On May 8, Applied Optoelectronics (AAOI) rose 7.52% in regular trading, trading at $167.94/share, with trading volume of approximately $499 million. The stock is staging a sharp rebound following a steep multi-day selloff triggered by disappointing first-quarter results and broader optical communication sector weakness.
The recovery comes after AAOI reported Q1 adjusted EPS of $(0.07), missing the consensus estimate of $(0.05) by 40%, while revenue of $151.144 million fell short of the $157.064 million estimate. The revenue shortfall was primarily driven by data center business, which generated $81.4 million versus expectations of $91.4 million. Adjusted gross margin came in at 29.2%, below the expected 30.4%. Despite the miss, revenue still grew 51% year-over-year. The stock had previously declined over 7% on May 6 and fell an additional 11.4% in after-hours trading on May 7, creating conditions for a technical rebound. The broader Communication Equipment sector is also showing strength, with peers including Cisco up 2.11% and Ciena up 2.15%.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
