Applied Optoelectronics (AAOI) surged 5.28% in pre-market trading, marking a significant rebound after a multi-day decline.
The stock's rise follows a sharp selloff triggered by the company's disappointing first-quarter earnings, where revenue and earnings per share missed analyst estimates. However, investor sentiment improved due to positive developments highlighted by the company, including the start of volume shipments for 800G transceivers and the securing of a major $200 million bulk order for 1.6T products from a hyperscale customer, with deliveries expected in the second half of the year.
Analyst firm Rosenblatt maintained a Buy rating on the stock with a $220 price target, supporting the positive outlook despite near-term challenges.
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