2024-07-07 07:34:28 ET
Summary
- Applied Optoelectronics provides niche technology solutions to various markets including data centers, cable TV, and telecommunications.
- Despite positive developments like a deal with Microsoft, the company has seen a significant decline in its stock price, and it is struggling financially.
- Continued downside is possible due to volatility in key markets, declining revenue, and lack of positive earnings or cash flows.
My, how time flies! It seems like only yesterday that I wrote an article about a fairly small company by the name of Applied Optoelectronics ( AAOI ). This firm provides niche technology solutions to different end markets like Internet data centers, cable TV, telecommunications firms, and fiber-to-the-home businesses. Back at that time, I found the company to be an interesting one. In particular, the company seemed to make for an intriguing prospect for investors banking on global data center growth. But because of its mixed financial performance, I made the claim that the company would likely see a very binary outcome that would be based largely on how things would ultimately go in its operations in Asia....
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Applied Optoelectronics: The Bottom Is Not Likely In