New Photo - Golden Globes reveal major rules change: AI won't disqualify acting performances

&34;Performances submitted for acting categories must be primarily derived from the work of the credited performer,&34; the new rules state. Golden Globes reveal major rules change: AI won't disqualify acting performances &34;Performances submitted for acting categories must be primarily derived from the work of the credited performer,&34; the new rules state. :maxbytes(150000):stripicc()/JoeyNolfiBiophotof93a23298bdd47ba9c13f53815fc469b.jpg) Joey Nolfi Joey Nolfi is a senior writer at . Since 2016, his work at EW includes RuPaul's Drag Race video interviews, Oscars predictions, and more.

"Performances submitted for acting categories must be primarily derived from the work of the credited performer," the new rules state.

Golden Globes reveal major rules change: AI won't disqualify acting performances

"Performances submitted for acting categories must be primarily derived from the work of the credited performer," the new rules state.

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Joey Nolfi is a senior writer at *. *Since 2016, his work at EW includes RuPaul's Drag Race video interviews, Oscars predictions, and more.

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May 7, 2026 4:24 p.m. ET

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2026 Golden Globes winners

2026 Golden Globes winners Teyana Taylor, Noah Wyle, and Jean Smart. Credit:

- The Golden Globes have announced rules changes for the upcoming awards season.

- The use of AI will not automatically disqualify a contending performance, the rules state.

- "All submissions must include a disclosure describing any generative AI used anywhere in the production."

The Golden Globes have announced major rules changes for the upcoming awards season, and the awards body doesn't appear to be cracking down on artificial intelligence as much as the Academy did upon announcing its latest set of Oscars rules changes earlier this year.

While newly announced rules stated Thursday that "all submissions must include a disclosure describing any generative AI used anywhere in the production," the use of AI in general will not automatically bar a film or performance from contention.

"Performances submitted for acting categories must be primarily derived from the work of the credited performer," the rules state, suggesting that a partially AI-encompassing performance might still be eligible for a nomination.

Helen Mirren and Sarah Jessica Parker with their Golden Globes

Helen Mirren and Sarah Jessica Parker with their 2026 Golden Globes.

Christopher Polk/Getty

However, the rules continue: "Submissions in which a performance is substantially generated or created by artificial intelligence are not eligible" for a nomination.

"The use of artificial intelligence in connection with a performance does not automatically render a submission ineligible, provided such tools are used only to enhance or support a performance that remains fundamentally human-driven and under the creative control of the credited performer, and that any such use is authorized by the performer," the Golden Globes outlines. "Additionally, submissions may not include performances generated through the unauthorized use of a performer’s digital likeness, voice replication, or biometric data, whether or not the performer is otherwise credited."

The Globes elaborates, adding that the phrase "substantially generated or created" refers to the level to which AI "replaces or materially determines the performance itself, including the performer’s expression, movement, or vocal delivery."

'Heated Rivalry' star Hudson Williams channels Natalie Portman film in bold Met Gala look

Hudson Williams at the Met Gala; Natalie Portman in 'Black Swan'

Leonardo DiCaprio surprised Nikki Glaser with 3 baskets of 'pasta, pasta, and more pasta' after Golden Globes joke

Leonardo DiCaprio; Nikki Glaser

Outside of the acting categories, "a work submitted in any such category remains eligible provided that the core creative contributions in the relevant craft (including but not limited to direction, writing, composition, and animation) originate primarily from credited human individuals," and that the incorporation of AI or other generative tools serves only "a supporting or enhancing role rather than substituting for that human creative authorship."

In contrast, the Academy announced earlier in May that it would tighten its Oscars rules to protect actors, writers, and more from the rise of AI in Hollywood.

Among other shifts, the Academy's acting branch is now permitted to nominate "only roles credited in the film’s legal billing and demonstrably performed by humans with their consent," while the writing branch's rules state that "screenplays must be human-authored to be eligible" for a nomination for either Best Adapted Screenplay and Best Original Screenplay.

