From Nasdaq.:

Applied Optoelectronics (NASDAQ: AAOI) is currently experiencing a 7.4% surge in the Nasdaq Stock Market, following an announcement by Rosenblatt Securities that they have upgraded the stock to “buy”. Citing a positive outlook for the telecom equipment industry, Rosenblatt estimates that Applied Optoelectronics’ telecom equipment sales “are poised to explode to the upside” starting later this year. The analyst forecasts that the global market for this kind of equipment will grow to $7.5 billion, or even $12 billion, and the company’s revenue in 2025 “may be conservative.” If correct, Applied Optoelectronics could generate $750 million to $1.2 billion in sales next year. However, as the company hasn’t been profitable since 2017 and hasn’t generated any positive free cash flow, the decision to buy stock in Applied Optoelectronics may not be an easy one. Lastly, investors should be wary of unknown stock gains as rumors circulate that the company will beat expectations.



Read more: Why Applied Optoelectronics Stock Just Jumped 7%