Applied Optoelectronics Stock Is Soaring Monday: What's Driving The Action?

Applied Optoelectronics Inc (NASDAQ:AAOI) shares are surging on Monday following last week's strong earnings report that exceeded expectations. Here’s what investors need to know.

• Applied Optoelectronics stock is approaching key resistance levels. Why did AAOI hit a new high?

Applied Optoelectronics Beats Estimates With Record Revenue

Applied Optoelectronics last week reported an adjusted fourth-quarter loss of 1 cent per share, significantly better than Wall Street’s forecasted loss of 11 cents. Revenue for the quarter rose approximately 34% year over year to $134.3 million, exceeding consensus estimates and marking a record quarter for the company.

Management indicated broad-based strength across its CATV and datacenter businesses, projecting first-quarter revenue between $150 million and $165 million, which is above analyst expectations of around $145 million.

The company also anticipates a non-GAAP net loss of 9 cents per share at worst, with potential for breakeven as it ramps up next-generation datacenter products.

Rosenblatt, Needham, B. Riley Hike Targets

Analyst Consensus & Recent Actions: AAOI stock carries a Buy Rating. Recent analyst moves following last week’s earnings report include:

• Rosenblatt: Buy (Raises Target to $125.00) (Feb. 27)
• Needham: Buy (Raises Target to $80.00) (Feb. 27)
• B. Riley Securities: Upgraded to Neutral (Raises Target to $54.00) (Feb. 27)

Shares Jump More Than 400% In Past Year

Currently, the stock is trading well above its 20-day, 50-day and 100-day simple moving averages (SMAs), indicating strong bullish momentum.

Shares have increased by over 400% over the past 12 months and are currently positioned closer to their 52-week highs than lows.

AAOI Shares Surge Monday

AAOI Price Action: Applied Optoelectronics shares were up 22.79% at $103.43 at the time of publication on Monday. The stock is trading at a new 52-week high.

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