Noah Wyle at 83rd Golden Globes

Wyle at 83rd Golden Globes in January.

Rich Polk/Getty

The Golden Globes' new set of rules changes come after a multi-year period of transformation for the show, after a racial exclusion scandal rocked the Hollywood Foreign Press organization in 2021. Fallout eventually led to a hiatus for the broadcast, before its return amid the eventual dissolution of the organizing HFPA and more diversity initiatives aimed at welcoming a broader range of perspectives into the group's voting ranks.

***Get your daily dose of entertainment news, celebrity updates, and what to watch with our ******EW Dispatch newsletter******.***

The 2027 Golden Globes will simulcast Sunday, Jan. 10 on CBS and Paramount+, with nominations set to be announced on Dec. 7 of this year.**

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Published: May 7, 2026 at 11:38PM on Source: MORNING MAG

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Golden Globes reveal major rules change: AI won't disqualify acting performances

&34; Performances submitted for acting categories must be primarily derived from the work of the credited performer,&34; the n...
New Photo - Jake Hall, The Only Way Is Essex star and ex of Ladies of London’s Misse Beqiri, dies at 35

The British reality star reportedly died in a &34;tragic accident&34; after a night out in Spain on Wednesday. Jake Hall, The Only Way Is Essex star and ex of Ladies of London’s Misse Beqiri, dies at 35 The British reality star reportedly died in a &34;tragic accident&34; after a night out in Spain on Wednesday. By Leigh Blickley May 7, 2026 10:51 a.m. ET Leave a Comment :maxbytes(150000):stripicc()/jakehall1c30e0d64268843309b57b374ac4c1e63.jpg) Dave Benett/Getty Jake Hall of The Only Way Is Essex died at 35 following a &34;tragic accident.

The British reality star reportedly died in a "tragic accident" after a night out in Spain on Wednesday.

Jake Hall, The Only Way Is Essex star and ex of Ladies of London’s Misse Beqiri, dies at 35

The British reality star reportedly died in a "tragic accident" after a night out in Spain on Wednesday.

By Leigh Blickley

May 7, 2026 10:51 a.m. ET

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- Jake Hall of *The Only Way Is Essex* died at 35 following a "tragic accident."

- The British reality star reportedly suffered fatal head injuries at a villa in Spain.

- His ex, mother of his child and *Ladies of London *star Misse Beqiri, released a statement.

British reality star Jake Hall, best known for *The Only Way Is Essex*, reportedly died following an accident in Majorca, Spain on Wednesday. He was 35.

According to *BBC News*, Hall suffered severe head injuries at a villa in Santa Margalida — an incident authorities are investigating as "an accidental death." The Spanish Civil Guard told the outlet they are now awaiting the results of an autopsy.

A spokesperson for the Foreign, Commonwealth & Development Office also confirmed to *The Sun*: "We are supporting the family of a British man who has died in Spain and are in contact with the local authorities."

The Sun reported that officers said inquiries are focused on the theory that the 6-foot-4 star smashed his head through a glass door after a night of partying. He was reportedly found in a pool of blood with fatal head wounds allegedly caused by shards of glass.

A source said: "Witnesses told investigators he had been out partying all night and decided to carry on the party back at the place he was renting. It appears from what police have been told that he became agitated, possibly from alcohol and other substances he may have consumed."

** has reached out for more information.

British reality TV star Jordan Wright found dead at 33 in Thailand drainage canal

Jordan Wright

'The Bachelorette' star Konrad Bien-Stephen dies at 35

Konrad Bień-Stephen attends the 2022 NGV Gala at the National Gallery of Victoria on December 10, 2022 in Melbourne, Australia

In 2015, Hall joined the cast of the long-running reality series *TOWIE*, which showcases the lives of a glamorous group of young people in Essex. While on the show, he dated fellow cast member Chloe Lewis. They had a turbulent relationship that eventually ended.

