Why Applied Digital Stock Is Sinking Today
Applied Digital stock rocketed higher yesterday, but macroeconomic concerns are pushing its share price lower today.
The July jobs report showed fewer-than-expected additions, and jobs estimates for May and June saw big downward revisions.
The stock market as a whole is also under pressure due to new tariffs introduced by President Trump yesterday.
10 stocks we like better than Applied Digital ›
Applied Digital (NASDAQ: APLD) stock is losing ground Friday after posting huge gains in yesterday's session. The company's share price was down 3.7% as of 2:10 p.m. ET. At the same point in the day, the S&P 500 (SNPINDEX: ^GSPC) was down 1.8%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down 2.5%.
Applied Digital stock had been down as much as 13.2% shortly after the market opened, but its valuation has regained significant ground in subsequent trading. The strength of the company's recent earnings report has likely helped reduce its valuation slide on the day, but the stock is still seeing a significant pullback in response to the latest U.S. jobs report and other macroeconomic concerns.
Applied Digital stock is slipping in response to jobs numbers and tariffs
The Bureau of Labor Statistics (BLS) published its July jobs report this morning and amended previously reported figures for June and May. The BLS report showed that only 73,000 nonfarm jobs were added to the U.S. economy last month -- well below the 100,000 job additions called for by the average economist estimate. Making matters worse, June's estimated jobs growth was revised from 147,000 to 14,000, and May's jobs growth was lowered from 144,000 to 19,000.
Adding another bearish pressure to the broader market, President Trump signed an executive order yesterday evening that introduced new tariffs on a wide range of countries. The tariffs are set to go into effect on Aug. 7, which means there is very little time for countries to negotiate trade deals that could mitigate the new import taxes.
What's next for Applied Digital?
Macroeconomic developments will continue to play a key role in shaping performance for Applied Digital and the broader market. Stocks have been on an impressive rally over the last few months, and major indexes have recently set new highs, but some recent economic data has raised concerns about how much momentum is left in the recent bull run. Concerns about the overall health of the economy and the possibility that the Federal Reserve may have waited too long to lower interest rates could continue to weigh on valuations.
On the other hand, Applied Digital is coming off of some big wins. The company's recent announcement that artificial intelligence (AI) specialist CoreWeave has exercised an option for an additional 150 megawatts of data-center processing is a clear bullish development and points to a promising long-term outlook.
Should you buy stock 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 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 $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!*
Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 29, 2025
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Applied Digital Stock Is Sinking Today was originally published by The Motley Fool
Erreur lors de la récupération des données
Connectez-vous pour accéder à votre portefeuille
Erreur lors de la récupération des données
Erreur lors de la récupération des données
Erreur lors de la récupération des données
Erreur lors de la récupération des données
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
11 minutes ago
- Business Insider
Russia's inflation fight is working — at the cost of growth
Russia may be getting its spiraling inflation under control, but it comes at a growing economic cost, according to a think tank. "Current inflationary pressures, including underlying ones, are declining faster than previously forecast," Russia's central bank said last month. Russia's inflation fell from 8.2% in the first quarter to 4.8% in the second quarter, prompting its central bank to lower its key interest rate from 20% to 18%. "The economy continues to return to a balanced growth path," the central bank added. That phrase is just "a euphemism for anemic growth," wrote Alexander Kolyandr, a senior fellow at the Center for European Policy Analysis, on Thursday. The Bank of Russia expects Russia's economy to grow 1% to 2% this year. Meanwhile, the International Monetary Fund expects growth of 0.9%. Russia's central bank projects the key interest rate to average between 18.8% and 19.6% this year and fall to 12% to 13% next year — a shift from aggressive interest-rate hikes from mid-2023 to tame an overheating war-fueled economy. Such high rates were effective at cooling prices. But they have also made borrowing more expensive and dampened both consumer demand and business investment. Since its full-scale invasion of Ukraine triggered sweeping Western sanctions, Russia has kept its economy afloat through massive defense spending and revenue from oil and gas exports. But that momentum may be running out. Growth stalls as manufacturing contracts and momentum fades The country's GDP grew just 1.4% in the first quarter — a sharp slowdown from the previous quarter. In July, Russia's manufacturing sector posted its steepest contraction in three years, according to S&P Global's Purchasing Managers' Index. "Weak client demand and financial difficulties at customers" weighed on output and new orders, wrote S&P Global. Business confidence was the lowest in three years. The slowdown in manufacturing suggests Russia's wartime economy may be losing momentum, adding pressure on policymakers to strike a delicate balance. "For the Kremlin, a brief period of low growth is tolerable, though combined with lower oil prices, it would reduce fiscal revenues," CEPA's Kolyandr wrote. "The main gamble is that the cooling of the economy won't trigger a prolonged recession," he added. Russia's central bank now finds itself walking a tightrope: keeping inflation in check while avoiding a deeper downturn. Continued wartime spending could easily reignite inflation, but pulling back could deepen the slowdown, especially as foreign investment remains scarce and consumer confidence weak. Meanwhile, President Donald Trump is putting pressure on Russia to end its war with Ukraine with new penalties, including secondary tariffs. Last week, Trump announced a 25% tariff on India and a "penalty" for its purchases of Russian oil.
