Applied Digital Stock (APLD) Doubles on CoreWeave (CRWV) Tie-Up — We Called It

By Douglas A. McIntyre Published Jun 12, 7:18AM EDT

Key Points

Applied Digital (NASDAQ: APLD) shares doubled after announcing a $7 billion AI data center partnership with newly public CoreWeave (NASDAQ: CRWV).
The CoreWeave IPO initially faced skepticism, trading down to $33 before surging past $100, which amplified market enthusiasm for its partners like APLD.
Short interest and prior operational challenges at Applied Digital may add volatility, but investor sentiment has turned sharply bullish following the CoreWeave tie-up.

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Applied Digital Stock (APLD) Doubles on CoreWeave (CRWV) Tie-Up — We Called It — © 24/7 Wall St

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Transcript:

Doug McIntyre: Lee, we get to take a, victory lap on one of the things we said in an earlier show. What? Why don’t you take it for us?

Lee Jackson: after the fact, if you wait long enough, I guess everybody can be a genius, but.

Lee Jackson: Back in the spring, probably February or March after we had some good success with Sound Hound and some other stocks, we decided to take a Gandert Applied Digital, which, the symbol of that is, NASDAQ, APLD and Applied Digital is a, newer AI tech center, with, of course tons of servers and all that for AI driven applications.

Lee Jackson: And, the stock did okay. after we talked about it, it went up a couple of bucks, maybe five to seven. But recently we really had the, cat come [00:01:00] home because there was some big news recently.

Doug McIntyre: And what happened?

Lee Jackson: CoreWeave, which was one of the biggest deals so far this year, which was symbol CRWV, came out and strangely enough, we talked about this a little bit recently.

Lee Jackson: It was a deal that. initially people seemed a little worried about, and your college buddy or whatever he is. Jim Kramer, just absolutely hammered the deal prior to the IPO trading. So it did trade down the first couple of days, but then it took off and it took off like a scald monkey. It ran up from, I think the initial pricing was 40, it went down to 33 and then went straight over a hundred.

Lee Jackson: And the good news for Applied Digital is they, have a contract working with CoreWeave for a $7 billion investment in an AI data [00:02:00] center. And it just, the stock just absolutely exploded. Recently, it’s traded over $15, which is up a hundred percent in about a week and a half. And who knows, there was a fair amount of short interest and it could go higher.

Doug McIntyre: We get to crow every once in a while, and this is a good example.

Lee Jackson: it is, and the thing is sometimes these items come out of the blue. Applied Digital was a decent play on its own. they had some earnings issues and something that typical. starting up a big process, which is capital intensive takes time.

Lee Jackson: But boy, when you, get an announcement, like a $7 billion investment from a company that’s just gone sky high, people are gonna come in and they’re gonna, they’re gonna get going on that fast.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.