In a statement to *EW*, ITV, which distributed *TOWIE*, said: "Jake was a part of the *TOWIE* family for a number of years and we send our very deepest sympathies to his friends and family following today's very sad news."

This is not the only loss the show's community has experienced as of late. Jordan Wright, who rose to prominence on *TOWIE* in 2018, was found dead at 33 in Thailand drainage canal in March. ITV also shared their sympathies at the time.

Two individuals posing together one wearing casual attire with sunglasses and the other in a blouse

Jake Hall and Misse Beqiri in 2021.

Karwai Tang/WireImage

Hall is survived by his 8-year-old daughter, River, whom he shared with his ex and Bravo's *Ladies of London: New Reign* star Missé Beqiri. The pair was previously engaged in 2018 before ending their relationship.

Beqiri's rep told *EW* on Wednesday that “at this time, Misse’s focus is on supporting and protecting their child as they come to terms with this devastating loss."

The statement concluded, "The family are asking for privacy, compassion and respect while they grieve privately.”

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Jake Hall, The Only Way Is Essex star and ex of Ladies of London’s Misse Beqiri, dies at 35

The British reality star reportedly died in a &34;tragic accident&34; after a night out in Spain on Wednesday. Jake Hall, The ...
New Photo - Anne Hathaway Jokes the 8 Other Actresses Originally Asked to Play Her “Devil Wears Prada” Role Are 'Tattooed on My Brain'

Anne Hathaway Jokes the 8 Other Actresses Originally Asked to Play Her “Devil Wears Prada” Role Are &x27;Tattooed on My Brain&x27; Raven BrunnerTue, May 5, 2026 at 11:45 PM UTC 0 Anne Hathaway attends the world premiere of ‘The Devil Wears Prada 2’ at Lincoln Center in New York City on April 20, 2026.

Anne Hathaway Jokes the 8 Other Actresses Originally Asked to Play Her “Devil Wears Prada” Role Are 'Tattooed on My Brain'

Raven BrunnerTue, May 5, 2026 at 11:45 PM UTC

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Anne Hathaway attends the world premiere of ‘The Devil Wears Prada 2’ at Lincoln Center in New York City on April 20, 2026.Credit: ANGELA WEISS / AFP via Getty -

Anne Hathaway said in a recent interview that she has the eight other actresses originally asked to play Andy Sachs in The Devil Wears Prada are “tattooed on my brain"

She starred in the 2006 comedy with Emily Blunt, Meryl Streep and Stanley Tucci

Rachel McAdams, Juliette Lewis and Claire Danes were among those who auditioned for the part

Anne Hathaway was always meant to be Andy Sachs.

The actress, 43, got candid about the eight other actresses who were originally asked to play her role of Andy Sachs in The Devil Wears Prada.

“I wasn’t the first choice to play Andy Sachs," Hathaway said in a joint Capital FM interview with her costar Emily Blunt, adding that she was "actually the ninth choice."

Blunt, also 43, then asked of the other actresses, “Can you name them?” And Hathaway replied, “Of course I can, they’re tattooed on my brain all these years later.”

Anne Hathaway in 'The Devil Wears Prada.'Credit: 20th Century Fox/Kobal/Shutterstock

“It was kind of amazing, because I'm just like, ‘Why is everyone turning down this amazing part in this amazing movie?' I couldn't figure it out. So now I like to, you know, kid myself and think that it was like some kind of destiny,” the Oscar winner continued.

Blunt said there's "no one else" who could play the beloved role, to which Hathaway responded, “You’re so sweet.”

Hathaway said she continued waiting for her moment after other actresses turned down the role. "The reason I felt really strongly that I should keep putting myself forward, and I shouldn't take my eye off the prize, was because the project just had this really unbelievable, almost mystical, magnetism to it, and I could feel it,” she said.

“I just was like, 'It doesn't matter how you get on this project, just get on it,' ” the actress added.

Hathaway starred in the 2006 comedy with Blunt, Meryl Streep and Stanley Tucci. The movie, directed by David Frankel and written by Aline Brosh McKenna, followed Andy, an aspiring journalist, as she lands a job at a competitive fashion magazine.

