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.
Source: Getty.
Source: Fool.com