Applied Optoelectronics: Some Stylized Facts To Keep Investors Grounded

Applied Opto loses some $45M in revenues from Amazon in Q3, or half its prospective total revenues for the quarter.
Yet, it still manages to grow revenues at 25%+ with respect to last year’s third quarter, and the shares are cheap.
That is, not only has it fully replaced the lost revenues from Amazon, it has added another 25%.
The Amazon loss is transitory, and even if it’s not, revenue from it is just $8M-9M now.
Even if it lost all of that, which is highly unlikely, it wouldn’t mean much. More likely Amazon demand will come back.

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