Applied Digital Stock Is Tumbling Today: What's Going On?

Applied Digital Corp (NASDAQ:APLD) shares are trending on Monday. Here’s a look at what you need to know.

• Applied Digital shares are retreating from recent levels. Why is APLD stock falling?

What To Know: Applied Digital has shifted its primary focus from hosting Bitcoin mining operations to developing and operating high-performance data centers for artificial intelligence.

The stock appears to be caught up in a pullback among momentum names to start the week amid continued profit-taking, sector rotation and renewed investor caution around AI-infrastructure valuations.

Given the lack of company-specific news on Monday, the decline in Applied Digital appears largely tied to investors trimming positions following recent rallies in AI-linked infrastructure stocks. Investors have been uneasy about how quickly Applied Digital is expanding its data-center footprint and taking on debt to fuel that growth.

Applied Digital is down more than 13% versus a 0.16% decline in the S&P 500 on Monday. The stock is currently showing a mixed technical picture, trading 9.3% below its 20-day SMA and 18.5% below its 50-day SMA, indicating some bearish pressure in the short term, while it remains 4.6% above its 100-day SMA, suggesting some support at that level.

The RSI is at 48.07, which is considered neutral territory. This level indicates that the stock isn’t currently overbought or oversold, suggesting that momentum could shift either way depending on upcoming price action.

MACD is above its signal line, indicating bullish momentum. This suggests that there could be potential for a short-term rally, but traders should remain cautious given the overall bearish positioning relative to the shorter moving averages.

Key resistance is set at $25.50, while there's no clear support level identified. If the stock approaches the resistance level, a breakout could signal a continuation of the upward trend, while a failure to break through could lead to further declines.

Over the past 12 months, Applied Digital stock has seen a remarkable 143.70% increase, reflecting strong longer-term momentum. This performance shows that, despite recent volatility, the stock has maintained a solid upward trajectory over the past year.

Traders should watch for a potential breakout above the resistance level at $25.50, as this could indicate a shift back to a more bullish trend. Conversely, if the stock fails to hold above the 100-day SMA, it may signal further weakness in the near term.

APLD Price Action: Applied Digital shares were down 12.35% at $24.42 at the time of publication on Monday, according to Benzinga Pro.

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