Applied Digital Corporation Common Stock (APLD)

FairStock Score: 28/100 — RISKY

Key Financials

Strengths

• Revenue growth of 139.3% demonstrates strong top-line momentum

Concerns

• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Altman Z-Score of 1.5 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Applied Digital Corporation Common Stock is a mid-cap technology company valued at $10.2 billion. Revenue stands at $319 million, though the company is currently unprofitable. From a quality standpoint, Applied shows distressed Altman Z-Score of 1.5 warrants caution and negative ROE indicating losses. Growth dynamics show revenue growing at 139.3% and profit growth of -179.3%. Our composite FairStock Score of 28/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Applied's 139% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Without a clear path to profitability, continued cash burn forces either dilutive equity raises or debt accumulation that destroys shareholder value. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer