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

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.

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

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.

Applied Optoelectronics, Inc. (AAOI) Stock Guide

Updated at: 4:28 pm ET, 16 Sep 2020

Before we start: if you're looking for AAOI stock price, you can quickly find it out by visiting Finny and typing "AAOI quote". If you're looking for a quick scoop on AAOI stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "AAOI". You'll get all this info in one place. Or you can just type "AAOI news" to get the latest stock news.

Looking to buy or sell Applied Optoelectronics, Inc. (AAOI)? Interested in getting the full scoop on AAOI, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this AAOI stock guide, we'll address key questions about AAOI, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. AAOI buy or sell? What is AAOI Finny Score?
2. What are the reasons to buy AAOI? Why should I buy AAOI stock?
3. What are the reasons to sell AAOI? Why should I sell AAOI stock?
4. What are AAOI key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Analysis

1. AAOI buy or sell? What is AAOI Finny Score?

#{finnyScore:null}Our quantitative analysis shows 0 reasons to buy and 1 reason to sell AAOI. AAOI doesn’t have an assigned Finny Score, because we don’t have sufficient data points to score the stock.

2. What are the reasons to buy AAOI? Why should I buy AAOI stock?

We can’t think of any good reason to buy this stock, which doesn’t mean they don’t exist.

3. What are the reasons to sell AAOI? Why should I sell AAOI stock?

Let's look at the reasons to sell AAOI stock (i.e., the bear case):

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

Key Stats

4. What are AAOI key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for AAOI:

Metrics AAOI
Price $10.43
Average Price Target / Upside N/A
Average Analyst Rating N/A
Forward Dividend Yield 0.00%
Industry Semiconductors
Sector Technology
Number of Employees 2,956
Market Cap $00
Forward P/E Ratio N/A
Price/Book Ratio N/A
Revenue (TTM) N/A
YoY Quarterly Revenue Growth N/A
Profit Margin N/A

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

Follow Us