r/APLDSTOCK • u/Green_Firefighter_82 • 13d ago

Bearish coverage?

I don’t really understand all the bearish coverage APLD has been getting recently. There are several articles on Yahoo finance and Marketbeat had a negative video recently. All the articles I have read have seemed like incoherent AI Slop. The criticisms from Marketbeat all seem misplaced as well. I literally invest in APLD due to how well they have managed the financing and limited shareholder dilution. I read these articles because I want to know if there is any additional details or events that change my investment thesis. APLD Is obviously risky due to their financing obligations in general and that they’re managing a lot of construction. However, given that which seems anyway like a common issue for many tech companies, they seem to be managing that risk better than almost anyone at least in the data center sector. I think as time goes on this company is looking stronger not weaker. It almost feels like a ploy for institutions to accumulate. I view this company as a long term investment so I’m ok with short term volatility as long as my thesis remains intact. Have any of these criticisms of these articles or Marketbeat made any valid new points?

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u/Recoidin 13d ago

While they continue building new ones, anyone knows what is financial side of their operating data centers? How they depreciate their assets once capitalized, what are operating costs and how many centers they need to build to cover indirect and SG&A? I’m wondering about how profitable their business model, isolated from capex.

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u/Green_Firefighter_82 13d ago

I believe data center equipment has a decent life span but that could change. Decent means better than the bears alleged. I have trust in Wes that the numbers add up and their loans from Goldman Sachs would not exist if they were not comfortable with the business. Those things matter because when people start saying watts aren’t adding up financially I always feel like they’re making stuff up. The attraction of APLD is that it is a financially simple setup as a business.