Shares of Applied Digital Corp (APLD) plummeted 6.56% during Tuesday's intraday trading session, underperforming the broader market indices. The sharp decline came despite the company announcing a major $5 billion perpetual preferred equity funding facility with Macquarie Asset Management to support its data center development plans.

The sell-off appears to have been triggered by Applied Digital's fiscal second-quarter earnings report, released after the market close on Tuesday. While the AI data center company's revenue grew 51% year-over-year to $63.9 million, exceeding expectations, it reported an adjusted net loss of $0.06 per share, wider than the $0.05 loss a year earlier and missing analyst estimates of a $0.16 loss.

Investors seemed concerned about Applied Digital's profitability and cash burn as it continues its expansion efforts, despite the company's chairman and CEO hinting at potential future developments that could drive growth, such as negotiations for its Ellendale campus. The stock's decline suggests that the funding deal with Macquarie was overshadowed by the earnings miss and uncertainty over the company's path to profitability.