Jim Cramer on Applied Digital: A $7.5 Billion Contract Isn’t Enough Without Profits

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Omor Ibne Ehsan

Sun, May 3, 2026 astatine 10:11 AM CDT 3 min read

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Jim Cramer said nary to Applied Digital (APLD) contempt its $7.5 cardinal CoreWeave contract, arguing the institution is unprofitable portion competitors make earnings.
Applied Digital reported $126.64 cardinal successful Q3 2026 revenue, up 139% YoY, but posted a $100.9 cardinal nett nonaccomplishment and has $2.7 cardinal successful indebtedness against $2.1 cardinal cash.
APLD shares gained 630% successful the past twelvemonth and commercialized astatine a guardant P/E of 526, signaling Wall Street’s bullish presumption contradicts Cramer’s skepticism connected profitability timing.
The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Applied Digital wasn't 1 of them. Get them present FREE.

On the Lightning Round of Mad Money connected April 29, 2026, a caller named Bob from Florida told Jim Cramer helium was "knee-deep successful Applied Digital close now, and they conscionable signed that large $7.5 cardinal contract." Cramer's effect chopped against the contract-driven enthusiasm: "The occupation determination is that you've got a banal that is making nary wealth successful a marketplace wherever galore radical are making money, and radical are switching from the losers to the winners." His verdict: "I'm going to accidental nary to Applied Digital."

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Applied Digital wasn't 1 of them. Get them present FREE.

Applied Digital (NASDAQ:APLD) is the AI information halfway landlord down Polaris Forge 1 successful Ellendale, North Dakota. The header declaration Bob referenced is the lease statement with CoreWeave, structured arsenic 2 archetypal 15-year leases covering 250 MW for astir $7 billion, aboriginal expanded by 150 MW enactment that brings aggregate anticipated lease gross astatine the tract to astir $11 billion. Stack connected a 200 MW Polaris Forge 2 lease with an investment-grade hyperscaler worthy astir $5 billion, and the institution markets astir $16 cardinal successful contracted lease gross crossed 600 MW.

Where Cramer's "No Money" Critique Lands

The fiscal Q3 2026 merchandise filed connected April 8, 2026 shows the disconnect. Revenue came successful astatine $126.64 million, up 139.29% year-over-year, and bushed the $78.48 cardinal consensus. Adjusted EPS of $0.09 vs. a -$0.21 estimation looked clean.

The GAAP representation differs. Operating income was -$85.67 million, and nett nonaccomplishment attributable to communal stockholders widened to $100.9 million, deed by a $59.7 cardinal non-cash nonaccomplishment connected the Cloud Services reclassification and $39.3 cardinal from stock-based compensation from accelerated vesting. SG&A expanded 251% YoY. Debt sits astatine astir $2.7 cardinal against $2.1 cardinal of currency and restricted cash.

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