Applied Optoelectronics (AAOI) posted a yet another underwhelming earnings report. The company missed the Street’s Q3 revenue estimates and its management’s Q4 revenue guidance fell short of analyst expectations. But the disappointment doesn’t end there. Applied’s datacenter revenue from 100G sales continued to languish and its new design wins seemingly aren’t accretive enough to drive the overall company’s financials in the near future. I believe its weak earnings report would cause its shares to remain distressed over the coming weeks at least. Let's take a closer look at it all.
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