Wall Street Journal
11 minutes ago
- Wall Street Journal
UBS to Pay $300 Million to Settle Credit Suisse Obligations Under DOJ Dea
UBS Group said it reached an agreement with the U.S. Justice Department to pay $300 million to resolve outstanding consumer-relief obligations Credit Suisse committed to. Swiss bank UBS, which in 2023 acquired Credit Suisse, said Monday that its Credit Suisse Securities (USA) LLC subsidiary entered into an agreement with the DOJ to resolve all outstanding obligations under a previous settlement. The obligations stem from a 2017 agreement between Credit Suisse and the DOJ related to the bank's legacy residential mortgage-backed securities business.
Forbes
11 minutes ago
- Forbes
No Friends In The Pipeline: Why 300,000 Black Women Were Pushed Out Of The Workforce
A recently published MSNBC article made headlines for a shocking stat: nearly 300,000 Black women have exited the American labor force in the last three months. The article attributes the mass exodus to reasons like federal job cuts and the dismantling of DEI programs, with issues like inflation, student loan debt, automation, and underrepresentation in growing tech sectors creating a compounded economic risk for Black women. This phenomenon not only hurts Black women but has a ripple effect for the entire U.S. economy, resulting in a loss in the country's gross domestic product (GDP). A less-discussed issue that must be considered is how what is happening is also the cause of a widening network gap faced by Black women. A 2019 article from LinkedIn's Vice President of Social Impact, Meg Garlinghouse, explored the network gap: the unequal access a person has to opportunities based on who they know. Garlinghouse's article cited research that indicates that 70% of professionals get hired at jobs where they know someone who works there. A 2020 study by Chika O. Okafor indicated that non-white job candidates get fewer jobs through referrals because their social network is smaller. With the anti-DEI legislation and a wave of corporate DEI rollbacks, many companies have deprioritized DEI, dismantling programs and initiatives like employee resource groups (ERGs), which provide key opportunities to boost one's professional network. According to Catalyst, ERGs can be thought of as 'voluntary, employee-led groups that foster inclusive work environments aligned with business values, goals, and objectives.' Often ERGs focus on a shared identity (race, religion, being a parent, LGBTQIA+ status, etc.). ERGs provide employees with pathways to network, connect across departments, find mentors, and build relationships but many organizations are quietly shuttering their ERGs amid growing anti-DEI sentiments. Having less opportunities to be in community with employees at different levels in an organization can exacerbate the network gap that Black women face. Mentorship and sponsorship programs, which are often perceived to be DEI or DEI-adjacent, may be halted in the current climate, even though these programs can play an instrumental role in employees' careers, and Black women's career advancement. A wealth of research indicates that Black women leading Fortune 500 companies, as well as those in education, medicine, and tech, routinely report feelings of both hypervisibility and invisibility. Organizational psychologist Dr. Kecia M. Thomas has highlighted the pet to threat concept in her research: the phenomenon in Black women's career trajectories where they go from being the 'pet,' where they are well-liked and celebrated but exploited, to being the 'threat,' where they are seen as posing a risk to the status quo. A 2023 report from Exhale indicated that 36% of Black women have exited a job because they felt unsafe. Black women face a slew of inequities in the workplace and must deal with issues of gendered racism and the angry Black woman stereotype. A 2024 Harvard study also found evidence that when Black women have a higher percentage of white team members, they are more likely to leave their job and less likely to be promoted, revealing the systemic inequities that are entrenched in the workplace. The rise of AI may be making the problem worse. Many of the AI tools that companies lean on to help with hiring decisions may exacerbate existing biases, contributing to hiring gaps when it comes to Black women. Black women are overrepresented in jobs roles that are vulnerable to AI and automation, explained executive leadership coach Margaret Spence in a LinkedIn article. These factors in conjunction with the dismantling of corporate DEI programs makes building and sustaining professional networks for Black women more challenging. What can organizations do to address this issue? First off, workplaces should be intentional about providing employees with opportunities to network with each other. Do you have active mentorship and sponsorship programs in place? If not, how can you get them started? Ensure that equity is foundational in your workplace; frequently audit company policies and practices to ensure fairness and disaggregate employee feedback from anonymous channels, focus groups, and surveys to better understand Black women's experiences. What are Black women saying when they leave your organization? Assess exit interview data to see if patterns are emerging from the Black women who have left. The current anti-DEI legislation was implemented to sow fear and confusion in the workplace. Be aware of the ever-changing laws and stay up to date on local legislation. Consult with legal counsel to better understand what DEI practices are legal. Despite popular misconceptions, there are still many ways to drive fairness and equity while complying with state and federal laws. For Black women, there are some ways to address the network gap. Building community intentionally is vital. Consider joining different community groups, whether in-person or virtually, that align with your goals. This could be an online community for Black women in law, for example, or a meetup group for Black women in cybersecurity. If the community you are seeking doesn't exist, think about ways to create it. Also consider intentional networking on LinkedIn. Many see the platform as a place to go only when job searching but it can also be a great place to build networks, find your people and directly engage with community members. Black women's mass exodus from the U.S. labor market is caused by several different factors. While some reasons, like the DEI rollbacks and federal job cuts, are more obvious, there are issues that are more insidious at play. It's important that we understand what the antecedents are and put measures in place to ensure that Black women are given the support that is needed to thrive. When Black women are given the tools to succeed, everyone across the board will benefit.
