Applied Digital (APLD) shares plunged 30% after the company reported quarterly earnings that fell significantly short of analyst expectations, with a revenue of $52.9 million for the quarter ending February 28, 2025, which was nearly 18% below the anticipated $64.5 million. Despite a 22% increase compared to the previous year, revenues also dipped in the company's cloud computing sector, which experienced a 36% sequential decline. The firm intends to divest its cloud services business to refocus on high-performance computing (HPC) data centers and possibly transition into a real estate investment trust (REIT). The non-GAAP net loss per share was $0.08, surpassing analysts' predictions of a loss of $0.10, but adjusted EBITDA was $10 million, missing the $16.9 million estimate, indicating ongoing margin pressure due to heavy investment in infrastructure. CEO Wes Cummins emphasized that separating the cloud services business aims to better serve shareholder interests.

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