Applied Digital's stock dropped 6% despite Jones Trading initiating coverage with a $70 Buy rating, reflecting broader selling pressure on data center operators like TeraWulf and Core Scientific, which also fell 4%. The decline is driven by rising interest rate concerns that hurt long-term financed assets like data centers, as higher borrowing costs reduce the present value of future earnings. While Jones Trading remains bullish on data center capacity, the market's focus on financing risks and inflation worries linked to oil prices is weighing on the sector. Investors are advised to manage risk carefully, watching inflation and rate changes that could shift the outlook for Applied Digital and its peers.
Applied Digital trades at USD 24.83 on Pluang, down 5.41% as of Sep 28, 2026 23:14 WIB, close to its 52-week low of USD 20.55. TeraWulf shares are priced at USD 15.31 with a 1-day decline of 2.70%, while Core Scientific is at USD 16.67, down 3.86%. These price moves reflect ongoing market pressures on data center stocks amid concerns about financing and inflation risks.
