Why Infinera Corporation Shareholders Have Something to Worry About
Shares of Infinera (NASDAQ: INFN) have rallied 45% this year, even though the optical transport solution provider has posted three straight quarters of double-digit revenue declines. That's because many investors believe that Infinera's main long-haul wave division multiplexing (WDM) business will rebound in the second half of the year.
That makes Infinera seems like a good turnaround play on the fiber "super cycle", in which the soaring use of streaming media, cloud storage, and other data-intensive tasks forces carriers to upgrade their networks. But there are also major flaws in that thesis. Let's discuss the five major issues that Infinera bulls should be worried about.
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Source: Fool.com
Ciena Corp. Stock
€46.31
0.650%
The stock is one of the favorites of our community with 21 Buy predictions and 1 Sell predictions.
As a result the target price of 55 € shows a slightly positive potential of 18.76% compared to the current price of 46.31 € for Ciena Corp..
