Applied Digital Stock Drop Looks Sharp, But How Deep Can It Go?
Applied Digital (APLD) stock is down 17.5% in a day. The recent slide reflects renewed concerns around high valuations in AI infrastructure and profit-taking after a sharp rally, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Applied Digital stands today.
- Size: Applied Digital is a $5.9 Bil company with $148 Mil in revenue currently trading at $22.98.
- Fundamentals: Last 12 month revenue growth of 9.3% and operating margin of -31.3%.
- Liquidity: Has Debt to Equity ratio of 0.12 and Cash to Assets ratio of 0.03
- Valuation: Applied Digital stock is currently trading at P/E multiple of -24.1 and P/EBIT multiple of -34.8
- Has returned (median) 68.4% within a year following sharp dips since 2010. See APLD Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Very High valuation – making the stock Unattractive. For details, see Buy or Sell APLD Stock
That brings us to the key consideration for investors worried about this fall: how resilient is APLD stock if markets turn south? This is where our downturn resilience framework comes in. Suppose APLD stock falls another 20-30% to $16 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- APLD stock fell 82.6% from a high of $5.06 on 26 October 2021 to $0.88 on 13 July 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 May 2023
- Since then, the stock increased to a high of $37.76 on 15 October 2025 , and currently trades at $22.98
| APLD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -82.6% | -25.4% |
| Time to Full Recovery | 307 days | 464 days |
2020 Covid Pandemic
- APLD stock fell 67.6% from a high of $0.03 on 9 July 2020 to $0.01 on 29 July 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 3 December 2020
| APLD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -67.6% | -33.9% |
| Time to Full Recovery | 127 days | 148 days |
2018 Correction
- APLD stock fell 89.8% from a high of $0.05 on 1 June 2018 to $0.01 on 29 October 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 14 December 2020
| APLD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -89.8% | -19.8% |
| Time to Full Recovery | 412 days | 120 days |
2008 Global Financial Crisis
- APLD stock fell 91.7% from a high of $0.12 on 10 November 2008 to $0.01 on 11 December 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 29 July 2009
| APLD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -91.7% | -56.8% |
| Time to Full Recovery | 230 days | 1480 days |
Feeling jittery about APLD stock? Consider portfolio approach.
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