As Revenue Surges 400%, Is Applied Digital Stock a Buy?
The company is becoming a leading AI data center real estate owner.
Overview
Applied Digital (NASDAQ: APLD) is the tale of two tapes. The stock is up about 150% over the past year, but its shares have also been nearly cut in half from their spring highs. With the company's revenue surging, the question on many investors' minds now is whether it's time to buy the stock when it's down.
Applied Digital is more of an AI data center landlord than it is a tech company. It spun out its cloud computing business and merged it with EKSO Bionics Holding earlier this year to create a new company called ChronoScale (NASDAQ: CHRN), although it still holds a 96% stake in the new entity. Meanwhile, it is considering converting into a real estate investment trust (REIT).
Details
Applied Digital's main business today is building and operating data centers designed to handle AI workloads. However, it does still have a data center hosting business that serves cryptocurrency miners, which was its original business. Its biggest attribute is its access and ability to source cheap power and know-how for constructing facilities that can house massive data centers.
Source
Originally published at www.fool.com.