Despite a pullback on Friday driven by bearish macroeconomic news, Applied Digital (APLD -4.72%) stock managed to close out this week's trading with big gains. The company's share price ended the stretch up 16.5% compared to where it stood at the end of the previous week's market close.
Applied Digital's big rally this week stemmed from posting its report for the fourth quarter of its last fiscal year, which ended May 31. In addition to posting better-than-expected results for fiscal Q4, the company announced a major new contract with CoreWeave that helped send shares soaring.
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Applied Digital beat Wall Street's targets for fiscal Q4
Applied Digital published results for fiscal Q4 after the market closed on July 30, and the report and investor conference powered a massive rally for the company's share price. The data center specialist reported a non-GAAP (adjusted) loss of $0.03 per share for the period, which came in far better than the average analyst estimate's call for a per-share loss of $0.16.
Meanwhile, sales for the period came in at $38 million, which beat the average analyst estimate by roughly $880,000. Sales were up 41% year over year in the period, and the company paired the encouraging quarterly results with huge news about its relationship with CoreWeave.
CoreWeave's contract move flashes green flag for Applied Digital stock
In conjunction with its fiscal Q4 report, Applied Digital announced that CoreWeave had moved to exercise an option to secure an additional 150 megawatts of data center processing usage. Applied Digital revealed that it had entered into a $7 billion, 250-megawatt data center contract with the artificial intelligence (AI) specialist at the beginning of July, and news that its partner had quickly decided to sign on for the extra processing megawatts prompted explosive gains for the stock.
