From Nasdaq: 2025-05-12 20:16:00

Investors were unsure about Applied Optoelectronics (NASDAQ: AAOI) stock after a 0.6% drop following the latest quarterly earnings report, but the shares surged 24% on Monday. Revenue for the fourth quarter of 2025 was close to $100 million, up from $40.7 million in the same period the year before. The company also narrowed its non-GAAP loss to $900,000 compared to $12 million in the previous year. Applied provided guidance for the first quarter of the new fiscal year, expecting $100 million to $110 million in revenue.

The stock saw a bounce-back on Monday after news of a pause/reduction in tariffs on China, where Applied operates a manufacturing plant. The company has potential in the data center segment but needs to improve profitability. The Motley Fool Stock Advisor team did not include Applied Optoelectronics in their list of the 10 best stocks to buy now, focusing on stocks with potential for high returns.



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