APLD Stock Forecast: Is Applied Digital Stock Good For Your Portfolio?
APLD stock price is trading below the important exponential moving averages showcasing the trend is bearish. However, the price is supporting the $4.00 suggesting buyers’ presence at lower levels. Bulls are trying to come back as the stock price is growing by almost 10% this week.
The stock price has been in a bearish trend since the beginning of the year giving -33.16%b negative return. However, over the year it gave a spectacular return of 137.50% as per the trading view data.
Applied Digital Corporation, headquartered in Dallas, Texas, specializes in creating and managing data centres throughout North America. These facilities cater to the high-performance computing sector by offering digital infrastructure services.
Additionally, the firm delivers a suite of services including cloud-based artificial intelligence, hosting for high-performance computing, and hosting solutions tailored for cryptocurrency data centres.
Originally established as Applied Blockchain, Inc., the organization underwent a rebranding to its current name, Applied Digital Corporation, in November 2022.
Why Is APLD Stock Dropping?
The main reason behind the falling APLD share price is its weak financial performance and some risk factors associated with it. As per the data of Simplywallst, it has less than 1 year of cash runaway, and insider selling in the last three months. Additionally, the shareholders also diluted in the past year.
However, there are also some positive factors like positive analyst coverage, forecast to become profitable in the next three years. It also has a meaningful revenue of $115 Million and a market cap of $513 Million
As per the trading view analysts’ data, the maximum price forecast for the APLD stock is $19.00, which is over 314.85% higher than the current price. Additionally, the minimum price predicted for the stock is $10.00 and the average price is $13.86.
APLD Stock Technical Analysis
Source: Tradingview
Currently, the stock price is trading below the 20,50, 100, and 200-day EMA levels suggesting a bearish trend.
The MACD indicator shows some bullish signs as a positive crossover between the MACD curve and the signal curve has been seen and it is heading toward the middle line with a green histogram. The RSI indicator is also showing a bullish sign as it is trading close to the middle line at 50.
APLD stock is a gamble with high risk and high reward potential. The stock is currently trading in a downtrend but shows recent signs of bullishness. Analysts predict a significant upside, but the company faces financial challenges. Carefully weigh the risks and conduct further research before investing in APLD.
Disclaimer
It’s important to note that the views and opinions presented in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading stocks carries inherent risks, and readers should conduct their research before making any financial decisions.
