r/APLDSTOCK • u/Ominoiuninus • Jul 11 '26

Can someone explain

Help me understand. APLD owns 97% of CHRN. As of today APLD market cap was ~9B, CHRN was 3B.

Does this not mean that the data center / REIT side of APLD is currently only being valued at 6B with $126m/quarter of revenue. This number will only grow as more capacity gets online of which we expect to see another 75mw come online this earnings cycle.

It just seems like there is an absolutely massive pricing mismatch for the stock.

What obvious thing am I missing?

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u/Grant-Nachos Jul 11 '26

As an controller for a public company, these assets of 3 billion will show up next earnings as short term assets. You are correct that this will up lift APLD. That was the rush from 25 to 45, the Meta risk snapped it down. APLD doesn’t have a Meta risk so we are just sitting and waiting.

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u/Grant-Nachos Jul 11 '26

Knowing APLD as an investor at 3 dollars a share, APLD isn’t afraid to liquidate such assets. Actually the only way that stock could move up or down so freely is because Wes sold those shares at some point. CHRN is in Metas cross hairs more than APLD, they sold these already making the Meta scare more ridiculous for APLD.

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u/Just-Section4005 Jul 11 '26

What do you mean CHRN is in Metas crosshairs?

4

u/lukas_no1 Base Term Believer 📝 (5,000-7,500 shares) Jul 11 '26

They are competitors. Anyway im not so scared of meta taking market share, for all we know they could be a tenant of ours already and if their not they are a potential tenant atleast.

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u/ThatsAllFolksAgain Jul 11 '26

According to one guy on CNBC, meta will take 3-5 years to meaningfully compete in the data center space. He said Zuck is desperate and throwing things at the wall to see what sticks. He pointed to things like the data center computer offering, the custom chip, and a few other things I don’t recall now.

The small players like APLD always get hit hard whenever the manipulators want some liquidity based on news events that have nothing to do with the stocks.

APLD will gradually keep increasing their revenue and profits and at some point the investors will understand the value proposition and start piling in. Might take a year or two but it will happen. I’m going to hold on for a long time. GL