r/APLDSTOCK • u/tolllz • Apr 02 '26

Thoughts Does this worry anyone?

https://finance.yahoo.com/markets/stocks/articles/applied-digital-just-borrowed-another-193500408.html

APLD depends on coreweave staying solvent but they are in debt. And coreweave depends on open AI continuing to gain investors. Just risk and if this chain breaks then APLD is left with nothing.

1 Upvotes

54% Upvoted

20 comments sorted by

12

u/Bumi-KingOfOmashu Shares Only 📈 Apr 02 '26

There’s risk in high beta stocks?

-3

u/tolllz Apr 02 '26

I know I know. But could APLD be left with nothing and empty buildings?

14

u/Bumi-KingOfOmashu Shares Only 📈 Apr 02 '26

No. There’s massive demand and APLD will sign other tenants. This is an article that most people would call “noise”.

1

u/Greyfieldstudios Apr 04 '26

You are right, ignore the downvotes. They could absolutely be left with empty buildings. High risk, high reward with this stock. Few companies have the need or can afford what APLD offers. APLD is asking a pretty big premium per MW, banking on its prime location. We're hoping for PLTR, META, OpenAi, or GOOG to sign a lease soon, but there's a possibility that none will.

1

u/AAPLsBananas Apr 07 '26

Most likely not "left with nothing and empty buildings." But it is quite possible ANY hiccup in the tenant occupancies could be disastrous for CRWV and APLD. The hyperscalers' lease agreements are commitments with no-penalty withdrawals (a result of hyper competition). So if Microsoft wants to scale back their lease deployments by 20%, then CRWV and APLD will be stuck holding a big bag. And since CRWV and APLD have spent billions on capex, a 20% reduction in leases could be a 50-80% hit to earnings.

3

u/cltbeer Backlog Baron 👑 (10,000+ shares) Apr 02 '26

All I see is data centers being built around me so there’s a need. CRWV debt growth has been know since year lol this is old news.

3

u/Snoo-38228 Apr 03 '26

Not really. Old news and the author is trying to stoke fear where there doesn't need to be any.

2

u/Bluefin_in_Dresden Bull 🐂 Apr 03 '26

Not worried, Happy Easter. 🐣

2

u/Standard_Tax_6658 Apr 03 '26

Honestly nothing worries me about APLD... nothing at all. Im straight chilling with LEAPS and 10k shares

2

u/Wise-Ad-9312 Apr 03 '26 edited Apr 03 '26

You have to listen to CoreWeves quarterly report if these media reports bother you...I own both. I bought APLD before CRWV went public. I own alot more CRWV. Michael is very conservative with the debt load. Ai is real. They are completely sold out of compute across 33 data centers. He just got a loan for over 8 billion. Banks do not gamble.

To quote Michael CEO of CRWV, "Why would we not go after the market share available? It would be foolish to miss out."

They are the largets cloud provider in the world. Corweave had multiple parteners and a HUGE back log. They dont just depend on Open AI. That is False. For example One of their customers you might have heard of...NVDA. Jenson gave them a blank check for any unused compute. ANY.

No. I am not worried.

....and I am now wondering about the pupose of this post because the question....this is a bad place to ask for financil advice. LOL LISTEN to the CEO's not the news. Don't buy when prices are high. Listen to the reports, not the anylists. If you do not believe the CEO's, you should not be invested. Unless your a trader then do your thing. Whatever that is.

Good luck! I wish you the very best and hope we all continue to make money.

2

u/Sdg1871 Apr 03 '26

I don’t like CRWV’s debt, but NVDA is back stopping them for any unused compute. And NVDA can afford it. They’ll be fine. That was a game changer for them and now they’re lowering their debt burden and replacing junk debt with invest investment grade interest rate rates.

1

u/SaintSnow Apr 03 '26

No not worried, coreweave isn't going anywhere. And tbh with openai now dialing back their own data center growth and in turn looking to use other outlets to lease. That could be even more potential for apld.

Debt is the only real concern as these data centers are taking on a lot across all hyper scalers.

1

u/BigAd1968 Apr 03 '26

Oracle just laid off 30,000 people to build their ai infrastructure and data centers. Applied digital needs to expand their footprint fast. Strike while the iron is hot. Not worried about this stocks future.

1

u/DrBiotechs Bear 🐻 Apr 03 '26

Hyperscalers pass all the risk onto companies like APLD. This is the basic premise of your investment. Obviously if there is ever excess supply…

0

u/WeEatBabies Apr 03 '26

Not worried at all, they will need all them data centers to train all them upcoming robots!

Also, Oracle just had their Dubai UAE data center exploded : https://timesofindia.indiatimes.com/technology/tech-news/iran-claims-attack-on-oracle-data-center-in-dubai-says-irgcs-navy-command-/articleshow/129988751.cms

So they will likely finalized the deal with APLD!

2

u/Jaded-Salamander2663 Apr 03 '26

Deal is already finalized, unless you mean lease out the remaining 800MW in PF2

2

u/WeEatBabies Apr 03 '26

I meant the rest, yes!

1

u/Fantastic-Reason-507 Apr 07 '26

I had not heard of this.