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All four actors reprised their roles in the sequel, The Devil Wears Prada 2, which came out on May 1, 20 years after the original.

Back in 2021, Hathaway mentioned the other actress who auditioned for her role during an appearance on RuPaul's Drag Race when contestant Rosé asked if there were any roles she had to "fight tooth and nail for.”

"I will give you some tea: I was the ninth choice for Devil Wears Prada," she revealed at the time. "But I got it! Hang in there, never give up."

Rachel McAdams, Juliette Lewis and Claire Danes were among those who auditioned for the part. Kirsten Dunst, Natalie Portman, Scarlett Johansson and Kate Hudson were also up for the role, according to Marie Claire.

(L-R) Meryl Streep, Emily Blunt, Stanley Tucci and Anne Hathaway attend the world premiere of ‘The Devil Wears Prada 2’ at Lincoln Center in New York City on April 20, 2026.Credit: Jamie McCarthy/Getty

— sign up for PEOPLE's free daily newsletter to stay up-to-date on the best of what PEOPLE has to offer​​, from celebrity news to compelling human interest stories.

Hathaway, who was named PEOPLE's World’s Most Beautiful in 2026, looked back on filming the first movie in an exclusive interview.

"The thing that struck me was that when we made the first one, I was just a 22-year-old mess," she said. "I mean, I'm in such a different phase of my life. I'm really lucky. I found someone that I love so much [husband Adam Shulman]. We've been married for 17 years. We've got two kids. I just feel like my life is in a much more complete and whole place. I felt so lost when I was 22, which really worked for the character."

The Devil Wears Prada 2 is now in theaters.

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Published: May 6, 2026 at 03:01AM on Source: MORNING MAG

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Anne Hathaway Jokes the 8 Other Actresses Originally Asked to Play Her “Devil Wears Prada” Role Are 'Tattooed on My Brain'

Anne Hathaway Jokes the 8 Other Actresses Originally Asked to Play Her “Devil Wears Prada” Role Are &x27;Tattooed on My Br...
New Photo - Zimmermann and Mytheresa Capture the Romance of Lake Como in an Exclusive Capsule Collection

This article contains affiliate links; if you click such a link and make a purchase, we may earn a commission.Zimmermann and Mytheresa Capture the Romance of Lake Como in an Exclusive Capsule Collection Jaclyn Alexandra CohenWed, May 6, 2026 at 8:23 PM UTC 0 Zimmermann & Mytheresa Drop New Capsule CollectionZimmermann (Zimmermann) "Hearst Magazines and AOL may earn commission or revenue on some items through these links." Zimmermann / Jana Gerberding (Zimmermann / Jana Gerberding) Zimmermann wants us to have an unforgettably glamorous summer.

This article contains affiliate links; if you click such a link and make a purchase, we may earn a commission.Zimmermann and Mytheresa Capture the Romance of Lake Como in an Exclusive Capsule Collection

Jaclyn Alexandra CohenWed, May 6, 2026 at 8:23 PM UTC

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Zimmermann & Mytheresa Drop New Capsule CollectionZimmermann (Zimmermann)

"Hearst Magazines and AOL may earn commission or revenue on some items through these links."

Zimmermann / Jana Gerberding (Zimmermann / Jana Gerberding)

Zimmermann wants us to have an unforgettably glamorous summer. “With this exclusive collection, I wanted to capture that spirit in pieces that women can truly live in, feel confident in, and create memories in,” says Nicky Zimmermann, the brand’s creative director. She worked closely with Tiffany Tsu, chief buying officer of Mytheresa, to bring us an exclusive capsule collection on Mytheresa.com inspired by the dreamy destination of Lake Como. And what’s more glamorous than that?

The capsule ranges across categories including ready-to-wear, swimwear, bags, shoes, and accessories, all of which embody what Zimmermann does best: bringing romantic silhouettes and vibrant prints to life in a sophisticated lineup of wardrobe must-haves. Think effortlessly soft dresses, linen sets for lakeside lounging, and elegant jewelry and feminine sandals for festive summer moments.

