Jun. 11 at 11:55 PM
$AAOI $LITE $ANET $CSCO
Last november 8 earning report popped from 17 to 28 despite reporting a loss.
On November 8, 2024, Applied Optoelectronics, Inc. (AAOI) stock surged by 51.4%, reaching multiyear highs. The primary driver was investor optimism fueled by the company's third-quarter earnings report and its long-term outlook, particularly in the context of artificial intelligence (AI)-driven demand. Despite a mixed earnings report—third-quarter sales rose 4.3% year-over-year to
$65.2 million, beating analyst expectations of
$62.6 million, but adjusted net loss widened to
$0.21 per share from
$0.05, missing estimates of
$0.17—
AAOI's stock soared due to its strategic focus on high-speed fiber-optic transceivers for data centers. The company highlighted robust demand for its 1.6-terabit transceivers, driven by the AI networking frenzy, with management noting strong order growth from existing and new large-scale customers.
Analyst upgrades also contributed, with Rosenblatt raising its price target from
$20 to
$27.50, reflecting confidence in AAOI’s data center and CATV business growth, despite short-term profitability challenges. This combination of AI-related optimism, revenue outperformance, and analyst support drove the significant stock price increase.
This stock used to trade in 100$+ back in 2017-2018. Could be a turn around this time.
