Applied Digital Corp's stock plunged 5.15% in after-hours trading on Tuesday, following the release of its fiscal second-quarter results that missed analyst estimates for earnings. The AI data center company reported an adjusted net loss of $0.06 per share for the quarter ended November 30, wider than the $0.05 loss a year earlier and below the consensus estimate of a $0.16 loss.

While revenue grew 51% year-over-year to $63.9 million, exceeding expectations of $62.4 million, investors appeared to be disappointed by the company's earnings miss. The stock's after-hours sell-off came despite Applied Digital unveiling a perpetual preferred equity funding facility of up to $5 billion from Macquarie Asset Management to support its data center development plans.

Applied Digital's chairman and CEO said in the earnings release that the company remains in late-stage negotiations for its Ellendale campus, hinting at potential future developments that could drive growth. However, the market's immediate reaction suggests concerns over the company's profitability and cash burn as it continues its expansion efforts.