Sometimes you show up to the party and everyone's having a great time except you. That was Applied Digital Corp. (APLD) on Wednesday, with the stock falling more than 3% while the rest of tech partied on.

The Nasdaq gained 0.83%, and the S&P 500 rose 0.56%. Applied Digital, meanwhile, went the other way. The stock remains under pressure as it trades below several key moving averages.

Market breadth was also slightly negative, with an advance-to-decline ratio of 0.8. But here's the interesting part: technology ranked as the strongest of the 11 major sectors. That divergence suggests traders are favoring stronger technology names while reducing exposure to higher-volatility laggards. Applied Digital, apparently, is currently filed under "laggard."

The company has also struggled to hold rebounds. As a result, traders may be watching nearby support for signs of either stabilization or another leg lower.

Technical Analysis

The chart is not a pretty picture right now. Applied Digital shares are trading about 6.2% below their 20-day simple moving average of $26.17. The stock is also 10.5% below its 50-day SMA of $27.43.

The longer-term trend remains weak. Shares are about 27% below the 100-day SMA of $33.63 and 23.5% below the 200-day SMA of $32.12.

The 20-day SMA remains below the 50-day average. The 50-day SMA is also below the 200-day average after a bearish "death cross" formed in August. For the uninitiated, a death cross is exactly what it sounds like: the kind of technical signal that makes chart-watchers reach for the antacids.

Meanwhile, the MACD is below its signal line, while the histogram remains negative. That signals weakening upside momentum.

Traders may watch $24 as near-term support. On the upside, the $29 area could act as resistance.

Earnings And Analyst Outlook

Applied Digital is scheduled to report earnings Oct. 7. Analysts expect a loss of 30 cents per share, compared with a loss of 3 cents a year earlier. Revenue is expected to rise to $134.86 million from $64.22 million.

So the top line is expected to more than double while the bottom line gets worse. That's the growth-stage trade in a nutshell: spend now, profit later, hope the market stays patient.

The stock carries a Buy consensus rating with an average price forecast of $61.65. Recent analyst initiations tell a more mixed story, though. UBS initiated coverage with a Buy rating and a $38 price forecast on Sept. 23. Rothschild initiated coverage with a Neutral rating and a $22 forecast on Sept. 21. Wells Fargo started coverage with an Overweight rating and a $50 forecast on Sept. 17.

Three fresh initiations in a week, and the targets range from $22 to $50. That's Wall Street saying "we have opinions" without fully agreeing on what those opinions are.

Momentum Scorecard

Applied Digital has a Momentum score of 29.26 on the market data scorecard, reflecting weak price momentum compared with the broader market.

The stock may need to reclaim resistance near $29 before the technical setup becomes more constructive.

ETF Exposure

Applied Digital has a 4.08% weighting in the Global X Data Center & Digital Infrastructure ETF (DTCR). It also represents 3.88% of the Global X Blockchain ETF (BKCH) and 4.23% of the State Street Galaxy Hedged Digital Asset Ecosystem ETF (HECO).

Flows into or out of those funds can create additional buying or selling pressure in Applied Digital shares. In other words, even investors who've never heard of Applied Digital can move its stock simply by buying or selling these ETFs.

Price Action

Applied Digital shares were down 3.17% at $24.61 at the time of publication Wednesday, according to market data.