Applied Digital Corporation designs, develops, and operates digital infrastructure solutions to high-performance computing (HPC) and artificial intelligence industries in North America.
FAIL · Does not pass the screen
26.38 USD
At the last full screen 2026-09-17
Screened 2026-09-17 · the tape above runs as of 11:00 UTC · two dates, stated on purpose · verdict and workings shown in full · never trimmed
The Label · The Season, Not the Day
This name holds its markdown label.
Applied Digital Corp holds its Markdown at $26.38. Consolidating, no directional conviction, held for 22 days.
As held on the ledger · 2026-09-17
Phase
Markdown · caution
Quantitative state
Consolidating, no directional conviction, held for 22 days
Price at the screen
$26.38
Valuation
N/A trailing · -104.48 forward price to earnings
Values screen
FAIL· score 70.0
Beta
5.73
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
37.59%
Below 33%
Interest-bearing debt is 37.6% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
0.00%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
2.38%
Below 49%
Money owed to the company is 2.4% of assets, under the 49% limit.
Pass
Revenue purity
0.00%
Below 5%
Only 0.0% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
Fair value range in USD, drawn from the 2026-09-17 screen. The gold marker is the market price at the same screen. A 100.0% margin of safety to the base estimate.
Third-party analyst targets: 12 covering, consensus None. The average target sits +192% from the screen price.
Reading the gap · Both our model and the analysts see meaningful upside from here.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-17 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
AI data centres racing ahead but bleeding cash
Picture the scramble to house the next wave of AI chips, where every new rack needs power, cooling and secure space right now. Applied Digital is building those facilities at speed, posting 139% revenue growth while its narrow moat sits in a crowded field. The market values the shares at just $25.79 against a fair value near $70, yet the business still posts a 59% negative profit margin and negative 6% return on equity.
Forward earnings sit at a negative 21 times, signalling that current growth has yet to translate into sustainable profits. Ten analysts carry a strong buy consensus with an $80 median target, and the ethical screen raises no flags. Still, the narrow competitive position and lack of proven cash generation leave the opportunity rating at none.
High revenue momentum can mask the risk that peak build-out spending fades before margins turn positive, turning a low multiple into a value trap rather than a bargain. Analysis, not advice.
The risks · The things to watch: it already moves more than the market on an average day.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
APLD trades on NASDAQ. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-08-21Markdown · changed$30.62+18.7%Entry 6
The framework has shifted from markup to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 18.7% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 48% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 214%. Our forward projection puts the odds of a 10% gain over the next month near 44%. The street (11 analysts) rates it strong buy, with a mean price target of $71.
2026-07-21Markup$25.79-39.6%Entry 5
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 39.6% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 48% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 214%. Our forward projection puts the odds of a 10% gain over the next month near 44%. The street (11 analysts) rates it strong buy, with a mean price target of $71.
2026-07-18Markup$42.70+0.0%Entry 4
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 48% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 214%. Our forward projection puts the odds of a 10% gain over the next month near 44%. The street (11 analysts) rates it strong buy, with a mean price target of $71.
2026-07-17Markup$42.70+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 48% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 214%. Our forward projection puts the odds of a 10% gain over the next month near 44%. The street (11 analysts) rates it strong buy, with a mean price target of $71.
2026-07-03Markup$42.70+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Markup$42.70Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