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Some of the standouts in the collection pay homage to the iconic Italian destination, with Lake Como prints and elevated, beach-friendly accessories.

Zimmermann / Jana Gerberding (Zimmermann / Jana Gerberding)

But the whole collection will fit perfectly into whatever plans you may have this summer. From reappearing floral prints to asymmetrical geometric motifs, all of these pieces have playfulness and charm to spare (and in some cases, actual charm appliqués). I recently had the chance to try out the capsule in Lake Como with the brand, and I found plenty of inspiration for getting dressed for sun-filled days ahead—especially after what felt like the longest winter of all time.

For more of the exclusive capsule, head to Mytheresa.com before it sells out, and see more of my favorite pieces from the collection below.

Zimmermann / Jana Gerberding (Zimmermann / Jana Gerberding)

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New Photo - Model Shows Up To MET Gala In ‘Jeans’ And Fans Freak, But The Plot Twist Changes Everything

Model Shows Up To MET Gala In ‘Jeans’ And Fans Freak, But The Plot Twist Changes Everything Amita KumariWed, May 6, 2026 at 9:26 AM UTC 0 As Indian model Bhavitha Mandava made her Met Gala 2026 debut on Monday, May 4, her jeansandtop look made headlines and sparked significant debate on social media due to the casual styling. The official dress code, themed “Costume Art,” saw attendees stepping out in extravagant, intricate pieces, making Bhavitha’s outfit, by comparison, appear underwhelming to some viewers.

Model Shows Up To MET Gala In ‘Jeans’ And Fans Freak, But The Plot Twist Changes Everything

Amita KumariWed, May 6, 2026 at 9:26 AM UTC

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As Indian model Bhavitha Mandava made her Met Gala 2026 debut on Monday, May 4, her jeans-and-top look made headlines and sparked significant debate on social media due to the casual styling.

The official dress code, themed “Costume Art,” saw attendees stepping out in extravagant, intricate pieces, making Bhavitha’s outfit, by comparison, appear underwhelming to some viewers.

While fans initially questioned the unexpected styling choice, the real story behind her outfit quickly became a twist that gave the look a more sentimental significance.

One netizen reacted, “Everyone roasting the jeans but wait till you hear the backstory… Kinda inspiring tbh. Makes you appreciate the journey more than the glam sometimes.”

Model Bhavitha Mandava attended the Met Gala 2026, opting for a controversial, casual Chanel “jeans and top” look

Image credits: Taylor Hill/Getty Images

The 26-year-old, who has recently risen to global prominence, is best known as the first Indian house ambassador for Chanel.

Before modeling, she was an architecture student who moved to New York City from India to pursue a master’s degree at New York University (NYU).

In December 2025, she became the first Indian model to open a Chanel show, the Métiers d’Art presentation held on a Manhattan subway platform.

Image credits: Taylor Hill/Getty Images

Image credits: realdavidonline

Given her rising status in the fashion industry, Bhavitha Mandava made her Met debut in a Chanel couture look, sparking intense debate about South Asian representation and whether the brand had “underdressed” its first Indian ambassador.

She wore a sheer, pale beige blouse paired with what appeared to be light-wash blue jeans.

Image credits: bhavithamandava

While the outfit resembled casual denim, according to Who What Wear, it was actually crafted from silk muslin designed to mimic the look of light-wash jeans.

As images circulated, users were quick to weigh in, with one writing, “Indian model at Met Gala and they put her in jeans?? Feels lowkey racist ngl. Give her the drama she deserves!!”

The outfit sparked intense reactions online, with many criticizing Chanel for “underdressing” their first Indian ambassador

Image credits: TakingHisTime

Another wrote, “They done traumatised her for her entire life because gurrrrl everyone looks Royal, then you clock in like we’re at Walmart???”

