Applied Digital’s stock price surged on Friday, ending the day up 16.5%, as it secured new funding from Macquarie Group. The company announced a $100 million loan facility to support development costs for its new data center projects.
The news comes at a time when investors are rotating back into AI stocks after Micron’s earnings beat on Wednesday renewed confidence in the sector. However, some experts caution that Applied Digital carries significant risks, including overextending itself in its rapid expansion plans.
Despite this, the Motley Fool Stock Advisor analyst team recommends avoiding Applied Digital, citing concerns about the company’s high borrowing rates and potential for overleveraging. Instead, they suggest investing in other top-performing stocks with proven track records of success.
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Source: https://www.nasdaq.com/articles/why-applied-digital-stock-soared-165-friday