Applied Digital Insiders Purchase $6.7 Million in Shares Amid Recent Stock Decline
Applied Digital (APLD) executives, including the CEO and President, purchased approximately $6.7 million worth of company shares on October 16. This insider buying comes despite a significant recent decline in the stock price, which has dropped over 30% in the past month due to broader market concerns regarding an AI bubble. The company specializes in building AI data centers using a colocation model, notably securing long-term leases with CoreWeave valued at up to $11 billion. While Applied Digital reported a massive 322% year-over-year revenue surge to $341.9 million in its fiscal 2027 first quarter, it remains unprofitable due to the high capital expenditures required for infrastructure development. Despite strong demand tailwinds from hyperscalers and growing compute needs, analysts note a potential weakness in Applied Digital's colocation model. While less capital-intensive than competitors like Nebius, the long-term contracts result in lower annual revenue per megawatt compared to those securing shorter-term, high-margin deals.
Tickers: $APLD
Topics: AI data centers earnings report insider buying revenue growth