Applied Digital (NASDAQ:APLD) shares sank by over 5% in the early session today after the data center operator disclosed an ongoing power outage at its Ellendale hosting facility. The company started experiencing a power outage at the facility on January 18. This transformed into a complete outage on January 19. APLD’s electricity provider is now undertaking upgrades to ensure a stable power supply at the facility.
As a result of this outage, APLD expects a substantial hit to revenues for the quarter ending February 29. Management expects the data center to be back online this month.
APLD shares have slumped by nearly 31% over the past month after its second-quarter results disappointed investors. Due to delays in the delivery of networking components for GPU clusters, APLD also guided for revenues and EBITDA to be near the lower end of its outlook for the full year.
Is APLD a Good Investment?
Despite these challenges, the stock still remains nearly 68% higher over the past year. Overall, the Street has a Strong Buy consensus rating on Applied Digital, and the average APLD price target of $13.67 points to a massive 159.15% potential upside in the stock.
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