Why Shares of Acacia Communications Are Soaring Today

Shares of fiber-optic network equipment provider Acacia Communications (NASDAQ: ACIA) jumped on Thursday in response to an analyst note regarding a large order for optical transport network equipment by China Mobile from a variety of suppliers. According to the analyst, the order is the largest ever placed by the Chinese telecommunications company. As of 12:32 p.m. EDT, Acacia stock was up 9.2%.

Jun Zhang, analyst for Rosenblatt Securities, believes that China Mobile's order for 42,000 cards and ports is the largest ever by the company, beating out a previous order in 2015-2016. The analyst pegs the total value of the order at 2 billion to 3 billion yuan, or $300 million to $450 million.

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Source: Fool.com