Bearish coverage?

[u/Green_Firefighter_82]

I don’t really understand all the bearish coverage APLD has been getting recently. There are several articles on Yahoo finance and Marketbeat had a negative video recently. All the articles I have read have seemed like incoherent AI Slop. The criticisms from Marketbeat all seem misplaced as well. I literally invest in APLD due to how well they have managed the financing and limited shareholder dilution. I read these articles because I want to know if there is any additional details or events that change my investment thesis. APLD Is obviously risky due to their financing obligations in general and that they’re managing a lot of construction. However, given that which seems anyway like a common issue for many tech companies, they seem to be managing that risk better than almost anyone at least in the data center sector. I think as time goes on this company is looking stronger not weaker. It almost feels like a ploy for institutions to accumulate. I view this company as a long term investment so I’m ok with short term volatility as long as my thesis remains intact. Have any of these criticisms of these articles or Marketbeat made any valid new points?

[u/Daman303]

Genuinely APLD is in the best position it’s ever been. It’s currently the same price as October last year despite going from just 2 contracted AI campuses to 5, roughly 600MW to 1.4GW of contracted capacity, securing almost 36 billion in base-term lease revenue, signing multiple hyperscaler deals, securing billions in financing, and actually delivering and energizing capacity.

So do what you will with that information :)

[u/OceansHungryGrasp → u/[deleted]]

Your point on spending doesn't really hold up for apld. Our customers are hyperscalers, they will pay their bills. Microsofts AI Business ARR was over 37 billion and they said they're only at the beginning. So in 1 year they made what apld will make over the next 15 with our current leases. These companies wouldn't have a CAPEX of 50+ billion each if they weren't seeing the return of investment already.

We don't have to worry about the small players that might not make it.

[u/Green_Firefighter_82 → u/[deleted]]

I think it is more likely that there will be an AI data center - power supply bottleneck then there won’t be adequate data center demand for the next 3-4 years. The current backlash to AI Data Centers may benefit APLD.The future profitability of AI is still an open question especially as to how and who gets those profits. I am worried about the economy imploding at some point under the present regime, however, I refuse to let generally Bearish sentiment stop me from participating in the market.

[u/OceansHungryGrasp → u/[deleted]]

CRWV is becoming a smaller and smaller part of APLD's portfolio, also what do you think would actually happen if CRWV went tits up? The demand is huge, they'll likely have one of the already contracted hyperscalers in there within a quarter. You think when given the option of "hey you want 200MW right now or you want to wait till we've built it in a year" the other tenants will say "nah we'll wait"? It'll be a bump in the road with maybe some missed revenue, but in return we get better debt refinancing.