscale and GPU customers help underpin financing and project schedules. As capacity comes online, contracted payments should improve cash generation. Management pointed to milestone-based construction and staged ramp schedules to match customer needs. Investors will watch closing of the notes financing and any additional credit facilities or sale‑leasebacks to further strengthen liquidity.
APLD stock price, levels, and momentum
APLD stock traded near $30.20 today, with a session range of $28.56 to $30.68. Market cap is about $8.28 billion, with a 52‑week high of $40.20 and low of $3.31. Momentum is firm: RSI is 57.41, MACD histogram 0.51, and ADX 13.42 suggests a weak trend. The 50‑day average is $27.95 and the 200‑day is $16.92.
ATR is 2.53, signaling active daily swings. Bollinger Bands sit near $20.71 to $33.36, with the middle at $27.04. Keltner Channels top around $32.02. A sustained move above $33.36 could invite momentum flows, while the 50‑day near $27.95 is first support. Traders may watch volume versus the average to confirm breakouts.
Valuation, analyst views, and key risks
Analysts skew positive: 14 Buy, 0 Hold, 0 Sell, with a consensus rating of 4.00. Targets show a median of $38, consensus of $34.64, high of $56, low of $7. Profitability remains early stage, so P/E is not meaningful. Price‑to‑sales is about 37.95 and price‑to‑book is about 7.27, reflecting growth expectations.
Key risks include construction execution, power and interconnect timing, and finalizing large financings at acceptable terms. Delays could shift revenue ramps. Watch milestones for North Dakota energizations, lease commencements, and any updates on the $2.35 billion notes. APLD earnings updates and added hyperscaler lease wins are potential catalysts.
Final Thoughts
APLD stock is riding clear AI data‑center demand signals: a revenue and EPS beat, 600MW of contracted capacity, and a 15‑year, 200MW hyperscaler lease worth about $5 billion. Financing appears to be lining up, with a $2.35 billion notes deal progressing to fund North Dakota buildouts tied to CoreWeave and an investment‑grade tenant. On the tape, momentum and rising averages help, though volatility is high and valuation implies strong execution ahead. For investors, size positions thoughtfully, track funding closes and energization milestones, and use clear levels like the 50‑day average and upper bands for risk control. New contract wins or faster ramps could support upside, while construction or power delays would challenge the bull case.
FAQs
Why did APLD stock move today?
APLD stock reacted to an earnings beat and the announcement of a 15‑year, 200MW hyperscaler lease worth about $5 billion. Management also highlighted progress on a $2.35 billion notes deal to fund buildouts. These updates improved visibility on growth and cash flows, which supported investor sentiment.
What is the 200MW hyperscaler lease and why does it matter?
It is a 15‑year agreement with an investment‑grade hyperscaler for 200MW of capacity, with about $5 billion in total contract value. The deal extends revenue visibility, supports financing, and validates Applied Digital’s AI data‑center strategy. It also contributes to the company’s approximately 600MW of contracted capacity.
How is Applied Digital funding new data centers?
Management cited major progress on a $2.35 billion notes deal intended to fund construction, power, and equipment across North Dakota campuses. Long‑term customer leases and staged ramps provide cash‑flow support. Additional tools like credit facilities or sale‑leasebacks could supplement liquidity if project timing or scope expands.
What price levels should traders watch on APLD stock?
Key reference points include the 50‑day average near $27.95, Bollinger middle around $27.04, and upper band near $33.36. Keltner upper sits around $32.02. A break above the low‑$33s could attract momentum, while holding the 50‑day supports the uptrend. Volatility is high, so risk controls matter.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
