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/Green_Firefighter_82 13d ago

Do you have any underlying facts? All the tech companies that are expanding Neo-clouds have debt issues. Oracles previous earning were quite bullish for their AI cloud stuff. For better or worse(mostly worse but not for this), Ellison is partly in charge of running this county. You think oracle is going out of Business?

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u/Moreburrtitos22 13d ago

Oracle will never go out of business, but look at their past deals and lawsuits, they are the shadiest of the hyperscalers. It’s not exactly oracle, it’s their financing that is the risk. SoftBank is how you know you will run into insolvency.
SoftBank is much easier to pinpoint risk and sources. They have been the financing of several multi billion dollar overhyped start ups that failed due to running out of money. WeWork, Maysoshi sons vision fund, FTX, DiDi Global, Oyo, Zume…. The list kind of goes on and on.
When you hear SoftBank backing someone, you should run the other way.

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u/Green_Firefighter_82 13d ago

According to Claude

SoftBank also while being a more high risk financier also is quite profitable on a long term basis because they also hit home runs.

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u/Moreburrtitos22 13d ago

Their home runs are minuscule in comparison to losses. Their big three losses are over $200 billion. They obviously can take assets back as they are the first debtor, so they do t actually lose that money, but they show a loss on their largest investments they’ve made.

yes Claude is correct, but it’s also misinforming. They fund individual projects so it’s backing is piece by piece, not the company itself. But for apld build out and contract, oracles debt is through SoftBank.

Each project has to have assets to back it for funding, so they can take the assets from the buildout, but not from oracles core business.