Why Investors Shouldn’t Be Surprised By Applied Digital Corporation’s (NASDAQ:APLD) 63% Share Price Surge
Applied Digital Corporation (NASDAQ:APLD) shareholders are no doubt pleased to see that the share price has bounced 63% in the last month, although it is still struggling to make up recently lost ground. The last 30 days bring the annual gain to a very sharp 53%.
Following the firm bounce in price, when almost half of the companies in the United States’ IT industry have price-to-sales ratios (or “P/S”) below 2.6x, you may consider Applied Digital as a stock not worth researching with its 5.7x P/S ratio. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s so lofty.
Our free stock report includes 3 warning signs investors should be aware of before investing in Applied Digital.
