Applied Digital Corp (NASDAQ:APLD) saw its stock soar 5.08% in pre-market trading on Thursday, despite posting mixed results in its fiscal second quarter 2025 earnings report.
The data center company reported revenue of $63.9 million for the quarter, up a robust 51% year-over-year and beating analyst expectations. However, Applied Digital's net loss widened significantly to $139.4 million, or $0.67 per share, missing earnings estimates.
While the revenue growth was impressive, investors appeared to overlook the widening losses for now. One potential factor could be optimism around Applied Digital's growth trajectory, with revenue projected to increase 32% annually over the next 3 years according to analyst forecasts. This would outpace the projected 9.5% growth rate for the broader US IT industry.