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

Carla Olson | 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.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Applied Optoelectronics, Inc. (AAOI) Buy or Sell Stock Guide

Updated at: 12:31 am ET, 12 Jun 2019

Are you looking for the analysis of Applied Optoelectronics, Inc. (AAOI) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 3 reasons to buy and 4 reasons to sell AAOI stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about AAOI stock:

  • Is AAOI a buy or a sell?
  • Should I sell or hold AAOI stock today?
  • Is AAOI a good buy / investment?
  • What are AAOI analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy AAOI stock:

1. AAOI stock price ($9.12) is close to the 52-week low ($8.66). Perhaps now is a good time to buy? See AAOI price chart.

2. AAOI Price/Book ratio is 0.53, and it’s low compared to its industry peers’ P/B ratios. See AAOI forward Price/Book ratio chart.

3. AAOI average analyst price target ($10.21) is above its current price ($9.12). See AAOI price target chart.

Now that you understand the bull case, let’s look at the reasons to sell AAOI stock (i.e., the bear case):

1. AAOI quarterly revenue growth was -19.20%, lower than the industry and sector average revenue growth (5.81% and 5.21%, respectively). See AAOI revenue growth chart.

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

3. AAOI short share of float is 49.79%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See AAOI short share of float chart.

4. AAOI short interest (days to cover the shorts) ratio is 11.47. The stock garners more short interest than the average industry, sector or S&P 500 stock. See AAOI short interest ratio chart.

Now let's look at the key statistics for AAOI:

Metrics AAOI
Price $8.88
Average Price Target / Upside $10.21 / 14.91%
Average Analyst Rating Hold
Industry Semiconductors
Sector Technology
Number of Employees 2,956
Market Cap $177.26M
Forward P/E Ratio -80.82
Price/Book Ratio 0.72
PEG -0.79
Revenue (TTM) $254.94M
YoY Quarterly Revenue Growth -19.2%
Profit Margin -5.78%

What are your thoughts on AAOI?

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

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


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