Morgan Stanley analyst Stephen Byrd has initiated coverage on Applied Digital Corporation (NASDAQ: APLD) with an Equal-Weight rating and a price target of $36.5. This rating comes as the company's shares recently rose 4.61% to $26.98, buoyed by an oversold technical setup and a bullish Benzinga Edge Momentum score. The stock is recovering from a recent downtrend, with investors focusing on the company's upcoming fiscal fourth-quarter earnings report scheduled for July 27.

Earnings Preview & History

Applied Digital is expected to report a loss of 36 cents per share for the quarter, widening from a loss of three cents year-over-year. Revenue is projected to rise to $91.91 million, up from $38.01 million in the same period last year. For the prior quarter, the company reported earnings per share of $0.09, beating the consensus estimate of a loss of 17 cents per share, with revenue of $126.60 million exceeding the consensus estimate of $77.11 million. Applied Digital has beaten EPS estimates in seven consecutive quarters.

Strategic Outlook

In its most recent quarterly earnings report, Applied Digital reiterated its confidence in exceeding its long-term goal of $1 billion in Net Operating Income (NOI) within five years. The company remains focused on building a world-class data center region in the Dakotas with multiple hyperscalers while expanding into other strategic locations. Management stated that every new campus is intended to create a 15- to 30-year revenue stream backed by strong credits.

Technical Analysis

The chart indicates a clear downtrend on intermediate timeframes, with the stock trading 22.9% below its 20-day Simple Moving Average (SMA), 33.2% below its 50-day SMA, and 17.4% below its 200-day SMA. The Relative Strength Index (RSI) is at 26.30, placing the stock in oversold territory. While the 50-day SMA remains above the 200-day SMA, suggesting a constructive longer-term backdrop, the 20-day SMA sitting below the 50-day SMA keeps the near-term trend bearish until the price can reclaim key moving-average zones.

Benzinga Edge Rankings

Applied Digital holds a Benzinga Edge Momentum score of 82.08, indicating a bullish profile despite the recent drawdown. This momentum-driven profile suggests traders will watch closely to see if the oversold bounce can build into a trend reversal or fade as price runs into overhead resistance near $29.00.

Applied Digital Corporation will host a conference call on Monday, July 27, 2026, at 5:00 p.m. Eastern Time to discuss its fiscal fourth quarter and full year 2026 financial results. The company designs, builds, and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, networking, and blockchain workloads. A press release detailing these results will be issued after the market closes on the same day.

Management will provide prepared remarks during the call, followed by a question-and-answer period. Investors can access the live broadcast and replay for one year via the company's website. The replay will be available shortly after the conclusion of the call.

Conference Call Details

Participants are advised to call the conference telephone number approximately 10 minutes before the start time. An operator will register the caller's name and organization. For connectivity issues, investors may contact Applied Digital’s investor relations team at 1-949-574-3860.