Why Applied Optoelectronics Inc. Stock Fell 37% in October
Shares of Applied Optoelectronics (NASDAQ: AAOI) fell 37% in October, according to data from S&P Global Market Intelligence. The maker of fiber-optic networking products for enterprise and service providers saw one major client's orders coming in slower than expected, so guidance for the third quarter was lowered across the board.
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In the middle of October, Applied Optoelectronics took a look at its preliminary Q3 results and decided to issue a warning to its investors. One of the company's largest data center customers had ordered fewer high-speed transceivers than expected, and the shortfall was large enough to lower AOI's Q3 guidance targets by approximately 20%.
Source: Fool.com