Personal Finance

Why Applied Optoelectronics, Inc. Stock Rose 14% Higher Today

Close-up shot of a fiber-optic transceiver and two optical cables.

What happened

Shares of Applied Optoelectronics (NASDAQ: AAOI) are on the rise today thanks to a bullish analyst note. The maker of optical networking components and modules saw its stock price jump as much as 14% higher, backing down to a 13.1% gain as of 2:50 p.m. EDT.

So what

Analyst firm DA Davidson reiterated its buy rating and $50 price target on AOI shares today. Analyst Mark Kelleher had attended an investor conference where CFO Stefan Murry gave a presentation, and Kelleher left that event impressed with AOI's competitive advantages.

Close-up shot of a fiber-optic transceiver and two optical cables.

Image source: Getty Images.

Now what

Murry said that AOI hopes to double its volume of optical transceiver shipments in the second half of 2018, as compared to the first two quarters. Shipping volumes should then double again in 2019. Kelleher believes that AOI can deliver on these ambitious goals thanks to the company's 20-year efforts at perfecting the transceiver manufacturing process, resulting in custom-made machinery for key steps in the component-building process.

After today's jump, AOI shares are back to prices not seen since October and 104% above the stock's yearly lows. The rosy volume forecasts give investors hope that the stalled data center orders of recent quarters could now be a thing of the past.

10 stocks we like better than Applied Optoelectronics

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Applied Optoelectronics wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of May 8, 2018

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AAOI

Other Topics

Stocks

Latest Personal Finance Videos

    #TradeTalks: The New Normal of Travel and Trends on the Ground $VAC

    Marriott Vacation Club Global VP of Corporate Affairs Ed Kinney joins Jill Malandrino Nasdaq #TradeTalks to discuss the new normal of travel and trends on the ground. $VAC

    1 day ago

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More