By coinnews 
00:00 Speaker A
Now time for some of today’s trending tickers. We’re checking in on shares of Applied Digital, Dell, as well as some solar and hydrogen stocks getting hit today. First up, we’ve got Applied Digital. Those shares soaring today after it announced two long-term lease agreements with CoreWeave. Now, those leases span about 15 years. Applied Digital expects it to generate around $7 billion in total revenue over that period of time here. Um, and Applied Digital has been converting itself to a data center real estate investment trust. So this is part of that, uh, process. This deal is part of that. Um, and obviously, there’s still been, as we were just discussing, still big demand for data centers.
00:54 Speaker B
Yeah. See, analysts at Needham cited saying, “This is a good deal to get cash coming in.” A lot of love for Applied Digital by the way in the street. Here’s something you don’t see too often, Julie. There’s nothing but buys on this name. Got nine buys, zero holds, zero sells. Maybe it’s bullish, or maybe it’s a contrarian indicator. I don’t know. Take your pick, Julie. Stock has already had a nice run this year. Up around 30%, up around 160% over the past 12 months on this one.
01:29 Speaker A
And, and also, you know, I mentioned that they signed the deal with CoreWeave. CoreWeave shares are trading higher as well, um, in today’s session. Now, recall they went public just in March at $40 a share. CoreWeave today, as I squint, 118.50 or so. So not a bad little return on the CoreWeave.
02:00 Speaker B
No, for sure. Shares of Dell sinking today, meanwhile, after a report that the General Services Administration contacted 10 technology providers Wednesday, including Dell, asking executives to justify their work and find areas to cut. This is according to The Wall Street Journal. So, you saw CDW and Dell, they were under pressure both in today’s trading. It was off that journal report from this GSA apparently sending this letter, listen, to these providers. Ask them, “Listen, justify your work. Find areas where you can cut costs for the US government.” I did see some analysts weighing in though on, on at least some of these moves. For example, I did see team at Evercore, that’s Amit Daryanani. He weighed in telling his clients about CDW, at least specifically, saying he, he thought that stock reaction overblown. He said in fact, “Limited exposure to the federal government. We don’t expect CDW to lose all of its fed business.” They remain outperform on that one.
03:16 Speaker A
Yeah, it’s been really interesting to see these cuts make their way across companies. Accenture was hit, Booz Allen Hamilton, which is a huge government contractor, gets most of its revenue from the government, um, affected by that as well. And I was really struck by the tally that was in the journal article. They say since January, the federal government has canceled 11,297 contracts across 60 agencies. That’s gotten them $33 billion in savings.
04:02 Speaker B
There you go.
04:03 Speaker A
Um, also speaking of government hitting stocks, we’ve got solar and hydrogen power stocks like Sunrun for solar, Plug Power. They’re all lower today. That’s after the Energy Department canceled over 3 and a half billion dollars worth of grants for clean energy and climate projects. And this coming in an announcement from US Energy Secretary Chris Wright, he said 24 awards were being canceled there. Um, and many of them were signed between Election Day and January 20th, according to his order. Almost 70% of those were signed at that point in time. Presumably, the intimation here is that they were being rushed to sign them before, um, Trump took office in order to sort of lock them in. And now the Energy Department’s reversing them.
05:01 Speaker B
Yeah, there was a good meaty piece in the journal about this too, which was sort of just delving into, looking broadly, the different sub sectors and verticals, how in, in this industry, how they’re having to navigate just so many moving parts right now with policy changes and tariffs and import restrictions. You know, previous administration that was sending billions and this new financial chapter here without as much public support.
05:39 Speaker A
Yeah. And it’s interesting because, you know, the all the CapEx that we have been talking about from large cap tech, they are still putting money into some of these solar projects because they need the power for their data centers. Nuclear’s not up and running yet for, for those projects. You know, yes, they can get natural gas powered, uh, projects, but it’s really hard to get new turbines right now. If you haven’t ordered one, it’s tough to get them. So, you know, solar is still an alternative for those companies. So we’ll see how it works out.
06:23 Speaker B
I wonder as this public support changes, Julie, does, does more building shift also to different countries, different regions, right? It might. Yeah.
06:36 Speaker A
I mean, the incentivization is different, like in Europe for example, certainly than it is here.