Applied Digital's Stock Plummets Following Disappointing Earnings Report

According to Foresight News, Applied Digital (APLD), a Bitcoin mining hosting and cloud services company, experienced a significant stock decline on Tuesday, dropping 30% to approximately $3.90 in early trading. This downturn followed the company's quarterly earnings report, which fell nearly 18% short of analysts' expectations. The company reported quarterly revenue of $52.9 million, with its cloud services division showing particularly poor performance. Revenue in this segment decreased by 36% from the previous quarter, falling from $27.7 million to $17.8 million. Applied Digital attributed this decline to the transition from single-tenant contracts to a multi-tenant, on-demand GPU model, which has faced technical challenges in its initial stages. In response to these challenges, the company's board approved a plan on April 10 to sell its cloud services business. This move aims to refocus on its core high-performance computing (HPC) data center operations and potentially position itself as a real estate investment trust (REIT) in the future.