- Shorts, of which there are plenty in this stock, seemed to have advanced knowledge of Amazon pulling demand, perhaps even before management knew.
- Yet some of their other claims aren’t on the mark and/or can’t be verified.
- Despite the shorts being on the mark with their Amazon prediction we see no public data to back up their thesis that Applied Opto can’t compete in 100G.
- Nor do we find public evidence of Applied Opto losing chunks of demand from other customers like Facebook or Microsoft.
- But that doesn’t necessarily mean this can’t happen. If you have little risk tolerance, this isn’t a stock for you.
Source: The $64 Million Question For Applied Opto – Applied Optoelectronics, Inc. (NASDAQ:AAOI) | Seeking Alpha
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