“She could have showed up in an Indian outfit she alr owns and still would have have looked better than what [Chanel] sent her in,” remarked a third.

“You’re acting like Chanel forgot how to dress people when this is obviously bait. They put her in something basic so everyone would scream about it…”

Image credits: Taylor Hill/Getty Images / CHANEL

Amid the backlash and speculation, Bhavitha later revealed the real inspiration behind the look in an interview with British Vogue.

She shared, “I had to pause when I saw the sketch [of the look], because that subway show was already one of the most significant nights of my career.”

One user quipped, “I’m filing a lawsuit on her behalf… Her stylist needs to be in federal prison by Monday morning”

“Turning it into something reimagined for the Met felt like carrying that memory forward, but in a more elevated way that still respects the original spirit and the theme of the evening.”

Mandava added, “What I know is that the subway wasn’t a backdrop for my story, it was the story. And every time it comes back around, I’m reminded that ordinary moments hold everything.”

“I wasn’t trying to be seen that morning. I was just existing. And somehow that was enough.”

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Image credits: CHANEL

Image credits: nabeel559

The look ultimately served as a full-circle tribute to the outfit she was wearing when she was first discovered by a modeling agent at a Brooklyn subway station in 2024.

Reportedly, under the creative direction of Matthieu Blazy, the ensemble was designed to align with the theme “Fashion Is Art” by elevating an ordinary, everyday garment into a meticulously crafted piece of high-fashion art.

Despite the deeply personal narrative, the look remained one of the night’s most polarizing choices.

Amid the criticism, Bhavitha revealed the inspiration behind the piece, as well as the illusion effect of the look that aligned with the night’s theme

Image credits: models

One person said, “I get the intention here but I don’t think it landed as intended…” while another added, “Chanel really sent her in blouse and jeans to the Met Gala?? It’s a tribute to her subway discovery but still… she looks so done…”

Others expressed, “Chanel really said ‘minimalism’ and sent her in jeans & blouse to Met Gala . She still ate tho, but the bar was on the floor this year.”

Another comment read, “It’s a full-circle nod to how she was scouted on the subway… but yeah… Met Gala still feels like the wrong night for ‘elevated casual.’”

Another notable moment from Bhavitha’s attendance was her capturing this year’s viral bathroom selfie.

Despite the event’s strict “no phone” policy, she shared the star-studded mirror selfie on her Instagram, featuring all members of BLACKPINK, Jennie, Lisa, Rosé, and Jisoo, alongside stars like Margot Robbie, Ayo Edebiri, and Gracie Abrams.

“They really sent her to the most photographed event on earth looking like she’s about to pick up her kid from school,” one comment read

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Published: May 6, 2026 at 12:36PM on Source: MORNING MAG

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Model Shows Up To MET Gala In ‘Jeans’ And Fans Freak, But The Plot Twist Changes Everything

Model Shows Up To MET Gala In ‘Jeans’ And Fans Freak, But The Plot Twist Changes Everything Amita KumariWed, May 6, 2026 at 9:26...
New Photo - Jim Cramer on Applied Digital: A $7.5 Billion Contract Isn’t Enough Without Profits

Jim Cramer on Applied Digital: A $7.5 Billion Contract Isn’t Enough Without Profits Omor Ibne EhsanSun, May 3, 2026 at 3:11 PM UTC 0 Tulane Public Relations/Wikimedia CommonsQuick Read Jim Cramer said no to Applied Digital (APLD) despite its $7.5 billion CoreWeave contract, arguing the company is unprofitable while competitors generate earnings. Applied Digital reported $126.64 million in Q3 2026 revenue, up 139% YoY, but posted a $100.9 million net loss and has $2.7 billion in debt against $2.1 billion cash.

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

Omor Ibne EhsanSun, May 3, 2026 at 3:11 PM UTC

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Tulane Public Relations/Wikimedia CommonsQuick Read -

Jim Cramer said no to Applied Digital (APLD) despite its $7.5 billion CoreWeave contract, arguing the company is unprofitable while competitors generate earnings.

