Applied Digital Won't Collect Most of Its Rent Until 2029. I'd Wait to Buy the Stock.
About $36 billion of 15-year contracted rent is on the books -- but almost none of it arrives until billions more in construction gets finished.
Applied Digital (APLD) has signed leases covering approximately 1,410 megawatts (MW) of critical IT load across five campuses, totaling about $36 billion in revenue over a 15-year period. However, the company generated only $611.3 million in revenue and reported a net loss of $249.2 million in its fiscal year ending May 31. With a current stock price near $26, significantly below its peak of $50.73, analysts advise waiting to buy the stock until the company proves it can generate the anticipated revenue from its lease agreements.
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