Overview
- Applied Digital fell about 6.5% on Friday after reports of a power outage at its Ellendale, North Dakota AI data-center campus.
- Reporting characterizes the event as an isolated operational issue rather than a flaw in the company’s data-center design or strategy.
- Long-term leases, including the multi‑billion‑dollar CoreWeave agreement, were reported as unaffected by the incident.
- Market mechanics were cited as key drivers of the drop, with a short float above 31%, a days‑to‑cover near 3, and below‑average volume concentrated during the selloff.
- Commentary suggests watching for a rebound above $25.75 as a sign that panic selling has been absorbed and a potential short squeeze could develop.