Applied Optoelectronics (AAOI) Falls 7.6% After 5-Day Run

We recently published 10 Stocks Investors Have Ditched. Applied Optoelectronics Inc. (NASDAQ:AAOI) was one of the worst performers on Thursday.

Applied Optoelectronics saw its share prices drop by 7.62 percent on Thursday to close at $53.69 apiece, as investors priced in a strong earnings performance last year, while taking profits after a five-day gain.

In an updated report, Applied Optoelectronics Inc. (NASDAQ:AAOI) said that it narrowed its net loss last year by 80 percent to $38.2 million from $186.7 million in 2024, as total revenues soared by 83 percent to $455.7 million from $249 million.

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In the fourth quarter alone, net loss shrank by 98 percent to just $2.02 million from $119.7 million in the same period a year earlier. Total revenues also increased by 33.9 percent to $134.27 million from $100.27 million.

“We are pleased to deliver record fourth quarter results that were in line with or better than our expectations, and which capped off the strongest year in our company’s history,” Applied Optoelectronics Inc. (NASDAQ:AAOI) President and CEO Thompson Lin said.

“Our results were driven by broad-based demand in both our CATV and datacenter businesses. We have considerable momentum entering 2026, and we believe we are well-positioned to accelerate our growth this year,” he added.

For the first quarter of the year, Applied Optoelectronics Inc. (NASDAQ:AAOI) expects revenues to grow by 50 to 66 percent to a range of $150 million to $165 million.

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