Why Applied Digital Stock Soared Again Today
Applied Digital (NASDAQ: APLD) stock posted another day of big gains in Friday's trading. The company's share price closed out the daily session up 8.5%. The S&P 500 ended the day up 1%, and the Nasdaq Composite closed the session up 1.2%.
Applied Digital stock continued to rocket higher today after the latest jobs report for the Bureau of Labor Statistics (BLS) got a bullish read from investors. The company's share price has now more than doubled over the last week of trading.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
May's jobs data served up a bullish catalyst for Applied Digital stock
The BLS published May's employment data today, and investors saw promising signs in the results. Excluding farm jobs, the U.S. economy added 139,000 net jobs last month. Meanwhile, economists had forecast 125,000 net job additions in the period.
Because it could have signaled higher inflationary pressures, stronger-than-expected jobs growth could have actually been a negative indicator for Applied Digital and other growth stocks. But the BLS' update also revised April's net jobs growth figure down by 30,000 and March's jobs additions down by 65,000.
The new BLS report generally signals that the U.S. economy is growing at a relatively modest pace. In turn, this makes it more likely that the Federal Reserve will lower interest rates this year. If so, that could help maintain strong momentum for Applied Digital stock.
What's next for Applied Digital?
Applied Digital stock has been on an incredible hot streak after the company announced that it's entered into a new data-center lease agreement with CoreWeave. Through multiple contracts over the next 15 years, Applied Digital expects to generate more than $7 billion in sales from its service agreements with the artificial intelligence (AI) specialist.
On the heels of its explosive valuation gains, the data center specialist is now valued at roughly 12 times this year's expected sales. But its big contract win with CoreWeave suggests that the company is primed to enter an explosive new growth phase.
Should you invest $1,000 in Applied Digital right now?
Before you buy stock in Applied Digital, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Applied Digital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!*
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