Needham maintains its hold rating on AAOI
Applied Optoelectronics delivered a downbeat outlook for the quarter and saw its stock drop as well on Thursday. Needham analyst Alex Henderson sees a "long road ahead" for the company and commented that management seems to have low visibility into the second half of the year.
"While at some point normal datacenter investment will likely return as inventory gets worked through, we find visibility into CY2H murky at best," wrote Henderson, who rates the stock at hold.
Applied Opto shares were down more than 12% in Thursday's session.