How Infinera's Stock Rose 33% in July

Shares of Infinera (NASDAQ: INFN) gained 33.3% in July 2020, according to data from S&P Global Market Intelligence. The vertically integrated maker of optical networking gear, from optical line systems to full-fledged carrier-class routers and switches, started this climb when an analyst said that telecom giant Verizon (NYSE: VZ) is testing Infinera's fastest solutions for a potential large-scale contract.

That analyst report was swiftly followed by a joint press release from Verizon and Infinera confirming the rumor with additional detail. The two companies have completed live fiber network tests, moving data at 800 gigabits per second over a 414-mile fiber and 400 gigabits per second in a 2,540-mile circuit.

Verizon described these tests as the foundation for the "blazing fast gigabit speeds, super low single-digit millisecond latency, and huge scalability" that will follow when the company completes its 5G network upgrades. Verizon's public support of Infinera's high-speed solutions for long-haul networks could inspire other telecoms to give the company a second look, too.

Source Fool.com