Applied Optoelectronics, Inc. (AAOI)
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Applied Optoelectronics (AAOI) stock: long-term sentiment is positive

Carla Olson | 6:26 pm ET, 19 Jul 2018

Applied Optoelectronics, Inc. (AAOI) shares are trading at 42.35, down -9.28% in two consecutive days. What's driving AAOI stock price down?  What's AAOI stock price forecast?

Last week, Rosenblatt initiated coverage of AAOI at Sell amid worries of price wars and declining margins.  Even with demand up for fiberoptics in China and the United States, price competition should heat up in 100G and 400G module markets, which may make AAOI's 40%-range gross margin unsustainable.

Piper Jaffray is upbeat on the optical-equipment makers today, as the firm sees easier comparables amid a reset at China's ZTE, now working free of a U.S. ban.

Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is positive. 

Over the last month, Applied Optoelectronics, Inc. (AAOI) returned -1.08%.

Applied Optoelectronics, Inc. (AAOI) short share of float is 81.28%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Applied Optoelectronics, Inc. (AAOI) average analyst price target ($35.72) is -16.93% below its current price ($43.00).

For the latest price and information on Applied Optoelectronics, Inc., please visit Finstead and search for "AAOI price" or "AAOI news".

Applied Optoelectronic manufactures and sells fiber-optic networking products primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-markets. It offers optical modules, lasers, transmitters and transceivers, and turn-key equipment. The company sells its products to Internet data center operators, CATV and telecommunications equipment manufacturers, and Internet service providers through its direct and indirect sales channels worldwide.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for AskFinny Bites, please send us an email at hi@askfinny.com.


Applied Optoelectronics (AAOI): What's Happening With The Stock?

Carla Olson | 3:05 pm ET, 12 Apr 2018

The Applied Optoelectronics (NASDAQ: AAOI) stock is barely moving in today's trading.  However, year-to-date, the stock declined 25% (visit Finstead and type “AAOI YTD return” to get the latest info). 

Applied Optoelectronics is a US-based company providing fiber-optic networking solutions for cable television, fiber-to-the-home, and data center markets.  Its products range from components and modules to complete turn-key equipment.

The company's market capitalization is US$568 M (visit Finstead and type “AAOI market cap” to get the latest info).  It generates 80% of its revenue from data center operations. Facebook, Amazon, and Microsoft are the 3 major customers. 

Facebook and Amazon are more inclined to buy AAOI's high-speed optical transceivers, rather than from those from Zhongji Innolight, a China-based rival. Zhongji's quality issues and AAOI's aggressive pricing tactics are the reasons for AAOI's success. 

Yesterday morning, the stock surged to an intraday day of $28, a 25% spike from its 52-week low. But the stock was still trading 72% below its 52-week high.  

So what is the price forecast for AAOI?  Is the stock worth buying now? 

Per Finstead Research, Applied Optoelectronics shares have the average price target of $36.  The stock has an upside of about 22%.


The Applied Optoelectronics stock has a fairly low valuation compared to the industry peers. It is only ahead of Sequans Communications (SQNS), Resonant (RESN) and ParkerVision (PRKR) based on the forward P/E ratio. 

Applied Optoelectronics shares have a high short share of float compared to the industry and sector averages, indicating potential high volatility in the upcoming days.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for AskFinny Bites, please send us an email at hi@askfinny.com.


Applied Optoelectronics, Inc. (AAOI) Buy or Sell Stock Guide

Updated at: 12:32 am ET, 12 Oct 2019

Are you looking for the analysis of Applied Optoelectronics, Inc. (AAOI) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 1 reasons to buy and 5 reasons to sell AAOI stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about AAOI stock:

  • Is AAOI a buy or a sell?
  • Should I sell or hold AAOI stock today?
  • Is AAOI a good buy / investment?
  • What are AAOI analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy AAOI stock:

1. AAOI Price/Book ratio is 0.66, and it’s low compared to its industry peers’ P/B ratios. See AAOI forward Price/Book ratio chart.

Now that you understand the bull case, let’s look at the reasons to sell AAOI stock (i.e., the bear case):

1. AAOI quarterly revenue growth was -50.60%, lower than the industry and sector average revenue growth (3.52% and 3.68%, respectively). See AAOI revenue growth chart.

2. AAOI profitability is declining. The YoY profit margin change was -20.14 percentage points. See AAOI profitability chart.

3. AAOI average analyst price target ($10.13) is below its current price ($10.40). See AAOI price target chart.

4. AAOI short share of float is 49.84%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See AAOI short share of float chart.

5. AAOI short interest (days to cover the shorts) ratio is 12.22. The stock garners more short interest than the average industry, sector or S&P 500 stock. See AAOI short interest ratio chart.

Now let's look at the key statistics for AAOI:

Metrics AAOI
Price $10.85
Average Price Target / Upside $10.13 / -6.64%
Average Analyst Rating Hold
Industry Semiconductors
Sector Technology
Number of Employees 2,956
Market Cap $211.51M
Forward P/E Ratio -29.33
Price/Book Ratio 1
PEG -0.84
Revenue (TTM) $210.53M
YoY Quarterly Revenue Growth -50.6%
Profit Margin -16.22%

What are your thoughts on AAOI?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for AskFinny Bites, please send us an email at hi@askfinny.com.


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