Applied Optoelectronics' Worst Fears Return - I'm Still Buying

AAOI stock looks attractive after a post-earnings drop: compressed valuation, higher CY26 outlook, and margin upside.

Investment Thesis When Applied Optoelectronics (AAOI) reported its Q1 CY26 earnings in May, the company’s shares rose, creating a new high, with investors digesting a mixed performance in the company’s Q1 ER. However, shares eventually When Applied Optoelectronics (AAOI) reported its Q1 CY26 earnings in May, the company’s shares rose, creating a new high, with investors digesting a mixed performance in the company’s Q1 ER. However, shares eventually Analyst’s Disclosure: I/we have a beneficial long position in the shares of AAOI, LITE either through stock ownership, options, or other derivatives.

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