Applied Digital reported $126.64 million in Q3 2026 revenue, up 139% YoY, but posted a $100.9 million net loss and has $2.7 billion in debt against $2.1 billion cash.

APLD shares gained 630% in the past year and trade at a forward P/E of 526, signaling Wall Street’s bullish view contradicts Cramer’s skepticism on profitability timing.

The analyst who called NVIDIA in 2010 just named his top 10 stocks and Applied Digital wasn't one of them. Get them here FREE.

On the Lightning Round of Mad Money on April 29, 2026, a caller named Bob from Florida told Jim Cramer he was "knee-deep in Applied Digital right now, and they just signed that big $7.5 billion contract." Cramer's response cut against the contract-driven enthusiasm: "The problem there is that you've got a stock that is making no money in a market where many people are making money, and people are switching from the losers to the winners." His verdict: "I'm going to say no to Applied Digital."

The analyst who called NVIDIA in 2010 just named his top 10 stocks and Applied Digital wasn't one of them. Get them here FREE.

Applied Digital (NASDAQ:APLD) is the AI data center landlord behind Polaris Forge 1 in Ellendale, North Dakota. The headline contract Bob referenced is the lease arrangement with CoreWeave, structured as two initial 15-year leases covering 250 MW for roughly $7 billion, later expanded by 150 MW option that brings aggregate anticipated lease revenue at the site to about $11 billion. Stack on a 200 MW Polaris Forge 2 lease with an investment-grade hyperscaler worth around $5 billion, and the company markets roughly $16 billion in contracted lease revenue across 600 MW.

Where Cramer's "No Money" Critique Lands

The fiscal Q3 2026 release filed on April 8, 2026 shows the disconnect. Revenue came in at $126.64 million, up 139.29% year-over-year, and beat the $78.48 million consensus. Adjusted EPS of $0.09 vs. a -$0.21 estimate looked clean.

The GAAP picture differs. Operating income was -$85.67 million, and net loss attributable to common stockholders widened to $100.9 million, hit by a $59.7 million non-cash loss on the Cloud Services reclassification and $39.3 million from stock-based compensation from accelerated vesting. SG&A expanded 251% YoY. Debt sits at roughly $2.7 billion against $2.1 billion of cash and restricted cash.

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CEO Wes Cummins told investors the 100 MW direct-to-chip liquid-cooled facility "represents approximately one-sixth of our contracted capacity and one-tenth of what is operating or under construction." He also noted hyperscaler annual capex has jumped from roughly $400 billion to nearly $700 billion. Management targets over $1 billion of NOI within five years, against a current adjusted EBITDA run rate of about $176 million annualized.

The Rotation Argument

Cramer's broader point concerns rotation out of money-losing growth stories. The market has not punished APLD, with shares up 629.58% over the last year and 59.09% in the past month to $34.80 intraday on April 30. Forward valuation is rich. Alpha Vantage tags the stock at a forward P/E of 526, a price/sales of 29, and a beta of 7.27. Wall Street's average target sits at $53.91 with 12 buy-or-better ratings and zero sells, so analysts are not echoing Cramer.

The Q3 reaction on April 8 illustrated the tension. Despite a 142.86% EPS surprise, the stock initially fell, then recovered toward $30.09 a week later. Investors should track when contracted megawatts convert into GAAP profit, the closing of the ChronoScale spin-off via EKSO Bionics, and capacity coming online at Polaris Forge 2 and Delta Forge 1.

The analyst who called NVIDIA in 2010 just named his top 10 AI stocks

This analyst's 2025 picks are up 106% on average. He just named his top 10 stocks to buy in 2026. Get them here FREE.

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Published: May 4, 2026 at 01:18PM on Source: MORNING MAG

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

Jim Cramer on Applied Digital: A $7.5 Billion Contract Isn’t Enough Without Profits Omor Ibne EhsanSun, May 3, 2026 at 3:11 PM U...

 

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