Shares of digital infrastructure company Applied Digital (NASDAQ:APLD) have risen by nearly 16% in the morning session today after its first-quarter revenue soared 65% sequentially to $36.3 million. However, its net loss more than doubled to $9.6 million from the comparable year-ago period.
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The rise in APLD’s top line was driven by a jump in Hosting revenue to $29.99 million, compared to $4.3 million in Hosting revenue a year ago. The company is experiencing a robust pipeline of cloud customer opportunities and aims to reach 500 MW across its three hosting facilities. APLD has over 300 MW of high-performance computing capacity in development and has ordered 34,000 GPUs for its Cloud Services business. It has already started recognizing revenues from the deployment of an initial cluster of 1,024 GPUs.
Looking ahead to Fiscal Year 2024, APLD expects to generate revenue in the range of $385 million to $405 million. Adjusted EBITDA for the year is anticipated to land within the range of $195 million to $205 million.
What Is the Future of APLD Stock?
Overall, the Street has a consensus price target of $15.25 on APLD, alongside a Strong Buy consensus rating. This points to a mega 195% potential upside in the stock.
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