2024-01-30 06:49:41 ET
Summary
- Applied Optoelectronics is a leading fiber-optic networking player specializing in high-speed data transmission through optical communication technology.
- The data center market is experiencing booming growth due to factors such as digital transformation, IoT, cloud computing, and big data.
- The valuation of Applied Optoelectronics is impacted by volatility and the correct Beta to use, but the company is closer to profitability and the fiber optics market is strong.
Applied Optoelectronics (AAOI) has had an impressive run, and it would seem that the market forces are in its favor to continue its growth. However, substantial risks are present for the company, which is pretty expensive.
With the sensitivity in volatility impacting so much, this stock makes us consider further the meaning and implications of risk-adjusted return and the time horizon implications....
Read the full article on Seeking Alpha
For further details see:
Applied Optoelectronics: A Risky Play At A Premium